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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2003
ELTEK LTD.
(Name of Registrant)
Sgoola Industrial Zone, Petach Tikva, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F __
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1):__
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7):__
Indicate by check mark whether by furnishing the information contained in
this Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes __ No X
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-___________
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ELTEK LTD.
6-K Items
1. Press Release re Eltek Ltd. Reports Second Quarter and First Half 2003
Results dated October 2, 2003.
ITEM 1
Press Release Source: ELTEK Ltd.
Eltek Ltd. Reports Second Quarter and First Half 2003 Results
Thursday October 2, 11:44 am ET
PETACH-TIKVA, Israel--(BUSINESS WIRE)--Oct. 2, 2003--Eltek Ltd. (Nasdaq:ELTK -
News), the leading Israeli manufacturer of advanced circuitry solutions, today
announced results for the second quarter and six months ended June 30, 2003.
Eltek reported revenues for the three months ended June 30, 2003 of NIS 25.9
million ($6.0 million), compared with NIS 28.2 million ($6.5 million) during the
second quarter of 2002. Net loss for the quarter totaled NIS 2.6 million
($599,000), or NIS 0.95 per diluted share ($0.22), compared with a net loss of
NIS 1.1 million ($256,000), or NIS 0.43 per diluted share ($0.10), for the
second quarter of 2002.
For the six-month period ended June 30, 2003, the Company reported revenues of
NIS 54.3 million ($12.6 million), compared with revenues of NIS 56 million ($13
million) for the comparable period in 2002.
Net loss for the six-month period ended June 30, 2003 was NIS 6.3 million ($1.5
million), or NIS 2.14 ($0.50) per share, compared with a net loss of NIS 2.3
million ($526,000) or NIS 0.77 ($0.18) per share for the same period in 2002.
"The results of the second quarter of 2003 have met our expectations," commented
Arieh Reichart, President and Chief Executive Officer of Eltek. "We continued to
make progress towards reaching our goal of achieving positive cash flow in the
second half of 2003 and were able to report sequential decrease in our quarterly
net losses by reducing operating expenses, eliminating non profitable revenue
items and stabilizing our gross profit - while increasing our international
operations."
Q2/2003 Q1/2003 Q4/2002
---------------------------------- ---------- ----------- ----------
($ million)
---------------------------------- ---------- ----------- ----------
Revenues 6.0 6.6 6.4
---------------------------------- ---------- ----------- ----------
Gross Profit (loss) 0.27 0.28 (0.38)
---------------------------------- ---------- ----------- ----------
SG&A 0.83 0.96 1.01
---------------------------------- ---------- ----------- ----------
Net Loss (0.60) (0.86) (1.60)
---------------------------------- ---------- ----------- ----------
"I am encouraged with Eltek's ongoing progress and feel that much has been
accomplished over the past challenging months to position Eltek to realize its
potential in the complex high-end of the PCB manufacturing markets. We have the
right products and team in place to drive the company to sustained positive cash
flow," added Mr. Reichart.
About the Company
Eltek is Israel's leading manufacturers of printed circuit boards, the core
circuitry of most electronic devices. It specializes in the complex high-end of
PCB manufacturing, i.e., HDI, multi-layered and flex-rigid boards. Eltek's
technologically advanced circuitry solutions are used in today's increasingly
sophisticated and compact electronic products. The Company has invested heavily
in upgrading its production facilities over the past five years.
For more information, visit Eltek's World Wide Web site at www.eltekglobal.com
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Certain matters discussed in this news release are forward-looking statements
that involve a number of risks and uncertainties including, but not limited to
statements regarding expected results in future quarters, risks in product and
technology development and rapid technological change, product demand, the
impact of competitive products and pricing, market acceptance, the sales cycle,
changing economic conditions and other risk factors detailed in the Company's
filings with the United States Securities and Exchange Commission.
ELTEK LTD.
Consolidated Statements of Operations
Adjusted to New Israeli Shekels as of June 2003
(In thousands, except per share data)
Convenience Convenience
Translation Translation
-------- --------
Six months ended Three months ended
June 30, June 30,
-------------------------- --------------------------
2002 2003 2003 2002 2003 2003
NIS NIS U.S. $ NIS NIS U.S. $
(Unaudited)
Revenues 56,044 54,326 12,599 28,175 25,855 5,997
Costs of
revenues (51,483) (51,969) (12,052) (25,962) (24,709) (5,731)
-------- -------- -------- -------- -------- --------
Gross profit 4,561 2,357 547 2,213 1,146 266
Research and
development
costs, net (118) 18 4 (118) - -
Selling,
general and
administrative
expenses (7,025) (7,715) (1,789) (3,676) (3,569) (828)
Amortization
of goodwill - (258) (60) - (129) (30)
-------- -------- -------- -------- -------- --------
Operating
loss (2,582) (5,598) (1,298) (1,581) (2,552) (592)
Financial income
(expenses), net 321 (451) (105) 490 28 6
-------- -------- -------- -------- -------- --------
Loss before
other income,
net (2,261) (6,049) (1,403) (1,091) (2,524) (586)
Other income,
net 8 29 7 - 24 6
-------- -------- -------- -------- -------- --------
Loss before
taxes on income (2,253) (6,020) (1,396) (1,091) (2,500) (580)
Taxes on income 46 (186) (43) 46 (59) (14)
-------- -------- -------- -------- -------- --------
Net loss after
taxes on income (2,207) (6,206) (1,439) (1,045) (2,559) (594)
Minority share in
subsidiary's
net income (60) (69) (16) (60) (22) (5)
-------- -------- -------- -------- -------- --------
Net loss for the
period (2,267) (6,275) (1,455) (1,105) (2,581) (599)
======== ======== ======== ======== ======== ========
Basic loss per
NIS 1 par value
of the share
capital(A) (0.77) (2.14) (0.50) (0.38) (0.88) (0.20)
======== ======== ======== ======== ======== ========
Total par value
of shares used
to compute basic
net loss per
NIS 1 par
value of share 2,932 2,932 2,932 2,932 2,932 2,932
======== ======== ======== ======== ======== ========
Diluted loss per
NIS 1 par value
of the share
capital(A) (0.77) (2.14) (0.50) (0.43) (0.95) (0.22)
======== ======== ======== ======== ======== ========
Total par value
of shares used
to compute
diluted net
loss per NIS 1
par value of
share 2,932 2,932 2,932 3,230 3,201 3,201
======== ======== ======== ======== ======== ========
Note A: Ordinary shares of a par value of NIS 0.6 each.
Eltek Ltd.
Consolidated Condensed Balance Sheets
Adjusted to New Israeli Shekels as of June 2003
Convenience
Translation
-----------
June 30, June 30,
--------------------- -----------
2002 2003 2003
NIS NIS U.S. $
---------- ---------- -----------
(Unaudited in thousands)
Assets
Current assets
Cash and cash equivalents 12,302 3,301 766
Receivables: Trade 31,333(B) 25,238 5,853
Other 935 2,001 464
Inventories 13,160 12,221 2,834
Prepaid expenses 1,122 1,017 236
---------- ---------- -----------
Total current assets 58,852 43,778 10,153
---------- ---------- -----------
Property and equipment, net 58,139 48,545 11,258
---------- ---------- -----------
Goodwill 5,096 4,691 1,088
---------- ---------- -----------
Total assets 122,087 97,014 22,499
========== ========== ===========
Liabilities and Shareholder's equity
Current liabilities
Short-term credit and current
maturities of long-term debts 23,209 17,293 4,010
Trade payables 19,643 25,444 5,901
Other liabilities and accrued
expenses 10,636(B) 8,891 2,062
---------- ---------- -----------
Total current liabilities 53,488 51,628 11,973
---------- ---------- -----------
Long-term liabilities
Long term debt, excluding current
maturities 21,160 17,479 4,054
Employee severance benefits 965 935 217
---------- ---------- -----------
Total liabilities 75,613 70,042 16,244
---------- ---------- -----------
Minority interests 1,932 1,928 447
---------- ---------- -----------
Shareholder's equity Ordinary shares, NIS 0.6 par value.
Authorized 50,000,000 shares,
issued and outstanding 4,885,651
shares 29,747 29,747 6,899
Additional paid in capital 52,717 52,717 12,226
Capital reserves related to loans
from controlling shareholders 10,151 10,151 2,354
Cumulative foreign currency
translation adjustments 65 510 118
Capital reserve 6,780 6,780 1,572
Accumulated deficit (54,918) (74,861) (17,361)
---------- ---------- -----------
Total shareholder's equity 44,542 25,044 5,808
---------- ---------- -----------
Total liabilities and shareholders'
equity 122,087 97,014 22,499
========== ========== ===========
Note B: Reclassified
______________
Contact:
ELTEK Ltd.
Dovi Frumovich, +972-3-9395040
fdovi@eltek.co.il
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ELTEK LTD.
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(Registrant)
By: /s/Arieh Reichart
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Arieh Reichart
President and Chief Executive Officer
Date: October 3, 2003