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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 December 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
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 Three and Nine Month Periods Ended
September 30, 2003.
ITEM 1
Press Release Source: ELTEK Ltd.
Eltek Ltd. Reports Results for the Three and Nine Month Periods Ended
September 30, 2003
Tuesday December 2, 8:13 am ET
Eltek Announces the Appointment of a New CEO For Its German Subsidiary
First significant order from this strategically important market has been
awarded
PETACH-TIKVA, Israel--(BUSINESS WIRE)--Dec. 2, 2003-- Eltek Ltd. (Nasdaq:ELTK -
News), the leading Israeli manufacturer of advanced circuitry solutions, today
announced its financial results for the three and nine month periods ended
September 30, 2003.
Eltek reported revenues for the three months ended September 30, 2003 of NIS
27.2 million ($6.1 million), compared to NIS 25.5 million ($5.7 million) during
the third quarter of 2002. Net loss for the quarter totaled NIS 3.2 million
($709,000), or NIS 0.75 per share ($0.17), compared to a net loss of NIS 6.7
million ($1.5 million), or NIS 2.28 per share ($0.51), for the third quarter of
2002.
For the nine-month period ended September 30, 2003, the Company reported
revenues of NIS 81 million ($18.2 million), which is the same as in the
comparable period in 2002.
Net loss for the nine-month period ended September 30, 2003 was NIS 9.4 million
($2.1 million), or NIS 2.8 ($0.63) per share, compared to a net loss of NIS 8.9
million ($2 million) or NIS 3.04 ($0.68) per share for the same period in 2002.
Q3/2003 Q2/2003 Q1/2003 Q4/2002
------------------------------------- ------- ------- ------- -------
( In millions $)
------------------------------------- ------- ------- ------- -------
Revenues 6.12 5.76 6.35 6.18
------------------------------------- ------- ------- ------- -------
Gross Profit (loss) 0.45 0.26 0.27 (0.36)
------------------------------------- ------- ------- ------- -------
Operating Loss (0.44) (0.57) (0.68) (1.37)
------------------------------------- ------- ------- ------- -------
Financial Expenses
(0.32) 0.00 (0.11) (0.16)
------------------------------------- ------- ------- ------- -------
Net Loss (0.71) (0.58) (0.82) (1.54)
------------------------------------- ------- ------- ------- -------
"The results of the third quarter of 2003 reflect our ongoing marketing efforts
and our actions to improve our operational results," said Arie Reichart,
President and Chief Executive Officer of Eltek.
"Our revenues were on the same level as in the first quarter of 2003, although
we reduced our manpower by 50 positions. Gross profit is improving and we are
reducing our operating loss in each quarter. Our disappointment is with the pace
of the improvement which was adversely impacted by the re-valuation of the NIS
against the US$ beginning in the second quarter. Our financing expenses in the
third quarter were unusually high due to the decrease in the CPI during the
quarter."
"On July 1, 2003, Mr. Earnst Winkler joined Eltek as CEO of our German
subsidiary, Kubatronik. Mr. Winkler brings more than 20 years of extensive
marketing and technological experience in the fields of flex rigid and other
complex PCBs. He has already played a significant role in our efforts to further
penetrate the German market as well as to expand our European activities. We see
great potential in these areas."
Mr. Reichart continued: "I am particularly encouraged by the increased
contribution of Eltek's international operations to our quarterly revenues as
well as to our pipeline for 2004. Our international sales accounted for more
than 36% of our overall quarterly revenues in the third quarter. We were
recently awarded an initial order of $220,000 from a new customer in Germany for
a complex flex-rigid PCB to be delivered during 2004."
Mr. Reichart concluded: "Our ongoing efforts to further strengthen Eltek's
global market position has begun to yield tangible results. We intend to
continue to aggressively explore opportunities in the international markets."
About the Company
Eltek is Israel's leading manufacturers of printed circuit boards (PCB), 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. ELTEK has invested
heavily in upgrading its production facilities over the past five years to
maintain state of the art technology.
For more information, visit Eltek's World Wide Web site at www.eltekglobal.com
-------------------
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 September 2003
(In thousands, except per share data)
Conven- Conven-
ience ience
Trans- Trans-
lation lation
--------- ---------
Nine months ended Three months ended
September 30, September 30,
----------------------------- -----------------------------
2002 2003 2003 2002 2003 2003
NIS NIS U.S. $ NIS NIS U.S. $
(Un- (Un- (Un- (Un- (Un- (Un-
audited) audited) audited) audited) audited) audited)
Revenues 81,017 80,981 18,235 25,527 27,194 6,124
Costs of
revenues (77,820) (76,631) (17,256) (26,848) (25,177) (5,669)
--------- --------- --------- --------- --------- --------
Gross profit
(loss) 3,197 4,350 979 (1,321) 2,017 455
Research and
develop-
ment costs,
net (117) 18 4 - - -
Selling,
general and
adminis-
trative
expenses (10,883) (11,467) (2,582) (3,927) (3,829) (862)
Amortization
of goodwill (157) (409) (92) (157) (154) (35)
--------- --------- --------- --------- --------- --------
Operating
loss (7,960) (7,508) (1,691) (5,405) (1,966) (442)
Financial
expenses,
net (751) (1,882) (424) (1,068) (1,435) (323)
--------- --------- --------- --------- --------- --------
Loss before
other
income
(expenses),
net (8,711) (9,390) (2,115) (6,473) (3,401) (765)
Other income
(expenses),
net (7) 164 37 (15) 135 30
--------- --------- --------- --------- --------- --------
Loss before
taxes on
income (8,718) (9,226) (2,078) (6,488) (3,266) (735)
Taxes on
income (95) (101) (23) (139) 83 19
--------- --------- --------- --------- --------- --------
Net loss
after taxes
on income (8,813) (9,327) (2,101) (6,627) (3,183) (716)
Minority
share in
sub-
sidiary's
net loss
(income) (118) (37) (8) (59) 31 7
--------- --------- --------- --------- --------- --------
Net loss for
the period (8,931) (9,364) (2,109) (6,686) (3,152) (709)
========= ========= ========= ========= ========= ========
Basic and
diluted
loss per
NIS 1 par
value of
the share
capital(a) (3.04) (2.80) (0.63) (2.28) (0.75) (0.17)
========= ========= ========= ========= ========= ========
Total par
value of
shares used
to compute
basic and
diluted net
loss per
NIS 1 par
value of
share 2,932 3,332 3,332 2,932 4,132 4,132
========= ========= ========= ========= ========= ========
(a) shares of a par value of NIS 0.6 each.
Eltek Ltd.
Consolidated Condensed Balance Sheets
Adjusted to New Israeli Shekels as of September 2003
Convenience
Translation
September 30, September 30,
-------------------- ------------
2002 2003 2003
Unaudited Unaudited Unaudited
NIS NIS U.S. $
--------- ---------- ------------
(in
thousands)
Assets
Current assets
Cash and cash equivalents 10,407 4,210 948
Receivables: Trade 24,669(b) 20,566 4,631
Other 776 1,832 413
Inventories 12,981 12,135 2,733
Prepaid expenses 907 615 138
--------- ----------- -----------
Total current assets 49,740 39,358 8,863
--------- ----------- -----------
Property and equipment, net 55,956 45,478 10,240
--------- ----------- -----------
Goodwill 4,927 4,798 1,080
--------- ----------- -----------
Total assets 110,623 89,634 20,183
========= =========== ===========
Liabilities and Shareholder's equity
Current liabilities
Short-term credit and current
maturities of long-term debts 22,182 19,797 4,458
Trade payables 18,872 20,847 4,694
Other liabilities and accrued
expenses 8,723(b) 7,334 1,651
--------- ----------- -----------
Total current liabilities 49,777 47,978 10,803
--------- ----------- -----------
Long- term liabilities
Long term debt, excluding current
maturities 20,435 14,100 3,175
Employee severance benefits 955 1,018 229
--------- ----------- -----------
Total liabilities 71,167 63,096 14,207
--------- ----------- -----------
Minority interests 1,985 1,993 449
--------- ----------- -----------
Convertible note - 2,270 511
--------- ----------- -----------
Shareholder's equity
Ordinary shares, NIS 0.6 par value.
Authorized 50,000,000 shares, issued
and outstanding 4,885,651 shares 29,452 29,452 6,632
Additional paid in capital 52,194 52,194 11,753
Capital reserves related to loans
from controlling shareholders 10,050 10,050 2,263
Cumulative foreign currency
translation adjustments 121 1,137 256
Capital reserve 6,712 6,712 1,511
Accumulated deficit (61,058) (77,270) (17,399)
--------- ----------- -----------
Total shareholder's equity 37,471 22,275 5,016
--------- ----------- -----------
Total liabilities and shareholders'
equity 110,623 89,634 20,183
========= =========== ===========
(b) Reclassified
[GRAPHIC OMITTED]
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.
------------------------------------
(Registrant)
By: /s/Arieh Reichart
---------------------------------
Arieh Reichart
President and Chief Executive Officer
Date: December 3, 2003