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CORRECTING and REPLACING Eltek Reports Results for Fourth Quarter and Full Year 2012 Financial Results

  CORRECTING and REPLACING Eltek Reports Results for Fourth Quarter and Full
  Year 2012 Financial Results

  *Revenues of $45.6 million for fiscal year 2012
  *Revenues of $11.4 million Q4-2012
  *Operating profit of $1.8 million in fiscal year 2012 before $616,000
    impairment charge and related financial expenses
  *Significant increase in US operation

CORRECTION...by Eltek Ltd.

Business Wire

PETACH-TIKVA, Israel -- April 30, 2013

The first sentence in the ninth graph, should read: $228,000 (sted $228,000
million).

The corrected release reads:

ELTEK REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2012 FINANCIAL RESULTS

  *Revenues of $45.6 million for fiscal year 2012
  *Revenues of $11.4 million Q4-2012
  *Operating profit of $1.8 million in fiscal year 2012 before $616,000
    impairment charge and related financial expenses
  *Significant increase in US operation

Eltek Ltd. (NASDAQ:ELTK), the leading Israeli manufacturer of advanced
flex-rigid circuitry solutions, announced today the results for the fourth
quarter and the year ended December 31, 2012.

Fiscal Year 2012

Revenues for the year ended December 31, 2012 were $45.6 million, a 2.5%
decrease compared to revenues of $46.8 million in 2011.

Gross profit for fiscal year 2012 was $7.8 million (17.1% of revenues) a
decrease of 10.5% compared to gross profit of $8.7 million (18.6% of revenues)
in 2011.

Operating profit for fiscal year 2012 before an impairment of goodwill charge
(on a non-GAAP basis), was $1.8 million compared to operating profit of $2.6
million in 2011. In the fourth quarter of 2012, following an evaluation
process that was performed in respect of its German subsidiary, Kubatronik
Leiterplatten GmbH, the Company recorded an impairment of goodwill charge in
the amount of $481,000 and related financial expenses of $135,000 associated
with the write down of its investment in Kubatronik. Operating profit after
such impairment amounted to $ 1.3 million in fiscal 2012.

Net Profit for fiscal year 2012 before the above mentioned impairment of
goodwill charge and related financial expense (on a non-GAAP basis), was $1.3
million or $0.20 per fully diluted share compared to net profit of $1.8
million or $0.28 per fully diluted share in 2011. Net profit after such
impairment was $690,000 or $0.10 per fully diluted share.

Fourth Quarter 2012:

Revenues for the quarter ended December 31, 2012 were $11.4 million, compared
to revenues of $11.5 million recorded in the fourth quarter of 2011.

Gross Profit for the fourth quarter of 2012 was $1.8 million (16.2% of
revenues), similar to the gross profit of $1.8 million (15.4% of revenues) in
the fourth quarter of 2011.

Operating Profit for the fourth quarter of 2012 before the above mentioned
impairment of goodwill charge (on a non-GAAP basis), was $303,000 similar to
the operating profit of $312,000 recorded in the fourth quarter of 2011. After
such impairment, the Company recorded an operating loss of $178,000 in the
fourth quarter of 2012.

Net Profit for fourth quarter of 2012 before the above mentioned impairment
charge and related financial expense (on a non-GAAP basis) was $294,000 or
$0.04 per fully diluted share compared to net profit of $228,000 or $0.03 per
fully diluted share in the fourth quarter of 2011. Net loss after such
impairment charge was $322,000 or $0.05 per fully diluted share.

EBITDA:

Eltek’s EBITDA for the year ended December 31, 2012 was $3.5 million compared
with EBITDA of $4.7 million in 2011. In the quarter ended December 31, 2012,
Eltek had EBITDA of $746,000 compared with EBITDA of $868,000 in the fourth
quarter of 2011.

ELTEK uses EBITDA as a non-GAAP financial performance measurement. EBITDA is
calculated by adding back to net income interest, taxes, depreciation and
amortization. EBITDA is provided to investors to complement results provided
in accordance with GAAP, as management believes the measure helps illustrate
underlying operating trends in the Company's business and uses the measure to
establish internal budgets and goals, manage the business and evaluate
performance. EBITDA should not be considered in isolation or as a substitute
for comparable measures calculated and presented in accordance with GAAP.
Reconciliation between the company's results on a GAAP and non-GAAP basis is
provided in a table immediately following the Consolidated Statement of
Operations

Management Comments:

Arieh Reichart, President and Chief Executive Officer of Eltek commented: "In
the fourth quarter of 2012 we returned to full production as we reported with
the release of results for the third quarter. We managed to maintain the level
of revenues in this quarter as in the comparable period in 2011 in spite of
the changing market conditions. Excluding the goodwill write-off, Eltek's net
income in the fourth quarter of 2012 exceeded its net income in the fourth
quarter of 2011. Our main challenge is to continue the development of our
production lines and acquire new equipment. We continue our discussions with
the banks to obtain additional credit facilities for such purpose."

"I am highly encouraged by the increase in our sales to the US market in 2012.
Such increase was achieved as a result of our customers' recognition of the
reliability and the high quality of our products, which are extremely
essential in the medical and defense sectors," Mr. Reichart concluded.

Amnon Shemer, CFO of Eltek, added: "Following an evaluation performed for our
investment in Kubatronik, we determined that the value of our investment in
Kubatronik decreased and that as a result, goodwill in the amount of $481,000
relating to such investment had been impaired. As a result, for the year ended
December 31, 2012, we recorded a goodwill impairment loss of $481,000. In
addition, the estimated net value of our liability attributable to the put
option that the owner of 21% interest in Kubatronik increased by $135,000,
thus the total impact of the devaluation of our investment in Kubatronik on
our net income was $616,000 in 2012."

About Eltek

Eltek is Israel's leading manufacturer of printed circuit boards, the core
circuitry of most electronic devices. It specializes in the complex high-end
of PCB manufacturing, i.e., HDI, multilayered and flex-rigid boards. Eltek's
technologically advanced circuitry solutions are used in today's increasingly
sophisticated and compact electronic products. For more information, visit
Eltek's web site at www.eltekglobal.com.

Forward Looking Statement:

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 Annual Report on Form 20-F and other filings with the United States
Securities and Exchange Commission.

                                                            
Eltek Ltd.
Consolidated Statements of Operations
(In thousands US$, except per share data)
                                                                     
                             Three months ended        Year ended
                             December 31,              December 31,
                             2012         2011         2012          2011
                             Unaudited                 Audited
                                                                     
Revenues                     11,355       11,485       45,646        46,830
Costs of revenues            (9,515 )     (9,712 )     (37,836 )     (38,101 )
                                                                     
Gross profit                 1,840        1,773        7,810         8,729
                                                                     
Selling, general and         (1,537 )     (1,461 )     (6,040  )     (6,155  )
administrative expenses
                                                                     
Impairment loss on           (481   )     0            (481    )     0
goodwill
                                                                  
Operating profit (loss)      (178   )     312          1,289         2,574
                                                                     
Financial expenses, net      (149   )     (150   )     (543    )     (740    )
                                                                     
Profit (loss) before         (327   )     162          746           1,834
other income, net
                                                                     
Other income, net            (3     )     2           2            12      
                                                                     
Profit (loss) before         (330   )     164          748           1,846
income tax expenses
                                                                     
Income tax (expenses),       (9     )     14          (52     )     (31     )
net
                                                                     
Net Profit (loss)            (339   )     178          696           1,815
                                                                     
Net profit (loss)
attributable to non          (17    )     50          6            31      
controlling interest
                                                                     
Net Profit (loss)
attributable to              (322   )     228         690          1,846   
controlling interest /
Eltek
                                                                     
Earnings per share
                                                                     
Basic and diluted net
gain (loss) per ordinary     (0.05  )     0.03        0.10         0.28    
share
                                                                     
Weighted average number
of ordinary shares used
to compute basic and         6,610       6,610       6,610        6,610   
diluted net gain (loss)
per ordinary share (in
thousands)
                                                                     
                                                                     
Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)
                                                                     
                                                       December 31,
                                                       2012          2011
                                                       Audited
Assets
                                                                     
Current assets
Cash and cash                                          1,935         892
equivalents
Receivables: Trade, net
of provision for                                       6,662         8,885
doubtful accounts
Other                                                  259           115
Inventories                                            5,244         4,434
Prepaid expenses                                       158          240     
                                                                     
Total current assets                                   14,258       14,566  
                                                                     
Assets held for
employees' severance                                   47           39      
benefits
                                                                     
Fixed assets, less                                     9,075        7,746   
accumulated depreciation
                                                                     
Goodwill                                               69           518     
                                                                     
Total assets                                           23,449       22,869  
                                                                     
                                                                     
                                                                     
                                                                     
Liabilities and Shareholder's equity
                                                                     
Current liabilities
Short-term credit and
current maturities of                                  5,105         4,856
long-term debts
Accounts payable: Trade                                6,110         6,456
Related parties                                        1,336         1,046
Other                                                  4,419        3,995   
                                                                     
Total current                                          16,970       16,353  
liabilities
                                                                     
Long-term liabilities
Long term debt,
excluding current                                      728           1,604
maturities
Employee severance                                     215          150     
benefits
                                                                     
Total long-term                                        943          1,754   
liabilities
                                                                     
Equity
Ordinary shares, NIS 0.6
par value authorized
50,000,000 shares,                                     1,384         1,384
issued and outstanding
6,610,107 as of December
31, 2011.
Additional paid-in                                     14,328        14,328
capital
Cumulative foreign
currency translation                                   2,713         2,622
adjustments
Capital reserve                                        695           695
Accumulated deficit                                    (13,708 )     (14,398 )
Shareholders' equity                                   5,412         4,631
Non controlling interest                               124          131     
Total equity                                           5,536        4,762   
Total liabilities and                                  23,449       22,869  
shareholders' equity
                                                                     
                                                                     
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
For the periods ended December 31, 2011
(In thousands US$)
                                                                     
Non-GAAP EBITDA              Three months ended        Year ended
Reconciliations
                             December 31,              December 31,
                             2012         2011         2012          2011
                             Unaudited                 Unaudited
                                                                     
GAAP net Income (loss)       (322   )     228          690           1,846
Add back items:
                                                                     
Financial expenses, net      149          150          543           740
Income tax (benefit)         9            (14    )     52            31
expense
Depreciation                 910         504         2,253        2,091   
Adjusted EBITDA              746          868          3,538         4,708
                                                                     
                                                                     
Eltek Ltd.
Unaudited Non-GAAP Reconciliations
For the periods ended December 31, 2012
(In thousands US$)
                                                                     
                             Three months ended        Year ended
                             December 31,              December 31,
                             2012         2011         2012          2011
                                                              
                                                                     
Net loss before goodwill
impairment charge and
financial expenses
associated
with the write down of
the investment in
Kubatronik (non-GAAP)        294          228          1,306         1,846
                                                                     
Add back items:
                                                                     
Goodwill impairment          (481   )     0            (481    )     0
charge
Financial expenses
associated with
the write down of the        (135   )     0           (135    )     0       
investment in Kubatronik
GAAP net loss                (322   )     228          690           1,846

Contact:

Eltek Ltd.
Amnon Shemer
Chief Financial Officer
+972-3-9395050
 
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