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Eltek Reports Record Revenues for First Quarter 2013



  Eltek Reports Record Revenues for First Quarter 2013

  * $12.5 Million in Revenues
  * Net Income of $127,000

Business Wire

PETACH-TIKVA, Israel -- May 29, 2013

Eltek Ltd. (NASDAQ:ELTK), the leading Israeli manufacturer of advanced
flex-rigid circuitry solutions, announced today its results for the first
quarter of 2013.

Revenues for the quarter ended March 31, 2013 were $12.5 million, compared to
revenues of $12.0 million in the first quarter of 2012.

Gross Profit for the first quarter of 2013 was $1.8 million (14% of revenues),
compared to gross profit of $2.3 million (19% of revenues) in the first
quarter of 2012. Gross profit decreased mainly due to increases in the cost of
labor and raw materials.

Operating Profit for the first quarter of 2013 was $230,000 compared to the
operating profit of $716,000 in the first quarter of 2012.

Net Profit for first quarter of 2013 was $127,000 or $0.02 per fully diluted
share, compared to net profit of $526,000 or $0.08 per fully diluted share in
the first quarter of 2012.

EBITDA:

In the quarter ended March 31, 2013, Eltek had EBITDA of $613,000 compared to
EBITDA of $1.2 million in the first quarter of 2012.

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: "I
am pleased to report that our customers continue to see the value proposition
of our products and have a great deal of trust in our company. Specifically,
in our own backyard, we have seen greater interest from our local customers,
reflecting the continued market recognition of our high quality and reliable
products."

"In addition, despite the increase in the cost of raw materials and labor, we
were able to achieve a growth in revenues, with $12.5 million in revenues for
the first quarter of 2013, while maintaining Eltek's ability to stay
profitable despite external market-changing elements," Mr. Reichart concluded.

Amnon Shemer, Chief Financial Officer of Eltek, added: “Although we have been
profitable for the last two years, our main challenge continues to be
obtaining additional financing, including lines of credit for working capital
and investment in fixed assets that are required for the expansion of our
production capacity and to replace or refurbish old equipment."

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
                                                        March 31,
                                                        2013          2012
                                                        Unaudited
                                                                       
Revenues                                                12,452        11,978
Costs of revenues                                       (10,664 )     (9,657 )
                                                                       
Gross profit                                            1,788         2,321
                                                                       
Selling, general and administrative expenses            (1,558  )     (1,605 )
                                                                       
Operating profit                                        230           716
                                                                       
Financial income (expenses), net                        (100    )     (168   )
                                                                       
Profit before other income, net                         130           548
                                                                       
Other income, net                                       (3      )     0       
                                                                       
Profit before income tax expenses                       127           548
                                                                       
Income tax (expenses), net                              (9      )     (5     )
                                                                       
Net profit                                              118           544
                                                                       
Net profit (loss) attributable to non                   (9      )     (18    )
controlling interest
                                                                       
Net profit attributable to controlling interest         127           526     
/ Eltek
                                                                       
Earnings per share
                                                                       
Basic and diluted net gain per ordinary share           0.02          0.08    
                                                                       
Weighted average number of ordinary shares used
to compute basic and diluted net gain per               6,610         6,610   
ordinary share (in thousands)
                                                                              
                                                                              

Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)
 
                                                       March 31,
                                                       2013          2012
                                                       Unaudited
Assets
                                                                      
Current assets
Cash and cash equivalents                              1,217         1,414
Receivables:
Trade, net of provision for doubtful accounts          9,187         8,565
Other                                                  126           269
Inventories                                            5,125         5,005
Prepaid expenses                                       311           350      
                                                                      
Total current assets                                   15,966        15,603   
                                                                      
Assets held for employees' severance benefits          49            41       
                                                                      
Fixed assets, less accumulated depreciation            9,595         8,214    
                                                                      
Goodwill                                               71            521      
                                                                      
Total assets                                           25,681        24,379   
                                                                      
                                                                      
Liabilities and Shareholders' equity
                                                                      
Current liabilities
Short-term credit and current maturities of            5,452         4,584
long-term debts
Accounts payable:
Trade                                                  6,999         7,214
Related parties                                        1,539         1,190
Other                                                  4,768         4,118    
                                                                      
Total current liabilities                              18,758        17,106   
                                                                      
Long-term liabilities
Long term debt, excluding current maturities           969           1,642
Employee severance benefits                            203           164      
                                                                      
Total long-term liabilities                            1,172         1,806    
                                                                      
Equity
Ordinary shares, NIS 0.6 par value authorized
50,000,000 shares, issued and outstanding              1,384         1,384
6,610,107.
Additional paid-in capital                             14,328        14,295
Cumulative foreign currency translation                2,816         2,829
adjustments
Capital reserve                                        695           695
Accumulated deficit                                    (13,583 )     (13,872 )
Shareholders' equity                                   5,640         5,331
Non controlling interest                               112           136      
Total equity                                           5,752         5,467    
Total liabilities and shareholders' equity             25,681        24,379   
                                                                              
                                                                              

Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$, except per share data)
 
Non-GAAP EBITDA Reconciliations         Three months ended
                                        March 31,
                                        2013        2012
                                        Unaudited
                                                     
GAAP net Income                         127         526
Add back items:
                                                     
Financial expenses, net                 100         168
Income tax expense                      9           5
Depreciation                            377         476
Adjusted EBITDA                         613         1,174

Contact:

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