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.


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

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

"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
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
Current assets
Cash and cash equivalents                              1,217         1,414
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   
Ordinary shares, NIS 0.6 par value authorized
50,000,000 shares, issued and outstanding              1,384         1,384
Additional paid-in capital                             14,328        14,295
Cumulative foreign currency translation                2,816         2,829
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
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


Eltek Ltd.
Amnon Shemer
Chief Financial Officer
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