SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
          

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 August 2024

Commission file number 000-28884

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 ☒      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): ☐


Eltek Ltd.
 
EXPLANATORY NOTE
 
 On August 15, 2024 Eltek issued a press release reporting second quarter 2024 financial results. A copy of this press release is furnished herewith as Exhibit 99.1.
 

EXHIBIT INDEX



SIGNATURE

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/Ron Freund
 
Ron Freund
 
Chief Financial Officer

Date:  August 15, 2024

Exhibit 99.1


Press Release
 
Eltek Ltd. Reports 2024 Second Quarter Financial Results
 
Petach Tikva, Israel (August 15, 2024) Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended June 30, 2024.
 
Second Quarter 2024 Highlights
 

 ◾
Revenues were $10.5 million
 

 ◾
Operating profit was $0.4 million
 

 ◾
Profit before tax was $0.9 million
 

 ◾
Net income was $0.8 million or $0.11 per fully diluted share
 

 ◾
As of June 30, 2024 cash and cash equivalents amounted $18.3 million.
 
"Eltek has demonstrated consistent growth over the past several quarters, driven by our commitment to innovation and customer satisfaction. However, this quarter, we experienced a decrease in revenues and profits compared to the previous quarter and the corresponding quarter last year. This decline is attributed to a significant timing shift by some key customers, who prioritized orders for PCBs with medium technology requirements, resulting in lower prices and margins. Orders for more complex, higher-margin PCBs were pushed back and are scheduled to be produced in the third quarter. While this has impacted our short-term financial performance, we remain confident in our long-term strategy and market position," said Eli Yaffe, CEO of Eltek.

"We expect to return in in the third quarter to the profitability parameters of previous quarters, as product mix strategies are realigned. Our backlog as of today increased by 30% since the beginning of 2024. This increase will support our planned growth in revenues and profitability. We remain committed to delivering value to our shareholders and are taking the necessary steps to ensure that we continue our growth trend. Our team is focused on optimizing our product offerings and operational efficiencies to drive profitability and sustain our market leadership," concluded Mr. Yaffe.


Second Quarter 2024 GAAP Financial Results
 
Revenues for the second quarter of 2024 were $10.5 million compared to $11.0 million in the second quarter of 2023.
 
Gross profit for the second quarter of 2024 was $1.6 million (16% of revenues) compared to $3.0 million (27% of revenues) in the second quarter of 2023.
 
Operating profit for the second quarter of 2024 was $0.4 million compared to operating profit of $1.4 million in the second quarter of 2023.
 
Financial income for the second quarter of 2024 was $0.5 million compared to financial income of $0.2 million in the second quarter of 2023. Financial income primarily results from the erosion of the NIS against the US dollar.
 
Profit before income tax for the second quarter of 2024 was $0.9 million compared to $1.6 million in the second quarter of 2023.
 
Net income for the second quarter of 2024 was $0.8 million or $0.11 per fully diluted share compared to net income of $1.3 million or $0.22 per fully diluted share in the second quarter of 2023.
 
Second Quarter 2024 Non-GAAP Financial Results
 
EBITDA for the second quarter of 2024 was $0.8 million (7.6% of revenues) compared to EBITDA of $1.7 million (15.3% of revenues) in the second quarter of 2023;
 
First Six Months 2024 GAAP Financial Results
 
Revenues for the first six months of 2024 were $22.2 million compared to $22.5 million in the first six months of 2023.
 
Gross profit for the first six months of 2024 was $4.9 million (22% of revenues) compared to $6.0 million (26% of revenues) in the first six months of 2023.
 
Operating profit for the first six months of 2024 was $2.1 million compared to operating profit of $3.0 million in the first six months of 2023.
 
Financial income for the first six months of 2024 was $0.8 million compared to financial income of $0.5 million in the first six months of 2023. Financial income primarily results from the erosion of the NIS against the US dollar.
 
Profit before income tax for the first six months of 2024 was $3.0 million compared to $3.5 million in the first six months of 2023.
 
Net profit for the first six months of 2024 was $2.5 million or $0.38 per fully diluted share compared to net profit of $2.9 million or $0.49 per fully diluted share in the first six months of 2023.
 
First Six Months 2024 Non-GAAP Financial Results
 
EBITDA for the first six months of 2024 was a $2.9 million (13% of revenues) compared to EBITDA of $3.6 million (16% of revenues) in the first six months of 2023.
 
About our Non-GAAP Financial Information
 
The Company reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures, including EBITDA. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in the table below.
 
Conference Call
 
Today, Thursday, August 15, 2024, at 9:30am Eastern Time (16:30pm Israel Time, 6:30am Pacific Time), Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer.
 
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
 
United States:  
1-866-860-9642
Israel:
03-918-0691
International:
+972-3-918-0691


To Access a Replay of the Call
 
A replay of the call will be available for 30 days on the Investor Info section on Eltek’s corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed.
 
About Eltek
 
Eltek – ”Innovation Across the Board”, is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.
 
Eltek was founded in 1970. The Company’s headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America.
 
For more information, visit Eltek's web site at www.nisteceltek.com

Forward Looking Statement
 
Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of the Coronavirus on the economy and our operations, 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. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.
 
Investor Contact
 
Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023

(Tables follow)

Eltek Ltd.
Consolidated Statements of Income
U.S dollars in thousands (except per share data)

   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2024
    
2023
    
2024
    
2023
  
                         
Revenues
    
10,466
      
11,043
      
22,249
      
22,513
  
Costs of revenues
    
(8,830
)
    
(8,091
)
    
(17,361
)
    
(16,546
)
                                 
Gross profit
    
1,636
      
2,952
      
4,888
      
5,967
  
                                 
Research and development expenses, net
    
(47
)
    
(15
)
    
(62
)
    
(24
)
Selling, general and administrative expenses
    
(1,184
)
    
(1,543
)
    
(2,700
)
    
(2,960
)
                                 
Operating profit
    
405
      
1,394
      
2,126
      
2,983
  
                                 
Financial income, net
    
489
      
190
      
839
      
477
  
                                 
Income before income tax
   
894
      
1,584
      
2,965
      
3,460
  
                                 
Income tax expenses
    
143
      
271
      
475
      
585
  
                                 
Net income
   
751
      
1,313
      
2,490
      
2,875
  
                                 
Earnings per share:
                                
Basic and diluted net profit per ordinary share
    
0.11
      
0.22
      
0.38
      
0.49
  
                                 
Weighted average number of ordinary shares used to compute
                          
basic net profit per ordinary share (in thousands)
    
6,706
      
5,908
      
6,541
      
5,879
  
                                 
Weighted average number of ordinary shares used to compute
                          
diluted net profit per ordinary share (in thousands)
    
6,764
      
5,943
      
6,628
      
5,897
  


Eltek Ltd.
Consolidated Balance Sheets
U.S dollars in thousands

   
June 30,
    
December 31,
  
   
2024
    
2023
  
             
Assets
            
             
Current assets:
            
Cash and cash equivalents
    
8,877
      
9,278
  
Short-term bank deposits
    
9,396
      
2,862
  
Receivables: Trade, net of provision for doubtful accounts
    
9,948
      
10,898
  
                   Other
    
287
      
689
  
Inventories
   
6,440
      
6,135
  
Prepaid expenses
   
306
      
245
  
                 
Total current assets
    
35,254
      
30,107
  
                 
Long term assets:
                
Severance pay fund
    
55
      
57
  
Deferred tax asset, net
    
964
      
1,098
  
Operating lease right of use assets
    
5,965
      
6,555
  
Total long term assets
    
6,984
      
7,710
  
                 
Fixed assets, less accumulated depreciation
    
12,669
      
9,354
  
                 
Total Assets
    
54,907
      
47,171
  
                 
Liabilities and Shareholder's equity
                
                 
Current liabilities:
                
Accounts payable: Trade
    
5,273
      
7,503
  
                              Other
    
5,214
      
5,689
  
Short-term operating lease liabilities
    
763
      
789
  
                 
Total current liabilities
    
11,250
      
13,981
  
                 
Long-term liabilities:
                
Employee severance benefits
    
399
      
447
  
Long-term operating lease liabilities
    
5,306
      
5,871
  
                 
Total long-term liabilities
    
5,705
      
6,318
  
                 
Shareholders' equity:
                
Ordinary shares of NIS 3.0 par value – Authorized: 10,000,000 shares at June 30, 2024 and December 31, 2023; Issued and outstanding: 6,708,522 shares at June 30, 2024 and 6,020,693 shares at December 31, 2023
    
6,006
      
5,443
  
Additional paid-in capital
    
32,597
      
23,587
  
Cumulative foreign currency translation adjustments
    
(486
)
    
783
  
Capital reserve
    
2,186
      
1,900
  
Accumulated deficit
    
(2,351
)
    
(4,841
)
Total shareholders' equity
    
37,952
      
26,872
  
Total liabilities and shareholders' equity
    
54,907
      
47,171
  



Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
U.S dollars in thousands

   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2024
    
2023
    
2024
    
2023
  
                         
GAAP net income
   
751
      
1,313
      
2,490
      
2,875
  
Add back items:
                                
                                 
Financial income, net
   
(489
)
    
(190
)
    
(839
)
    
(477
)
Income tax expenses
   
143
      
271
      
475
      
585
  
Depreciation and amortization
    
388
      
301
      
753
      
630
  
Non-GAAP EBITDA
    
793
      
1,695
      
2,879
      
3,613
  


Eltek Ltd.
Consolidated Statement of  Cash flow
U.S dollars in thousands

   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2024
    
2023
    
2024
    
2023
  
                         
Cash flows from operating activities:
                        
                         
Net Income
    
751
      
1,313
      
2,490
      
2,875
  
Adjustments to reconcile net income to net cash flows
                                
provided by operating activities:
                                
Depreciation and amortization
    
388
      
301
      
753
      
630
  
Accrued interest
    
(98
)
    
-
      
(186
)
    
-
  
Stock-based compensation
    
154
      
72
      
286
      
144
  
Decrease in deferred tax assets and long term tax receivable
    
(100
)
    
260
      
91
      
566
  
     
344
      
633
      
944
      
1,340
  
                                 
Decrease (increase) in operating lease right-of-use assets
    
2
      
11
      
3
      
(22
)
Decrease (increase) in trade receivables
    
(219
)
    
(1,896
)
    
517
      
(1,784
)
Decrease (increase) in other receivables and prepaid expenses
    
234
      
214
      
309
      
(311
)
Decrease (increase) in inventories
    
(169
)
    
(496
)
    
(565
)
    
(809
)
Increase (decrease) in trade payables
    
955
      
(307
)
    
(536
)
    
105
  
Increase (decrease) in other liabilities and accrued expenses
    
(48
)
    
629
      
(249
)
    
1,477
  
Increase (decrease)  in employee severance benefits, net
    
(48
)
    
17
      
(30
)
    
22
  
     
707
      
(1,828
)
    
(551
)
    
(1,322
)
                                 
Net cash provided by operating activities
    
1,802
      
118
      
2,883
      
2,893
  
                                 
Cash flows from investing activities:
                                
Purchase of property and equipment
    
(3,215
)
    
(406
)
    
(5,947
)
    
(711
)
Insurance Proceeds
    
-
      
2,000
      
-
      
2,000
  
Investment in short-term bank deposits, net
    
(132
)
    
-
      
(6,534
)
    
-
  
Restricted deposits
    
-
      
192
      
-
      
192
  
Net cash provided by (used in) investing activities
    
(3,347
)
    
1,786
      
(12,481
)
    
1,481
  
                                 
Cash flows from financing activities:
                                
Exercise of options
    
16
      
299
      
261
      
299
  
Repayment of long-term loans from bank
    
-
      
(1,768
)
    
-
      
(3,348
)
Issuance of shares, net
    
-
      
-
      
9,312
      
-
  
Net cash provided by (used in) financing activities
    
16
      
(1,469
)
    
9,573
      
(3,049
)
                                 
Effect of translation adjustments
    
(204
)
    
(164
)
    
(376
)
    
(361
)
                                 
Net increase (decrease) in cash and cash equivalents
    
(1,733
)
    
271
      
(401
)
    
964
  
                                 
Cash and cash equivalents at the beginning of the period
    
10,610
      
8,059
      
9,278
      
7,366
  
                                 
Cash and cash equivalents at the end of the period
    
8,877
      
8,330
      
8,877
      
8,330
  

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