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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 June 2004
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 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 Announces 2003 Financial Results dated June 17,
2004.
ITEM 1
Press Release Source: Eltek Ltd.
Eltek Announces 2003 Financial Results
Thursday June 17, 3:42 pm ET
PETACH-TIKVA, Israel--(BUSINESS WIRE)--June 17, 2004--Eltek LTD. (Nasdaq:ELTK -
News), the leading Israeli manufacturer of advanced circuitry solutions, today
announced its financial results for the fourth quarter of 2003 and the year
ended December 31, 2003.
Revenues for the year 2003 were NIS 108.3 million ($24.7 million) compared with
NIS 108 million ($24.7 million) for the year 2002. Net loss for the year 2003
was NIS 13 million ($3 million), or NIS (3.61) ($0.82) per share, compared with
a net loss of NIS 15.7 million ($3.6 million), or NIS (5.36) ($1.22) per share
for 2002 (all per share numbers are based on a par value per share of NIS 1).
Revenues for the fourth quarter of 2003 were NIS 27.6 million ($6.3 million)
compared with NIS 27.3 million ($6.2 million) for the fourth quarter of 2002.
Net loss for the fourth quarter of 2003 was NIS 3.7 million ($836,000), or NIS
(0.84) ($0.19) per share, compared with a net loss of NIS 6.8 million ($1.6
million), or NIS (2.28) ($0.52) per share, for the fourth quarter of 2002.
"The results of 2003 are marked by continued improvements in revenues per
employee, positive annual cash flow from operations and reduced balance sheet
debt," commented Arieh Reichart, President and Chief Executive Officer of Eltek.
"Despite reducing our manpower by 50 positions, we managed to intensify our
marketing efforts to position Eltek to realize its potential in the complex
high-end of the PCB manufacturing markets."
"I am encouraged with the growing contribution of our international operations
which accounted for approximately 30% of our overall annual revenues. Looking
forward, we are planning to increase our presence in the flex-rigid PCB markets,
by leveraging our expertise in this lucrative niche," added Mr. Reichart.
In March 2004, Eltek appointed Mr. Amnon Shemer as its Chief Financial Officer.
Prior to joining Eltek, Mr. Shemer, 45, was managing director for Mea Control
Transfer Ltd., a company that provides investment banking services, and, from
June 1995 until August 2002 he served as vice president of finance for Mentergy
Ltd., a publicly traded company.
"During 2003 Eltek has taken serious steps of cutting down its expenses, while
maintaining its revenues, thus increasing its productivity. During 2004 we are
planning to increase our international operations while closely monitoring our
cost structure," said Mr. Shemer.
About the Company
Eltek is Israel's leading manufacturers of printed circuit boards, 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. The Company has invested heavily
in upgrading its production facilities over the past five years.
For more information, visit Eltek's Website 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 December 2003
(In thousands, except per share data)
Convenience Convenience
Translation Translation
-------- -------
Year ended Three months ended
December 31, December 31,
---------------------------- --------------------------
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 108,035 108,303 24,732 27,342 27,646 6,314
Costs of
revenues (106,458) (102,643) (23,440) (28,950) (26,318) (6,011)
--------- --------- -------- -------- -------- -------
Gross profit
(loss) 1,577 5,660 1,292 (1,608) 1,328 303
Research and
development
income
(expenses),
net (116) 18 4 - - -
Selling,
general and
administrative
expenses (15,152) (14,996) (3,424) (4,310) (3,575) (816)
Amortization of
goodwill (292) (584) (133) (137) (177) (40)
--------- --------- -------- -------- -------- -------
Operating loss (13,983) (9,902) (2,261) (6,055) (2,424) (553)
Financial
expenses, net (1,443) (2,989) (683) (696) (1,115) (255)
--------- --------- -------- -------- -------- -------
Loss before
other income
(expenses),
net (15,426) (12,891) (2,944) (6,751) (3,539) (808)
Other income
(expenses),
net 290 (20) (5) 297 (183) (42)
--------- --------- -------- -------- -------- -------
Loss before
taxes on
income (15,136) (12,911) (2,949) (6,454) (3,722) (850)
Taxes on income (380) (194) (44) (285) (93) (21)
--------- --------- -------- -------- -------- -------
Net loss after
taxes on
income (15,516) (13,105) (2,993) (6,739) (3,815) (871)
Minority share
in subsidiary's
net loss
(income) (198) 118 27 (81) 155 35
--------- --------- -------- -------- -------- -------
Net loss for
the period (15,714) (12,987) (2,966) (6,820) (3,660) (836)
========= ======== ======== ======== ======== =======
Basic and
diluted loss
per NIS 1 par
value of the
share
capital(A) (5.36) (3.61) (0.82) (2.28) (0.84) (0.19)
========= ======== ======== ======== ======== =======
Total par value
of shares used
to compute
basic and
diluted net
loss per NIS 1
par value of
share 2,932 3,569 3,569 2,932 4,281 4,281
========= ======== ======== ======== ======== =======
(A) shares of a par value of NIS 0.6 each.
Eltek Ltd.
Consolidated Condensed Balance Sheets
Adjusted to New Israeli Shekels as of December 2003
Convenience
Translation
-----------
December 31, December 31,
--------------------- -----------
2002 2003 2003
Unaudited Unaudited Unaudited
NIS NIS U.S. $
--------- ----------- -----------
(in
thousands)
Assets
Current assets
Cash and cash equivalents 6,237 4,371 998
Receivables: Trade 25,374 19,787 4,518
Other 1,634 2,262 517
Inventories 12,392 13,158 3,005
Prepaid expenses 1,189 693 158
--------- ----------- -----------
Total current assets 46,826 40,271 9,196
--------- ----------- -----------
Property and equipment, net 54,032 43,381 9,907
--------- ----------- -----------
Goodwill 4,973 4,972 1,135
--------- ----------- -----------
Total assets 105,831 88,624 20,238
========= =========== ===========
Liabilities and Shareholder's equity
Current liabilities
Short-term credit and current
maturities of long-term debts 20,731 19,461 4,444
Trade payables 22,696 22,314 5,095
Other liabilities and accrued
expenses 7,920 8,555 1,954
--------- ----------- -----------
Total current liabilities 51,347 50,330 11,493
--------- ----------- -----------
Long-term liabilities
Long term debt, excluding current
maturities 20,731 13,692 3,127
Employee severance benefits, net 994 940 215
--------- ----------- -----------
Total long-term liabilities 21,725 14,632 3,342
--------- ----------- -----------
Minority interests 1,840 1,970 450
--------- ----------- -----------
Convertible debenture note - 2,295 524
--------- ----------- -----------
Shareholder's equity Ordinary shares, NIS 0.6 par value.
Authorized 50,000,000 shares,
issued and outstanding 4,885,651
shares 29,334 29,334 6,699
Additional paid in capital 51,985 51,985 11,871
Capital reserves related to loans
from controlling shareholders 10,010 10,010 2,286
Cumulative foreign currency
translation adjustments 539 2,004 458
Capital reserve 6,685 6,685 1,527
Accumulated deficit (67,634) (80,621) (18,412)
--------- ----------- -----------
Total shareholder's equity 30,919 19,397 4,429
--------- ----------- -----------
Total liabilities and shareholders'
equity 105,831 88,624 20,238
========= =========== ===========
_______________
Contact:
Eltek Ltd.
Amnon Shemer, +972-3-9395023
amnons@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: June 17, 2004