Unassociated Document
 
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 November 2016
 
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 o
 
    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): o
 
    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): o
 
    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 o No x
 
    If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________
 
This Form 6-K is being incorporated by reference into the Registrant’s Form S-8 Registration Statements File Nos. 333-12012 and 333-123559.
 
 
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/ Amnon Shemer  
    Amnon Shemer  
   
Chief Financial Officer
  
       
Date: November 16, 2016
 
Press Release
 
Eltek Reports 2016 Third Quarter Financial Results

·
Revenues of $9.3 million in the third quarter of 2016
·
Gross profit of $880,000
·
Net loss of $446,000
·
Positive net cash flow of $643,000 from operating activities

PETACH-TIKVA, Israel, November 16, 2016 - Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the quarter ended September 30, 2016.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: “Third quarter revenues ($9.3 million) were lower than the revenues in the third quarter of 2015 ($10.8 million). The decrease was due to competitive pressures in Israel and certain European countries, and a continued weakness in the German PCB market, which led to a decline in sales of our subsidiary, Kubatronik. We have also experienced operational difficulties that impeded our ability to meet the demand for our products. We have recently made several changes in our manufacturing operations to address these difficulties.

The demand for our products in Italy and the Netherlands was strong. We believe that the growing need for complex PCBs in the defense industry will benefit us in the long run. We remain focused on our target to become the leading company in our field in terms of technology, on-time delivery and product quality," Mr. Nissan concluded.

Highlights of the Third Quarter of 2016

·
Revenues for the third quarter of 2016 were $9.3 million, compared to $10.8 million in the third quarter of 2015.
 
·
Gross profit was $880,000 (10% of revenues), compared to a gross profit of $1.7 million (16% of revenues) in the third quarter of 2015. The decrease in gross profit and gross margins reflects the decrease in revenues and the pricing challenges we have faced in this quarter.
 
·
Operating loss was $338,000, compared to an operating profit of $607,000 in the third quarter of 2015;
 
·
Net loss was $446,000 or $0.04 per fully diluted share, compared to a net profit of $624,000 or $0.06 per fully diluted share in the third quarter of 2015;
 
·
EBITDA amounted to $164,000 compared to EBITDA of $1.0 million  in the third quarter of 2015;
 
·
Net cash provided by operating activities amounted to $643,000, compared to net cash provided by operating activities of $639,000 in the third quarter of 2015;
 
·
Shareholders' equity as of September 30, 2016 amounted to $10 million, compared to $10.2 million as of December 31, 2015;
 
·
Cash and cash equivalents as of September 30, 2016 were $842,000, compared to $1.0 million as of December 31, 2015.
 
Highlights for the first nine months of 2016

·
Revenues for the first nine months of 2016 were $29 million, compared to $30.9 million in the first nine months of 2015.
 
·
Gross profit was $3.3 million (11% of revenues), compared to a gross profit of $4.9 million (16% of revenues) in the first nine months of 2015.
 
·
Operating loss was $387,000, compared to an operating profit of $1 million in the first nine months of 2015;
 
·
Net loss was $617,000, or $0.06 per fully diluted share, compared to a net profit of $814,000 or $0.08 per fully diluted share in the first nine months of 2015;
 
·
EBITDA amounted to $1.1 million, compared to EBITDA of $2.4 million in the first nine months of 2015;
 
·
Net cash provided by operating activities amounted to $1.5 million, compared to net cash provided by operating activities of $349,000 in the first nine months of 2015.
 
Conference Call
Today, Wednesday, November 16, 2016 at 9:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Mr. Yitzhak Nissan, Chairman of the Board of Directors and Chief Executive Officer, Mr. Roberto Tulman, Deputy CEO and Chief Technology Officer, and Mr. Amnon Shemer, Chief Financial Officer.
 
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
 
United States:
1-888-281-1167
Israel:
03-9180644
International:
+972-3-9180644

At:

9:30 a.m. Eastern Time
6:30 a.m. Pacific Time
16:30 p.m. Israel Time

A replay of the call will be available through the Investor Info section on Eltek’s corporate website at www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.

(Tables follow)

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 the Israeli leader 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 has ITAR, AS-9100 and NADCAP Electronics permits and its customers include top of the line 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, and R&D, production and marketing center is located in Israel. Eltek operates also through its subsidiaries in North America in Europe 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.
 
Use of 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 a table below.
 
Forward Looking Statements:
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.

Investor Contact:
Nir Zalik
KM Investor relations
Tel: +972- 3-5167620
nir@km-ir.co.il
www.km-ir.co.il

Amnon Shemer
Chief Financial Officer
amnons@nisteceltek.com
+972-3-9395023

Eltek Ltd.
Consolidated Statements of Operations
(In thousands US$, except per share data)
 
   
Three months ended
    
Nine months ended
  
   
September 30,
    
September 30,
  
   
2016
    
2015
    
2016
    
2015
  
             
Revenues
    
9,252
      
10,843
      
28,956
      
30,943
  
Costs of revenues
    
(8,372
)
    
(9,114
)
    
(25,677
)
    
(26,086
)
                                 
Gross profit
    
880
      
1,729
      
3,279
      
4,857
  
                                 
Selling, general and administrative expenses
    
(1,185
)
    
(1,173
)
    
(3,569
)
    
(3,758
)
                                 
R&D expenses, net
    
(34
)
    
51
      
(97
)
    
(57
)
                                 
Operating profit (loss)
    
(338
)
    
607
      
(387
)
    
1,042
  
                                 
Financial expenses, net
    
(114
)
    
62
      
(211
)
    
(143
)
                                 
Profit (loss) before other income, net
    
(452
)
    
669
      
(599
)
    
899
  
                                 
Other income, net
    
0
      
0
      
0
      
5
  
                                 
Profit (loss) before income tax expenses
    
(452
)
    
669
      
(598
)
    
904
  
                                 
Tax expenses
    
(29
)
    
(45
)
    
(77
)
    
(76
)
                                 
Net Profit (loss)
    
(481
)
    
624
      
(675
)
    
828
  
                                 
Net loss attributable to non controlling interest
    
(34
)
    
0
      
(58
)
    
14
  
                                 
Net Profit (loss) attributable to Eltek Ltd.
    
(446
)
    
624
      
(617
)
    
814
  
                                 
Earnings per share
                                
                                 
Basic and diluted net gain (loss) per ordinary share
    
(0.04
)
    
0.06
      
(0.06
)
    
0.08
  
                                 
Weighted average number of ordinary shares
                                
used to compute basic and diluted net gain (loss) per
                                
ordinary share (in thousands)
    
10,143
      
10,143
      
10,143
      
10,143
  
 

Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)
 
   
September 30,
    
December 31,
  
   
2016
    
2015
  
Assets
            
             
Current assets
            
Cash and cash equivalents
    
842
      
1,038
  
Receivables:   Trade, net of provision for doubtful accounts
    
6,786
      
8,015
  
                          Other
    
272
      
273
  
Inventories
    
4,834
      
4,450
  
Prepaid expenses
    
321
      
187
  
                 
Total current assets
    
13,055
      
13,963
  
                 
Deferred taxes
    
1,082
      
1,064
  
                 
Assets held for employees' severance benefits
    
51
      
49
  
                 
Fixed assets, less accumulated depreciation
    
9,611
      
10,067
  
                 
Intangible asset
    
330
      
276
  
                 
Total assets
    
24,129
      
25,419
  
                 
Liabilities and Shareholder's equity
                
                 
Current liabilities
                
Short-term credit and current maturities of long-term debts
    
1,244
      
1,275
  
Accounts payable: Trade
    
5,910
      
6,112
  
                                  Other
    
4,511
      
4,594
  
                 
Total current liabilities
    
11,665
      
11,981
  
                 
Long-term liabilities
                
Long term debt, excluding current maturities
    
2,205
      
2,905
  
Employee severance benefits
    
299
      
289
  
                 
Total long-term liabilities
    
2,504
      
3,194
  
                 
Equity
                
Ordinary shares, NIS 0.6  par value authorized 50,000,000 shares, issued and outstanding 10,142,762
    
1,985
      
1,985
  
Additional paid-in capital
    
17,270
      
17,270
  
Cumulative foreign currency translation adjustments
    
2,287
      
1,892
  
Capital reserve
    
695
      
695
  
Accumulated deficit
    
(12,125
)
    
(11,507
)
Shareholders' equity
    
10,112
      
10,335
  
Non controlling interest
    
(152
)
    
(91
)
Total equity
    
9,960
      
10,244
  
Total liabilities and shareholders' equity
    
24,129
      
25,419
  
 

Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$)
 
Non-GAAP EBITDA Reconciliations
  
Three months ended
    
Nine months ended
  
   
September 30,
    
September 30,
  
   
2016
    
2015
    
2016
    
2015
  
                         
GAAP net Income (loss)
    
(446
)
    
624
      
(617
)
    
814
  
Add back items:
                                
                                 
Financial expenses (income), net
    
114
      
(62
)
    
211
      
143
  
Income tax expense
    
29
      
45
      
77
      
76
  
Depreciation and amortization
    
467
      
435
      
1,413
      
1,361
  
Adjusted EBITDA
    
164
      
1,041
      
1,084
      
2,394
  
 

Eltek Ltd.
Consolidated Statement of  Cash flow
(In thousands US$, except per share data)
 
   
Three months ended
    
Nine months ended
  
   
September 30,
    
September 30,
  
   
2016
    
2015
    
2016
    
2015
  
                         
Cash flows from operating activities:
                        
                         
Net Income (loss)
    
(481
)
    
624
      
(675
)
    
827
  
                                 
Adjustments to reconcile net loss to net
                                
 cash flows provided by operating activities:
                                
Depreciation and amortization
    
467
      
435
      
1,413
      
1,285
  
Capital lose on disposal of fixed assets, net
            
-
      
-
      
76
  
Revaluation of long term loans
    
-
      
25
      
1
      
28
  
Decrease (increase) in Deferred Tax
    
8
      
-
      
22
      
-
  
     
475
      
460
      
1,436
      
1,389
  
                                 
Decrease (increase) in trade receivables
    
928
      
(305
)
    
1,502
      
(21
)
Decrease (increase) in other receivables and prepaid expenses
    
(132
)
    
(107
)
    
(114
)
    
(5
)
Decrease (increase) in inventories
    
(108
)
    
376
      
(214
)
    
(67
)
Increase (decrease) in trade payables
    
171
      
(286
)
    
(183
)
    
(1,036
)
Increase (decrease) in other liabilities and accrued expenses
    
(206
)
    
(113
)
    
(255
)
    
(680
)
Increase (decrease) in employee severance benefits, net
    
(5
)
    
(10
)
    
(2
)
    
(59
)
     
649
      
(445
)
    
734
      
(1,867
)
                                 
Net cash provided by operating activities
    
643
      
639
      
1,495
      
349
  
                                 
Cash flows from investing activities:
                                
Owners investment
                                
Purchase of fixed assets
    
(231
)
    
(111
)
    
(561
)
    
(603
)
Purchase of Intangible asset
    
(22
)
    
-
      
(43
)
    
-
  
Net cash used in investing activities
    
(253
)
    
(111
)
    
(604
)
    
(603
)
                                 
Cash flows from financing activities:
                                
Increase (decrease) in short- term credit
    
(158
)
    
(65
)
    
(67
)
    
(979
)
Repayment of long-term loans from bank
    
(176
)
    
(78
)
    
(506
)
    
(96
)
Proceeds from long-term loans
    
-
      
-
      
-
      
1,707
  
Repayment of credit from fixed asset payables
    
(158
)
    
(74
)
    
(552
)
    
(370
)
Net cash provided by (used in) financing activities
    
(491
)
    
(217
)
    
(1,125
)
    
262
  
                                 
Effect of translation adjustments
    
50
      
(87
)
    
38
      
81
  
                                 
Net increase (decrease) in cash and cash equivalents
    
(52
)
    
224
      
(196
)
    
89
  
                                 
Cash and cash equivalents at beginning of the period
    
894
      
994
      
1,038
      
1,129
  
                     
 
          
Cash and cash equivalents at period end
    
842
      
1,218
      
842
      
1,218