FORM 6 - K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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 2017

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 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): ___________

This Form 6-K is being incorporated by reference into the Registrant’s Form S-8 Registration Statements File Nos. 333-130611 and 333-123559.

 
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/ Amnon Shemer  
    Amnon Shemer  
   
Vice President, Finance and
Chief Financial Officer
  

Dated:  August 14, 2017
 
Press Release
 
Eltek Reports 2017 Second Quarter Financial Results

·
Revenues of $7.5million in the second quarter of 2017
·
Gross profit of $134,000
·
Net loss of $1.1 million

PETACH-TIKVA, Israel, August 14, 2017 - 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 June 30, 2017.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: "Our sales in the second quarter were $7.5 million, 14.6% lower than the second quarter of 2016, excluding Kubatronik. The decrease was primarily attributable to the continued competition in the local market and weakness in our global operations.
 
The Company is vigorously continuing the implementation of efficiency measures to its operating systems, which now support a higher sales rate relative to the rate prior to such implementation. Furthermore, the market is indicating a positive momentum with an increase in the frequency of incoming orders beginning this July. This increase includes a significant order from a governmental authority that we announced on July 24, 2017.
 
As previously released, we have enhanced our marketing and sales forces in Israel, Europe and the United States, alongside our efforts made to streamline expenses.
 
We are determined to bring the Company back to profitability in the near future. I believe that our actions to date, along with the renewal of manufacturing equipment that we are currently implementing, will assist us to reach these goals quickly and efficiently.

"When comparing the results to the second quarter and the first six months of 2017, please note that the operations of Kubatronik Leiterplatten GmbH were included in Eltek's results during the comparable period in 2016. Therefore, selected financial information is also presented on a proforma basis, excluding Kubatronik's results in 2016 (first six months and second quarter)," Mr. Nissan concluded.

Highlights of the Second Quarter of 2017

·
Revenues for the second quarter of 2017 were $7.5 million compared to $9.9 million in the second quarter of 2016 ($8.8 million excluding Kubatronik);
 
·
Gross profit was $134,000 (1.8% of revenues) compared to gross profit of $1.5 million (14.8% of revenues) in the second quarter of 2016 ($1.4 million or 16.3% of revenues excluding Kubatronik); The decrease in gross profit and gross profit margins reflects the decreased sales, while a significant portion of our cost of sales remained constant.
 
·
Operating loss was $1 million compared to operating profit of $244,000 in the second quarter of 2016 ($373,000 excluding Kubatronik);
 
·
Net loss was $1.1 million or $0.11 per fully diluted share compared to net profit of $213,000 or $0.02 per fully diluted share in the second quarter of 2016 ($327,000 or $0.03 per fully diluted share excluding Kubatronik);.
 
·
EBITDA amounted to $(583,000) compared to EBITDA of $754,000 in the second quarter of 2016 ($809,000 excluding Kubatronik);
 
·
Net cash used by operating activities amounted to $516,000 compared to net cash used by operating activities of $37,000 in the second quarter of 2016. The decline is mainly attributable to the operating results in this quarter.
 
·
Cash and cash equivalents as of June 30, 2017 were $792,000 compared to $894,000 as of June 30, 2016.

Highlights for the First Six Months of 2017

·
Revenues for the first six months of 2017 were $16 million compared to $19.7 million in the first six months of 2016 ($17.4 million excluding Kubatronik);
 
·
Gross profit was $619,000 (3.9% of revenues) compared to gross profit of $2.4 million (12.2% of revenues) in the first six months of 2016 ($2.2 million or 12.5% of revenues excluding Kubatronik);
 
·
Operating loss was $1.6 million compared to operating loss of $49,000 in the first six months of 2016 ($31,000 profit excluding Kubatronik);
 
·
Net loss was $1.9 million, or $0.19 per fully diluted share compared to net loss of $171,000, or $0.02 per fully diluted share in the first six months of 2016 ($82,000 or $0.01 per fully diluted share excluding Kubatronik);
 
·
EBITDA amounted to $(794,000) compared to EBITDA of $921,000 in the first six months of 2016 ($871,000 excluding Kubatronik);
 
·
Net cash used by operating activities amounted to $1.3 million compared to net cash provided by operating activities of $853,000 in the first six months of 2016. The decline is mainly attributable to the operating results in this period.
 
Conference Call
 
Today, Monday August 14, 2017 at 9:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Yitzhak Nissan, Chairman of the Board of Directors and Chief Executive Officer, Roberto Tulman, Deputy CEO and Chief Technology Officer and 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:
1-888-668-9141
Israel:
03-9180610
International:
+972-3-9180610

                                  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, 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 are located in Israel. Eltek also operates through its subsidiaries, Eltek USA (100%) in North America and Kubatronik (79%) in Europe, and by agents and distributors in Europe, India, South Africa and South America.
 
For additional 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 includes some non-GAAP measures, such as EBITDA and proforma financial information. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. The 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 EBITDA to evaluate and manage its  internal operations and 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 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.

Investor Contact:
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
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2017
    
2016
    
2017
    
2016
  
             
Revenues
    
7,492
      
9,904
      
15,960
      
19,705
  
Costs of revenues
    
(7,358
)
    
(8,442
)
    
(15,341
)
    
(17,305
)
                                 
Gross profit
    
134
      
1,462
      
619
      
2,400
  
                                 
Selling, general and administrative expenses
    
(1,138
)
    
(1,186
)
    
(2,233
)
    
(2,384
)
                                 
R&D expenses, net
    
(15
)
    
(32
)
    
(34
)
    
(64
)
                                 
Operating profit (loss)
    
(1,019
)
    
244
      
(1,649
)
    
(49
)
                                 
Financial expenses, net
    
(41
)
    
(37
)
    
(218
)
    
(98
)
                                 
Profit (loss) before other income, net
    
(1,060
)
    
207
      
(1,867
)
    
(146
)
                                 
Other income, net
    
0
      
(0
)
    
15
      
0
  
                                 
Profit (loss) before income tax expenses
    
(1,060
)
    
207
      
(1,852
)
    
(146
)
                                 
Tax expenses
    
(27
)
    
(25
)
    
(50
)
    
(48
)
                                 
Net Profit (loss)
    
(1,087
)
    
182
      
(1,901
)
    
(194
)
                                 
Net loss attributable to non controlling interest
    
0
      
(31
)
    
0
      
(23
)
                                 
Net Profit (loss) attributable to Eltek Ltd.
    
(1,087
)
    
213
      
(1,901
)
    
(171
)
                                 
Earnings per share
                                
Basic and diluted net gain (loss) per ordinary share
    
(0.11
)
    
0.02
      
(0.19
)
    
(0.02
)
                                 
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$)
 
   
June 30,
    
June 30,
  
   
2017
    
2016
  
Assets
            
             
Current assets
            
Cash and cash equivalents
    
792
      
894
  
Receivables:   Trade, net of provision for doubtful accounts
    
6,097
      
7,548
  
  Other
    
171
      
222
  
Inventories
    
4,305
      
4,618
  
Prepaid expenses
    
394
      
227
  
                 
Total current assets
    
11,759
      
13,509
  
                 
Deferred taxes
    
0
      
1,066
  
                 
Assets held for employees' severance benefits
    
55
      
49
  
                 
Fixed assets, less accumulated depreciation
    
8,966
      
9,747
  
                 
Intangible asset
    
355
      
301
  
                 
Total assets
    
21,135
      
24,672
  
                 
Liabilities and Shareholder's equity
                
                 
Current liabilities
                
Short-term credit and current maturities of long-term debts
    
4,570
      
1,373
  
Accounts payable: Trade
    
5,382
      
5,778
  
                           Other
    
4,008
      
4,611
  
                 
Total current liabilities
    
13,960
      
11,762
  
                 
Long-term liabilities
                
Long term debt, excluding current maturities
    
1,692
      
2,423
  
Employee severance benefits
    
157
      
296
  
                 
Total long-term liabilities
    
1,849
      
2,719
  
                 
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
    
2,408
      
2,037
  
Capital reserve
    
695
      
695
  
Accumulated deficit
    
(17,032
)
    
(11,679
)
Shareholders' equity
    
5,326
      
10,308
  
Non controlling interest
    
0
      
(117
)
Total equity
    
5,326
      
10,191
  
Total liabilities and shareholders' equity
    
21,135
      
24,672
  

 
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$)

 
Non-GAAP EBITDA Reconciliations
  
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2017
    
2016
    
2017
    
2016
  
                         
GAAP net Income (loss)
    
(1,087
)
    
213
      
(1,901
)
    
(171
)
Add back items:
                                
                                 
Financial expenses (income), net
    
41
      
37
      
218
      
98
  
Income tax expense
    
27
      
25
      
50
      
48
  
Depreciation and amortization
    
436
      
479
      
840
      
946
  
Adjusted EBITDA
    
(583
)
    
754
      
(794
)
    
921
  

 
Eltek Ltd.
Consolidated Statement of  Cash flow
(In thousands US$, except per share data)
 
   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2017
    
2016
    
2017
    
2016
  
                         
Cash flows from operating activities:
                        
                         
Net Income (loss)
    
(1,087
)
    
182
      
(1,901
)
    
(194
)
                               
Adjustments to reconcile net loss to net
                    
 
          
 cash flows provided by operating activities:
                    
 
          
Depreciation and amortization
    
436
      
479
      
852
      
946
  
Capital lose on disposal of fixed assets, net
    
-
      
-
      
(13
)
    
-
  
Revaluation of long term loans
    
-
      
-
      
(0
)
    
1
  
Decrease (increase) in Deferred Tax
    
(12
)
    
7
      
3
      
14
  
     
424
      
487
      
842
      
961
  
                                 
Decrease (increase) in trade receivables
    
1,152
      
(15
)
    
209
      
575
  
Decrease (increase) in other receivables and prepaid expenses
    
(122
)
    
(17
)
    
(64
)
    
18
  
Decrease (increase) in inventories
    
(154
)
    
(232
)
    
6
      
(106
)
Increase (decrease) in trade payables
    
(735
)
    
(435
)
    
(206
)
    
(354
)
Increase (decrease) in other liabilities and accrued expenses
    
7
      
(11
)
    
(176
)
    
(49
)
Increase (decrease) in employee severance benefits, net
    
(1
)
    
5
      
(2
)
    
3
  
     
147
      
(706
)
    
(233
)
    
86
  
                                 
Net cash provided by operating activities
    
(516
)
    
(37
)
    
(1,292
)
    
853
  
 
   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2017
    
2016
    
2016
    
2015
  
                         
Cash flows from investing activities:
                        
Owners investment
                        
Purchase of fixed assets
    
(70
)
    
(238
)
    
(161
)
    
(330
)
Purchase of Intangible asset
    
-
      
(14
)
    
-
      
(21
)
Net cash used in investing activities
    
(70
)
    
(251
)
    
(161
)
    
(351
)
                                 
Cash flows from financing activities:
                                
Increase (decrease) in short- term credit
    
(1,020
)
    
577
      
(161
)
    
91
  
Increase (decrease) in short- term shareholder loan
    
1,430
      
-
      
1,430
      
-
  
Repayment of long-term loans from bank
    
(207
)
    
(175
)
    
(407
)
    
(330
)
Proceeds from long-term loans
    
131
      
-
      
167
      
-
  
Repayment of credit from fixed asset payables
    
(24
)
    
(137
)
    
(129
)
    
(394
)
Net cash provided by (used in) financing activities
    
309
      
265
      
901
      
(634
)
                                 
Effect of translation adjustments
    
316
      
(20
)
    
111
      
(12
)
                                 
Net increase (decrease) in cash and cash equivalents
    
(237
)
    
(44
)
    
(441
)
    
(144
)
                                 
Cash and cash equivalents at beginning of the period
    
1,029
      
938
      
1,234
      
1,038
  
                     
-
      
-
  
Cash and cash equivalents at period end
    
792
      
894
      
792
      
894
  

 
Eltek  ltd.
Proforma (Non-GAAP) Statements of Operations
(In thousands US$, except per share data)
Excluding Kubatronik's operation in 2016
 
   
Solo
    
Solo
  
   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2017
    
2016
    
2017
    
2016
  
   
Unaudited
    
Unaudited
  
                         
Revenues
    
7,492
      
8,777
      
15,960
      
17,370
  
Costs of revenues
    
(7,358
)
    
(7,347
)
    
(15,341
)
    
(15,206
)
                                 
Gross profit
    
134
      
1,431
      
619
      
2,165
  
                                 
Research and development income, net
    
(15
)
    
(32
)
    
(34
)
    
(64
)
                                 
Selling, general and administrative expenses
    
(1,138
)
    
(1,026
)
    
(2,233
)
    
(2,070
)
                                 
Operating profit (loss)
    
(1,019
)
    
373
      
(1,649
)
    
31
  
                                 
Financial expenses, net
    
(41
)
    
(21
)
    
(218
)
    
(65
)
                                 
Profit (loss) before other income, net
    
(1,060
)
    
352
      
(1,867
)
    
(34
)
                                 
Other income, net
    
0
      
0
      
15
      
0
  
                                 
Profit (loss) before income tax expenses
    
(1,060
)
    
352
      
(1,852
)
    
(34
)
                                 
Income tax (expenses), net
    
(27
)
    
(25
)
    
(50
)
    
(48
)
                                 
Net Profit (loss)
    
(1,087
)
    
327
      
(1,901
)
    
(82
)
                                 
Diluted net loss per ordinary share
    
(0.11
)
    
0.03
      
(0.19
)
    
(0.01
)
                                 
Weighted average number of ordinary shares
                                
used to compute diluted net loss per
                                
ordinary share (in thousands)
    
10,143
      
10,143
      
10,143
      
10,143
  

 
Eltek  ltd.
Proforma (Non-GAAP) Balance Sheets
(In thousands US$)
Excluding Kubatronik's operation in 2016
  
 
   
June 30,
  
   
2017
    
2016
  
   
Unaudited
  
Assets
            
             
Current assets
            
Cash and cash equivalents
    
792
      
891
  
Receivables:   Trade, net of provision for doubtful accounts
    
6,097
      
7,108
  
                  Other
    
171
      
1,287
  
Inventories
    
4,305
      
4,324
  
Prepaid expenses
    
394
      
227
  
                 
Total current assets
    
11,759
      
13,837
  
                 
Deferred taxes
    
0
      
1,066
  
                 
Assets held for employees' severance benefits
    
55
      
49
  
                 
Fixed assets, less accumulated depreciation
    
8,966
      
9,118
  
                 
Investment
            
(440
)
                 
Intangible asset
    
355
      
301
  
                 
Total assets
    
21,135
      
23,931
  
                 
Liabilities and Shareholder's equity
                
                 
Current liabilities
                
Short-term credit and current maturities of long-term debts
    
4,570
      
1,373
  
Accounts payable: Trade
    
5,382
      
5,366
  
                           Other
    
4,008
      
4,403
  
                 
Total current liabilities
    
13,960
      
11,142
  
                 
Long-term liabilities
                
Long term debt, excluding current maturities
    
1,692
      
2,236
  
Employee severance benefits
    
157
      
246
  
                 
Total long-term liabilities
    
1,849
      
2,482
  
                 
Equity
                
Ordinary shares, NIS 0.6  par value authorized 50,000,000 shares, issued and outstanding 6,610,107 as of December 31, 2011.
    
1,985
      
1,985
  
Additional paid-in capital
    
17,270
      
17,270
  
Cumulative foreign currency translation adjustments
    
2,408
      
2,036
  
Capital reserve
    
695
      
695
  
Accumulated deficit
    
(17,032
)
    
(11,679
)
Shareholders' equity
    
5,326
      
10,307
  
Non controlling interest
    
0
      
0
  
Total equity
    
5,326
      
10,307
  
Total liabilities and shareholders' equity
    
21,135
      
23,931
  

 
Eltek Ltd.
  
Proforma Unaudited Non-GAAP EBITDA Reconciliations
  
(In thousands US$)
  
Excluding Kubatronik's operation in 2016
  
 
Non-GAAP EBITDA Reconciliations
  
Three months ended
    
six months ended
  
   
June 30,
    
June 30,
    
June 30,
    
June 30,
  
   
2017
    
2016
    
2017
    
2016
  
                         
GAAP net Income (loss)
    
(1,087
)
    
327
      
(1,901
)
    
(82
)
Add back items:
                                
                                 
Financial expenses (income), net
    
41
      
21
      
218
      
65
  
Income tax expense
    
27
      
25
      
50
      
48
  
Depreciation and amortization
    
436
      
436
      
840
      
840
  
Adjusted EBITDA
    
(583
)
    
809
      
(794
)
    
871
  

 
Eltek Ltd.
  
Consolidated Statement of  Cash flow
  
(In thousands US$, except per share data)
  
Excluding Kubatronik's operation in 2016
  
 
   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2017
    
2016
    
2017
    
2016
  
                         
Cash flows from operating activities:
                        
Net Income (loss)
    
(1,087
)
    
213
      
(1,901
)
    
(171
)
                                 
Adjustments to reconcile net loss to net
                                
 cash flows provided by operating activities:
                                
Depreciation and amortization
    
436
      
441
      
852
      
870
  
Capital lose on disposal of fixed assets, net
    
-
              
(13
)
    
-
  
Revaluation of long term loans
    
-
      
7
      
(0
)
    
14
  
Decrease (increase) in Deferred Tax
    
(12
)
    
-
      
3
      
1
  
Impairment of goodwill
    
-
      
111
      
-
      
85
  
     
424
      
559
      
842
      
971
  
                                 
Decrease (increase) in trade receivables
    
1,152
      
(38
)
    
209
      
662
  
Decrease (increase) in other receivables and prepaid expenses
    
(122
)
    
(4
)
    
(64
)
    
10
  
Decrease (increase) in inventories
    
(154
)
    
(303
)
    
6
      
(154
)
Increase (decrease) in trade payables
    
(735
)
    
(440
)
    
(206
)
    
(448
)
Increase (decrease) in other liabilities and accrued expenses
    
7
      
(7
)
    
(176
)
    
(82
)
Increase (decrease) in employee severance benefits, net
    
(1
)
    
4
      
(2
)
    
4
  
     
147
      
(789
)
    
(233
)
    
(8
)
                                 
Net cash provided by operating activities
    
(516
)
    
(17
)
    
(1,292
)
    
792
  
 
   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2017
    
2016
    
2016
    
2015
  
                         
Cash flows from investing activities:
                        
Owners investment
                        
Purchase of fixed assets
    
(70
)
    
(235
)
    
(161
)
    
(335
)
Purchase of Intangible asset
    
-
      
-
      
-
      
-
  
Purchase of Intangible asset
    
-
      
(14
)
    
-
      
(21
)
Net cash used in investing activities
    
(70
)
    
(249
)
    
(161
)
    
(356
)
                                 
Cash flows from financing activities:
                                
Increase (decrease) in short- term credit
    
(1,020
)
    
577
      
(161
)
    
91
  
Increase (decrease) in short- term shareholder loan
    
1,430
      
-
      
1,430
      
-
  
Repayment of long-term loans from bank
    
(207
)
    
(175
)
    
(407
)
    
(330
)
Proceeds from long-term loans
    
131
      
-
      
167
      
-
  
Repayment of credit from fixed asset payables
    
(24
)
    
(100
)
    
(129
)
    
(324
)
Net cash provided by (used in) financing activities
    
309
      
301
      
901
      
(564
)
                                 
Effect of translation adjustments
    
316
      
(17
)
    
111
      
21
  
                                 
Net increase (decrease) in cash and cash equivalents
    
(237
)
    
18
      
(441
)
    
(107
)
                                 
Cash and cash equivalents at beginning of the period
    
1,029
      
872
      
1,234
      
998
  
                                 
Cash and cash equivalents at period end
    
792
      
891
      
792
      
891