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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 July 2003
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 2002 Financial Results dated July 16,
2003.
ITEM 1
Press Release Source: Eltek LTD.
Eltek Announces 2002 Financial Results
Wednesday July 16, 1:04 pm ET
PETACH - TIKVA, Israel--(BUSINESS WIRE)--July 16, 2003--Eltek LTD. (Nasdaq:ELTK
- News), the leading Israeli manufacturer of advanced circuitry solutions, today
announced its financial results for the fourth quarter of 2002 and the year
ended December 31, 2002.
Revenues for the year 2002 were NIS 110.1 million ($23.2 million) compared with
NIS 122.2 million ($25.8 million) for the year 2001. Net loss for the year 2002
was NIS 16 million ($3.4 million), or NIS 5.46 ($1.15) per NIS 1 par value of
shares, compared with net profit of NIS 2.9 million ($610,000), or NIS 0.98
($0.21) per NIS 1 par value of shares, for 2001.
Revenues for the fourth quarter of 2002 were NIS 27.9 million ($5.9 million)
compared with NIS 30 million ($6.3 million) for the fourth quarter of 2001. Net
loss for the fourth quarter of 2002 was NIS 7 million ($ 1.5 million), or NIS
2.4 ($0.50) per NIS 1 par value of shares, compared with a net loss of NIS 1.7
million ($361,000), or NIS 0.58 ($0. 12) per NIS 1 par value of shares, for the
fourth quarter of 2001.
The company noted that the results for the fourth quarter of 2002 and the year
ended December 31, 2002 reflect those of both Eltek and its Kubatronik
subsidiary. Eltek completed an acquisition of 76% of Kubatronik in June 2002.
Commenting on the results, Mr. Arieh Reichart, president and CEO of Eltek, said,
"Eltek's 2002 second half losses are primarily attributable to a drastic price
deterioration in our markets as well as steep domestic competitive pressures.
Our losses led us to put into operation a comprehensive action plan aimed at
substantially narrowing our losses as well as allowing us to achieve positive
operating cash flow.
"The painful measures undertaken pursuant to the plan, included personnel
reductions, progressive wage reductions and supplier contract modifications. We
also entered into a new bank loan agreements. We believe that these actions
position us to achieve positive operating cash flow in the second half of 2003.
The plan's impact was not reflected in our 2002 results, but will seen in our
quarterly results beginning in the first quarter of 2003, which are expected to
be released in August 2003."
Mr. Reichart concluded by saying, "Our largest shareholder's financial support
further demonstrated by his recent $0.5 million cash investment in the company,
as well as the continued efforts by our employees have played a very significant
role in our ability to successfully return to a positive operating cash flow."
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 World Wide Web site at
http://www.eltek.co.il
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
United States Securities and Exchange Commission filings.
-0-
ELTEK LTD.
Consolidated Statements of Operations
Adjusted to New Israeli Shekels as of December 2002
(In thousands, except per share data)
Convenience
translation
-----------
Year ended
December 31,
-------------------------------
2001 2002 2002
NIS NIS U.S. $
(Audited) (Audited) (Unaudited)
Revenues 122,225 110,111 23,244
Costs of
revenues 103,282 108,504 22,905
--------- --------- -----------
Gross profit
(loss) 18,943 1,607 339
Research and
development
costs, net 406 118 25
Selling,
general and
administrative
expenses 14,547 15,443 3,260
Amortization of
goodwill - 298 63
--------- --------- -----------
Operating
income (loss) 3,990 (14,252) (3,009)
Financial
expenses, net 1,834 1,471 311
--------- --------- -----------
Income (loss)
before other
income
(expenses) 2,156 (15,723) (3,320)
Other incomes
(expenses),
net 732 296 63
--------- --------- -----------
Income (loss)
before taxes
on income 2,888 (15,427) (3,257)
Taxes on income - 387 82
--------- --------- -----------
Income (loss)
after taxes on
income 2,888 (15,814) (3,339)
Minority share
in subsidiary's
net income - 202 43
--------- --------- -----------
Net income
(loss) for the
period 2,888 (16,016) (3,382)
========= ========= ===========
Basic and
diluted
earnings
(loss) per
NIS 1 par
value of the
share capital(a) 0.98 (5.46) (1.15)
========= ========= ===========
Total par value of shares used to compute basic and diluted net earnings (loss)
per NIS 1 par value of
share 2,932 2,932 2,932
========= ========= ===========
(a) Ordinary shares of a par value of NIS 0.6 each.
Convenience
translation
-----------
Three months ended
December 31,
-------------------------------
2001 2002 2002
NIS NIS U.S. $
(Unaudited) (Unaudited) (Unaudited)
Revenues 29,974 27,868 5,883
Costs of
revenues 27,426 29,506 6,228
--------- --------- -----------
Gross profit
(loss) 2,548 (1,638) (345)
Research and
development
costs, net - - -
Selling,
general and
administrative
expenses 3,583 4,393 927
Amortization of
goodwill - 140 30
--------- --------- -----------
Operating
income (loss) (1,035) (6,171) (1,302)
Financial
expenses, net 675 709 150
--------- --------- -----------
Income (loss)
before other
income
(expenses) (1,710) (6,880) (1,452)
Other incomes
(expenses),
net - 303 64
--------- --------- -----------
Income (loss)
before taxes
on income (1,710) (6,577) (1,388)
Taxes on income - 291 61
--------- --------- -----------
Income (loss)
after taxes on
income (1,710) (6,868) (1,449)
Minority share
in subsidiary's
net income - 83 18
--------- --------- -----------
Net income
(loss) for the
period (1,710) (6,951) (1,467)
========= ========= ===========
Basic and
diluted
earnings
(loss) per
NIS 1 par
value of the
share capital(a) (0.58) (2.37) (0.50)
========= ========= ===========
Total par value
of shares used
to compute
basic and
diluted net
earnings
(loss)
per NIS
1 par value of
share 2,932 2,932 2,932
========= ========= ===========
(a) Ordinary shares of a par value of NIS 0.6 each.
Eltek Ltd.
Consolidated Condensed Balance Sheets
Adjusted to New Israeli Shekels as of December 2002
Convenience
Translation
-----------
December
December 31, 31,
-------------------- -----------
2001 2002 2002
Audited Audited Unaudited
NIS NIS U.S. $
-------- ----------- -----------
(in
thousands)
Assets
Current assets
Cash and cash equivalents 6,698 6,357 1,342
Receivables: Trade 28,996 25,861 5,460
Other 1,654 1,665 351
Inventories 14,804 12,630 2,666
Prepaid expenses 1,023 1,212 256
-------- ----------- -----------
Total current assets 53,175 47,725 10,075
-------- ----------- -----------
Property and equipment, net 55,444 55,071 11,626
-------- ----------- -----------
Goodwill - 5,069 1,070
-------- ----------- -----------
Total assets 108,619 107,865 22,771
======== =========== ===========
Liabilities and Shareholder's equity
Current liabilities
Short-term credit and current
maturities of long-term debts 17,835 21,130 4,461
Trade payables 19,625 23,132 4,883
Other liabilities and accrued expenses 7,855 8,072 1,704
-------- ----------- -----------
Total current liabilities 45,315 52,334 11,048
-------- ----------- -----------
Long- term liabilities
Long term debt, excluding current
maturities 15,474 21,130 4,461
Employee severance benefits 850 1,013 213
-------- ----------- -----------
Total long - term liabilities 16,324 22,143 4,674
-------- ----------- -----------
Total liabilities 61,639 74,477 15,722
-------- ----------- -----------
Minority interests - 1,875 396
-------- ----------- -----------
Shareholder's equity Ordinary shares, NIS 0.6 par value.
Authorized 50,000,000 shares, issued
and outstanding 4,885,651 shares 29,898 29,898 6,312
Additional paid in capital 52,984 52,984 11,185
Capital reserves related to loans from
controlling shareholders 10,202 10,202 2,154
Cumulative foreign currency
translation adjustments - 549 116
Capital reserve 6,814 6,814 1,438
Accumulated deficit (52,918) (68,934) (14,552)
-------- ----------- -----------
Total shareholder's equity 46,980 31,513 6,653
-------- ----------- -----------
Total liabilities and shareholders'
equity 108,619 107,865 22,771
======== =========== ===========
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Contact:
ELTEK
Arieh Reichart, President and CEO
972.3.9395025
reichart@eltek.co.il
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or
Investor & Public Relations
Kwan Communications
Zvi Rabin / Gilad Friedhaber
972.50.600140 / 972.55.75485
zvi@kwan.co.il / gilad@kwan.co.il
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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: July 16, 2003