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 August 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: August 10, 2016
 
Press Release
 
Eltek Reports 2016 Second Quarter Financial Results
 
· Revenues of $9.9 million in the Second Quarter of 2016
· 10% growth in sales to the North American market compared to Q2-2015
· Gross profit of $1.5 million
· Net profit of $213,000

PETACH-TIKVA, Israel, August 10, 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 second quarter ended June 30, 2016.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: “Revenues in the second quarter of 2016 amounted to $9.9 million, slightly lower (5%) than revenues in the second quarter of last year. The revenues reflect the continued competition in the Israeli market for high end products. Revenues from the North American market in the second quarter of 2016 grew by 12% as compared to the first quarter of 2016 and amounted to $2.0 million. Our focus on profitability by improving production processes and closely monitoring expenses, led us to a net profit of $213,000 in the second quarter of 2016.

"We remain focused on growth in the global markets, which we expect will continue to have a positive effect on our revenues," Mr. Nissan concluded.

Highlights of the Second Quarter of 2016

· Revenues for the second quarter of 2016 were $9.9 million compared to $10.4 million in the second quarter of 2015.
 
· Gross profit was $1.5 million (14.8% of revenues) compared to gross profit of $1.9 million (18.3% of revenues) in the second quarter of 2015. The decrease in gross profit and gross margins reflects the decreased sales, while a significant portion of our cost of sales remained constant.
 
· Operating profit was $244,000 compared to operating profit of $543,000 in the second quarter of 2015.
 
· Net profit was $213,000 or $0.02 per fully diluted share compared to net profit of $424,000 or $0.04 per fully diluted share in the second quarter of 2015.
 
· EBITDA amounted to $754,000 (7.6% of revenues) compared to EBITDA of $1.0 million (10% of revenues) in the second quarter of 2015.
 
· Net cash used by operating activities amounted to $37,000 compared to net cash used by operating activities of $118,000 in the second quarter of 2015. The improvement is mainly attributable to a decrease in working capital requirements.
 
· Cash and cash equivalents as of June 30, 2016 were $894,000 compared to $994,000 as of June 30, 2015.
 
Highlights for the First Six Months of 2016

· Revenues for the first six months of 2016 were $19.7 million compared to $20.1 million in the first six months of 2015.
 
· Gross profit was $2.4 million (12.2% of revenues) compared to gross profit of $3.1 million (15.6% of revenues) in the first six months of 2015.
 
· Operating loss was $48,000 compared to operating profit of $435,000 in the first six months of 2015.
 
· Net loss was $171,000, or $0.02 per fully diluted share compared to net profit of $190,000 or $0.02 per fully diluted share in the first six months of 2015.
 
· EBITDA amounted to $921,000 (4.7% of revenues) compared to EBITDA of $1.4 million (6.7% of revenues) in the first six months of 2015.
 
· Net cash provided by operating activities amounted to $853,000 compared to net cash used by operating activities of $289,000 in the first six months of 2015. The improvement is mainly attributable to a decrease in working capital requirements.
 

Conference Call
Today, Wednesday, August 10, 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, 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:
Israel: 
International:
1-866-860-9642
03-9180688
+972-3-9180688
 
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. 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:
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
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2016
    
2015
    
2016
    
2015
  
                         
Revenues
    
9,904
      
10,383
      
19,705
      
20,100
  
Costs of revenues
    
(8,442
)
    
(8,481
)
    
(17,305
)
    
(16,972
)
                                 
Gross profit
    
1,462
      
1,902
      
2,400
      
3,128
  
                                 
Selling, general and administrative expenses
    
(1,186
)
    
(1,286
)
    
(2,384
)
    
(2,585
)
                                 
R&D expenses, net
    
(32
)
    
(73
)
    
(64
)
    
(108
)
                                 
Operating profit (loss)
    
244
      
543
      
(48
)
    
435
  
                                 
Financial expenses, net
    
(37
)
    
(87
)
    
(98
)
    
(205
)
                                 
Profit (loss) before other income, net
    
207
      
456
      
(146
)
    
230
  
                                 
Other income, net
    
0
      
3
      
0
      
5
  
                                 
Profit (loss) before income tax expenses
    
208
      
459
      
(146
)
    
235
  
                                 
Tax expenses
    
(25
)
    
(17
)
    
(48
)
    
(31
)
                                 
Net Profit (loss)
    
182
      
442
      
(194
)
    
204
  
                                 
Net loss attributable to non controlling interest
    
(30
)
    
18
      
(23
)
    
14
  
                                 
Net Profit (loss) attributable to Eltek Ltd.
    
213
      
424
      
(171
)
    
190
  
                                 
Earnings per share
                                
Basic and diluted net gain (loss) per ordinary share
    
0.02
      
0.04
      
(0.02
)
    
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,
  
   
2016
    
2015
  
Assets
            
             
Current assets
            
Cash and cash equivalents
    
894
      
994
  
Receivables:   Trade, net of provision for doubtful accounts
    
7,548
      
8,185
  
                     Other
    
222
      
504
  
Inventories
    
4,618
      
5,278
  
Prepaid expenses
    
227
      
274
  
                 
Total current assets
    
13,509
      
15,235
  
                 
Deferred taxes
    
1,066
      
1,089
  
                 
Assets held for employees' severance benefits
    
49
      
50
  
                 
Fixed assets, less accumulated depreciation
    
9,747
      
9,971
  
                 
Intangible asset
    
301
      
215
  
                 
Total assets
    
24,672
      
26,560
  
                 
Liabilities and Shareholder's equity
                
                 
Current liabilities
                
Short-term credit and current maturities of long-term debts
    
1,373
      
2,302
  
Accounts payable: Trade
    
5,778
      
6,629
  
                            Other
    
4,611
      
4,733
  
                 
Total current liabilities
    
11,762
      
13,664
  
                 
Long-term liabilities
                
Long term debt, excluding current maturities
    
2,423
      
2,921
  
Employee severance benefits
    
296
      
206
  
                 
Total long-term liabilities
    
2,719
      
3,127
  
                 
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
    
2,037
      
2,241
  
Capital reserve
    
695
      
695
  
Accumulated deficit
    
(11,679
)
    
(12,359
)
Shareholders' equity
    
10,308
      
9,832
  
Non controlling interest
    
(117
)
    
(63
)
Total equity
    
10,191
      
9,769
  
Total liabilities and shareholders' equity
    
24,672
      
26,560
  
 
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$)
 
Non-GAAP EBITDA Reconciliations
 
 
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2016
    
2015
    
2016
    
2015
  
                         
GAAP net Income (loss)
    
213
      
424
      
(171
)
    
190
  
Add back items:
                                
                                 
Financial expenses (income), net
    
37
      
87
      
98
      
205
  
Income tax expense
    
25
      
17
      
48
      
31
  
Depreciation and amortization
    
479
      
508
      
946
      
926
  
Adjusted EBITDA
    
754
      
1,036
      
921
      
1,352
  
 
Eltek Ltd.
Consolidated Statement of  Cash flows
(In thousands US$, except per share data)
 
   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2016
    
2015
    
2016
    
2015
  
                         
Cash flows from operating activities:
                        
                         
Net Income (loss)
    
182
      
442
      
(194
)
    
204
  
                                 
Adjustments to reconcile net loss to net
                                
 cash flows provided by operating activities:
                                
Depreciation and amortization
    
479
      
432
      
946
      
850
  
Capital lose on disposal of fixed assets, net
            
76
      
-
      
76
  
Revaluation of long term loans
    
-
      
5
      
1
      
3
  
Decrease (increase) in Deferred Tax
    
7
      
-
      
14
      
-
  
     
487
      
514
      
961
      
929
  
                                 
Decrease (increase) in trade receivables
    
(15
)
    
(301
)
    
575
      
284
  
Decrease (increase) in other receivables and prepaid expenses
    
(17
)
    
57
      
18
      
102
  
Decrease (increase) in inventories
    
(232
)
    
(281
)
    
(106
)
    
(443
)
Increase (decrease) in trade payables
    
(435
)
    
(320
)
    
(354
)
    
(750
)
Increase (decrease) in other liabilities and accrued expenses
    
(11
)
    
(200
)
    
(49
)
    
(566
)
Increase (decrease) in employee severance benefits, net
    
5
      
(28
)
    
3
      
(49
)
     
(706
)
    
(1,074
)
    
86
      
(1,422
)
                                 
Net cash provided by (used in) operating activities
    
(37
)
    
(118
)
    
853
      
(289
)
                                 
Cash flows from investing activities:
                                
Owners investment
                                
Purchase of fixed assets
    
(238
)
    
(268
)
    
(330
)
    
(493
)
Purchase of Intangible asset
    
(14
)
    
-
      
(21
)
    
-
  
Net cash used in investing activities
    
(251
)
    
(268
)
    
(351
)
    
(493
)
                                 
Cash flows from financing activities:
                                
Increase (decrease) in short- term credit
    
577
      
581
      
91
      
(914
)
Repayment of long-term loans from bank
    
(175
)
    
(52
)
    
(330
)
    
(18
)
Proceeds from long-term loans
    
-
      
-
      
-
      
1,707
  
Repayment of credit from fixed asset payables
    
(137
)
    
(127
)
    
(394
)
    
(295
)
Net cash provided by (used in) financing activities
    
265
      
403
      
(634
)
    
480
  
                                 
Effect of translation adjustments
    
(20
)
    
73
      
(12
)
    
167
  
                                 
Net increase (decrease) in cash and cash equivalents
    
(44
)
    
90
      
(144
)
    
(135
)
                                 
Cash and cash equivalents at beginning of the period
    
938
      
904
      
1,038
      
1,129
  
                     
-
          
Cash and cash equivalents at period end
    
894
      
994
      
894
      
994