Eltek wins long-term rigid-flex contract

The company reported the receipt of initial orders from a major U.S. defence company and the passing of key advanced stage evaluations by a U.S. aerospace manufacturer. "These multiple crossindustry achievements signify an important milestone in our penetration of the strategic U.S. market. Eltek's unique flexrigid technological competencies are beginning to earn recognition among leading U.S-based manufacturers," said Arieh Reichart, President and Chief Executive Officer of Eltek. "Increasing the revenue contribution of our international operations in general and the U.S. in particular continue to be a key component of our strategic plan. The target benefits are clear: improved revenue mix, higher gross margin and improved overall corporate productivity and visibility," continued Reichart. "Therefore, I am very encouraged with our ability to successfully penetrate the lucrative U.S. market for high-end flexrigid PCBs. " "Looking forward, we will continue to focus our marketing efforts and business development initiatives on expanding our U.S. presence and further diversifying our U.S. customer base. Our strategic goal is to turn the U.S. market along with Europe, into a formidable and growing source of higher margin revenues for Eltek," he concluded. Amnon Shemer, CFO of Eltek commented: "The framework agreement signed with the medical equipment manufacturer is our first multiyear agreement ever achieved in the U.S. market, while our early engagement with the defense customer, and our success in passing a thorough competitive evaluation process by the prospective aerospace conglomerate could lead to followon repeated orders, thus increasing our production efficiency and productivity." Click here to read Eltex's interim report (NASDAQ).