PCB | November 13, 2006
Eltek presents increasing result,<br>plans new investments
Eltek Ltd., the Israeli manufacturer of flex-rigid circuitry solutions, announced record revenues of $10.2 million, up 20% from Q3 2005 for the third quarter of 2006.
The quarterly operating income of $ 598,000 up 16%. The quarterly net income up 24% to $ 480,000 or $ 0.07 per fully diluted share. Arieh Reichart, President and Chief Executive Officer of Eltek, said, "Our third quarter results continued a two year string of increased revenue and profitability relative to comparable prior year quarters. New high - end PCBs customer engagements, gradually expanded production capacity and increasing production efficiency have contributed to the highest revenues in our history for the first nine months of 2006." Mr. Reichart added: "We currently expect a favourable shift in our revenue growth profile toward our higher margin high-end PCBs component. In order to meet the expected increase in high - end customer demand, and in light of high plant utilization rate, we carefully plan to grow our capacity and modify our production processes." Amnon Shemer, CFO of Eltek commented: "In the third quarter we grew our quarterly operating and net income by 16% and 24%, respectively, from the corresponding quarter in 2005. During Q3 we managed our business to offset higher raw material costs and the continued devaluation of the U.S. dollar against the NIS resulting in our receiving less NIS for each dollar denominated sale, while a significant part of our expenses, primarily employee salaries, are denominated in NIS." "In the fourth quarter of 2006 and through the first half of 2007, we plan to continue to adjust our capacity and manufacturing processes to meet the demand for our products," he continued. "We are investing in our facility, equipment, people and development of our supply chain. During the first nine months of 2006, we invested over $ 1.7 million in capital expenditures, including $ 643 thousand in the third quarter," he concluded.