PETACH-TIKVA, ISRAEL -- Eltek today reported fourth quarter revenues fell 22% from a year ago to $8.1 million on a shorter quarter due to the local holiday season and continued competition in the local military market.

The gross loss was $463,000, down from a gross profit of $1.7 million in the fourth quarter 2015, while the operating loss swung to $1.6 million from a gain $455,000 in 2015. The net loss was $3 million, versus a net profit of $228,000. EBITDA was -$1.4 million, down from $940,000 last year.

The maker of flex circuit boards said its bottom line was affected by two one-time expenses, a $1.1 million writeoff of a deferred tax asset, due to uncertainty about its ability to utilize it in the foreseeable future, and a $271,000 expense associated with the sale of its shares in Kubatronik-Leiterplatten, its German subsidiary.

For the year, revenues fell 10.4% to $37.1 million, and gross profit was down 58% to $2.8 million. The operating loss was $2 million compared to an operating profit of $1.5 million in 2015, and the net loss was $3.6 million, down from a net profit of $1 million in 2015. EBITDA was -$313,000, compared to $3.3 million in 2015. Cash from operations amounted to $165,000 compared to $1.7 million a year ago.

Chairman and chief executive Yitzhak Nissan said, "Although competitive pressures remain strong, we have made positive progress in improving our on-time delivery and manufacturing yields. In addition, we continue to enhance our working relations with our defense customers by providing advanced technological solutions that meet their needs. Eltek is also restructuring its sales organization in order to increase the top line. We believe that these steps will prove fruitful for us and will contribute to achieving our goal of becoming a leading company in our field in terms of technology, on-time delivery and product quality."

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