PETACH-TIKVA, ISRAEL -- Eltek announced fourth-quarter revenues of $10.6 million, down 16.5% from 2013.

Gross profit for period ended Dec. 31 was $1.3 million, versus $1.8 million a year ago. The operating loss was $270,000 compared to a loss of $185,000.

The net loss for the quarter was $1.8 million, down from net profit of $2.8 million in 2013. The non-GAAP net loss was $172,000. 

Revenues for the year were $46.6 million, down from $50.2 million in 2013. The net loss was $2.7 million, versus a net profit of $3.8 million a year ago. Gross profit slipped 25% to $6 million, and the operating loss was $903,000 compared to operating profit of $1.3 million in 2013.

During 2014, the company recorded a decrease in deferred tax assets of $1.5 million due to changes in market conditions and increased uncertainty about the company's ability to utilize these tax assets in the foreseeable future. In addition, the firm took $680,000 in one-time expenses due to management downsizing, and a goodwill impairment charge associated with its German subsidiary, Kubatronik. The PCB fabricator recorded total one-time expenses in 2014 of $2.2 million. 

In a statement, chairman and chief executive Yitzhak Nissan said, "Eltek's revenues in 2014 suffered mostly due to a decline in sales to the defense sector and reduced global demand for printed circuit boards of the type we manufacture. We have also faced increased price-competition in our marketplace.We have adopted efficiency measures, which significantly reduced our operating costs. The savings were partially reflected in 2014 and are expected to positively impact our results in 2015. In addition, new equipment that we recently purchased is expected to allow us to enhance our solution offerings."