PETACH-TIKVA, ISRAEL – Eltek reported second quarter revenues were $9.1 million, an increase of 3.4% year-over-year.

The printed circuit fabricator reported  profit of $825,000, up 17.2% compared to the second quarter of 2020. Operating profit increased to $944,000, 10.3% of revenues, compared to operating profit of $809,000, 9.2% of revenues, in the same period last year.

Net cash provided by operating activities amounted to $380,000 in the second quarter, compared to $1.4 million in the second quarter of 2020.

Cash and cash equivalents as of June 30 were $9.2 million, compared to $4.7 million as of Dec. 31.

"We are pleased our second quarter reflects the return to improved results,” said CEO Eli Yaffe. “We are gratified that despite the global Covid-19 pandemic that resulted in the short supply of various critical raw materials and the related challenges, we were able to grow our top line by 3.9% compared to the second quarter of 2020 and improve our gross margins from 21.6% in the second quarter 2020 to 25.9% in the second quarter 2021.

"We are operating in a challenging business environment these days, mainly due to the global supply chain crisis, which was not resolved yet. As previously announced, during 2021 we were impacted by the worldwide shortage of Pyralux AP, a key material produced by DuPont. During the second quarter, we were able to obtain authorizations from some of our customers to use alternative raw materials.

"During the second quarter we faced price increases for some of our raw materials. In addition, some of our operating expenses are dominated in New Israeli Shekel and were negatively affected due to the devaluation of the US$ against the NIS. Nevertheless, we were able to improve our gross margin in the second quarter.

"We are conducting several R&D programs and making an effort to become an innovative industry leader. Eltek is making the necessary operational adjustments to expand our business, improve customer satisfaction, increase revenues, and maintain the trend of improved operational results."

For the first six months of 2021, Eltek posted revenues of $16.3 million, down 8.9% year-over-year.

Net profit was $1 million, a decrease of 16.7%. Operating profit was $1.1 million, down 21.4%.

Net cash provided by operating activities amounted to $2.8 million in the first six months of 2021, compared to $2.9 million in the same period last year.