PETACH TIKVA, ISRAEL – Eltek reported first quarter revenues were $9.8 million, up 36.1% year-over-year.

Net profit was $600,000, an increase of 200% compared to the first quarter of 2021. EBITDA was $1.1 million (11% of revenues) in the first quarter compared to EBITDA of $600,000 (8% of revenues) in the first quarter of 2021. Operating profit was $700,000, up 600%.

“The world's exit from the Covid-19 crisis, the increased demand for defense products and the continuation of the trend of shifting back high-end PCB production to Western countries continue to have a positive impact on our company's results of operations,” said Eli Yaffe, CEO, Eltek. “The company's backlog as of Mar. 31, 2022, increased by 50% compared to the beginning of the year. Eltek is a key supplier to several major defense contractors, and its revenues and backlog are influenced directly from the increased demand of their customers.

“During the first quarter of 2022, we began our accelerated investment program at the company's plant in Petach Tikva in order to cope with the increase in demand we forecast and the need for higher efficiency. The first phase of the plan includes investments in production lines and infrastructure amounting to $9 million. The total cost of our accelerated investment plan is expected to be $15 million. We are also continuing our efforts to increase our skilled workforce in order to expand our production capacity.”

Net cash provided by operating activities amounted to $300,000 during the period, compared to net cash provided by operating activities of $2.5 million in the first quarter of 2021.

Cash and cash equivalents as of Mar. 31 were $9.1 million, compared to $9.3 million as of Dec. 31.

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