PETACH TIKVA, ISRAEL – Eltek announced revenue of $10.5 million for the second quarter, down 4.5% compared to last year's second quarter.

Revenue for the first six months of the year were $22.2 million, a decrease of 1.3% from the first half of 2023.

"Eltek has demonstrated consistent growth over the past several quarters, driven by our commitment to innovation and customer satisfaction," said CEO Eli Yaffe. "However, this quarter, we experienced a decrease in revenues and profits compared to the previous quarter and the corresponding quarter last year. This decline is attributed to a significant timing shift by some key customers, who prioritized orders for PCBs with medium technology requirements, resulting in lower prices and margins. Orders for more complex, higher-margin PCBs were pushed back and are scheduled to be produced in the third quarter. While this has impacted our short-term financial performance, we remain confident in our long-term strategy and market position.

"We expect to return in in the third quarter to the profitability parameters of previous quarters, as product mix strategies are realigned. Our backlog as of today increased by 30% since the beginning of 2024. This increase will support our planned growth in revenues and profitability. We remain committed to delivering value to our shareholders and are taking the necessary steps to ensure that we continue our growth trend. Our team is focused on optimizing our product offerings and operational efficiencies to drive profitability and sustain our market leadership."