PETACH-TIKVA, ISRAEL -- Eltek Ltd. closed the 2008 fiscal year with revenues up 15% to $43.1 million. The increase in revenues was attributed to additional orders from new and existing customers.

In 2008 the company gained a US Department of State ITAR approval to sell PCBs for use in US military products, and received its first orders for PCBs from defense customers. Sales to the defense and medical markets accounted for 66% of total revenues in 2008.

Gross profit for fiscal year 2008 was $5.9 million (13.6% of revenue), compared with a gross profit of $5.6 million (14.9% of revenue) for fiscal year 2007.

Net loss for the fiscal year 2008 was $1.9 million before an impairment of goodwill charge and related expense (on a non-GAAP basis), or $0.29 per fully diluted share (non-GAAP), compared with a net loss of $301,000 or $0.05 per fully diluted share in fiscal year 2007.

Arieh Reichart, president and CEO of Eltek commented: “2008 was a tough year in a very difficult and unprecedented operating environment. Eltek is prepared for the upcoming challenges in 2009 and has taken a number of steps to cope with the new market conditions.”

“We recently received the necessary approval from US authorities that enables us to sell PCBs to the defense industry, an important market for us. In 2008, revenues from customers in the defense and medical markets, sectors that we believe have suffered less than other sectors from the current crisis, accounted for 66% of our total revenues, and following a period of inventory adjustments, we believe these customers will once again place orders for our products, as we began to see in the first quarter of 2009,” Mr. Reichart concluded.

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