Eltek awarded its largest ever high-end PCB order from the U.S.
Feb 06, 2008
Eltek Ltd. (NasdaqCM: ELTK), the Israeli manufacturer of advanced circuitry solutions, announced that a major U.S. industrial manufacturer has placed a frame order for flex - rigid PCBs that will be used in the production of advanced industrial equipment. Shipments under this $1,830,000 order are expected to be made during 2008.
Arieh Reichart, President and Chief Executive Officer of Eltek, said, "This is the largest order we have received from a U.S.-based customer and takes our global growth initiatives to another level. As a follow-on order from a prestigious customer, it marks a strategic and quantitative milestone for our company and provides us with a great start to 2008. We expect that this order will further improve our revenue mix and associated operating margins, and increase our overall corporate productivity and visibility."
Amnon Shemer, CFO of Eltek added, "In order to better serve the needs of our customers, we have signed a Vendor Managed Inventory (VMI) Agreement with this customer, subject to which this frame order has been issued. Pursuant to the VMI agreement, Eltek provides the customer with required quantities based on forecasts and actual pulls from inventory maintained by Eltek."
"We believe in mutual cooperation with our customers, and pleased that this unique arrangement has already brought us cumulative sales of $1.4 million, and the additional $1.8 million dollar frame order provides additional proof that our service to our valued customers is a key to fruitful long term relations for the benefit to both parties," Mr. Shemer concluded.