Eltek returns to profitability in Q4 on continued revenue growth

Fourth Quarter 2004 Net Income of $446,000 vs. Net Loss of $850,000 in Fourth Quarter 2003

Quarterly Revenues Rise 27% Year over Year and 8% Sequentially to $8.1 million   

Eltek Ltd. (Nasdaq:ELTK), the Israeli manufacturer of advanced circuitry solutions, announced financial results for the fourth quarter and fiscal year ended December 31, 2004.

Fourth Quarter 2004 Financial Highlights:
-- Transition to profitability: quarterly net income of, $446,000 or $ 0.11 per NIS 1 par value of shares
-- Increased revenue, both sequentially and year-over-year
-- Second consecutive quarter of revenues growth
-- Continued gross margin expansion
-- Further reduction in bank debt
-- Increased sales of flex-rigid printed circuits boards pursuant to long-term projects

Eltek reported revenues for the three months ended December 31, 2004 of NIS 35 million ($8.1 million) compared with NIS 27.6 million ($6.4 million) during the fourth quarter of 2003.

Net income for the fourth quarter totaled NIS 1.9 million ($446,000), or NIS 0.47 per NIS 1 par value of shares ($0.11) compared with a net loss of NIS 3.7 million ($850,000), or NIS (0.84) per NIS 1 par value of shares ($0.19) for the same quarter in 2003. Net income for the fourth quarter, includes income of NIS 542 thousand ($126,000) attributable to the Company's portion of a recoverable tax asset, which arose from the loss incurred by Kubatronik.

Revenues for the year ended December 31, 2004, were NIS 125 million ($29.0 million) compared with revenues of NIS 108.3 million ($25.1 million) in 2003.

Net loss for the year ended December 31, 2004 was NIS 5.9 million ($1.4 million), or NIS (1.36) per NIS 1 par value of shares ($ 0.32) compared with a net loss of NIS 13.0 million ($3.0 million) or NIS (3.61) per NIS 1 par value of shares ($ 0.84) in 2003.