ELTK getting more attractive here at $3.05. Q2 numbers nothing special, but terrific guidance for Q3. Predicting highest quarterly revenues in over 4 years, plus increased profitability. Stock popped to the mid-$4's on the news. With their low shares O/S, I think they could post Q3 earnings of .10/share. Since the earnings PR on 8/11, they had this encouraging PR on 8/15:
Eltek Penetrates the U.S. Market
Monday August 15, 8:30 am ET
Signs a 3-Year Framework Agreement with a U.S. Medical Equipment Manufacturer
PETACH-TIKVA, Israel--(BUSINESS WIRE)--Aug. 15, 2005--Key developments in the U.S. Market:
The Medical Equipment Customer Has Provided Eltek With Orders
A U.S. Defense Company Has Awarded Eltek with Initial Orders
Eltek Passes Advanced Stage Evaluation by a Major U.S. Aerospace Conglomerate
Eltek Ltd. (NasdaqSC: ELTK), the leading Israeli manufacturer of advanced circuitry solutions, today announced the signing of a three-year framework agreement with a U.S. medical equipment manufacturer. This customer already begun to place orders for Eltek's flex-rigid PCBs.
The company also reported the receipt of initial orders from a major U.S. defense company and the passing of key advanced stage evaluations by a U.S. aerospace manufacturer.
"These multiple cross-industry achievements signify an important milestone in our penetration of the strategic U.S. market. Eltek's unique flex-rigid technological competencies are beginning to earn recognition among leading U.S.-based manufacturers," said Arieh Reichart, President and Chief Executive Officer of Eltek.
"Increasing the revenue contribution of our international operations in general and the U.S. in particular continue to be a key component of our strategic plan. The target benefits are clear: improved revenue mix, higher gross margin and improved overall corporate productivity and visibility," continued Reichart. "Therefore, I am very encouraged with our ability to successfully penetrate the lucrative U.S. market for high-end flex-rigid PCBs."
"Looking forward, we will continue to focus our marketing efforts and business development initiatives on expanding our U.S. presence and further diversifying our U.S. customer base. Our strategic goal is to turn the U.S. market along with Europe, into a formidable and growing source of higher margin revenues for Eltek," he concluded.
Amnon Shemer, CFO of Eltek commented: "The framework agreement signed with the medical equipment manufacturer is our first multi-year agreement ever achieved in the U.S. market, while our early engagement with the defense customer, and our success in passing a thorough competitive evaluation process by the prospective aerospace conglomerate could lead to follow-on repeated orders, thus increasing our production efficiency and productivity."
About the Company
Eltek is one of Israel's leading manufacturers of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI, multi-layered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. The Company has invested heavily in upgrading its production facilities over the past five years.
For more information, visit Eltek's World Wide Web site at www.eltekglobal.com.
Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to statements regarding expected results in future quarters, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission.
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Contact:
ELTEK Ltd.
CFO
Amnon Shemer, +972-3-9395023
amnons@eltek.co.il
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Source: Eltek Ltd.
AI
