SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
         


F O R M  6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2019

Commission file number 000-28884

Eltek Ltd.
(Name of Registrant)

Sgoola Industrial Zone, Petach Tikva, Israel
 (Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒          Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

This Form 6-K is being incorporated by reference into the Registrant’s Form F-1 Registration Statement No. 333-229740  and Form S-8  Registration Statements File Nos. 333-123559,  333-130611 and 333-233958 .


 
Eltek Ltd.
 
EXPLANATORY NOTE
 
The following exhibit is attached:
 


 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
ELTEK LTD.
 
 
(Registrant)
 
       
 
By:
/s/ Alon Mualem
   
Alon Mualem
 
   
Chief Financial Officer
 

Date:  November 20, 2019



Exhibit 99.1



 
Press Release

Eltek Reports 2019 Third Quarter Financial Results


Revenues of $9.3 million


Gross profit of $1.8 million


Net Profit of $391,000

PETACH-TIKVA, Israel, November 20, 2019 - Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the quarter ended September 30, 2019.

Mr. Eli Yaffe, Chief Executive Officer, commented: "We are pleased with our growth in revenues and profitability in the third quarter’s results. The improved results are a consequence of the implementation of our previously announced turnaround plan.”
 
Highlights of the Third Quarter of 2019 compared to the Third Quarter of 2018


Revenues for the third quarter of 2019 were $9.3 million compared to revenues of $8.5 million in the third quarter of 2018;
 

Gross profit increased from $973,000 (11.4% of revenues) in the third quarter of 2018 to $1.8 million (19.1% of revenues) in the third quarter of 2019;
 

Operating profit was $568,000 this quarter as compared to an operating loss of $307,000 in the third quarter of 2018;
 

Net profit was $391,000, or $0.09 per fully diluted share in the third quarter of 2019 compared to a net loss of $463,000, or ($0.23) per fully diluted share, in the third quarter of 2018;
 

EBITDA was $940,000 in the third quarter of 2019 compared to EBITDA of $109,000  in the third quarter of 2018;
 

Net cash provided by operating activities amounted to $1.4 million in the third quarter of 2019 compared to net cash provided by operating activities of $164,000 in the third quarter of 2018.
 

Highlights for the First Nine Months of 2019


Revenues for the first nine months of 2019 were $26.2 million compared to $26.1 million in the first nine months of 2018;
 

Gross profit was $4.5 million (17.4% of revenues) compared to gross profit of $2.0 million (7.6% of revenues) in the first nine months of 2018;
 

Operating profit was $1.0 million compared to an operating loss of $1.7 million in the first nine months of 2018;
 

Other Income was $875,000 in the first nine months of 2019 compared to nil in the first nine months of 2018;
 

Net profit was $1.4 million, or $0.40 per fully diluted share compared to a net loss of $2.0 million, or ($0.97) per fully diluted share in the first nine months of 2018;
 

EBITDA was $3.0 million in the first nine months of 2019, compared to negative EBITDA of $373,000 in the first nine months of 2018;
 

Net cash provided by operating activities amounted to $2.7 million compared to net cash used in operating activities of $950,000 in the first nine months of 2018.
 
Use of Non-GAAP Financial Information
 
The Company reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures, including EBITDA. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table below.
 


Conference Call

Today, Wednesday, November 20, 2019, at 8:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Alon Mualem, Chief Financial Officer.
 
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
 
United States:
 
1-888-668-9141
 
Israel:
 
03-9180609
 
International:
 
+972-3-9180609
 

 
At:
 
8:30 a.m. Eastern Time
 
5:30 a.m. Pacific Time
 
15:30 p.m. Israel Time

A replay of the call will be available through the Investor Info section on Eltek’s corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.
 
About Eltek

Eltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), and is the Israeli leader in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.

Eltek was founded in 1970. The Company’s headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiaries in North America and in Europe and by agents and distributors in Europe, India, South Africa and South America.

For more information, visit Eltek's web site at www.nisteceltek.com.


Forward Looking Statement:

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 Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission.

Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023

(Tables follow)


Eltek Ltd.
Consolidated Statements of Operations
(In thousands US$, except per share data)
 
   
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2019
   
2018
   
2019
   
2018
 
             
Revenues
   
9,279
     
8,503
     
26,213
     
26,112
 
Costs of revenues
   
(7,524
)
   
(7,530
)
   
(21,663
)
   
(24,118
)
                                 
Gross profit
   
1,755
     
973
     
4,550
     
1,994
 
                                 
Selling, general and administrative expenses
   
(1,187
)
   
(1,280
)
   
(3,541
)
   
(3,648
)
                                 
R&D expenses, net
   
-
     
-
     
-
     
(1
)
                                 
Operating profit (loss)
   
568
     
(307
)
   
1,009
     
(1,655
)
                                 
Financial expenses, net
   
(146
)
   
(132
)
   
(409
)
   
(264
)
Other income, net
   
(2
)
   
-
     
875
     
-
 
                                 
Profit (loss) before income tax
   
420
     
(439
)
   
1,475
     
(1,919
)
                                 
Tax expenses
   
(29
)
   
(24
)
   
(51
)
   
(57
)
                                 
Net Profit (loss)
   
391
     
(463
)
   
1,424
     
(1,976
)
                                 
Earnings per share
                               
                                 
Basic and diluted net profit (loss) per ordinary share
   
0.09
     
(0.23
)
   
0.40
     
(0.97
)
                                 
Weighted average number of ordinary shares used
                               
to compute basic and diluted net profit (loss) per
                               
ordinary share (in thousands)
   
4,380
     
2,029
     
3,519
     
2,029
 


 
Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)
 
   
September 30,
   
December 31,
 
   
2019
   
2018
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
2,289
     
992
 
Receivables:   Trade, net of provision for doubtful accounts
   
6,852
     
5,682
 
                     Other
   
195
     
868
 
Inventories
   
3,785
     
3,611
 
Prepaid expenses
   
412
     
292
 
                 
Total current assets
   
13,533
     
11,445
 
                 
Long term assets
               
Severance pay fund
   
59
     
53
 
Long term prepaid expenses
   
-
     
39
 
Operating lease right of use assets
   
2,750
     
-
 
Total long term assets
   
2,809
     
92
 
                 
Fixed assets, less accumulated depreciation
   
6,795
     
6,623
 
                 
Total Assets
   
23,137
     
18,160
 
                 
Liabilities and Shareholder's equity
               
                 
Current liabilities
               
Short-term credit and current maturities of long-term debts
   
2,123
     
6,606
 
Short-term credit from related party
   
3,446
     
2,668
 
Accounts payable: Trade
   
4,755
     
4,108
 
                            Other
   
3,579
     
3,377
 
Short-term operating lease liabilities
   
1,368
     
-
 
                 
Total current liabilities
   
15,271
     
16,759
 
                 
Long-term liabilities
               
Long term debt, excluding current maturities
   
436
     
308
 
Employee severance benefits
   
244
     
211
 
Long-term operating lease liabilities
   
1,362
     
-
 
                 
Total long-term liabilities
   
2,042
     
519
 
                 
Equity
               
Ordinary shares, NIS 3.0  par value authorized 10,000,000 shares, issued and outstanding 2,028,552
   
3,964
     
1,985
 
Additional paid-in capital
   
18,583
     
17,270
 
Cumulative foreign currency translation adjustments
   
2,435
     
2,340
 
Capital reserve
   
932
     
800
 
Accumulated deficit
   
(20,090
)
   
(21,513
)
Shareholders' equity
   
5,824
     
882
 
Total liabilities and shareholders' equity
   
23,137
     
18,160
 


 
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$)
 
Non-GAAP EBITDA Reconciliations
 
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2019
   
2018
   
2019
   
2018
 
                         
GAAP net Income (loss)
   
391
     
(463
)
   
1,424
     
(1,976
)
Add back items:
                               
                                 
Financial expenses, net
   
146
     
132
     
409
     
264
 
Income tax expense
   
29
     
24
     
51
     
57
 
Depreciation and amortization
   
374
     
416
     
1,118
     
1,282
 
Non-GAAP EBITDA
   
940
     
109
     
3,002
     
(373
)


 
Eltek Ltd.
Consolidated Statement of  Cash flow
(In thousands US$)
 
   
Three months ended
   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2019
   
2018
   
2019
   
2018
 
                         
Cash flows from operating activities:
                       
                         
Net Income (loss)
   
391
     
(463
)
   
1,423
     
(1,976
)
                                 
Adjustments to reconcile net loss to net
                               
 cash flows provided by operating activities:
                               
Depreciation and amortization
   
371
     
416
     
1,119
     
1,282
 
Stock-based compensation
   
26
     
-
     
88
     
-
 
Transaction with controlling shareholder
   
15
     
-
     
44
     
-
 
Revaluation of long term loans
   
(12
)
   
(1
)
   
(36
)
   
23
 
     
400
     
415
     
1,215
     
1,305
 
                                 
Changes in operating leases, net
   
(1
)
   
-
     
(11
)
   
-
 
Decrease (increase) in trade receivables
   
886
     
1,016
     
(712
)
   
(474
)
Decrease  in other receivables and prepaid expenses
   
(224
)
   
(538
)
   
655
     
313
 
Decrease (increase) in inventories
   
211
     
253
     
98
     
(661
)
Increase (decrease)  in trade payables
   
(102
)
   
(440
)
   
92
     
645
 
Increase (decrease) in other liabilities and accrued expenses
   
(188
)
   
(84
)
   
(55
)
   
(134
)
Increase (decrease) in employee severance benefits, net
   
23
     
5
     
14
     
32
 
     
605
     
212
     
81
     
(279
)
                                 
Net cash provided by (used in) operating activities
   
1,396
     
164
     
2,719
     
(950
)
                                 
                                 
Cash flows from investing activities:
                               
Purchase of fixed assets
   
(293
)
   
(86
)
   
(543
)
   
(196
)
Net cash used in investing activities
   
(293
)
   
(86
)
   
(543
)
   
(196
)
                                 
Cash flows from financing activities:
                               
Short- term bank credit, net
   
(921
)
   
113
     
(4,315
)
   
956
 
Short- term shareholder loan
   
-
     
275
     
557
     
1,431
 
Issuance of ordinary shares in rights offering, net
   
-
     
-
     
3,298
     
-
 
Repayment of long-term loans from bank
   
(220
)
   
(225
)
   
(675
)
   
(689
)
Proceeds from long-term loans
   
557
     
-
     
558
     
-
 
Repayment of credit from fixed asset payables
   
(94
)
   
(74
)
   
(289
)
   
(233
)
Net cash provided by (used in) financing activities
   
(678
)
   
89
     
(866
)
   
1,465
 
                                 
Effect of translation adjustments
   
27
     
43
     
(13
)
   
(5
)
                                 
Net increase (decrease) in cash and cash equivalents
   
452
     
210
     
1,297
     
314
 
                                 
Cash and cash equivalents at beginning of the period
   
1,837
     
991
     
992
     
887
 
                                 
Cash and cash equivalents at period end
   
2,289
     
1,201
     
2,289
     
1,201