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 April 2020

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 S-8 Registration Statements File Nos. 333-123559 and 333-130611.



Eltek Ltd.
 
EXPLANATORY NOTE
 
The following exhibit is attached:
 
99.1          Announcement:  Eltek Reports Full Year and Fourth Quarter 2019 Financial Results.

 
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:  April 27, 2020



EXHIBIT INDEX
 
EXHIBIT NO.
 
DESCRIPTION
 
 
 





Exhibit 99.1



Press Release

Eltek Reports Full Year and Fourth Quarter 2019 Financial Results


Revenues of $34.8 million in 2019 compared to $33.9 million in 2018

Net profit of $1.8 million in 2019 compared to a net loss of $2.6 million in 2018

Revenues of $8.6 million in the fourth quarter of 2019 compared to $7.8 million in the fourth quarter of 2018

Net profit of $370,000 in the fourth quarter of 2019 compared to a net loss of $631,000 in the fourth quarter of 2018

PETACH-TIKVA, Israel, April 27, 2020 - 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 full year and fourth quarter ended December 31, 2019.

Mr. Eli Yaffe, Chief Executive Officer, commented: "We are pleased with the growth in our revenues and profitability in the fourth quarter and the significant change in our full year results. The improved results reflect the implementation of our previously announced turnaround plan.”
 
"The outbreak and spread of the Coronavirus has created new operational and business challenges that we are dealing with. We see both additional risks and opportunities in this new environment,” concluded Mr. Yaffe.
 
Highlights of the Full Year of 2019 compared to the Full Year of 2018


Revenues for the full year of 2019 amounted to $34.8 million compared to revenues of $33.9 million in 2018.
 

Gross profit was $6.0 million (17.3% of revenues) in 2019 compared to gross profit of $2.6 million (7.7% of revenues) in 2018.
 


Operating profit was $1.4 million in 2019 compared to an operating loss of $2.1 million in 2018.
 

Net profit was $1.8 million or $0.48 per fully diluted share in 2019, compared to a net loss of $2.6 million or $1.28 per fully diluted share in 2018.
 

EBITDA was $3.8 million in 2019 compared to negative EBITDA of $420,000 in 2018.
 

Net cash provided by operating activities amounted to $2.6 million in 2019 compared to $813,000 used in operating activities in 2018.
 

Cash and cash equivalents as of December 31, 2019 were $1.6 million compared to $992,000 as of December 31, 2018.
 
Highlights of the Fourth Quarter of 2019 compared to the Fourth Quarter of 2018


Revenues for the fourth quarter of 2019 were $8.6 million compared to revenues of $7.8 million in the fourth quarter of 2018.
 

Gross profit was $1.5 million (17.0% of revenues) in the fourth quarter of 2019 compared to a gross profit of $603,000 (7.7% of revenues) in the fourth quarter of 2018.
 

Operating profit was $379,000 in the fourth quarter of 2019 compared to an operating loss of $416,000 in the fourth quarter of 2018.
 

Net profit was $370,000 or $0.08 per fully diluted share in the fourth quarter of 2019 compared to a net loss of $631,000 or $0.31 per fully diluted share in the fourth quarter of 2018.
 

EBITDA was $817,000 in the fourth quarter of 2019 compared to negative EBITDA of $43,000 in the fourth quarter of 2018.
 

Net cash used in operating activities amounted to $141,000 in the fourth quarter of 2019 compared to $136,000 of cash provided from operating activities in the fourth quarter 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

Eltek will conduct a conference call to discuss the results today, Monday, April 27, 2019, at 8:30 a.m. Eastern Time. 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, which was founded in 1970, has its headquarters 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, the impact of the Coronavirus on the economy and our operations, 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
   
Twelve months ended
 
   
December 31,
   
December 31,
 
   
2019
   
2018
   
2019
   
2018
 
             
Revenues
   
8,582
     
7,827
     
34,794
     
33,939
 
Costs of revenues
   
(7,124
)
   
(7,224
)
   
(28,787
)
   
(31,342
)
                                 
Gross profit
   
1,458
     
603
     
6,007
     
2,597
 
                                 
Selling, general and administrative expenses
   
(1,063
)
   
(1,022
)
   
(4,604
)
   
(4,669
)
                                 
R&D expenses, net
   
(16
)
   
3
     
(16
)
   
-
 
                                 
Operating profit (loss)
   
379
     
(416
)
   
1,387
     
(2,072
)
                                 
Financial expenses, net
   
(32
)
   
(211
)
   
(440
)
   
(475
)
Other income, net
   
48
     
3
     
923
     
3
 
                                 
Profit (loss) before income tax
   
395
     
(624
)
   
1,870
     
(2,544
)
                                 
Tax expenses
   
(25
)
   
(7
)
   
(77
)
   
(63
)
                                 
Net Profit (loss)
   
370
     
(631
)
   
1,793
     
(2,607
)
                                 
Earnings per share
                               
                                 
Basic and diluted net profit (loss) per ordinary share
   
0.08
     
(0.31
)
   
0.48
     
(1.28
)
                                 
Weighted average number of ordinary shares
                               
used to compute basic and diluted net profit (loss)
                               
per ordinary share (in thousands)
   
4,380
     
2,029
     
3,734
     
2,029
 


 
Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)

   
December 31,
   
December 31,
 
   
2019
   
2018
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
1,628
     
992
 
Receivables:   Trade, net of provision for doubtful accounts
   
7,480
     
5,682
 
                       Other
   
145
     
868
 
Inventories
   
3,735
     
3,611
 
Prepaid expenses
   
530
     
292
 
                 
Total current assets
   
13,518
     
11,445
 
                 
Long term assets
               
Severance pay fund
   
60
     
53
 
Long term prepaid expenses
   
-
     
39
 
Operating lease right of use assets
   
2,490
     
-
 
Total long term assets
   
2,550
     
92
 
                 
Fixed assets, less accumulated depreciation
   
6,761
     
6,623
 
                 
Total Assets
   
22,829
     
18,160
 
                 
Liabilities and Shareholder's equity
               
                 
Current liabilities
               
Short-term credit and current maturities of long-term debts
   
2,120
     
6,606
 
Short-term credit from related party
   
3,472
     
2,668
 
Accounts payable: Trade
   
4,673
     
4,108
 
                               Other
   
3,118
     
3,377
 
Short-term operating lease liabilities
   
1,383
     
-
 
                 
Total current liabilities
   
14,766
     
16,759
 
                 
Long-term liabilities
               
Long term debt, excluding current maturities
   
387
     
308
 
Employee severance benefits
   
268
     
211
 
Deferred tax liabilities
   
45
     
-
 
Long-term operating lease liabilities
   
1,094
     
-
 
                 
Total long-term liabilities
   
1,794
     
519
 
                 
Equity
               
Ordinary shares, NIS 3.0  par value authorized 10,000,000 shares, issued and outstanding 4,380,268 and 2,028,552 at December 31, 2019 and December 31, 2018, respectively
   
3,964
     
1,985
 
Additional paid-in capital
   
18,583
     
17,270
 
Cumulative foreign currency translation adjustments
   
2,479
     
2,340
 
Capital reserve
   
963
     
800
 
Accumulated deficit
   
(19,720
)
   
(21,513
)
Shareholders' equity
   
6,269
     
882
 
Total liabilities and shareholders' equity
   
22,829
     
18,160
 



Eltek Ltd.
 
Unaudited Non-GAAP EBITDA Reconciliations
 
(In thousands US$)
 

Non-GAAP EBITDA Reconciliations
 
Three months ended
   
Twelve months ended
 
   
December 31,
   
December 31,
 
   
2019
   
2018
   
2019
   
2018
 
             
GAAP net Income (loss)
   
370
     
(631
)
   
1,793
     
(2,607
)
Add back items:
                               
                                 
Financial expenses, net
   
32
     
211
     
440
     
475
 
Income tax expense
   
25
     
7
     
77
     
63
 
Depreciation and amortization
   
390
     
370
     
1,508
     
1,649
 
Non-GAAP EBITDA
   
817
     
(43
)
   
3,818
     
(420
)


 
Eltek Ltd.
Consolidated Statement of  Cash flow
(In thousands US$)

   
Three months ended
   
Twelve months ended
 
   
December 31,
   
December 31,
 
   
2019
   
2018
   
2019
   
2018
 
                         
Cash flows from operating activities:
                       
                         
Net Income (loss)
   
370
     
(631
)
   
1,793
     
(2,607
)
                                 
Adjustments to reconcile net loss to net
                               
 cash flows provided by operating activities:
                               
Depreciation and amortization
   
390
     
367
     
1,508
     
1,649
 
Capital loss on disposal of fixed assets, net
   
-
     
101
     
-
     
101
 
Stock-based compensation
   
53
     
56
     
141
     
56
 
Transaction with controlling shareholder
   
(22
)
   
49
     
22
     
49
 
Revaluation of long term loans
   
(2
)
   
6
     
(38
)
   
29
 
Increase in deferred tax liabilities
   
45
     
-
     
45
     
-
 
     
464
     
579
     
1,678
     
1,884
 
                                 
Decrease (Increase) in operating lease right-of-use assets
   
8
     
-
     
(3
)
   
-
 
Decrease (increase) in trade receivables
   
(565
)
   
1,264
     
(1,277
)
   
790
 
Decrease (Increase) in other receivables and prepaid expenses
   
(58
)
   
155
     
598
     
467
 
Decrease (increase) in inventories
   
77
     
631
     
175
     
(30
)
Increase (decrease)  in trade payables
   
15
     
(1,518
)
   
107
     
(871
)
Decrease in other liabilities and accrued expenses
   
(473
)
   
(309
)
   
(529
)
   
(443
)
Increase (decrease) in employee severance benefits, net
   
21
     
(35
)
   
36
     
(3
)
     
(975
)
   
188
     
(893
)
   
(90
)
                                 
Net cash provided by (used in) operating activities
   
(141
)
   
136
     
2,578
     
(813
)
                                 
Cash flows from investing activities:
                               
Purchase of fixed assets
   
(263
)
   
(425
)
   
(806
)
   
(619
)
Net cash used in investing activities
   
(263
)
   
(425
)
   
(806
)
   
(619
)
                                 
Cash flows from financing activities:
                               
Short- term bank credit, net
   
135
     
30
     
(4,181
)
   
986
 
Short- term shareholder loan
   
2
     
(40
)
   
561
     
1,390
 
Issuance of ordinary shares in rights offering, net
   
-
     
-
     
3,298
     
-
 
Repayment of long-term loans from bank
   
(216
)
   
(220
)
   
(891
)
   
(910
)
Proceeds from long-term loans
   
(0
)
   
377
     
558
     
378
 
Repayment of credit from fixed asset payables
   
(188
)
   
(83
)
   
(477
)
   
(317
)
Net cash provided by (used in) financing activities
   
(267
)
   
64
     
(1,132
)
   
1,527
 
                                 
Effect of translation adjustments
   
11
     
15
     
(4
)
   
10
 
                                 
Net increase (decrease) in cash and cash equivalents
   
(660
)
   
(210
)
   
636
     
105
 
                                 
Cash and cash equivalents at beginning of the period
   
2,288
     
1,202
     
992
     
887
 
                                 
Cash and cash equivalents at period end
   
1,628
     
992
     
1,628
     
992