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 August 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 2020 Second Quarter 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:  August 12, 2020



EXHIBIT INDEX
 
EXHIBIT NO.
 
DESCRIPTION
 
 
 





Exhibit 99.1


 
Press Release

Eltek Reports 2020 Second Quarter Financial Results


Revenues of $8.8 million

Gross profit of $1.9 million

Net Profit of $704,000

PETACH-TIKVA, Israel, August 12, 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 quarter ended June 30, 2020.

Mr. Eli Yaffe, Chief Executive Officer, commented: "We are pleased that our second quarter  reflects the continuing trend of improved results. We are gratified that despite the global Covid-19 pandemic and its related challenges, we were able to grow our top line by 7.2% compared to the second quarter of 2019 and improve our gross margins from 15.3% in Q2 2019 to 21.6% in Q2 2020."
 
“We are operating in a challenging business environment and making the necessary adjustments to protect our staff, expand our business, improve customer satisfaction, increase revenues, maintain the trend of improved operating efficiencies and reach sustained profitability,” concluded Mr. Yaffe.
 
 Highlights of the Second Quarter of 2020 compared to the Second Quarter of 2019
 

Revenues for the second quarter of 2020 were $8.8 million compared to revenues of $8.2 million in the second quarter of 2019;
 

Gross profit increased from $1.3 million (15.3% of revenues) in the second quarter of 2019 to $1.9 million (21.6% of revenues) in the second quarter of 2020;
 

Operating profit increased to $809,000 during the second quarter of 2020 as compared to operating profit of $7,000 in the second quarter of 2019;
 


Other expenses were nil during the second quarter of 2020 as compared to other income of $871,000 in the second quarter of 2019 that was mainly attributable to receipt of a non-recurring insurance payment  relating to the damage to one of our manufacturing machines and the resulting losses;
 

Net profit was $704,000, or $0.16 per fully diluted share in the second quarter of 2020 compared to net profit of $790,000, or $0.19 per fully diluted share, in the second quarter of 2019;
 

EBITDA was $1.2 million in the second quarter of 2020 compared to EBITDA of $1.25 million in the second quarter of 2019;
 

Net cash provided by operating activities amounted to $1.4 million in the second quarter of 2020 compared to net cash used in operating activities of $301,000 in the second quarter of 2019.
 
Highlights for the First Six Months of 2020


Revenues for the first six months of 2020 were $17.9 million compared to $16.9 million in the first six months of 2019;
 

Gross profit was $3.7 million (20.6% of revenues) compared to gross profit of $2.8 million (16.5% of revenues) in the first six months of 2019;
 

Operating profit was $1.4 million compared to operating profit of $440,000in the first six months of 2019;
 

Other expenses were $1,000 in the first six months of 2020 as compared to other income of 877,000 in the first six months of 2019;
 

Net profit was $1.2 million, or $0.28 per fully diluted share compared to net profit of $1.0 million, or $0.33 per fully diluted share in the first six months of 2019;
 

EBITDA was $2.2 million in the first six months of 2020, compared to EBITDA of $2.1 million in the first six months of 2019;
 

Net cash provided by operating activities amounted to $2.9 million in the first six months of 2020 compared to net cash provided by operating activities of $1.3 million in the first six months of 2019.
 

Conference Call

Today, Wednesday, August 12, 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.

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.
 
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
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2020
   
2019
   
2020
   
2019
 
             
Revenues
   
8,792
     
8,198
     
17,949
     
16,933
 
Costs of revenues
   
(6,892
)
   
(6,942
)
   
(14,246
)
   
(14,139
)
                                 
Gross profit
   
1,900
     
1,256
     
3,703
     
2,795
 
                                 
Selling, general and administrative expenses
   
(1,095
)
   
(1,249
)
   
(2,284
)
   
(2,355
)
                                 
R&D expenses, net
   
4
     
-
     
2
     
-
 
                                 
Operating profit
   
809
     
7
     
1,421
     
440
 
                                 
Financial expenses, net
   
(83
)
   
(78
)
   
(139
)
   
(263
)
Other income, net
   
-
     
871
     
-
     
877
 
                                 
Profit before income tax
   
726
     
800
     
1,282
     
1,054
 
                                 
Tax expenses
   
(22
)
   
(10
)
   
(38
)
   
(23
)
                                 
Net Profit
   
704
     
790
     
1,244
     
1,032
 
                                 
Earnings per share
                               
                                 
Basic and diluted net profit per ordinary share
   
0.16
     
0.19
     
0.28
     
0.33
 
                                 
Weighted average number of ordinary shares
                               
used to compute basic and diluted net profit per
                               
ordinary share (in thousands)
   
4,380
     
4,148
     
4,380
     
3,088
 


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

   
June 30,
   
December 31,
 
   
2020
   
2019
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
3,407
     
1,628
 
Receivables:   Trade, net of provision for doubtful accounts
   
7,307
     
7,480
 
                       Other
   
246
     
145
 
Inventories
   
3,474
     
3,735
 
Prepaid expenses
   
238
     
530
 
                 
Total current assets
   
14,672
     
13,518
 
                 
Long term assets
               
Restricted deposits
   
58
     
-
 
Severance pay fund
   
59
     
60
 
Operating lease right of use assets
   
2,029
     
2,490
 
Total long term assets
   
2,146
     
2,550
 
                 
Fixed assets, less accumulated depreciation
   
6,407
     
6,761
 
                 
Total Assets
   
23,225
     
22,829
 
                 
Liabilities and Shareholder's equity
               
                 
Current liabilities
               
Short-term credit and current maturities of long-term debts
   
1,303
     
2,120
 
Short-term credit from related party
   
2,885
     
3,472
 
Accounts payable: Trade
   
3,983
     
4,673
 
                              Other
   
3,653
     
3,118
 
Short-term operating lease liabilities
   
1,141
     
1,383
 
                 
Total current liabilities
   
12,965
     
14,766
 
                 
Long-term liabilities
               
Long term debt, excluding current maturities
   
1,468
     
387
 
Employee severance benefits
   
307
     
268
 
Deferred tax liabilities
   
57
     
45
 
Long-term operating lease liabilities
   
872
     
1,094
 
                 
Total long-term liabilities
   
2,704
     
1,794
 
                 
Equity
               
Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 4,380,268
   
3,964
     
3,964
 
Additional paid-in capital
   
18,583
     
18,583
 
Cumulative foreign currency translation adjustments
   
2,479
     
2,479
 
Capital reserve
   
1,006
     
963
 
Accumulated deficit
   
(18,476
)
   
(19,720
)
Shareholders' equity
   
7,556
     
6,269
 
Total liabilities and shareholders' equity
   
23,225
     
22,829
 


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

Non-GAAP EBITDA Reconciliations
 
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2020
   
2019
   
2020
   
2019
 
                         
GAAP net Income (loss)
   
704
     
790
     
1,244
     
1,032
 
Add back items:
                               
                                 
Financial expenses, net
   
83
     
78
     
139
     
263
 
Income tax expense
   
22
     
10
     
38
     
22
 
Depreciation and amortization
   
391
     
372
     
786
     
744
 
Non-GAAP EBITDA
   
1,200
     
1,250
     
2,207
     
2,061
 


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

   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2020
   
2019
   
2020
   
2019
 
                         
Cash flows from operating activities:
                       
                         
Net Income
   
704
     
790
     
1,244
     
1,032
 
                                 
Adjustments to reconcile net profit to net
                               
 cash flows provided by operating activities:
                               
Depreciation and amortization
   
391
     
375
     
786
     
748
 
Stock-based compensation
   
17
     
31
     
43
     
62
 
Transaction with controlling shareholder
   
-
     
15
     
-
     
29
 
Revaluation of long term loans
   
(6
)
   
(8
)
   
4
     
(24
)
Increase in deferred tax liabilities
   
6
     
-
     
12
     
-
 
     
408
     
413
     
845
     
815
 
                                 
Decrease in operating lease right-of-use assets
   
1
             
(4
)
   
(9
)
Decrease (increase) in trade receivables
   
280
     
(1,838
)
   
149
     
(1,598
)
Decrease in other receivables and prepaid expenses
   
49
     
564
     
187
     
879
 
Decrease (increase) in inventories
   
27
     
302
     
248
     
(114
)
Increase (decrease)  in trade payables
   
(113
)
   
(652
)
   
(370
)
   
194
 
Increase in other liabilities and accrued expenses
   
17
     
129
     
538
     
132
 
Increase  in employee severance benefits, net
   
24
     
(9
)
   
40
     
(9
)
     
285
     
(1,504
)
   
788
     
(525
)
                                 
Net cash provided by operating activities
   
1,397
     
(301
)
   
2,877
     
1,322
 
                                 
Cash flows from investing activities:
                               
Purchase of fixed assets
   
(250
)
   
(91
)
   
(454
)
   
(250
)
Restricted deposits
   
(58
)
   
-
     
(58
)
   
-
 
Net cash used in investing activities
   
(308
)
   
(91
)
   
(512
)
   
(250
)
                                 
Cash flows from financing activities:
                               
Short- term bank credit, net
   
(326
)
   
(1,787
)
   
(765
)
   
(3,394
)
Proceeds from short- term shareholder loan
   
-
     
-
     
-
     
555
 
Repayment of short- term shareholder loan
   
(571
)
   
-
     
(571
)
   
-
 
Issuance of ordinary shares in rights offering, net
   
-
     
3,298
     
-
     
3,298
 
Repayment of long-term loans from bank
   
(35
)
   
(231
)
   
(108
)
   
(455
)
Proceeds from long-term loans
   
1,141
     
-
     
1,141
     
-
 
Repayment of credit from fixed asset payables
   
(152
)
   
(98
)
   
(304
)
   
(194
)
Net cash used in financing activities
   
57
     
1,182
     
(607
)
   
(190
)
                                 
Effect of translation adjustments
   
47
     
(21
)
   
21
     
(37
)
                                 
Net increase (decrease) in cash and cash equivalents
   
1,193
     
769
     
1,779
     
845
 
                                 
Cash and cash equivalents at beginning of the period
   
2,214
     
1,068
     
1,628
     
992
 
                                 
Cash and cash equivalents at period end
   
3,407
     
1,837
     
3,407
     
1,837