Eltek Posts $2.7 Million Q2 Loss as Revenue Falls to $11.5 Million
Updated
Updated · Yahoo Finance · Aug 18
Eltek Posts $2.7 Million Q2 Loss as Revenue Falls to $11.5 Million
1 articles · Updated · Yahoo Finance · Aug 18
Summary
Eltek swung to a $2.7 million net loss in the second quarter from $400,000 net income a year earlier, as revenue slipped to $11.5 million from $12.5 million.
Production inefficiencies, lower shipment volume and unfavorable currency moves drove the deterioration, while gross results flipped to a $1 million loss from $3 million gross profit a year earlier.
Sequentially, the gross loss improved from $1.8 million in the first quarter as revenue rose and average selling prices for printed circuit boards increased.
Management said demand and backlog remain strong, but the main constraint is converting orders into production and shipments; newer orders should gradually lift pricing as older contracts roll off.
Eltek is expanding capacity with added plating lines and staff while managing fiberglass-material shortages, ending the quarter with $11.5 million in cash, no debt and $700,000 in operating cash flow.