Eltek Q1 Revenue Drops 18.5% to $10.4M, Net Loss $2.9M
Eltek’s first-quarter revenues fell 18.5% year-over-year to $10.4 million, resulting in a GAAP net loss of $2.9 million or $0.42 per share and an operating loss of $3.3 million. Shekel appreciation and regional security disruptions increased NIS expenses by $1.3 million and slowed production.
1. Q1 Financial Results
During the first quarter ended March 31, Eltek recorded revenues of $10.4 million, down from $12.8 million a year earlier. The period produced a gross loss of $1.9 million, an operating loss of $3.3 million, and a net loss of $2.9 million, or $0.42 per diluted share.
2. Currency and Security Impacts
Sharp depreciation of the U.S. dollar against the Israeli shekel increased translated NIS expenses by roughly $1.3 million. Intermittent regional security issues led to temporary production disruptions and reduced operational availability at times.
3. Order Backlog and Logistics
Despite the revenue shortfall, Eltek’s order backlog grew significantly, but late phasing of orders and logistical constraints delayed execution. Management remains confident in converting backlog into revenue over coming quarters as logistical conditions improve.
4. Balance Sheet and Outlook
As of March 31, cash and short-term deposits stood at $11.1 million with no outstanding debt, providing ample liquidity. Eltek expects gradual improvement in operational availability as security and logistical challenges are addressed.