Eltek Receives Purchase Orders Totaling $3.5 Million

29 August, 2024

Due to the ongoing war in the Middle East, many defense customers  prioritized urgent orders for PCBs with medium technology requirements

Photo above: Eltek Production floor in Petach Tikva, Israel

The PCB manufacturer Eltek Ltd. (PETACH TIKVA, Israel), announced that it had received orders totaling $3.5 million from two defense customers. The products are with high technology requirements and to be delivered beginning in the fourth quarter of 2024 through the end of 2026. The Company expects to receive additional long-term orders from these customers in the near term. “The orders are in accordance with our policy of striving for long-term orders which allow optimal production planning and maximum efficiency and profitability,” commented Eli Yaffe, CEO of Eltek.

Eltek specializes in the manufacture and supply of complex PCBs, HDI, multilayered and flex-rigid boards for high-end markets. Its customers include major companies in the defense, aerospace and medical industries in Israelthe United StatesEurope and Asia. Its revenues for the second quarter of 2024 were $10.5 million compared to $11.0 million in the second quarter of 2023. During the first six months of 2024 the revenues totaled $22.2 million compared to $22.5 million in the first six months of 2023.

The company attributed the decline of sales in the second qurter to a significant timing shift by some key customers. Due to the ongoing war in the Middle East, many defense customers  prioritized urgent orders for PCBs with medium technology requirements, resulting in lower prices and margins. “Orders for more complex, higher-margin PCBs were pushed back and are scheduled to be produced in the third quarter.”

Eli Yaffe: “We expect to return in in the third quarter to the profitability parameters of previous quarters, as product mix strategies are realigned. Our backlog as of today increased by 30% since the beginning of 2024. While this has impacted our short-term financial performance, we remain confident in our long-term strategy and market position.”

 

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