PETACH TIKVA, Israel, March 9, 2023-- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the full year and fourth quarter ended December 31, 2022.

Full Year and Fourth Quarter 2022 Highlights

• Revenues were $39.6 million (Q4 - $10.5 million)

• Operating profit was $3.0 million (Q4 - $0.8 million)

• Profit before tax was $3.9 million (Q4 - $0.9 million)

• Net profit was $3.2 million or $0.55 per fully diluted share (Q4 - $0.8 million or $0.14 per fully diluted share)

• Net cash provided by operating activities amounted to $3.8 million (Q4 - $1.3 million)

"We are pleased to announce strong growth in revenues and earnings for the year 2022. This was due to increased demand for our high-quality printed circuit boards. The growth in revenues is a testament to the hard work and dedication of our team, as well as the loyalty of our customers. We are excited to continue building upon this momentum in the coming year," said Eli Yaffe, CEO of Eltek.

"The global PCB market is expected to continue to grow in the coming years, with the military, aerospace and defense sectors being the key drivers. As a leading provider of PCBs to these industries, Eltek is well-positioned to capitalize on this trend and continues to deliver strong results for our shareholders. We ended 2022 with a 70% growth in backlog.

During Q4 we received final approval from the Israel Innovation Authority ("IIA") for a 40%, royalty bearing participation in an approximately $800,000 one-year development program, which started in January 2023.  This program is part of our investments in CapEx and research and development to bring new, high-quality products to the market and further drive growth in the future," continued Mr. Yaffe.

"We have a strong balance sheet and a talented team, and we will continue to invest in our operations, products and people to sustain our long-term success," concluded Mr. Yaffe.

2022 Full Year GAAP Financial Results
Revenues for 2022 were $39.7 million compared to $33.8 million in 2021.
Gross profit for 2022 was $8.3 million (21% of revenues) compared to $6.9 million (20% of revenues) in 2021.
Operating profit for 2022 was $3.0 million compared to operating profit of $1.9 million in 2021.
Financial income for 2022 was $0.9 million compared to financial expense of $0.5 million in 2021. Financial income, which was primarily generated in the second quarter of 2022, resulted from the erosion of the NIS against the US dollar.
Profit before income tax for 2022 was $3.9 million compared to $1.5 million in 2021.
Net profit for 2022 was $3.2 million or $0.55 per fully diluted share compared to net profit of $5.0 million or $0.86 per fully diluted share in 2021. Net profit in 2021 includes a one-time tax benefit of $3.5 million.

2022 Full Year Non-GAAP Financial Results
EBITDA for 2022 was a $4.5 million (11% of revenues) compared to EBITDA of $3.8 million (11% of revenues) in 2021.

Fourth Quarter 2022 GAAP Financial Results
Revenues for the fourth quarter of 2022 were $10.5 million compared to $9.5 million in the fourth quarter of 2021.
Gross profit for the fourth quarter of 2022 was $2.2 million (21% of revenues) compared to $2.0 (21% of revenues) in the fourth quarter of 2021.
Operating profit for the fourth quarter of 2022 was $0.8 million compared to operating profit of $0.6 million in the fourth quarter of 2021.
Profit before income tax for the fourth quarter of 2022 was $0.9 million compared to $0.2 million in the fourth quarter of 2021.
Net profit for the fourth quarter of 2022 was $0.8 million or $0.14 per fully diluted share compared to net profit of $3.8 million or $0.65 per fully diluted share in the Fourth quarter of 2021. Net income in the fourth quarter of 2021 includes a one-time tax benefit of $3.6 million.

Fourth Quarter 2022 Non-GAAP Financial Results
EBITDA for the fourth quarter of 2022 was a $1.2 million (12% of revenues) compared to EBITDA of $1.1 million (11% of revenues) in the fourth quarter of 2021.

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 an Israeli leading company 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 subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America.