Q1 2021 Eltek Ltd Earnings Call

Yeah.

Okay.

[noise].

Okay.

Okay.

Hum.

Ladies and gentlemen, thank you for standing by and welcome to the Alphatec Limited first quarter 'twenty 'twenty, 1 financial results conference call.

All participants are present in a listen on mode.

Following management's formal presentation instructions will be given for the question and answer session.

Barry Gertz expense during the conference Please press Star zero.

As a reminder, this conference is being recorded.

Before I turn over the call to Mr. Elie acting Chief Executive Officer.

Allen Chief Financial Officer.

I'd like to remind you that opex per getting released today on this call include forward looking statements from them.

Many of the private Securities Litigation Reform Act of 1995 from Securities and Exchange Act of 134, as well as certain non-GAAP financial measures.

We're making any investment decisions, we strongly encourage you to read our full disclosure on forward looking statements on the use of Nam and the use of non-GAAP financial measures set forth at the end of our earnings release as well as review on this filings with the FCC for imported material assumptions expectations and risk factors.

Cause actual results could differ materially from those from 50 people and described in such forward looking statements.

These forward looking statements are projections and reflect the current beliefs and expectations of the company actual events or results may differ materially.

That's it.

I'll take undertakes no obligation to publicly release revisions.

Such forward looking statements.

To reflect events or circumstances or circumstances.

Okay.

Occurring subsequent to the states I will now turn over the call to Mr. <unk>.

Mr. Johnson. Please go ahead.

Thank you.

Good morning to everyone.

For joining us on Onecomm to ethics, 'twenty 'twenty, 1 first quarter around the corner.

We've read along 1 of them all of that you've seen us or no free shelf.

We will begin by providing you always on overview of our business and a summary of the principal per foxhole.

Affected our results from the first quarter of 'twenty 'twenty 1 total.

Total bytes because of all the free months from our results.

After our prepared remarks, we will be happy to answer any of your questions by now everyone should have access to our first quarter press.

Press release, which was released earlier today.

We will also be available on our website at www dot on these things.

Cool.

This quarter was very challenging both operationally and business wise.

In addition on the COVID-19 kind of day makes it worth fixing circa nerve yes, that's on the phone customers located.

We can address there so.

Digital follow on raw materials.

And yet we were able to maintain operational efficiency and record both operations out of the mix profitable book platform maintenance ninth quarter in a row also on our revenue declined from 9.2 million brought on in the first quarter of 'twenty 'twenty from.

7.7.

7.4 million pulled on the physical work out 'twenty 'twenty 1.

The spread on the COVID-19 of which.

From our customers and assaulted firearms AP cause I mean, they produce paper forms.

It would be the production with flexible on flex suite, you're trying to get sense adult weighted new operational challenges.

From a quieter.

While we can just meant to enable us to maintain our production and delivery of Pcbs to our customers.

We are making the necessary adoption rates to meet customer on the mom and maintain our operational efficiency.

The COVID-19 pandemic created operational on different countries and we are facing a continued slowdown in older from some of our customers from India due to the continuous to make a day green box of COVID-19 in these territories.

After keeps per barrels to the point that the Indian market will recover and ready to react operation on me for VIX. So the expected I demanded for accumulating in India in the last months.

Due to the raw material shortage, we all know the purchase and enough inventory from filling up your raw material that was free of pool, but you have to take serious to go is it pick up Atlanta for our production of free C D and introduce it to our customers.

We expect.

Net revenues will be rebound you endorsed the use in Las Vegas on Q1, 'twenty 'twenty, 1 will be recovered performed as expected and ability to fire on looks AP and virtualization loans I'm talking to people on material by our customers.

Once that they'll have to go on material will be fully approved by all our customers. So we expect some reduction in our force of production, which would you kind of think of the flexibility to offer our customers more options for production as well as better pricing and better secure sources of raw material.

And successful already shifted its focus on flex PCB, which will contribute to our future revenue growth as soon as interruption mean flexible on material will really means day.

Eliminating.

Every state in the past, we also see an opportunity to wall business in the U S. Due to the shift to the west of production by the defense Aerospace space on communication PCB 6 calls due to the cyber threats like China and the lack of production capacity in USA Europe and easily.

So far we have financed our growth strategy from our warmington on our resources and school right offering dwell on channel shareholders you.

During 2021, we plan to continue investing in our sales activity that will enable us to blow away from you always focus on the U S market as well as continue investing and you agreed and debt expansion of our facilities and infrastructure to support our long term sales force.

And you're still day Board meeting our board of Directors approved our opening alone will spend really on new Israeli shekel, yes, it's approximately $3.1 million Boe low from bank Leumi Israel.

Hello.

And they almost anything else with 7.7 of her balance, including the repayment schedule and south after 12 months, great scale and carried interest of Prime plus 1.5 which is waived for the first year of the loans.

And we have previously reported Rachel Fox from a forward investment program that is underway due on program are expected to be completed and become operational by mid 2021 day.

Recent investments and the planned future investments will be strength franking.

Manufacturing capability and increase our competitiveness by implementing improved production processes and the book some of industry 4 <unk> technologies.

In addition, as.

As we already announced ethics, we received final approval from day, Israel Innovation authority for 50% warranty bearing prophecy patient hang on and before zone, which ought to be started on March 1.2021, and we all know the cros.

The milestone of having the full picture because of the finished.

These 2021 Island day program is meant to enable <unk> to achieve a significantly significantly faster production rates and reduce scrap.

When do you want on island B program in 60 days.

We'll announce L capability also ideally I literally by the labor printed circuit boards, and it's a shorter production time and introduce force.

We have continued to pursue new business opportunities and increase customer design engagement activities that we live on their job our advanced technology capabilities.

In addition, we are all again.

We already announced centric applied to these really lend Detroit diesel on location of lending and also free Israel was I'm thinking tend to bring the second production facility.

This is the major part of our long term and synthetic roadmap and colbert to grow and accelerate the expansion of our business.

We remain focused on operational excellence, but using investment growth technology, and financial discipline, and making and making all the necessary adjustments to address the challenges we face from the widespread mers crises in the shoulders of raw material.

We have continued to work the likely on extending our old business, while maintaining operational efficiency and maintain profitability.

I will now share on the core over to a lot more on them all on CFO to discuss our free options.

Thank you Ellie.

I would like to draw your attention to the financials of the first quarter of 2021.

During this call I would've been also discussing certain non-GAAP financial measures.

Okay accuses EBITDA is a non-GAAP financial performance measurement day.

See our earnings release for each definition and the reasons for its use.

Now I'll go over the highlights of the first quarter of 2021 compared to the first quarter of 2020.

Revenues for the first quarter of 2021 were $7.2 million compared to revenues of $9.2 million in first quarter of 2020.

Gross profit was $1.1 moving into first quarter of 2021 compared to 1.8 million in the first quarter of 2020.

Net profit was 223000 or 4 cents per share in the first quarter of 2021 compared to a net profit of 541000 or 12 cents per share in the first quarter of 2020.

EBITDA was 577000 in the first quarter of 2021 compared to EBITDA of approximately $1 million in the first quarter of 2020.

Cash flow provided by operating activities was $2.5 million in the first quarter of 2021 compared to $1.5 million in the first quarter of 2020.

As previously announced we filed the shelf registration statement during the first quarter of 2019 to provide the company with the ability to raise additional funds to support our plan to grow and expand our business.

We expect that any proceeds will be used in part.

For additional investment and to accelerate our long term growth.

As I mentioned before we remain focused on operational excellence and financial discipline as well as our long term strategic gross loans.

We are now ready to take your questions.

Ladies and gentlemen at this time, we will begin the question answer session. If you have a question. Please press star 1.

If you wish to cancel your request please press star 2 if he.

James 2 quick Clinton tend to index.

Chapter for crushing and on your.

Your question will be pulled in the order in the RSC.

Please standby, while we poll for your questions.

The first question is from Michael Blum.

Please go ahead.

Oh hi.

Yeah, I have a question about yeah.

According to the material.

Currently what's the percentage of customers.

On approved.

Not.

From Korea.

Give us some color on that.

As you know we don't provide they're looking for statement. However, as you know we are facing shortages of key raw material. I mean, if you do agree on the production more flexibly and flex and flex sweeter free inconsiderate goals, but we do expect with revenues from them to rebound during the rest of the value and loss fix would be recoverable under full level.

Ability of fireworks therapy, AP, which loans are in short supply and we've victimization of views on how people want to get out.

Our customers and as I mentioned before we ever broke down on people on materially Stoke right now and we walking with diesel on material already.

Yeah, Hi, My question is about.

Currently how many customers kind of like what does the Hudson yards precedents here.

Kind of accepted the material like a great degree from Ukraine.

That's getting spun.

It doesn't want to growth.

Kevin.

And these are all the majority of the customers total of expenses.

Okay, that's great that's pension.

We expect that by the end of next year.

GAAP rate couldn't cause it.

Given the new 1 strength yes.

Yeah. So alternative net part of that looks like it will continue to supply raw material and then the rest of the customers that want to approve the until on the raw materials there was good.

On the fireworks strength.

Oh, okay. Okay. So.

Okay. Okay, that's great so how much.

I have a second question on pumps and factory. So a could you give more net.

Detailed trends, what's the what's the thought yet from that sector.

Factoring in check on the technical team.

What is the timeline.

Oh, it's very very early stage in this stage of the game the bolt on.

The whole book.

Yeah.

The rectal Sofia and allowed us to purchase the logs.

And it can also free as well it makes it very nice loss.

And so long term plan.

So its Mike stone is buying the land and then we felt because many people don't pay their food budget difficulties.

Oh, okay. Okay. So it's kind of pretty early yet right.

We make the application moving towards the Israeli afterwards led management and the application is there we have no commendation for global net to get the land that they subsidize growth subsidized.

Subsidize their development cost.

And.

Okay.

Let's go there or.

Sure.

Okay great.

So do you have.

Thank you from.

Rough number on what does that capacity can be.

Moving now on there.

Okay.

I don't think I think up on the existing capacities. Unfortunately it themselves.

60.

66 <unk>.

Oh, okay. So.

That's Amy.

He doesn't have any debt.

Interruption or you know is a carton of cigarettes in Israel.

Net income.

No not at all.

Oh yeah.

I would say is considered is essentially on on enterprise and the walking dead. This time, so probably has more impact on our operations.

We are very closely following the security situation on opposite the assumed the likes of a return to normal.

You have to order from to remember, but a large portion of our revenue are coming from the security on the 56 loans, but we cannot know if it will have an impact on the oldest received from the future.

Okay. Okay. That's great. Thank you very on my God. Thank you Mike.

Sure.

It's there and we'll get some more questions. Please press star 1 if you wish to cash.

For your request please press star 2.

Standby, while we poll for more questions.

There are no further questions at this time before I ask Mr. Huang on for the go ahead with his closing statement I would like to remind the participants that are reported on.

On this call what was available tomorrow on <unk> website at Www Dot net of Tech dotcom.

Figure out what do you like to make your concluding statement.

Yes, before we conclude our call I would like to thank all our employees for their efforts can make strength across a couple again and even in these challenging times I would like to thanks again to all our customers sloppiness in vegetables and <unk>.

They'll continue on for bolt. Thank you all for joined US from say call. It a good day.

Thank you. This concludes I'll take on the Big first quarter and full year 2021 Financial result conference call and compare participation. You May go ahead and disconnect.

Okay.

Okay.

Okay.