Q2 2022 Eltek Ltd Earnings Call

Ladies and gentlemen, thank you for standing by welcome to the Alphatec L. P D 2022.

Second quarter financial results Conference call. All participants are present in a listen only mode. Following management's formal presentation instructions will be given for the question and answer session for operator assistance. During the conference. Please press Star Zero as a reminder, this conference is being recorded before I turn the call over to Mr. Li.

<unk>, Chief Executive Officer, and Ron Freind, Chief Financial Officer, I'd like to remind you that they will be referring to forward looking information in today's presentation and in the Q&A.

By its nature. This information contains forecasts assumptions and expectations about future outcomes, which are subject to the risks and uncertainties outlined here and discussed more fully in <unk> public disclosure filings. These forward looking statements or projections and reflect the current beliefs and.

<unk> of the company actual events or results may differ materially. We will also be referring to non-GAAP measures L. Tech undertakes no obligation to publicly release revisions to such forward looking statements to reflect events or circumstances occurring subsequent to this date I will now turn the call over.

Over to Mr. Elliott outfit Mr. Yao. Please go ahead.

Thank you.

Good morning, everyone. Thank you for joining us and welcome to <unk> 2022 second quarter, earning call.

<unk> <unk>, our Chief Financial Officer.

We will begin by providing you with an overview of our business and summary of the principal factors that affected our results in the second quarter, followed by the details of our financial results. After our prepared remarks, we'd be happy to answer any of your questions by now everyone should have access to our <unk>.

Press release, which was released earlier today. The release will also be available on our website at www Dot Dniester Celtic Dot com.

In the second quarter of 2020 tool with recorded a revenue of $9 1 million loyal than what we forecasted due to the fire that broke out in one of our manufacturing Department in June .

We managed to contain the fire without any injuries and <unk> completed the rebuild of the damage line and our manufacturing capacity was returned to normal levels.

Our employees did an excellent job finding and stabilizing and alternative manufacturing close there's this white, while repairing the damages line and we are thankful about it.

I should also note that we are still discussing the amount of compensation to be received tomorrow insurance company.

The second quarter of 2022.

Its characterized by a continuation of the strong demand trends.

I previously stated we are enjoying substantially increasing orders from customers and we are making efforts at all levels to deal with the increased demand of our products.

We are also making efforts to increase our commercial activity and opened it.

In the upcoming quarters, we will see the results from these efforts.

Since March 31, 2022, we have managed to increase our work force by 10% to meet the increased production demands.

We believe that the political and security situation you caused the government to increase the military budget and LTE is a supply of significant components to defense system manufacturer is influenced positively by these.

We further expect that the political tension that arose recently between China, and Taiwan will strengthen strengthening the trend of transferring PCB production from the east to western countries.

And with support of the increased demands.

To our products.

During the second quarter, we continue to implement and accelerate the investment plan that we.

We detailed earlier.

The CEO on July 27, we filed a new S. Three with the sick. This shelf registration statement will allow us to raise capital when market condition and our share price will be appropriate.

I will now turn the call over to <unk>, our CFO , who will discuss our financial results.

Thank you Haley.

I would like to draw your attention to the financial statement for the second quarter of 2022.

During this call I will also discuss certain non-GAAP financial measures.

<unk> uses EBITDA as a non-GAAP financial performance measurement. Please see our earnings release four weeks the definition and the reasons for its use.

Now I will go over the highlights of Q2 2022, and the first six months of 2022.

Revenues for the second quarter of 2022 totaled $9 1 million same as in Q1 Q2 2021.

Revenues for the six the first six months of 2022 totaled $18 8 million compared to 16 three in the same period last year.

Gross profit for the second quarter of 2022 totaled $1 7 million.

Compared to a gross profit of $2 4 million in the second quarter of 2021.

The decrease in gross profit is due to a higher efficiency achieved during the second quarter of 2021.

<unk> operations were negatively impacted by the fire in June 2022.

Gross profit for the first six months of 2022.

Total $3 $6 million compared to $3 5 million in the same period last year.

Yeah.

Operating profit amounted zero point $3 million in Q2, 2022 compared to $1 million in.

2021.

Operating income in the first six months of 2022 totaled 1 million dollar compared to $1.2 million in the same period last year.

The increase in the second quarter of the U S dollar exchange rate against and this contributed to our Q2 2022 results of operation.

The financial income in the amount of <unk> $6 million.

Since our functional currencies, Dennis with record financial income in regard to our U S dollar cash balances and customer balances whenever there is a revaluation of the U S dollar against Dennis.

For the first six months of 2022, we recorded financial income in the amount of $7 million.

Net four feet was zero point $8 million or 13 cents per share in Q2 2022 compared to a net profit of zero about $9 million or <unk> <unk> per share in Q2 2021.

Net profit for the six months of 2022 was $1 $4 million compared to $1 $2 million in the first six months of 2021.

EBITA was zero point million in Q2.

2022.

<unk> to $1 $5 million in Q2 2021.

For the six months of 2022, EBITA was $1 9 million.

Compared to $2 1 million in the same period last year.

As of June 32022, we had cash and cash equivalents of $8 $2 million compared to $9 3 million at December 31, 2021.

The decrease compared to the December 31, 2021 is mainly due to the revaluation of the U S dollar against them.

As previously mentioned, our functional currencies and this therefore each balance sheet item is translated into our reporting currency, which is the U S. Dollar using the U S. Dollar exchange rate at the end of the period.

Of December 31, 2021. This exchange rate was 3.1 lease for one dollar.

As of June 32022, the exchange rate was three five <unk> to $1.

We are now ready to take your questions.

Okay.

Thank you ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star two if you are using speaker equipment currently what's the handset before pressing the numbers questions will be polled in the order. They are received please standby while we poll for your.

Questions.

I repeat if you have a question please press star one.

There are no questions at this time before I ask Mr. Yafei to go ahead with his closing statement I would like to remind the participants that a replay of this call will be available tomorrow on <unk> website www.

Nice stack al Tac Dotcom.

Early asset. Please go ahead.

Before we conclude our call I would like to thanks, all our employees fold airfoils and overcoming the fire that took place in the plant.

Also like to thank our customers partners investors and the <unk> team for their continued support.

Thank you for joining us on today call cervical day.

This concludes the <unk> L. T D. 2022 second quarter financial results Conference call. Thank you for your participation you May go ahead and disconnect.

Okay.

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