Eltek Ltd. (ELTK) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $3.01 million, or $ 0.30 a share in the quarter, against a net profit of $0.23 million, or $0.02 a share in the last year period.
Revenue during the quarter dropped 22.09 percent to $8.11 million from $10.41 million in the previous year period. Gross margin for the quarter stood at negative 5.71 percent as compared to a positive 16.26 percent for the previous year period. Operating margin for the quarter stood at negative 19.88 percent as compared to a positive 4.37 percent for the previous year period.
Operating loss for the quarter was $1.61 million, compared with an operating income of $0.46 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.40 million compared with $0.94 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 17.22 percent for the quarter compared to 9.03 percent in the last year period.
Mr. Yitzhak Nissan, chairman of the Board and chief executive officer, commented "Our fourth quarter revenues of $8.1 million were lower than the $10.4 million of revenues we had in the fourth quarter of 2015. The decrease was primarily attributable to the lower number of working days in the fourth quarter as compared to last year's fourth quarter, due to the local holiday season and the continued competition in the local military market. Our bottom line was also affected by two one-time expenses. The first was a $1.1 million write-off of a deferred tax asset, due to uncertainty about our ability to utilize it in the foreseeable future. The second was a $271,000 expense associated with the sale of all of our shares in Kubatronik-Leiterplatten GmbH, our German subsidiary, which had drawn significant resources from us for several years. We believe that the sale of Kubatronik will assist us to focus on improving our future results."
Operating cash flow drops significantly
Eltek Ltd. has generated cash of $0.16 million from operating activities during the year, down 90.41 percent or $1.56 million, when compared with the last year.
The company has spent $0.75 million cash to meet investing activities during the year as against cash outgo of $0.87 million in the last year.
Cash flow from financing activities was $0.47 million for the year as against cash outgo of $1.07 million in the last year period.
Cash and cash equivalents stood at $1.23 million as on Dec. 31, 2016, up 18.88 percent or $0.20 million from $1.04 million on Dec. 31, 2015.
Debt moves up
Eltek Ltd. has witnessed an increase in total debt over the last one year. It stood at $4.82 million as on Dec. 31, 2016, up 15.36 percent or $0.64 million from $4.18 million on Dec. 31, 2015.
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