The following is a summary of the Eltek Ltd. (ELTK) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Eltek reported record 2023 revenue of $46.7 million and a net profit of $6.4 million, marking a considerable growth in profitability.

• The company achieved a significant growth in their principal profitability indicators, with EBITDA amounting to $8.6 million and cash flow from operations being $8.9 million.

• Gross profit increased by 58% to $13.1 million in 2023, and operating profit of $7.3 million was reported, highlighting successful strategic cost initiatives.

• The company raised capital of $10 million and conspicuously repaid all its bank loan debt in the same year.

Business Progress:

• Eltek's accelerated investment plan initiated in 2022 has resulted in a 130% increase in backlog, indicating expected growing demand.

• The company has diversified into industries beyond defense and medical device sectors, securing orders from a significant client in large-scale production of semiconductor chips.

• Eltek has committed an estimated $10 million to ongoing investment plans, on track to complete it by end of 2024.

• Office utilization is being optimized to enable expanded production capacities.

• The company is set for growth with plans to acquire an American PCB manufacturing company, acknowledging the strategic value of the US market.

• Plans are in place to raise debt or invest in mergers and acquisitions, following successful debt repayment.

• Continuing trends of increased revenue are anticipated for 2024, with a target gross margin of around 27%.

More details: Eltek IR

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