Eltek Announces Revenue Update for 2020, Shortage of Pyralux AP

Reading time ( words)

Eltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, provided an update regarding the Company's revenues in the year ended December 31, 2020 and the impact the worldwide shortage of Pyralux AP, a key material produced by DuPont that is used in the production of flexible and flex–rigid printed circuit boards.

Based on a preliminary and unaudited financial report, the Company expects to report revenues of approximately $36.7 million for the year ended December 31, 2020 compared to revenues of $34.8 million reported for the year ended December 31, 2019, growth of 5.5% in revenues year over year, reflecting the Company's continued ability to operate successfully during the COVID-19 pandemic. The 2020 financial information is unaudited and subject to audit changes. 

As previously announced, during December 2020 we successfully completed a rights offering to our shareholders providing gross proceeds of $5.7 million to the Company. The proceeds from the offering reduced our indebtedness to Nistec, our controlling shareholder, and improved the Company's balance sheet and its financial ratios.

The Company also indicated that its operations in the first quarter of 2021 will likely be negatively impacted as a result of the worldwide shortage of Pyralux AP, a laminate produced by DuPont that is used in the production of flexible and flex–rigid printed circuit boards. The Company is presently introducing an alternative raw material for its production of PCBs to its customers. While revenues are likely to be impacted in the first quarter, the Company expects that revenues will rebound during following quarters and lost sales will be recovered upon the expected availability of Pyralux AP and authorization of alternative raw material by Eltek's customers.



Suggested Items

Finding Process Improvement Opportunities in Training

02/25/2021 | Nolan Johnson, PCB007
Nolan Johnson speaks with Leo Lambert of EPTAC about training the next generation out of high school and vocational schools, and how his company continues to improve processes, grow and adapt to changing requirements while fulfilling its mission to deliver technical certification training.

Top 10 Most-Read PCB Articles of 2020

12/31/2020 | I-Connect007
As 2020 comes to a close, the I-Connect007 Editorial Team takes a look back at its most read articles. Here are the top 10 reads in PCB from the past year.

Prices of Copper-Clad Laminates Continue to Rise

12/18/2020 | I-Connect007 China Team
Forces within and outside the PCB industry have led to concerns over rising prices for raw materials of copper-clad laminates (CCL). Recently, two major explosions at epoxy resin plants in China had a great impact on domestic resin suppliers. Prices have risen steadily in 2020, with leading CCL manufacturers announcing price increases of 20-30% recently. As the cost of raw materials such as electronic copper foil, resin and glass fiber have risen, the cost for manufacturing CCL has taken off as well.

Copyright © 2021 I-Connect007. All rights reserved.