Recently printed circuits boards firm, Eltek (NASDAQ:ELTK), recently released its financial results for the fiscal year 2017 as well as for the fourth quarter. According to the chief executive officer and chairman of Eltek, Yitzak Nissan, revenues for the 2017 fiscal year fell from $33.2 million which was recorded in 2016 to a figure of $32.8 million. However in 2017’s quarter four revenues reached a figure of $9.1 million and this was an improvement from a similar period a year ago when the figure was $7.3 million.
In 2017 the gross profit was $1.3 million and this was a decline from a figure of $2.8 million which was recorded in 2016. The operating loss of Eltek in full year 2017 also rose to a figure of $3.4 million compared to $2 million which was recorded the prior year. Net loss on the other hand came to $3.8 million and this was an increase from the $3.6 million which was reported in 2016.
Striving to improve
According to Nissan Eltek will continue to implement its improvements strategy with regards to manufacturing in order to reduce the order backlog which has continued to grow in line with increased demand for the company’s products. Nissan also reaffirmed his commitment to returning Eltek back to profitability soon.
Earlier in the year the controlling shareholder of Eltek, Nistec, extended bridge financing to the firm amounting to approximately $1.1 million to be used as working capital. Two months ago Nistec also made a commitment of offering additional financing amounting to nearly $2.5 million and this will have a one-year validity period. Per Nissan the support provided by Nistec will allow Eltek to over the challenges bedeviling its manufacturing operations.
Three months ago Eltek launched the Dynamic Pod system which is designed with a view of supporting data center 150 kilowatt nominal IT rack. With the Dynamic Pod of Eltek service providers and enterprises will be in a position of building out unconditioned ad conditioned compute facilities with flexibility and speed. Eltek’s Dynamic Pod possesses a water cooling design which enables high efficiency and this helps in lowering operating costs.