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Tuesday 29 April, 2014

Eltek ASA

Eltek ASA: Report first quarter 2014

Eltek ASA: Report first quarter 2014

(Drammen, 29 April 2014) Eltek reported revenue of NOK 793 million and an order entry of NOK 995 million in the first quarter 2014, representing increases of 1 percent and 22 percent respectively from the first quarter last year. The company proposes a higher dividend than originally suggested.

The gross margin was 27.9 percent, compared to 26.3 percent in the same quarter last year. Operating profit (EBIT) increased 10 percent to NOK 40 million, while profit before tax for the continuing business was NOK 33 million, marginally above last year's level.

"The first quarter, while seasonally slow, demonstrates that we deliver on our strategy of focusing on core business, operations and margins. A strong order situation underpins our positive outlook," said Eltek's CEO Colin Howe.

Net profit was negative NOK 11 million in the first quarter, including a net loss of NOK 34 million from discontinued operations, primarily related to the previously reported settlement with Ceragon following the divestment of Nera Networks in 2011.

As a consequence of the settlement with Ceragon, the Board of Directors is proposing to increase the dividend to NOK 0.75 per share, compared to its previous proposal of NOK 0.50 per share.

"Eltek is in a robust financial position, enabling us to offer shareholders a very competitive dividend yield," Howe commented.

Following the withdrawals from the E-Vehicles and Renewable segments, Eltek's focus is now on Telecom Power and Industrial Applications, as well as growth opportunities within the datacenter market.

Europe was particularly strong in the first quarter, and the EMEA region accounted for 49 percent of total revenue. The Industrial Application segment grew 16 percent compared to the first quarter 2013 and increased its share of total revenue.

At the end of the first quarter 2014, Eltek's order backlog was 26 percent higher than at the same time last year. This supports the company's growth prospects and a positive outlook for the rest of 2014.

The company hosts a presentation and subsequent Q&A session on a combined webcast and conference call at 8:30 CEST today.

Webcast:http://www.eltek.com/webcasts or follow the webcast link on the investor relations section on the company web site.

Conference call: Please dial-in 5 minutes prior to start time using the below number and confirmation code.

Norway: +47 2350 0486
International: +44 (0) 20 3427 1907
US: +1646 254 3360

Participants will be asked for the name, company, and the conference ID number 5722133.

Please find enclosed the interim report for the first quarter 2014 on http://www.newsweb.no.

About Eltek
Eltek is a strategic technology partner for power solutions. The company reported revenue of NOK 3.7 billion in 2013, and has approximately 2,400 employees and operations in almost 40 countries. The company focuses on power electronics markets, where it is one of the leaders in telecom power and a growing force within industrial applications. Eltek is also pursuing growth opportunities within the datacenter market. Eltek is listed on Oslo Stock Exchange (ELT:Oslo) and headquartered in Drammen, Norway.

This information is subject of the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.




This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Eltek ASA via Globenewswire

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