PETACH TIKVA, Israel - Eltek Ltd. (NASDAQ: ELTK), an Israeli provider of advanced printed circuit board (PCB) solutions, announced today the immediate appointment of Tomer Segev as its new Vice President of Marketing and Sales. Segev, with over two decades of experience in technology and electronics, is expected to lead the company's global sales efforts and marketing strategies.
Segev's background includes senior roles at PCB Technologies, Camtek (NASDAQ:CAMT), Orbotech, and KLA, where he focused on sales, marketing, and business development. He holds a B.Sc. in Physics and Materials Engineering from the Technion and an MBA from the Kellogg-Recanati Executive MBA program.
Eli Yaffe, CEO of Eltek, expressed confidence in Segev's capabilities, stating that his expertise in building high-performance teams and driving revenue growth will be crucial for Eltek's continued innovation and delivery of high-quality PCBs. Segev himself is eager to contribute to Eltek's growth and to work with the team to maintain exceptional service for their customers.
Eltek, founded in 1970, specializes in manufacturing complex and high-quality PCBs, including HDI, multilayered, and flex-rigid boards, catering to high-end markets such as defense, aerospace, and medical industries. The company is ITAR compliant and holds AS-9100 and NADCAP electronics certifications. Eltek operates a North American subsidiary and has agents and distributors in Europe, India, South Africa, and South America.
This leadership change reflects Eltek's strategy to strengthen its position in the PCB industry and expand its market presence. The information for this announcement is based on a press release statement.
In other recent news, Eltek Ltd., a global manufacturer of printed circuit boards (PCBs), secured $3.5 million in orders from two defense customers. These orders, expected to be delivered between the fourth quarter of 2024 and the end of 2026, align with Eltek's strategy to secure long-term contracts to enhance production planning and profitability. In another development, the company reported a decrease in Q2 revenue and profit, recording $10.5 million in revenue and a gross profit of $1.6 million. This decrease was attributed to a shift in customer orders towards medium technology PCBs and production delays due to manpower constraints.
Despite these challenges, Eltek remains optimistic about its return to profitability, backed by strong demand from the defense sector and strategic investments in capacity expansion. The defense sector continues to be a strong revenue driver for the company, accounting for 60% of Q2 revenue. To meet the growing demand, Eltek is investing in three new coating lines and plans to increase its workforce by 50 manufacturing employees by the end of the year.
Eltek has set a target of achieving a 27% gross margin and expects total capital expenditures to reach $10 million by the end of 2025. Despite missing its gross margin target for Q2, the company remains steadfast in its commitment to long-term growth and profitability. This is evidenced by its ongoing investments in capacity and technology, aimed at enhancing its product offerings and market position. These are the recent developments concerning Eltek.
InvestingPro Insights
As Eltek Ltd. (NASDAQ: ELTK) welcomes Tomer Segev as its new Vice President of Marketing and Sales, the company's financial health and market performance provide a supportive backdrop for its strategic initiatives. With a market capitalization of $72.32 million, Eltek appears well-positioned for Segev's expertise to drive growth.
Eltek's recent financial metrics reveal a company with a solid foundation. The company's P/E ratio stands at a competitive 11.24, indicating that it is trading at a low price relative to its near-term earnings growth. This aligns with an InvestingPro Tip highlighting Eltek's advantageous position, trading at a low P/E ratio in comparison to its earnings growth potential. Additionally, the company's PEG ratio, which measures the price of a stock relative to its earnings growth rate, is at 0.63—suggesting that the stock may be undervalued based on its earnings trajectory.
Another key highlight from the InvestingPro Tips is the company's liquidity strength. Eltek holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial stability is crucial as Segev steps into his role, potentially enabling the company to invest in marketing and sales initiatives without the immediate pressure of financial constraints.
For those interested in deeper analysis, InvestingPro offers additional insights on Eltek, with a total of 7 InvestingPro Tips available, including observations on the company's profitability and return over the last five years. These insights can be found at: https://www.investing.com/pro/ELTK
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