Eltek Ltd. Reports 2024 Second Quarter Financial Results
PETACH TIKVA, Israel,
Second Quarter 202 4 Highlights
- Revenues were
$10.5 million - Operating profit was
$0.4 million - Profit before tax was
$0.9 million - Net income was
$0.8 million or$0.11 per fully diluted share - As of
June 30, 2024 cash and cash equivalents amounted$18.3 million .
"
"We expect to return in in the third quarter to the profitability parameters of previous quarters, as product mix strategies are realigned. Our backlog as of today increased by 30% since the beginning of 2024. This increase will support our planned growth in revenues and profitability. We remain committed to delivering value to our shareholders and are taking the necessary steps to ensure that we continue our growth trend. Our team is focused on optimizing our product offerings and operational efficiencies to drive profitability and sustain our market leadership," concluded
Second Quarter 2024 GAAP Financial Results
Revenues for the second quarter of 2024 were
Gross profit for the second quarter of 2024 was
Operating profit for the second quarter of 2024 was
Financial income for the second quarter of 2024 was
Profit before income tax for the second quarter of 2024 was
Net income for the second quarter of 2024 was
Second Quarter 2024 Non-GAAP Financial Results
EBITDA for the second quarter of 2024 was
First Six Months 2024 GAAP Financial Results
Revenues for the first six months of 2024 were
Gross profit for the first six months of 2024 was
Operating profit for the first six months of 2024 was
Financial income for the first six months of 2024 was
Profit before income tax for the first six months of 2024 was
Net profit for the first six months of 2024 was
First Six Months 2024 Non-GAAP Financial Results
EBITDA for the first six months of 2024 was a
About our Non-GAAP Financial Information
The Company reports financial results in accordance with
Conference Call
Today,
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Forward Looking Statement
Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's Annual Report on Form 20-F and other filings with the
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Investor Contact
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
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Consolidated Statements of Income |
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Three months ended |
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Six months ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues |
|
10,466 |
|
11,043 |
|
22,249 |
|
22,513 |
|
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Costs of revenues |
|
(8,830) |
|
(8,091) |
|
(17,361) |
|
(16,546) |
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Gross profit |
|
1,636 |
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2,952 |
|
4,888 |
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5,967 |
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Research and development expenses, net |
|
(47) |
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(15) |
|
(62) |
|
(24) |
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Selling, general and administrative expenses |
|
(1,184) |
|
(1,543) |
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(2,700) |
|
(2,960) |
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Operating profit |
|
405 |
|
1,394 |
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2,126 |
|
2,983 |
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Financial income, net |
|
489 |
|
190 |
|
839 |
|
477 |
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Income before income tax |
|
894 |
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1,584 |
|
2,965 |
|
3,460 |
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Income tax expenses |
|
143 |
|
271 |
|
475 |
|
585 |
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|
|
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Net income |
|
751 |
|
1,313 |
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2,490 |
|
2,875 |
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Earnings per share: |
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Basic and diluted net profit per ordinary share |
|
0.11 |
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0.22 |
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0.38 |
|
0.49 |
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Weighted average number of ordinary shares used to compute |
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basic net profit per ordinary share (in thousands) |
|
6,706 |
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5,908 |
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6,541 |
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5,879 |
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Weighted average number of ordinary shares used to compute |
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diluted net profit per ordinary share (in thousands) |
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6,764 |
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5,943 |
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6,628 |
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5,897 |
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Consolidated Balance Sheets |
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2024 |
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2023 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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8,877 |
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9,278 |
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Short-term bank deposits |
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9,396 |
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2,862 |
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Receivables: Trade, net of provision for doubtful accounts |
|
9,948 |
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10,898 |
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Other |
|
287 |
|
689 |
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Inventories |
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6,440 |
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6,135 |
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Prepaid expenses |
|
306 |
|
245 |
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Total current assets |
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35,254 |
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30,107 |
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Long term assets: |
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Severance pay fund |
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55 |
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57 |
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Deferred tax asset, net |
|
964 |
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1,098 |
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Operating lease right of use assets |
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5,965 |
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6,555 |
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Total long term assets |
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6,984 |
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7,710 |
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Fixed assets, less accumulated depreciation |
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12,669 |
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9,354 |
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Total Assets |
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54,907 |
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47,171 |
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Liabilities and Shareholder's equity |
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Current liabilities: |
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Accounts payable: Trade |
|
5,273 |
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7,503 |
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Other |
|
5,214 |
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5,689 |
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Short-term operating lease liabilities |
|
763 |
|
789 |
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Total current liabilities |
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11,250 |
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13,981 |
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Long-term liabilities: |
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Employee severance benefits |
|
399 |
|
447 |
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Long-term operating lease liabilities |
|
5,306 |
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5,871 |
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Total long-term liabilities |
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5,705 |
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6,318 |
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Shareholders' equity: |
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Ordinary shares of |
|
6,006 |
|
5,443 |
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Additional paid-in capital |
|
32,597 |
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23,587 |
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Cumulative foreign currency translation adjustments |
|
(486) |
|
783 |
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Capital reserve |
|
2,186 |
|
1,900 |
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Accumulated deficit |
|
(2,351) |
|
(4,841) |
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Total shareholders' equity |
|
37,952 |
|
26,872 |
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Total liabilities and shareholders' equity |
|
54,907 |
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47,171 |
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Unaudited Non-GAAP EBITDA Reconciliations |
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Three months ended |
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Six months ended |
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2024 |
|
2023 |
|
2024 |
|
2023 |
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GAAP net income |
|
751 |
|
1,313 |
|
2,490 |
|
2,875 |
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Add back items: |
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|
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Financial income, net |
|
(489) |
|
(190) |
|
(839) |
|
(477) |
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Income tax expenses |
|
143 |
|
271 |
|
475 |
|
585 |
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Depreciation and amortization |
|
388 |
|
301 |
|
753 |
|
630 |
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Non-GAAP EBITDA |
|
793 |
|
1,695 |
|
2,879 |
|
3,613 |
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Consolidated Statement of Cash flow |
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|
Three months ended |
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Six months ended |
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|
2024 |
|
2023 |
|
2024 |
|
2023 |
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Cash flows from operating activities: |
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Net Income |
|
751 |
|
1,313 |
|
2,490 |
|
2,875 |
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Adjustments to reconcile net income to net cash flows |
|
|
|
|
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|
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provided by operating activities: |
|
|
|
|
|
|
|
|
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Depreciation and amortization |
|
388 |
|
301 |
|
753 |
|
630 |
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Accrued interest |
|
(98) |
|
- |
|
(186) |
|
- |
|
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Stock-based compensation |
|
154 |
|
72 |
|
286 |
|
144 |
|
|
Decrease in deferred tax assets and long term tax receivable |
|
(100) |
|
260 |
|
91 |
|
566 |
|
|
|
|
344 |
|
633 |
|
944 |
|
1,340 |
|
|
|
|
|
|
|
|
|
|
|
|
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Decrease (increase) in operating lease right-of-use assets |
|
2 |
|
11 |
|
3 |
|
(22) |
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Decrease (increase) in trade receivables |
|
(219) |
|
(1,896) |
|
517 |
|
(1,784) |
|
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Decrease (increase) in other receivables and prepaid expenses |
|
234 |
|
214 |
|
309 |
|
(311) |
|
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Decrease (increase) in inventories |
|
(169) |
|
(496) |
|
(565) |
|
(809) |
|
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Increase (decrease) in trade payables |
|
955 |
|
(307) |
|
(536) |
|
105 |
|
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Increase (decrease) in other liabilities and accrued expenses |
|
(48) |
|
629 |
|
(249) |
|
1,477 |
|
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Increase (decrease) in employee severance benefits, net |
|
(48) |
|
17 |
|
(30) |
|
22 |
|
|
|
|
707 |
|
(1,828) |
|
(551) |
|
(1,322) |
|
|
|
|
|
|
|
|
|
|
|
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Net cash provided by operating activities |
|
1,802 |
|
118 |
|
2,883 |
|
2,893 |
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|
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Cash flows from investing activities: |
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|
|
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Purchase of property and equipment |
|
(3,215) |
|
(406) |
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(5,947) |
|
(711) |
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Insurance Proceeds |
|
- |
|
2,000 |
|
- |
|
2,000 |
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Investment in short-term bank deposits, net |
|
(132) |
|
- |
|
(6,534) |
|
- |
|
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Restricted deposits |
|
- |
|
192 |
|
- |
|
192 |
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Net cash provided by (used in) investing activities |
|
(3,347) |
|
1,786 |
|
(12,481) |
|
1,481 |
|
|
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|
|
|
|
|
|
|
|
|
|
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Cash flows from financing activities: |
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|
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|
|
|
|
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Exercise of options |
|
16 |
|
299 |
|
261 |
|
299 |
|
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Repayment of long-term loans from bank |
|
- |
|
(1,768) |
|
- |
|
(3,348) |
|
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Issuance of shares, net |
|
- |
|
- |
|
9,312 |
|
- |
|
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Net cash provided by (used in) financing activities |
|
16 |
|
(1,469) |
|
9,573 |
|
(3,049) |
|
|
|
|
|
|
|
|
|
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Effect of translation adjustments |
|
(204) |
|
(164) |
|
(376) |
|
(361) |
|
|
|
|
|
|
|
|
|
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Net increase (decrease) in cash and cash equivalents |
|
(1,733) |
|
271 |
|
(401) |
|
964 |
|
|
|
|
|
|
|
|
|
|
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Cash and cash equivalents at the beginning of the period |
|
10,610 |
|
8,059 |
|
9,278 |
|
7,366 |
|
|
|
|
|
|
|
|
|
|
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Cash and cash equivalents at the end of the period |
|
8,877 |
|
8,330 |
|
8,877 |
|
8,330 |
|
|
View original content:https://www.prnewswire.com/news-releases/eltek-ltd-reports-2024-second-quarter-financial-results-302223390.html
SOURCE