| Eltek, Inc. | |||
| Ticker: | ELTKF | Sgoola Industrial Zone, P.O.B. 159 | |
| Exchange: | NASDAQ-National Market | Petach-Tikva, ISRAL 49101 | |
| Industry: | High-Tech (SIC Code 3672) | ||
| Type of Shares: | Ordinary Shares | Filing Date: | 10/10/96 | |
| U.S. Shares: | 1,500,000 | Offer Date: | 1/22/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $6.00 - $7.00 | |
| Primary Shares: | 1,500,000 | Offer Price: | $5.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.44 | |
| Offering Amount: | $9,750,000 | Selling: | $0.26 | |
| Expenses: | $856,250 | Reallowance: | $0.10 | |
| Shares Out After: | 4,730,700 |
| Manager | Tier | Phone |
| Josephthal Lyon & Ross, Inc. | Lead Manager | (212) 907-4545 |
| Issuer's Law Firm: | Carter, Ledyard & Milborn |
| Bank's Law Firm: | Kronish Lieb Weiner & Hellman |
| Auditor: | Price Waterhouse |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 3/31/96 | 9/30/96 | 9/30/96 | |||
| Revenue: | $21.94 | $13.05 | Assets: | $18.41 | |
| Net Income: | $1.16 | $0.90 | Curr Assets: | ||
| EPS: | $0.35 | $0.28 | Liabilities: | $16.43 | |
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | $1.58 | Equity: | $1.98 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a leading Israeli manufacturer of technologically advanced circuitry solutions for use in today's increasingly sophisticated and compact electronic products. Incorporated in 1970, the company has positioned itself as a specialty service and solution provider in the printed circuit board business in Israel, and increasingly in Europe. The company's focus is on a subset of the PCB industry: the short run quick-turnaround, prototype, pre-production and low to medium volume runs of high-end PCB products for high growth, advanced electronics applications. PCBs are platforms that conduct electric current among active and passive microelectronics components, microprocessors, memories, resistors and capacitors and are integral parts of the products produced by high-technology industries. The company provides its customers with a wide range of custom designed PCBs, including complex rigid, double sided and multilayer PCBs as well as flexible circuitry made of glass epoxy and high-performance substrates. |
| Competition |
| The global PCB industry is highly fragmented and characterized by intense competition, which the company believes will increase. The company is one of the two leading PCB manufacturers in Israel and based on market information, including data published by the Israeli publication Technologies, believes that it and its principal competitor, P.C.B. Ltd., each accounted for approximately 22% of the total production in Israel in calendar 1995. |
| Business Plan |
| The company's objective is to strengthen its competitive posture by focusing on customers having complex service and sophisticated technological needs in Israel and selected foreign markets. In order to achieve this objective, the company is employing a three-pronged strategy 1) maintaining its technological leadership; 2) expanding its markets and broadening its customer base; and 3) providing a high level of service. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for the reduction of indebtedness, purchase of processing equipment and general corporate purposes, including working capital. |
| Additional Underwriter Compensation |
| Additional compensation of $187,500. |
| Warrant to purchase 150,000 shares/units at a nominal price. |
| Exercise price of $6.25 for 4 year(s), 1 year(s) from 1/22/97. |