Eltek ASA: Report second quarter and first half year 2014

(Drammen, 18 July 2014): Eltek reported revenue of NOK 997 million in the second quarter 2014, an increase of 9 percent and from the second quarter last year. Revenue grew across all regions.

The gross margin was 28.4 percent, compared to 28.0 percent in the same quarter last year. Operating profit (EBIT) increased 16 percent to NOK 90 million, while profit before tax for the continuing business was NOK 86 million, an increase of 83 percent and the highest quarterly reported pre-tax profit ever.

"The quarterly results confirm that our strategy of focusing on core business and margin improvements has paid off. Eltek is now a focused and highly profitable technology leader within telecom power and specific industrial applications," said Eltek's CEO Colin Howe.

Order entry decreased 11 percent, while order backlog increased by 2 percent.

Net profit was NOK 65 million in the second quarter, an increase of 92 percent. This includes a net profit of NOK 2 million from discontinued operations.

Eltek's focus is now on Telecom Power and Industrial Applications, as well as growth opportunities within the data center market.

Revenue in the Telecom Power business area, including Data Center Power, was NOK 894 million in the second quarter, an increase of 9 percent from the second quarter last year. Within data centers, Eltek is currently finishing commissioning at its first mega site in the Asia Pacific region, and separately a contract with a leading global data center operator enters the volume delivery phase.

Revenue in the Industrial Applications business area was NOK 103 million in the second quarter, an increase of 27 percent, thus continuing the positive development from previous quarters.

Europe was particularly strong in the second quarter, and the EMEA region accounted for 46 percent of total revenue.

"The impressive performance in Europe demonstrates growth opportunities in mature markets as rapidly increasing data traffic drives infrastructure investments," Howe said.

Overall the company maintains a positive outlook for the rest of 2014.

Eltek will host a capital markets day on September 9 at 8.30 am CEST. Further details will be available later.

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

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 2316 2729
International call +44(0)20 3427 1900
US +1646 254 3362

Participants will be asked for the name, company, and the conference ID number 2857900.

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 data center 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.