PETACH TIKVA, ISRAEL– Eltek reported third quarter revenue of $13.3 million, down 1% from the same quarter last year, while gross margin fell sharply to 12% from 26% in the third quarter of last year. Operating income dropped to essentially break-even at $50,000, compared with $1.9 million a year ago, and the company posted a net loss of $0.2 million.

Management attributed the margin erosion to the significant depreciation of the U.S. dollar against the Israeli shekel, which inflated NIS-denominated expenses and reduced profitability despite stable top-line performance. Defense programs made up 63% of quarterly revenue, supporting a 6% sequential increase from the second quarter.

Eltek ended the quarter with $11.6 million in cash and continues preparing a new production hall that will support future coating-line capacity.

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