Eltek Ltd. (NASDAQ:ELTK)
Eltek Ltd. (NASDAQ:ELTK) shares jumped over 50% after the company released news that it had received a $3 million project order from a governmental authority. Volumes approached historic levels. The thinly traded shares have a listed 30-day, daily average volume figure of less than 6,500 shares traded per day. However today, after the news hit the market, over 6.3 million shares traded on the NASDAQ.
The project covers a two year period and Eltek Ltd. (NASDAQ:ELTK) will be required to meet quarterly milestones. The government has an option to extend the project for an additional year. If the option is picked up, Eltek will be required to meet additional quarterly milestones. Quarterly payments to Eltek Ltd. (NASDAQ:ELTK) will be subject to the fulfillment of each milestone. The project is expected to generate total aggregate revenues of approximately $2.1 million (approximately $3 million if the option is exercised).
Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, “The selection of Eltek by this customer attests to the trust in the Company’s technological capabilities. We believe that this order will advance our competitiveness and brings us a step closer to increasing the number of orders from this customer and from additional costumers that value the quality and high reliability of our printed circuit boards”.
Eltek Ltd. (NASDAQ:ELTK) is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), and is the Israeli leader in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high-quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek has ITAR, AS-9100 and NADCAP Electronics permits and its customers include top of the line companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.
The customer may terminate the project on its first anniversary, but will be required to reimburse Eltek for its direct costs and expenses with regard to the project until such termination.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.