[Management View]
Revenue: $12.8 million in Q1 2025.
Gross Profit: $2.2 million, impacted by lower yields and increased labor costs.
Operating Profit: $0.7 million.
Net Income: $1 million, or $0.15 per share.
EBITDA: $1.2 million.
Liquidity: $15.7 million in cash, cash equivalents, and short-term bank deposits with no outstanding debt.

[Outlook]
Performance guidance: Management expects production stability and efficiency to continue improving.
Future plans: Installation of new plating lines by mid-2026, IT system overhaul, and diversification of supply base.

[Financial Performance]
YoY trends: Revenue increased from $11.8 million in Q1 2024 to $12.8 million in Q1 2025.
Gross profit decreased from $3.3 million to $2.2 million.
Operating profit decreased from $1.7 million to $0.7 million.
Net income decreased from $1.7 million to $1 million.
EBITDA decreased from $2.1 million to $1.2 million.

[Q&A Highlights]
Question 1: Regarding the new line that you expect to end the implementation in mid-2026. Will this line also impact the profitability of the company? Or, now that in the next few months, you're going to finish the implementation of the current implementation, will you get back to the profitability we've seen in 2023?
Answer: The new line will positively impact profitability by increasing production significantly. The new line will not interfere with current production, and the company does not provide forecasts.

Question 2: You mentioned that in Q1, you were held back by operational difficulties and people refusing to travel to Israel. Once these difficulties are resolved, how do you see sales picking up? Or to what extent was the hold back in Q1?
Answer: The holdback in Q1 was due to reduced yield affecting gross margin. Local engineers resolved the issues, and the main production line from Czechoslovakia is expected to arrive by August 2025. The first plating line will be installed by the end of 2025, increasing capacity and efficiency. The second line will arrive in the first half of 2026. The new lines will increase capacity, quality, and efficiency, supporting increased demand.

[Sentiment Analysis]
Tone of analysts: Inquisitive and focused on future profitability and operational efficiency.
Tone of management: Confident and optimistic about overcoming challenges and future growth.

[Quarterly Comparison]
| Metric | Q1 2025 | Q1 2024 |
|-----------------------|---------------|---------------|
| Revenue | $12.8 million | $11.8 million |
| Gross Profit | $2.2 million | $3.3 million |
| Operating Profit | $0.7 million | $1.7 million |
| Net Income | $1 million | $1.7 million |
| EBITDA | $1.2 million | $2.1 million |
| Cash and Equivalents | $15.7 million | N/A |

[Risks and Concerns]
- Challenges in optimizing machine performance and technical adjustments.
- Israeli labor market difficulties in attracting qualified candidates.
- Two-month delay in delivery of critical equipment.
- Uncertainty regarding new U.S. tariffs on Israeli products.

[Final Takeaway]
Eltek faced significant challenges in Q1 2025 due to technical difficulties and increased labor costs, resulting in lower profitability. However, the company has stabilized production and expects to improve efficiency and capacity with new plating lines by mid-2026. Despite delays and labor market challenges, management remains optimistic about future growth and profitability, supported by strong demand and strategic initiatives.