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Eltek ASA - Report 4th quarter and full year 2010


February 22, 2011 - London

Eltek ASA reported robust performance in the continuing business in the fourth quarter 2010. Revenue increased by 19 percent to NOK 1,208 million, and order entry by 30 percent to NOK 1,053 million. EBIT in the continuing operation was NOK 96 million and profit before tax NOK 79 million in the fourth quarter. For the full year 2010, EBIT was NOK 197 million and profit before tax NOK 154 million.

Net profit from the continuing operations was NOK 85 million for the fourth quarter 2010 and NOK 137 million for the full year. As a consequence of the divestment in January 2011, Nera Networks is recognized as discontinued operation with preliminary estimated losses after tax of NOK 212 million for the fourth quarter and NOK 411 million for the full year.

As separately communicated, Nera Networks was in January 2011 sold to Ceragon Networks for USD 48.5 million on a cash and debt free basis. The divestment enables Eltek to refocus on power electronics and strengthens the funding of the core business activities and growth initiatives in new business areas.  

Eltek Valere reported revenue of NOK 958 million for the fourth quarter, up 17 percent from the fourth quarter 2009 (821). Gross margin continued to increase, to 27.2 percent (26.6), contributing to an increase in operating profit (EBIT) to NOK 82 million in the fourth quarter (69).Order entry increased 30 percent to NOK 916 million (703), and the year-end order backlog was NOK 780 million (430).

Nera Telecommunications reported revenue of NOK 249 million for the fourth quarter, up 29 percent from the fourth quarter 2009 (194). Gross margin increased to 23.6 percent (23.1), and EBIT to NOK 25 million (16). Order entry was NOK 137 million in the fourth quarter (108).

Going forward, Eltek Valere believes it is well positioned to further develop its strong position in the telecom power market, which overall is expected to show moderate growth. The portfolio of highly energy-efficient and environmentally sound products is also believed to create an edge in the continued building of the company's Industrial applications business and the growth into large renewable energy markets such as the grid-connected solar power market. Operationally, the company retains its focus on cost efficiency and working capital

Please find enclosed the interim report for the fourth quarter and full year 2010 on http://www.newsweb.no

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Eltek ASA via Thomson Reuters ONE

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