Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Ltd. 2025 Second Quarter Financial Results Conference Call. All participants are at present in a listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded. Before I turn the call over to Mr. Eli Yaffe, Chief Executive Officer, and Ron Freund, Chief Financial Officer, I'd like to remind you that they will be referring to forward-looking information in today's presentation and in the Q&A. By its nature, this information contains forecasts, assumptions, and expectations about future outcomes, which are subject to the risk and uncertainties outlined here and discussed more fully in Eltek 's public disclosure filings. These forward-looking statements are projections and reflect the current beliefs and expectations of the company. Actual events or results may differ materially. We'll also be referring to non-GAAP measures. Eltek Ltd. undertakes no obligation to publicly release revisions to such forward-looking statements to reflect events or circumstances occurring subsequent to these dates. I will now turn the call over to Mr. Eli Yaffe. Mr. Yaffe, please go ahead. Thank you. Good morning. Thank you for joining us for our 2025 second quarter earnings call. With me is Ron Freund, our Chief Financial Officer. We will begin by providing you with an overview of our business and summary of the principal factors that affected our results during Q2 2025. After our prepared remarks, we will be happy to answer any of your questions. By now, everyone should have access to our press release, which was released earlier today. The release will also be available on our website. Let me start with the financial highlights. Revenues for the second quarter of 2025 total $12.5 million, representing a 20% increase compared to the same period last year and maintaining the strong momentum seen in Q1 2025. For the first half of 2025, revenues reached $25.3 million, up from $22.2 million in the first half of 2024. This performance indicates early signs of stabilization in our production capacity and an improved run rate. As previously communicated, our accelerated progressive program objective was to scale our installed production capacity to support $55 million- $65 million in annual revenues. Gross profit also $3 million, nearly double the results from the same quarter last year. Gross margin expanded to 24.1%, up from 15.6% in Q2 2024, driven by improved operational efficiencies and more favorable product mix. With production process stabilization and all installed equipment now fully operational, our fixed cost base is largely absorbed. As a result, incremental revenue is expected to have significant stronger impact on profitability, potentially contributing approximately $0.50 on a dollar to our gross profit. Operating income rose to $1.5 million, up from $0.4 million in Q2 2024. During the quarter, we recorded one-time financial expenses of $1 million, resulting from a 9% devaluation of the US dollar against the Israeli shekel. While we do not anticipate a similar currency shift in the near term, we have proactively adjusted our pricing model to better align with our new NIS dominant cost structure. This non-recurring expense impacted our bottom line, resulting in less income of $0.4 million or $0.05 per fully diluted share. EBITDA reached $2 million and represents 15.6% of revenue, a significant decrease compared to Q2 2024 and Q1 2025. Let me now move to business development and operational updates. From the market perspective, we saw a modest increase in commercial sales, alongside continued strong performance in our defense and medical markets. Expanding commercial sales remains a strategic priority as they are less constrained by the current production capacity. We believe that these efforts will yield more substantial results in the near future. Worldwide, lead time for the relevant market sectors remains extended, primarily due to the capacity and operational limitations. As part of our broader capacity expansion strategy, I would like to share progress on several key infrastructure initiatives. All equipment delivered to date has been successfully installed and is in operation in line with the performance specifications. The centerpiece of our investment plan, the new 40 m coating line, is now expected to arrive toward the end of 2025, with qualification and wrap-up schedules to begin immediately upon arrival. Supporting infrastructure, including auxiliary equipment, is on track to be completed by the year-end to ensure fully operational readiness. In parallel, we are investing in additional infrastructure to accommodate future goals. We recently completed a major upgrade to our cooling system, now providing 20% surplus in capacity to support anticipated clean room expansion and redundancy. In addition, we are now in the final stage of increasing electrical capacity by 40%, enabling us to support the next phase of our expansion roadmap. We continue to face a challenge in recruiting qualified manufacturing personnel. To address this, we have recently submitted a formal request to participate in the Israeli government program that supports the defense industry by enabling the employment of foreign workers. If approved and subject to our regulatory clearance and completion of the training, these workers will enable us to operate in production line seven days a week, significantly enhancing our manufacturing flexibility and capacity to meet the growing demand for the defense-related products. I will now turn the call over to Ron Freund, our CFO, to discuss our financial results. Thank you, Eli. I would like to begin by drawing your attention to the financial statement for the second quarter of 2025. During this call, I will also refer to a non-GAAP financial measure. Eltek uses EBITDA as a non-GAAP indicator of financial performance. Please refer to our earnings release for the definition of EBITDA and explanation of why we use this metric. Let me now review the key highlights of the second quarter of 2025. Unless otherwise stated, all figures are presented in US dollars. Revenues for the second quarter of 2025 totaled $12.5 million compared to $10.5 million in the second quarter of 2024. Gross profit reached $3 million, up from $1.6 million in Q2 2024. This increase was primarily driven by higher revenues and a more favorable product mix compared to the same period last year. Operating profit for the quarter was $1.6 million compared to $0.4 million in the second quarter of 2024. We recorded net financial expenses of $1 million during the quarter, mainly resulting from the sharp 9% devaluation of the US dollar against the shekel. These expenses are net of interest income earned on our interest-bearing bank deposits. Net profit for the second quarter of 2025 was $0.4 million or $0.05 per share, compared to $1.4 million or $0.11 per share in Q2 2024. EBITDA for the quarter was $2 million compared to $0.8 million in the second quarter of 2024. Cash flow used in operating activities amounted to $2.9 million in Q2 2025, primarily due to an increase in trade receivables and inventory. As of June 30th, 2025, our cash and equivalents and short-term bank deposits totaled $11.2 million, with no outstanding debt. We are now ready to answer your questions. Thank you, ladies and gentlemen. At this time, we will begin the question and answer session. If you have a question, please press star one. If you wish to cancel your request, please press star two. If you are using speaker equipment, kindly lift the headset before pressing the numbers. Your questions will be answered in the order they are received. Please stand by. The first question is from Michael Wu. Oh, hello. Hi. Thanks for taking my questions. I have two questions. The first one, could you give me some updates about the capital investment for the workshop from 2025 and 2026? Hello? The second question? The second question is about the revenue mix. Could you disclose what is the percentage of revenue for the international and the defense sector, like at the percentage of the total revenue? Okay. Regarding the investment, what is left in 2025 and 2026 is the installment of the coating line. This is above our regular investments of $2 million- $4 million, which we made regularly before the accelerated investment plan. The current balance of the accelerated investment plan is around $6 million. We expect, as we said earlier, to receive the first coating line of the 40 m by towards the end of 2025 and immediately ramp it up and start production. In regard to the mix of revenues, this quarter, we had a higher mix of flex-rigid printed circuit boards towards the 65%- 70% of our total revenues. Usually, the price and the profits in the flex-rigid printed circuit boards are higher than in the rigid. In regard to the two segments of our customers or industries, we continue to see the strong demand in the defense sector, which totals around 65%. Okay. Great. Thank you very much. Thank you. The next question is from Ethan Etzioni from Etzioni Portfolio Management. Please go ahead. Thank you. I wanted to ask, how do you see the strong defense demand affecting your business in the rest of 2025 and going into 2026? We see the strong demand, and we think it will continue in the near future. We see the strong demand in the Israeli market, but also from foreign countries, the U.S., and also, we feel a strong demand in the Europe market. Military budgets are increasing, and we hope, you know, to succeed in getting orders also from these countries and not base most of our defense production to the Israeli market. Can you quantify? Help us quantify. Is there a backlog or an order pipeline or something else that we can put our hands on? We usually do not give any disclosure on our backlog. It increased about 10% since the beginning of the year. It is not something that we disclose. Usually, in our industry, you receive the orders for the next quarter or the two next quarters. You don't receive the full orders for big projects that our customers usually win. If you see some of our military customers win big projects, like you saw last week in the newspaper, they don't give us full orders for their orders rather than give it in small quantities per quarter. Okay. We've seen some improvements in the profitability. You expect that to continue? Yeah, please Eli, please. As I said before, any dollar above the current price will contribute approximately $0.50 to the gross margin. Since all our fixed cost is fully absorbed, it speaks for itself. Any additional price, $0.50 will go to the gross margin. Okay, thank you. Thank you, Ethan. The next question is from Avi Segar. Please go ahead. Hi. Good quarter. Well done. I just wanted to ask two questions. Question number one, once you've installed the new 40 m coating line at the end of 2025, what will your annual revenue capacity be? Question number one. Question number two is, how can you have a negative cash flow from operating activities during the quarter? Regarding the question number one, as we say, we will be reaching up to $55 million- $60 million annual revenue potential, once this line is going to be fully operational. Regarding question number two, Ron, please answer. Basically, the negative operating cash flow comes from two main reasons. The first one is a slight delay in one of our big customers delaying its payment, and we already collected the full amount during the beginning of July. The second is the increase in inventory. We decided that due to the situation, the war in Israel, to increase our inventory levels and to reduce risk. These are the two main issues that cause the negative cash flow. Great. That sounds thanks for those answers. I wish you lots of success going forward. Thank you. Thank you, Avi. The next question is from Dany Shwartz from Kepler Capital. Please go ahead. You already answered it. Could you provide some color on the churn in the inventory levels? I didn't understand the question, Dany. Could you provide some color on the churn in the inventory levels? Yeah. We decided to increase our inventory levels, mainly in lamination and in aluminum. Due to the war in Israel, we purchased more than we usually purchase. This can be used during the next quarters. We don't anticipate any issues with that. In parallel to this, we also, because of the operational challenges we had during Q4 2024 and Q1 2025, the working process has also increased. Thank you. If there are any additional questions, please press star one. If you wish to cancel your request, please press star two. There are no further questions at this time. Before I ask Mr. Yaffe to go ahead with his closing statement, I would like to remind the participants that a replay of this call will be available tomorrow on our website. Before we wrap up, I would like to take a moment to sincerely thank our employees and their continued commitment and hard work in advancing our strategic goals. I also want to express my appreciation to our customers, partners, and shareholders for their trust and continued support. Thank you for being with us today. Wishing you a great day. This concludes the Eltek Ltd. 2025 Second Quarter Financial Results Conference Call. Thank you for your participation. You may go ahead and disconnect.