Gilat Satellite Networks Ltd. (NASDAQ:GILT) (TASE:GILT), a
worldwide leader in satellite networking technology, solutions and
services, today reported its results for the third quarter ended
September 30, 2016.
Key Financial Highlights:
- Revenues for Q3 2016 increased 95% to $78.6 million from $40.3
million in the comparable period of 2015. Revenues rose 16%
compared with Q2 2016.
- The Company noted that operating profitability significantly
improved in Q3 2016:
- On a GAAP basis, the operating loss decreased to $0.2 million
compared to an operating loss of $29.1 million in Q3 2015, and an
operating loss of $2.5 million in Q2 2016.
- Non-GAAP operating profit increased to $3.3 million in the
third quarter of 2016 compared to an operating loss of $5.5 million
in Q3 2015 and a $0.5 million operating profit in Q2 2016.
- On a GAAP basis, the loss for Q3 2016 decreased to $2.2 million
compared to a loss of $32.4 million in Q3 2015 and a loss of $3.7
million in Q2 2016.
- On a non-GAAP basis, net income for Q3 2016 increased to $1.4
million compared to a loss of $8.6 million in Q3 2015 and a loss of
$0.6 million in Q2 2016.
- Adjusted EBITDA for Q3 2016 increased to $5.2 million from an
Adjusted EBITDA loss of $3.1 million in Q3 2015 and Adjusted EBITDA
of $2.4 million in Q2 2016.
- Management objectives for 2016: revenues between $290 to $310
million and Adjusted EBITDA of between $18 to $24 million. In 2015,
revenues totaled $197.5 million and Adjusted EBITDA was
$6.1million.
The Company noted that the significant improvement in
profitability during the third quarter was achieved despite an
accrual for bad debt of approximately $4.6 million attributable to
the Company's governmental customer in Venezuela arising from the
worsening economic situation and the recent credit downgrade in
that country.
“Two major growth engines are especially exciting for Gilat this
quarter,” said Yona Ovadia, CEO of Gilat. “Satellite-based 4G
cellular backhaul and mobility, both in In-Flight Connectivity
(IFC) and on-the-move connectivity for trains. We have made
important progress in both markets. Especially noteworthy are our
recent announcements of the LTE cellular backhaul with Sprint and
the broadband connectivity for Spain’s Renfe high speed trains:
- Sprint is our first such deal in the U.S. and the third
with a tier-1 telecom, representing a major endorsement of our
technology, which makes satellite connectivity competitive with
terrestrial solutions, even in metro edge and other urban
areas.
- Gilat’s On-the-Move antenna was chosen to enable
Internet broadband connectivity to passengers on Renfe’s high-speed
trains throughout Spain. This represents another major milestone
for us in the mobility for trains market, where Gilat is the
established leader.
"On the technology side, Gilat is committed to
continued innovation in support of our strategy of
broadband-for-all. This quarter Gilat announced the first-to-market
all-outdoor, easy-to-install VSAT-in-a-Box for high speed consumer
broadband, that addresses the consumer broadband market, as well as
our ground-breaking small-cell-over-satellite solution that expands
3G and 4G cellular coverage to rural areas.
"We are focused on all five of our strategic growth
pillars, as well as our journey to improve profitability, and we
are pleased to see progress in both,” concluded Yona Ovadia, CEO of
Gilat.
Key Recent Announcements:
- Gilat’s Satellite On-the-Move Antenna Selected to Deliver
Broadband Connectivity for Spain’s High-Speed Trains
- Gilat First to Deliver Layer 2 with GTP Acceleration to Provide
True LTE Speeds over Satellite for Large-Scale Networks
- Gilat Satellite Networks Joins Telecom Infra Project, Founded
by Facebook, Deutsche Telekom, SK Telecom and Others
- Gilat Unveils Revolutionary Small-Cell-Over-Satellite Solution
for 3G and 4G Coverage
- Gilat’s Satellite-based Cellular Backhaul Solution Selected by
Sprint to Extend LTE Services to Metro Edge and Rural Areas in the
US
- Gilat First to Market with a Complete VSAT-in-a-Box for
High-Speed Consumer Broadband
- Optus Selects Gilat’s Cellular Solution to Extend 3G Coverage
to Rural Areas in Australia
- Intelsat General Reports Unprecedented Performance Using
Gilat’s Small Airborne Flat-Panel Antenna
Conference Call and Webcast Details: Gilat
management will host a conference call today, November 15, at 14:30
GMT / 09:30 AM EST / 16:30 IST to discuss the third quarter
results. International participants are invited to access the call
at (972) 3-918-0609, and US-based participants are invited to
access the call by dialing (1) 888-668-9141.
A simultaneous Webcast of the conference call will be available
on the Gilat website at www.gilat.com and through this link:
http://www.veidan-stream.com/?con=Gilat_Satellite_Networks_Q3_2016_Results
The webcast will also be archived for a period of 30 days on the
Company’s website and through the link above.
Conference Call ReplayA replay of the
conference call will be available beginning approximately 17:00
GMT/ 12:00 PM EST/ 19:00 IST today, until 17:00 GMT/ 12:00 PM EST/
19:00 IST on November 17, 2016.
International participants are invited to access the replay of
the call at (972)3-925-5904, and US-based participants are invited
to access the call by dialing (1)888-782-4291.
A replay of the call may also be accessed as a webcast via
Gilat’s website at www.gilat.com and will be archived for 30
days.
Non-GAAP Measures
The attached summary unaudited financial statements were
prepared in accordance with U.S. Generally Accepted Accounting
Principles (GAAP). To supplement the consolidated financial
statements presented in accordance with GAAP, the Company presents
Non-GAAP presentations of net income, operating income, Adjusted
EBITDA and earnings per share. The adjustments to the company’s
GAAP results are made with the intent of providing both management
and investors a more complete understanding of the company’s
underlying operational results, trends and performance. Gilat is
presenting Adjusted EBITDA (operating income before depreciation,
amortization, non-cash stock option expenses and other costs
related to acquisition transactions, restructuring cost, goodwill
impairment and trade secrets litigation expenses) for the first
time due to a significant increase in litigation expense relating
to an ongoing trade secrets litigation in the U.S. against former
employees, which commenced in 2015. Adjusted EBITDA excludes the
abovementioned litigation expense of $2.0 million in Q3 2016 and
$0.3 million in Q3 2015 and $1.4 million in Q2 2016.
Adjusted EBITDA is presented to compare the company’s
performance to that of prior periods and evaluate the company’s
financial and operating results on a consistent basis from period
to period. The company also believes this measure, when viewed in
combination with the company’s financial results prepared in
accordance with GAAP, provides useful information to investors to
evaluate ongoing operating results and trends. Adjusted EBITDA,
however, should not be considered as an alternative to operating
income or net income for the period and may not be indicative of
the historic operating results of the Company; nor is it meant to
be predictive of potential future results. Adjusted EBITDA is not a
measure of financial performance under generally accepted
accounting principles and may not be comparable to other similarly
titled measures for other companies. Reconciliation between the
Company's Operating income and Adjusted EBITDA is presented in the
attached summary financial statements.
Non-GAAP presentations of net income, operating income, Adjusted
EBITDA and earnings per share should not be considered in isolation
or as a substitute for any of the consolidated statements of
operations prepared in accordance with GAAP, or as an indication of
Gilat’s operating performance or liquidity.
About GilatGilat Satellite Networks Ltd
(NASDAQ:GILT) (TASE:GILT) is a leading provider of products
and services for satellite-based broadband communications. Gilat
develops and markets a wide range of high-performance satellite
ground segment equipment and VSATs, with an increasing focus on the
consumer and Ka-band market. In addition, Gilat enables
mobile SOTM (Satellite-on-the-Move) solutions providing
low-profile antennas, next generation solid-state power amplifiers
and modems. Gilat also provides managed network and satellite-based
services for rural telephony and Internet access via its
subsidiaries in Peru and Colombia.
With over 25 years of experience, and over a million products
shipped to more than 90 countries, Gilat has provided enterprises,
service providers and operators with efficient and reliable
satellite-based connectivity solutions, including cellular
backhaul, banking, retail, e-government and rural communication
networks. Gilat also enables leading defense, public security and
news organizations to implement advanced, on-the-move tactical
communications on board their land, air and sea fleets using
Gilat's high-performance SOTM solutions. Gilat controlling
shareholders are the FIMI Private Equity Funds. For more
information, please visit us at www.gilat.com
Certain statements made herein that are not historical are
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. The words "estimate", "project",
"intend", "expect", "believe" and similar expressions are intended
to identify forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties. Many
factors could cause the actual results, performance or achievements
of Gilat to be materially different from any future results,
performance or achievements that may be expressed or implied by
such forward-looking statements, including, among others, changes
in general economic and business conditions, inability to maintain
market acceptance to Gilat's products, inability to timely develop
and introduce new technologies, products and applications, rapid
changes in the market for Gilat's products, loss of market share
and pressure on prices resulting from competition, introduction of
competing products by other companies, inability to manage growth
and expansion, loss of key OEM partners, inability to attract and
retain qualified personnel, inability to protect the Company's
proprietary technology and risks associated with Gilat's
international operations and its location in Israel. We undertake
no obligation to update or revise any forward-looking statements
for any reason. For additional information regarding these and
other risks and uncertainties associated with Gilat's business,
reference is made to Gilat's reports filed from time to time with
the Securities and Exchange Commission.
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
U.S. dollars in thousands (except share and per share
data) |
|
|
|
Nine months ended |
|
Three months ended |
|
|
|
September
30, |
|
September 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
199,206 |
|
|
$ |
129,861 |
|
|
$ |
78,643 |
|
|
$ |
40,347 |
|
|
Cost of revenues |
|
|
147,914 |
|
|
|
96,137 |
|
|
|
54,930 |
|
|
|
30,865 |
|
|
Gross
profit |
|
|
51,292 |
|
|
|
33,724 |
|
|
|
23,713 |
|
|
|
9,482 |
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses |
|
|
19,374 |
|
|
|
19,243 |
|
|
|
6,781 |
|
|
|
6,115 |
|
|
Less - grants |
|
|
1,008 |
|
|
|
563 |
|
|
|
370 |
|
|
|
151 |
|
|
Research and
development, net |
|
|
18,366 |
|
|
|
18,680 |
|
|
|
6,411 |
|
|
|
5,964 |
|
|
Selling and marketing
expenses |
|
|
17,224 |
|
|
|
18,725 |
|
|
|
6,248 |
|
|
|
6,050 |
|
|
General and
administrative expenses |
|
|
21,435 |
|
|
|
15,226 |
|
|
|
11,283 |
|
|
|
5,164 |
|
|
Restructuring
Costs |
|
|
- |
|
|
|
986 |
|
|
|
- |
|
|
|
986 |
|
|
Goodwill
Impairment |
|
|
- |
|
|
|
20,402 |
|
|
|
- |
|
|
|
20,402 |
|
|
Total operating
expenses |
|
|
57,025 |
|
|
|
74,019 |
|
|
|
23,942 |
|
|
|
38,566 |
|
|
Operating
loss |
|
|
(5,733 |
) |
|
|
(40,295 |
) |
|
|
(229 |
) |
|
|
(29,084 |
) |
|
Financial expenses,
net |
|
|
(3,175 |
) |
|
|
(5,850 |
) |
|
|
(1,572 |
) |
|
|
(2,940 |
) |
|
Loss before
taxes |
|
|
(8,908 |
) |
|
|
(46,145 |
) |
|
|
(1,801 |
) |
|
|
(32,024 |
) |
|
Taxes on income |
|
|
967 |
|
|
|
740 |
|
|
|
398 |
|
|
|
173 |
|
|
Loss from
continuing operations |
|
|
(9,875 |
) |
|
|
(46,885 |
) |
|
|
(2,199 |
) |
|
|
(32,197 |
) |
|
Loss from
discontinued operations |
|
|
- |
|
|
|
(200 |
) |
|
|
- |
|
|
|
(200 |
) |
|
Loss |
|
$ |
(9,875 |
) |
|
$ |
(47,085 |
) |
|
$ |
(2,199 |
) |
|
$ |
(32,397 |
) |
|
|
|
|
|
|
|
|
|
|
|
Loss per share from continuing operations (basic and
diluted) |
|
(0.19 |
) |
|
|
(1.08 |
) |
|
|
(0.04 |
) |
|
|
(0.73 |
) |
|
Loss per share from discontinued operations (basic and
diluted) |
|
- |
|
|
|
(0.00 |
) |
|
|
- |
|
|
|
(0.00 |
) |
|
Loss per share
(basic and diluted) |
|
$ |
(0.19 |
) |
|
$ |
(1.08 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.73 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in computing loss per
share (basic and diluted) |
|
|
51,096,829 |
|
|
|
43,436,470 |
|
|
|
54,523,585 |
|
|
|
44,030,805 |
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF
OPERATIONS |
|
FOR COMPARATIVE PURPOSES |
|
U.S. dollars in thousands (except share and per share
data) |
|
|
|
Three months
ended |
|
Three months
ended |
|
|
|
September 30, 2016 |
|
September 30, 2015 |
|
|
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
23,713 |
|
|
|
1,204 |
|
|
$ |
24,917 |
|
|
$ |
9,482 |
|
|
|
1,278 |
|
|
$ |
10,760 |
|
|
Operating expenses |
|
|
23,942 |
|
|
|
(2,357 |
) |
|
|
21,585 |
|
|
|
38,566 |
|
|
|
(22,319 |
) |
|
|
16,247 |
|
|
Operating income
(loss) |
|
|
(229 |
) |
|
|
3,561 |
|
|
|
3,332 |
|
|
|
(29,084 |
) |
|
|
23,597 |
|
|
|
(5,487 |
) |
|
Income (loss) before
taxes on income |
|
|
(1,801 |
) |
|
|
3,561 |
|
|
|
1,760 |
|
|
|
(32,024 |
) |
|
|
23,597 |
|
|
|
(8,427 |
) |
|
Net income (loss) from
continuing operations |
|
|
(2,199 |
) |
|
|
3,561 |
|
|
|
1,362 |
|
|
|
(32,197 |
) |
|
|
23,597 |
|
|
|
(8,600 |
) |
|
Loss from discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(200 |
) |
|
|
200 |
|
|
|
- |
|
|
Net income
(loss) |
|
|
(2,199 |
) |
|
|
3,561 |
|
|
|
1,362 |
|
|
|
(32,397 |
) |
|
|
23,797 |
|
|
|
(8,600 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share from continuing operations (basic and
diluted) |
|
(0.04 |
) |
|
|
0.06 |
|
|
|
0.02 |
|
|
|
(0.73 |
) |
|
|
0.53 |
|
|
|
(0.20 |
) |
|
Net income
(loss) per share from discontinued operations (basic and
diluted) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
- |
|
|
Net income
(loss) per share (basic and diluted) |
|
$ |
(0.04 |
) |
|
|
0.06 |
|
|
$ |
0.02 |
|
|
$ |
(0.73 |
) |
|
|
0.53 |
|
|
$ |
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computing income (loss) per share (basic and
diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
54,523,585 |
|
|
|
|
|
54,523,585 |
|
|
|
44,030,805 |
|
|
|
|
|
44,030,805 |
|
|
Diluted |
|
|
54,523,585 |
|
|
|
|
|
54,614,252 |
|
|
|
44,030,805 |
|
|
|
|
|
44,030,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments reflect the effect of non-cash stock-based compensation
as per ASC 718, amortization of intangible assets related
to shares acquisition transactions, goodwill impairment, trade
secrets litigation expenses, restructuring costs and loss from
discontinued operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Three months
ended |
|
|
|
September 30, 2016 |
|
September 30, 2015 |
|
|
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss |
|
|
|
$ |
(2,199 |
) |
|
|
|
|
|
$ |
(32,397 |
) |
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
|
|
9 |
|
|
|
|
|
|
|
59 |
|
|
|
|
Amortization of
intangible assets related to acquisition transactions |
|
|
|
|
1,195 |
|
|
|
|
|
|
|
1,219 |
|
|
|
|
|
|
|
|
|
1,204 |
|
|
|
|
|
|
|
1,278 |
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
|
|
180 |
|
|
|
|
|
|
|
443 |
|
|
|
|
Amortization of
intangible assets related to acquisition transactions |
|
|
|
|
194 |
|
|
|
|
|
|
|
190 |
|
|
|
|
Goodwill
impairment |
|
|
|
|
- |
|
|
|
|
|
|
|
20,402 |
|
|
|
|
Trade secrets
litigation expenses |
|
|
|
|
1,983 |
|
|
|
|
|
|
|
298 |
|
|
|
|
Restructuring
costs |
|
|
|
|
- |
|
|
|
|
|
|
|
986 |
|
|
|
|
Loss from discontinued
operations |
|
|
|
|
- |
|
|
|
|
|
|
|
200 |
|
|
|
|
|
|
|
|
|
2,357 |
|
|
|
|
|
|
|
22,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP net income
(loss) |
|
|
|
$ |
1,362 |
|
|
|
|
|
|
$ |
(8,600 |
) |
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF
OPERATIONS |
|
FOR COMPARATIVE PURPOSES |
|
U.S. dollars in thousands (except share and per share
data) |
|
|
|
Nine months
ended |
|
Nine months
ended |
|
|
|
September 30, 2016 |
|
September 30, 2015 |
|
|
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
51,292 |
|
|
|
3,614 |
|
|
$ |
54,906 |
|
|
$ |
33,724 |
|
|
|
3,759 |
|
|
$ |
37,483 |
|
|
Operating expenses |
|
|
57,025 |
|
|
|
(4,826 |
) |
|
|
52,199 |
|
|
|
74,019 |
|
|
|
(24,211 |
) |
|
|
49,808 |
|
|
Operating income
(loss) |
|
|
(5,733 |
) |
|
|
8,440 |
|
|
|
2,707 |
|
|
|
(40,295 |
) |
|
|
27,970 |
|
|
|
(12,325 |
) |
|
Loss before taxes on
income |
|
|
(8,908 |
) |
|
|
8,440 |
|
|
|
(468 |
) |
|
|
(46,145 |
) |
|
|
27,970 |
|
|
|
(18,175 |
) |
|
Loss from continuing
operations |
|
|
(9,875 |
) |
|
|
8,440 |
|
|
|
(1,435 |
) |
|
|
(46,885 |
) |
|
|
27,970 |
|
|
|
(18,915 |
) |
|
Loss from discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(200 |
) |
|
|
200 |
|
|
|
- |
|
|
Loss |
|
|
(9,875 |
) |
|
|
8,440 |
|
|
|
(1,435 |
) |
|
|
(47,085 |
) |
|
|
28,170 |
|
|
|
(18,915 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from
continuing operations (basic and diluted) |
|
|
(0.19 |
) |
|
|
0.16 |
|
|
|
(0.03 |
) |
|
|
(1.08 |
) |
|
|
0.64 |
|
|
|
(0.44 |
) |
|
Loss per share from
discontinued operations (basic and diluted) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
- |
|
|
Loss per share
(basic and diluted) |
|
$ |
(0.19 |
) |
|
|
0.16 |
|
|
$ |
(0.03 |
) |
|
$ |
(1.08 |
) |
|
|
0.64 |
|
|
$ |
(0.44 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computing loss per share (basic and diluted) |
|
|
51,096,829 |
|
|
|
|
|
51,096,829 |
|
|
|
43,436,470 |
|
|
|
|
|
43,436,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments reflect the effect of non-cash stock-based compensation
as per ASC 718, amortization of intangible assets related
to shares acquisition transactions, goodwill impairment, trade
secrets litigation expenses, restructuring costs and loss from
discontinued operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended |
|
|
|
|
|
Nine months
ended |
|
|
|
|
|
|
|
September 30, 2016 |
|
|
|
|
|
September 30,
2015 |
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss |
|
|
|
$ |
(9,875 |
) |
|
|
|
|
|
$ |
(47,085 |
) |
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
|
|
32 |
|
|
|
|
|
|
|
165 |
|
|
|
|
Amortization of
intangible assets related to acquisition transactions |
|
|
|
|
3,582 |
|
|
|
|
|
|
|
3,594 |
|
|
|
|
|
|
|
|
|
3,614 |
|
|
|
|
|
|
|
3,759 |
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
|
|
660 |
|
|
|
|
|
|
|
1,500 |
|
|
|
|
Amortization of
intangible assets related to acquisition transactions |
|
|
|
|
583 |
|
|
|
|
|
|
|
615 |
|
|
|
|
Goodwill
impairment |
|
|
|
|
- |
|
|
|
|
|
|
|
20,402 |
|
|
|
|
Trade secrets
litigation expenses |
|
|
|
|
3,583 |
|
|
|
|
|
|
|
708 |
|
|
|
|
Restructuring
costs |
|
|
|
|
- |
|
|
|
|
|
|
|
986 |
|
|
|
|
Loss from discontinued
operations |
|
|
|
|
- |
|
|
|
|
|
|
|
200 |
|
|
|
|
|
|
|
|
|
4,826 |
|
|
|
|
|
|
|
24,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP loss |
|
|
|
$ |
(1,435 |
) |
|
|
|
|
|
$ |
(18,915 |
) |
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED EBITDA |
|
U.S. dollars in thousands |
|
|
|
Nine months ended |
|
Three months ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss |
|
$ |
(5,733 |
) |
|
$ |
(40,295 |
) |
|
$ |
(229 |
) |
|
$ |
(29,084 |
) |
|
Add: |
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
692 |
|
|
|
1,665 |
|
|
|
189 |
|
|
|
502 |
|
|
Restructuring
costs |
|
|
- |
|
|
|
986 |
|
|
|
- |
|
|
|
986 |
|
|
Goodwill
impairment |
|
|
- |
|
|
|
20,402 |
|
|
|
- |
|
|
|
20,402 |
|
|
Trade secrets
litigation expenses |
|
|
3,583 |
|
|
|
708 |
|
|
|
1,983 |
|
|
|
298 |
|
|
Depreciation and
amortization |
|
|
9,831 |
|
|
|
11,459 |
|
|
|
3,306 |
|
|
|
3,760 |
|
|
Adjusted
EBITDA |
|
$ |
8,373 |
|
|
$ |
(5,075 |
) |
|
$ |
5,249 |
|
|
$ |
(3,136 |
) |
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
U.S. dollars in thousands |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
53,439 |
|
|
$ |
18,435 |
|
|
Restricted cash |
|
|
65,537 |
|
|
|
100,779 |
|
|
Restricted cash held by
trustees |
|
|
6,970 |
|
|
|
8,524 |
|
|
Trade receivables, net |
|
|
41,955 |
|
|
|
50,984 |
|
|
Inventories |
|
|
23,064 |
|
|
|
25,358 |
|
|
Other current assets |
|
|
14,390 |
|
|
|
16,223 |
|
|
Total current
assets |
|
|
205,355 |
|
|
|
220,303 |
|
|
|
|
|
|
|
|
LONG-TERM
INVESTMENTS AND RECEIVABLES: |
|
|
|
|
|
Long-term restricted cash |
|
|
202 |
|
|
|
179 |
|
|
Severance pay funds |
|
|
7,925 |
|
|
|
7,545 |
|
|
Other long term receivables |
|
|
224 |
|
|
|
221 |
|
|
Total long-term investments
and receivables |
|
|
8,351 |
|
|
|
7,945 |
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET |
|
|
80,748 |
|
|
|
81,963 |
|
|
|
|
|
|
|
|
INTANGIBLE
ASSETS, NET |
|
|
12,825 |
|
|
|
17,154 |
|
|
|
|
|
|
|
|
GOODWILL |
|
|
43,468 |
|
|
|
43,468 |
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
350,747 |
|
|
$ |
370,833 |
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
U.S. dollars in thousands |
|
|
|
September 30, |
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Short-term bank credit and
loans |
|
$ |
- |
|
|
$ |
7,000 |
|
|
Current maturities of long-term
loans |
|
|
4,562 |
|
|
|
4,542 |
|
|
Trade payables |
|
|
21,044 |
|
|
|
17,210 |
|
|
Accrued expenses |
|
|
49,680 |
|
|
|
23,481 |
|
|
Advances from customers |
|
|
16,192 |
|
|
|
82,813 |
|
|
Advances from customers held by
trustees |
|
|
6,871 |
|
|
|
8,515 |
|
|
Other current liabilities |
|
|
19,074 |
|
|
|
16,213 |
|
|
Total current
liabilities |
|
|
117,423 |
|
|
|
159,774 |
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
Accrued severance pay |
|
|
7,684 |
|
|
|
7,506 |
|
|
Long-term loans, net of current
maturities |
|
|
17,112 |
|
|
|
21,493 |
|
|
Other long-term liabilities |
|
|
2,840 |
|
|
|
3,978 |
|
|
Total long-term
liabilities |
|
|
27,636 |
|
|
|
32,977 |
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
Share capital - ordinary shares of
NIS 0.2 par value |
|
|
2,592 |
|
|
|
2,048 |
|
|
Additional paid-in capital |
|
|
919,893 |
|
|
|
884,126 |
|
|
Accumulated other comprehensive
loss |
|
|
(2,557 |
) |
|
|
(3,727 |
) |
|
Accumulated deficit |
|
|
(714,240 |
) |
|
|
(704,365 |
) |
|
Total equity |
|
|
205,688 |
|
|
|
178,082 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
350,747 |
|
|
$ |
370,833 |
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
U.S. dollars in thousands |
|
|
|
|
|
Nine months ended |
|
Three months ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Cash Flows from continuing operations |
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
Loss |
|
$ |
(9,875 |
) |
|
$ |
(47,085 |
) |
|
$ |
(2,199 |
) |
|
$ |
(32,397 |
) |
|
Loss from discontinued operations |
|
|
- |
|
|
|
(200 |
) |
|
|
- |
|
|
|
(200 |
) |
|
Loss from continuing operations |
|
|
(9,875 |
) |
|
|
(46,885 |
) |
|
|
(2,199 |
) |
|
|
(32,197 |
) |
|
Adjustments required to reconcile loss to cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
9,831 |
|
|
|
11,459 |
|
|
|
3,306 |
|
|
|
3,760 |
|
|
Goodwill
impairment |
|
|
- |
|
|
|
20,402 |
|
|
|
- |
|
|
|
20,402 |
|
|
Stock-based
compensation |
|
|
692 |
|
|
|
1,665 |
|
|
|
189 |
|
|
|
502 |
|
|
Accrued severance pay,
net |
|
|
(202 |
) |
|
|
(274 |
) |
|
|
(105 |
) |
|
|
(4 |
) |
|
Accrued interest and
exchange rate differences on short and long-term restricted cash,
net |
|
|
(1,454 |
) |
|
|
207 |
|
|
|
106 |
|
|
|
120 |
|
|
Exchange rate
differences on long-term loans |
|
|
56 |
|
|
|
(221 |
) |
|
|
8 |
|
|
|
5 |
|
|
Deferred income
taxes |
|
|
5 |
|
|
|
11 |
|
|
|
5 |
|
|
|
49 |
|
|
Decrease in trade
receivables, net |
|
|
10,109 |
|
|
|
16,730 |
|
|
|
6,115 |
|
|
|
10,395 |
|
|
Decrease in other
assets (including short-term, long-term and deferred charges) |
|
|
1,119 |
|
|
|
983 |
|
|
|
2,191 |
|
|
|
919 |
|
|
Decrease (increase) in
inventories |
|
|
865 |
|
|
|
(4,911 |
) |
|
|
3,324 |
|
|
|
(2,094 |
) |
|
Decrease (increase) in
restricted cash directly related to operating activities |
|
|
28,482 |
|
|
|
(52,736 |
) |
|
|
6,908 |
|
|
|
1,582 |
|
|
Increase (decrease) in
trade payables |
|
|
3,847 |
|
|
|
(7,647 |
) |
|
|
655 |
|
|
|
(2,346 |
) |
|
Increase (decrease) in
accrued expenses |
|
|
26,014 |
|
|
|
(509 |
) |
|
|
11,531 |
|
|
|
1,251 |
|
|
Increase (decrease) in
advance from customers |
|
|
(66,642 |
) |
|
|
55,616 |
|
|
|
(30,357 |
) |
|
|
(1,716 |
) |
|
Increase (decrease) in
advances from customers, held by trustees |
|
|
(1,028 |
) |
|
|
(8,411 |
) |
|
|
984 |
|
|
|
(4,253 |
) |
|
Increase (decrease) in
other current liabilities and other long term liabilities |
|
|
1,630 |
|
|
|
(406 |
) |
|
|
933 |
|
|
|
(2,148 |
) |
|
Cash provided
by (used in) Operating Activities |
|
|
3,449 |
|
|
|
(14,927 |
) |
|
|
3,594 |
|
|
|
(5,773 |
) |
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment |
|
|
(2,822 |
) |
|
|
(3,109 |
) |
|
|
(790 |
) |
|
|
(1,270 |
) |
|
Investment in
restricted cash held by trustees |
|
|
(10,925 |
) |
|
|
(6,109 |
) |
|
|
(5,497 |
) |
|
|
- |
|
|
Proceeds from
restricted cash held by trustees |
|
|
13,473 |
|
|
|
18,649 |
|
|
|
5,315 |
|
|
|
3,997 |
|
|
Investment in
restricted cash (including long-term) |
|
|
(204 |
) |
|
|
(22,411 |
) |
|
|
(18 |
) |
|
|
(1,209 |
) |
|
Proceeds from
restricted cash (including long-term) |
|
|
7,441 |
|
|
|
32,559 |
|
|
|
15 |
|
|
|
4,283 |
|
|
Cash provided
by (used in) Investing Activities |
|
|
6,963 |
|
|
|
19,579 |
|
|
|
(975 |
) |
|
|
5,801 |
|
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
Capital lease
payments |
|
|
(307 |
) |
|
|
(408 |
) |
|
|
- |
|
|
|
(204 |
) |
|
Issuance of shares in a
rights offering |
|
|
35,095 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Issuance of restricted
stock units and exercise of stock options |
|
|
527 |
|
|
|
5,595 |
|
|
|
181 |
|
|
|
1,890 |
|
|
Payment of obligation
related to the purchase of intangible assets |
|
|
- |
|
|
|
(500 |
) |
|
|
- |
|
|
|
(500 |
) |
|
Short term bank credit,
net |
|
|
(7,000 |
) |
|
|
(3,811 |
) |
|
|
- |
|
|
|
1,758 |
|
|
Repayment of long-term
loans |
|
|
(4,416 |
) |
|
|
(4,409 |
) |
|
|
(139 |
) |
|
|
(137 |
) |
|
Cash provided
by (used in) Financing Activities |
|
|
23,899 |
|
|
|
(3,533 |
) |
|
|
42 |
|
|
|
2,807 |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
|
693 |
|
|
|
(1,122 |
) |
|
|
18 |
|
|
|
(708 |
) |
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents |
|
|
35,004 |
|
|
|
(3 |
) |
|
|
2,679 |
|
|
|
2,127 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period |
|
|
18,435 |
|
|
|
27,726 |
|
|
|
50,760 |
|
|
|
25,596 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period |
|
$ |
53,439 |
|
|
$ |
27,723 |
|
|
$ |
53,439 |
|
|
$ |
27,723 |
|
|
Contact:
Gilat Satellite Networks
Doreet Oren
DoreetO@gilat.com
Comm-Partners LLC
June Filingeri, President
203-972-0186
junefil@optonline.net
Gilat Satellite Networks (NASDAQ:GILT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Gilat Satellite Networks (NASDAQ:GILT)
Historical Stock Chart
From Sep 2023 to Sep 2024