GAAP Operating Income was $0.8 million;
Adjusted EBITDA reached $19.2 Million
Gilat Satellite Networks Ltd. (NASDAQ:GILT) (TASE:GILT), a
worldwide leader in satellite networking technology, solutions and
services, today reported its results for the fourth quarter and
full year ended December 31, 2016.
Key Financial Highlights:
- Revenues for Q4 2016 increased 19% to $80.3 million from $67.7
million in Q4 2015.
- Full year 2016 revenues totaled $279.6 million, an increase of
42% from $197.5 million in 2015.
- Profitability continued to improve:- Q4 2016 GAAP
operating income reached $6.5 million and non-GAAP operating income
was $9.0 million.- Full year 2016 GAAP operating income was
$0.8 million and non-GAAP operating income was $11.7 million.-
GAAP net income for Q4 2016 was $4.5 million, or $0.08 per
diluted share, non-GAAP net income was $7.0 million, or $0.13 per
diluted share.- GAAP loss for full year 2016 was $5.3
million, or $0.10 per diluted share. Full year 2016 non-GAAP net
income was $5.6 million, or $0.11 per diluted share.-
Adjusted EBITDA for Q4 2016 was $10.8 million.- Full
year 2016 Adjusted EBITDA reached $19.2 million compared with
Adjusted EBITDA of $6.1 million in 2015.
- Management objectives for 2017: revenues between $280 to $300
million, GAAP operating income between $4 and $8 million, and
Adjusted EBITDA of between $20 and $24 million.
“I am pleased to report Gilat's positive results in the fourth
quarter and for full year 2016,” said Yona Ovadia, CEO of Gilat.
"We made progress in our broadband and In-Flight Connectivity (IFC)
growth engines and continued to invest in our technology
leadership, while keeping profitability improvement as a high
management priority. As a result, we achieved a profitable fourth
quarter along with full-year Adjusted EBITDA within the range of
our 2016 management objectives, despite ongoing headwinds in Latin
America and a slowdown at the end of the year in our Peru
project.
“In Q4, as part of our broadband strategy, we are pleased to
have made progress also in affordable broadband to consumers, as we
recently won Tricolor TV, the largest DTH (Direct-to-Home) provider
in Russia, who plans to include our unique world’s first all
outdoor Scorpio VSAT. In mobility, our technology continues to be
chosen for In-Flight Connectivity (IFC) as reflected in our
strategic partnership with Air Esurfing, an Air Media wholly owned
subsidiary in China, to deliver broadband connectivity to airlines
throughout China. We were also awarded a joint R&D project with
Airbus for the development of a fully integrated Electronically
Steerable Antenna (ESA) aero terminal based on our leading phased
array technology.
“Our management objectives for 2017 are a continuation and
acceleration of our achievements in 2016. Our objectives are for
revenues between $280 to $300 million, GAAP operating income
between $4 and $8 million and Adjusted EBITDA of between $20 and
$24 million, which reflect a high management priority on
profitability, in parallel with continued focus on our broadband
and mobility growth engines, via maintaining product innovation and
leadership.”
Key Recent Announcements:
- Gilat Awarded a Clean Sky 2 Call to Develop Electronically
Steerable Antenna (ESA) for In-Flight Connectivity (IFC) for Airbus
Technology Demonstrator
- Gilat to Supply Broadband Consumer VSATs for the Joint Service
of Tricolor TV and Eutelsat Networks
- Gilat and Air Esurfing Announce a Strategic Collaboration to
Provide In-Flight Connectivity (IFC) for China’s Domestic Airline
Market
Conference Call and Webcast Details: Gilat
management will host a conference call today, February 14, at 14:30
GMT / 09:30 AM EST / 16:30 IST to discuss the fourth quarter and
full year results. International participants are invited to access
the call at (972) 3-918-0610, and US-based participants are invited
to access the call by dialing 1-888-407-2553.
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_Q4_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 February 17, 2017.
International participants are invited to access the replay of
the call at (972) 3-925-5901, 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, impairment
of long lived assets and trade secrets litigation expenses) 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 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 global provider of
satellite-based broadband communications. With 30 years of
experience, we design and manufacture cutting-edge ground segment
equipment, and provide comprehensive solutions and end-to-end
services, powered by our innovative technology. Delivering high
value competitive solutions, our portfolio comprises of a cloud
based VSAT network platform, high-speed modems, high performance
on-the-move antennas and high efficiency, high power Solid State
Amplifiers (SSPA) and Block Upconverters (BUC).
Gilat’s comprehensive solutions support multiple applications
with a full portfolio of products to address key applications
including broadband access, cellular backhaul, enterprise,
in-flight connectivity, maritime, trains, defense and public
safety, all while meeting the most stringent service level
requirements. Gilat controlling shareholders are the FIMI
Private Equity Funds. For more information, please visit:
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) |
|
|
|
Year ended |
|
Three months ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Unaudited |
|
Audited |
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
279,551 |
|
|
$ |
197,543 |
|
|
$ |
80,345 |
|
|
$ |
67,682 |
|
|
Cost of revenues |
|
|
204,061 |
|
|
|
143,318 |
|
|
|
56,147 |
|
|
|
47,181 |
|
|
Impairment of long
lived assets |
|
|
- |
|
|
|
10,137 |
|
|
|
- |
|
|
|
10,137 |
|
|
Gross
profit |
|
|
75,490 |
|
|
|
44,088 |
|
|
|
24,198 |
|
|
|
10,364 |
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses |
|
|
26,477 |
|
|
|
24,952 |
|
|
|
7,103 |
|
|
|
5,709 |
|
|
Less - grants |
|
|
1,624 |
|
|
|
2,540 |
|
|
|
616 |
|
|
|
1,977 |
|
|
Research and
development, net |
|
|
24,853 |
|
|
|
22,412 |
|
|
|
6,487 |
|
|
|
3,732 |
|
|
Selling and marketing
expenses |
|
|
23,411 |
|
|
|
24,823 |
|
|
|
6,187 |
|
|
|
6,098 |
|
|
General and
administrative expenses |
|
|
26,471 |
|
|
|
18,644 |
|
|
|
5,036 |
|
|
|
3,418 |
|
|
Restructuring
costs |
|
|
- |
|
|
|
1,508 |
|
|
|
- |
|
|
|
522 |
|
|
Goodwill
impairment |
|
|
- |
|
|
|
20,402 |
|
|
|
- |
|
|
|
- |
|
|
Total operating
expenses |
|
|
74,735 |
|
|
|
87,789 |
|
|
|
17,710 |
|
|
|
13,770 |
|
|
Operating
income (loss) |
|
|
755 |
|
|
|
(43,701 |
) |
|
|
6,488 |
|
|
|
(3,406 |
) |
|
Financial expenses,
net |
|
|
(4,843 |
) |
|
|
(7,243 |
) |
|
|
(1,668 |
) |
|
|
(1,393 |
) |
|
Income (loss)
before taxes on income |
|
|
(4,088 |
) |
|
|
(50,944 |
) |
|
|
4,820 |
|
|
|
(4,799 |
) |
|
Taxes on income |
|
|
1,252 |
|
|
|
1,190 |
|
|
|
285 |
|
|
|
450 |
|
|
Income (loss)
from continuing operations |
|
|
(5,340 |
) |
|
|
(52,134 |
) |
|
|
4,535 |
|
|
|
(5,249 |
) |
|
Loss from
discontinued operations |
|
|
- |
|
|
|
(200 |
) |
|
|
- |
|
|
|
- |
|
|
Income
(loss) |
|
$ |
(5,340 |
) |
|
$ |
(52,334 |
) |
|
$ |
4,535 |
|
|
$ |
(5,249 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
per share from continuing operations (basic and
diluted) |
|
|
(0.10 |
) |
|
|
(1.19 |
) |
|
|
0.08 |
|
|
|
(0.12 |
) |
|
Loss per share
from discontinued operations (basic and diluted) |
|
|
- |
|
|
|
(0.00 |
) |
|
|
- |
|
|
|
- |
|
|
Income (loss)
per share (basic and diluted) |
|
$ |
(0.10 |
) |
|
$ |
(1.19 |
) |
|
$ |
0.08 |
|
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in computing
income (loss) per share |
|
|
|
|
|
|
|
|
|
Basic |
|
|
51,970,458 |
|
|
|
43,655,309 |
|
|
|
54,591,346 |
|
|
|
44,311,825 |
|
|
Diluted |
|
|
51,970,458 |
|
|
|
43,655,309 |
|
|
|
54,615,092 |
|
|
|
44,311,825 |
|
|
|
|
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 |
|
|
|
December 31, 2016 |
|
December 31, 2015 |
|
|
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
24,198 |
|
|
1,204 |
|
|
$ |
25,402 |
|
$ |
10,364 |
|
|
|
11,387 |
|
|
$ |
21,751 |
|
Operating expenses |
|
|
17,710 |
|
|
(1,264 |
) |
|
|
16,446 |
|
|
13,770 |
|
|
|
(989 |
) |
|
|
12,781 |
|
Operating income
(loss) |
|
|
6,488 |
|
|
2,468 |
|
|
|
8,956 |
|
|
(3,406 |
) |
|
|
12,376 |
|
|
|
8,970 |
|
Income (loss) before
taxes on income |
|
|
4,820 |
|
|
2,468 |
|
|
|
7,288 |
|
|
(4,799 |
) |
|
|
12,376 |
|
|
|
7,577 |
|
Income
(loss) |
|
$ |
4,535 |
|
|
2,468 |
|
|
$ |
7,003 |
|
$ |
(5,249 |
) |
|
|
12,376 |
|
|
$ |
7,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per
share |
|
$ |
0.08 |
|
|
0.05 |
|
|
$ |
0.13 |
|
$ |
(0.12 |
) |
|
|
0.28 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per share |
|
$ |
0.08 |
|
|
0.05 |
|
|
$ |
0.13 |
|
$ |
(0.12 |
) |
|
|
0.28 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computing income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
54,591,346 |
|
|
|
|
54,591,346 |
|
|
44,311,825 |
|
|
|
|
|
44,311,825 |
|
Diluted |
|
|
54,615,092 |
|
|
|
|
54,652,640 |
|
|
44,311,825 |
|
|
|
|
|
44,567,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments reflect the effect of non-cash stock-based
compensation as per ASC 718, amortization of intangible assets
related to shares acquisition transactions, impairment of
goodwill and long lived assets, trade secrets litigation expenses,
restructuring costs and loss from discontinued operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
December 31, 2015 |
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) |
|
|
|
$ |
4,535 |
|
|
|
|
|
|
$ |
(5,249 |
) |
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
|
|
9 |
|
|
|
|
|
|
|
52 |
|
|
|
|
Amortization of
intangible assets related to acquisition transactions |
|
|
|
|
1,195 |
|
|
|
|
|
|
|
1,198 |
|
|
|
|
Impairment of long
lived assets |
|
|
|
|
- |
|
|
|
|
|
|
|
10,137 |
|
|
|
|
|
|
|
|
|
1,204 |
|
|
|
|
|
|
|
11,387 |
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
|
|
207 |
|
|
|
|
|
|
|
184 |
|
|
|
|
Amortization of
intangible assets related to acquisition transactions: |
|
|
|
|
193 |
|
|
|
|
|
|
|
190 |
|
|
|
|
Trade secrets
litigation expenses |
|
|
|
|
864 |
|
|
|
|
|
|
|
93 |
|
|
|
|
Restructuring
costs |
|
|
|
|
- |
|
|
|
|
|
|
|
522 |
|
|
|
|
|
|
|
|
|
1,264 |
|
|
|
|
|
|
|
989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP
income |
|
|
|
$ |
7,003 |
|
|
|
|
|
|
$ |
7,127 |
|
|
|
|
|
|
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) |
|
|
|
|
|
Year ended |
|
|
|
|
|
Year ended |
|
|
|
|
|
|
|
31 December 2016 |
|
|
|
|
|
31 December 2015 |
|
|
|
|
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
75,490 |
|
|
|
4,817 |
|
|
$ |
80,307 |
|
$ |
44,088 |
|
|
|
15,146 |
|
|
$ |
59,234 |
|
|
Operating expenses |
|
|
74,735 |
|
|
|
(6,091 |
) |
|
|
68,644 |
|
|
87,789 |
|
|
|
(25,200 |
) |
|
|
62,589 |
|
|
Operating income
(loss) |
|
|
755 |
|
|
|
10,908 |
|
|
|
11,663 |
|
|
(43,701 |
) |
|
|
40,346 |
|
|
|
(3,355 |
) |
|
Income (loss) before
taxes on income |
|
|
(4,088 |
) |
|
|
10,908 |
|
|
|
6,820 |
|
|
(50,944 |
) |
|
|
40,346 |
|
|
|
(10,598 |
) |
|
Income (loss) from
continuing operations |
|
|
(5,340 |
) |
|
|
10,908 |
|
|
|
5,568 |
|
|
(52,134 |
) |
|
|
40,346 |
|
|
|
(11,788 |
) |
|
Loss from discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(200 |
) |
|
|
200 |
|
|
|
- |
|
|
Income (loss) |
|
$ |
(5,340 |
) |
|
|
10,908 |
|
|
$ |
5,568 |
|
$ |
(52,334 |
) |
|
|
40,546 |
|
|
$ |
(11,788 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share
from continuing operations (basic and diluted) |
|
|
(0.10 |
) |
|
|
0.21 |
|
|
|
0.11 |
|
|
(1.19 |
) |
|
|
0.92 |
|
|
|
(0.27 |
) |
|
Loss per share from
discontinued operations (basic and diluted) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
- |
|
|
Income (loss) per share
(basic and diluted) |
|
$ |
(0.10 |
) |
|
|
0.21 |
|
|
$ |
0.11 |
|
$ |
(1.19 |
) |
|
|
0.92 |
|
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computing net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
51,970,458 |
|
|
|
|
|
51,970,458 |
|
|
43,655,309 |
|
|
|
|
|
43,655,309 |
|
|
Diluted |
|
|
51,970,458 |
|
|
|
|
|
52,123,677 |
|
|
43,655,309 |
|
|
|
|
|
43,655,309 |
|
|
|
|
|
|
|
|
|
|
(1) Adjustments reflect the effect of non-cash stock-based
compensation as per ASC 718, amortization of intangible assets
related to shares acquisition transactions, impairment of
goodwill and long lived assets, trade secrets litigation expenses,
restructuring costs and loss from discontinued operations. |
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
Year ended |
|
|
|
|
|
|
|
31 December 2016 |
|
|
|
|
|
31 December 2015 |
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss |
|
|
|
$ |
(5,340 |
) |
|
|
|
|
|
$ |
(52,334 |
) |
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
|
|
41 |
|
|
|
|
|
|
|
217 |
|
|
|
|
Amortization of
intangible assets related to acquisition transactions |
|
|
|
|
4,776 |
|
|
|
|
|
|
|
4,792 |
|
|
|
|
Impairment of long
lived assets |
|
|
|
|
- |
|
|
|
|
|
|
|
10,137 |
|
|
|
|
|
|
|
|
|
4,817 |
|
|
|
|
|
|
|
15,146 |
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
|
|
867 |
|
|
|
|
|
|
|
1,684 |
|
|
|
|
Amortization of
intangible assets related to acquisition transactions: |
|
|
|
|
777 |
|
|
|
|
|
|
|
805 |
|
|
|
|
Goodwill
impairment |
|
|
|
|
- |
|
|
|
|
|
|
|
20,402 |
|
|
|
|
Trade secrets
litigation expenses |
|
|
|
|
4,447 |
|
|
|
|
|
|
|
801 |
|
|
|
|
Restructuring
costs |
|
|
|
|
- |
|
|
|
|
|
|
|
1,508 |
|
|
|
|
|
|
|
|
|
6,091 |
|
|
|
|
|
|
|
25,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations |
|
|
|
|
- |
|
|
|
|
|
|
|
200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP income
(loss) |
|
|
|
$ |
5,568 |
|
|
|
|
|
|
$ |
(11,788 |
) |
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED ADJUSTED EBITDA |
|
U.S. dollars in thousands |
|
|
|
Year ended |
|
Three months ended |
|
|
|
December
31, |
|
December 31, |
|
|
|
|
2016 |
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss) |
|
$ |
755 |
|
$ |
(43,701 |
) |
|
$ |
6,488 |
|
$ |
(3,406 |
) |
|
Add: |
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses |
|
|
908 |
|
|
1,901 |
|
|
|
216 |
|
|
236 |
|
|
Restructuring
costs |
|
|
- |
|
|
1,508 |
|
|
|
- |
|
|
522 |
|
|
Impairment of goodwill
and long lived assets |
|
|
- |
|
|
30,539 |
|
|
|
- |
|
|
10,137 |
|
|
Trade
secrets litigation expenses |
|
4,447 |
|
|
801 |
|
|
|
864 |
|
|
93 |
|
|
Depreciation and
amortization |
|
|
13,108 |
|
|
15,072 |
|
|
|
3,277 |
|
|
3,613 |
|
|
Adjusted
EBITDA |
|
$ |
19,218 |
|
$ |
6,120 |
|
|
$ |
10,845 |
|
$ |
11,195 |
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED CONSOLIDATED BALANCE SHEET |
|
U.S. dollars in thousands |
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
40,133 |
|
|
$ |
18,435 |
|
|
Restricted cash |
|
|
62,229 |
|
|
|
100,779 |
|
|
Restricted cash held by trustees |
|
|
9,058 |
|
|
|
8,524 |
|
|
Trade
receivables, net |
|
|
89,377 |
|
|
|
50,984 |
|
|
Inventories |
|
|
21,469 |
|
|
|
25,358 |
|
|
Other
current assets |
|
|
17,017 |
|
|
|
16,223 |
|
|
Total current assets |
|
|
239,283 |
|
|
|
220,303 |
|
|
|
|
|
|
|
|
LONG-TERM
INVESTMENTS AND RECEIVABLES: |
|
|
|
|
|
Long-term
restricted cash |
|
|
213 |
|
|
|
179 |
|
|
Severance
pay funds |
|
|
7,791 |
|
|
|
7,545 |
|
|
Other
long term receivables |
|
|
223 |
|
|
|
221 |
|
|
Total long-term investments and receivables |
|
|
8,227 |
|
|
|
7,945 |
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET |
|
|
80,837 |
|
|
|
81,963 |
|
|
|
|
|
|
|
|
INTANGIBLE
ASSETS, NET |
|
|
11,383 |
|
|
|
17,154 |
|
|
|
|
|
|
|
|
GOODWILL |
|
|
43,468 |
|
|
|
43,468 |
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
383,198 |
|
|
$ |
370,833 |
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED CONSOLIDATED BALANCE SHEET |
|
U.S. dollars in thousands |
|
|
|
December 31, |
|
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 |
|
|
4,617 |
|
|
|
4,542 |
|
|
Trade
payables |
|
|
29,625 |
|
|
|
17,210 |
|
|
Accrued
expenses |
|
|
53,429 |
|
|
|
23,481 |
|
|
Advances
from customers |
|
|
29,751 |
|
|
|
82,813 |
|
|
Advances
from customers, held by trustees |
|
|
7,498 |
|
|
|
8,515 |
|
|
Other
current liabilities |
|
|
21,754 |
|
|
|
16,213 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
146,674 |
|
|
|
159,774 |
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
Accrued
severance pay |
|
|
7,485 |
|
|
|
7,506 |
|
|
Long-term
loans, net of current maturities |
|
|
16,932 |
|
|
|
21,493 |
|
|
Other
long-term liabilities |
|
|
2,281 |
|
|
|
3,978 |
|
|
|
|
|
|
|
|
Total long-term
liabilities |
|
|
26,698 |
|
|
|
32,977 |
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
Share
capital - ordinary shares of NIS 0.2 par value |
|
|
2,593 |
|
|
|
2,048 |
|
|
Additional paid-in capital |
|
|
920,162 |
|
|
|
884,126 |
|
|
Accumulated other comprehensive loss |
|
|
(3,224 |
) |
|
|
(3,727 |
) |
|
Accumulated deficit |
|
|
(709,705 |
) |
|
|
(704,365 |
) |
|
|
|
|
|
|
|
Total equity |
|
|
209,826 |
|
|
|
178,082 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
383,198 |
|
|
$ |
370,833 |
|
|
|
|
GILAT SATELLITE NETWORKS LTD. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
U.S. dollars in thousands |
|
|
|
|
|
Year ended |
|
Three months ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
Cash flows from continuing operations |
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(5,340 |
) |
|
$ |
(52,334 |
) |
|
$ |
4,535 |
|
|
$ |
(5,249 |
) |
|
Loss from discontinued operations |
|
|
- |
|
|
|
200 |
|
|
|
- |
|
|
|
- |
|
|
Net income (loss) from continuing operations |
|
|
(5,340 |
) |
|
|
(52,134 |
) |
|
|
4,535 |
|
|
|
(5,249 |
) |
|
Adjustments required to reconcile net income (loss) to
net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization |
|
|
13,108 |
|
|
|
15,072 |
|
|
|
3,277 |
|
|
|
3,613 |
|
|
Goodwill
impairment |
|
|
- |
|
|
|
20,402 |
|
|
|
- |
|
|
|
- |
|
|
Impairment of long
lived assets |
|
|
- |
|
|
|
10,137 |
|
|
|
- |
|
|
|
10,137 |
|
|
Capital loss from
disposal of property and equipment |
|
|
(88 |
) |
|
|
82 |
|
|
|
- |
|
|
|
- |
|
|
Stock-Based
Compensation |
|
|
908 |
|
|
|
1,901 |
|
|
|
216 |
|
|
|
236 |
|
|
Accrued severance pay,
net |
|
|
(267 |
) |
|
|
(111 |
) |
|
|
(65 |
) |
|
|
163 |
|
|
Accrued interest and
exchange rate differences on short and long-term restricted cash,
net |
|
|
(1,382 |
) |
|
|
842 |
|
|
|
72 |
|
|
|
635 |
|
|
Exchange rate
differences on long-term loans |
|
|
(43 |
) |
|
|
(288 |
) |
|
|
(99 |
) |
|
|
(67 |
) |
|
Deferred income taxes,
net |
|
|
4 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
(10 |
) |
|
Decrease (increase) in
trade receivables, net |
|
|
(37,586 |
) |
|
|
4,553 |
|
|
|
(47,695 |
) |
|
|
(12,177 |
) |
|
Decrease (increase) in
other assets (including short-term, long-term and deferred
charges) |
|
|
(3,386 |
) |
|
|
998 |
|
|
|
(4,593 |
) |
|
|
97 |
|
|
Decrease (increase) in
inventories |
|
|
2,221 |
|
|
|
(2,821 |
) |
|
|
1,356 |
|
|
|
2,090 |
|
|
Decrease (Increase) in
restricted cash directly related to operating activities, net |
|
|
48,519 |
|
|
|
(87,004 |
) |
|
|
12,991 |
|
|
|
(34,268 |
) |
|
Increase (decrease) in
trade payables |
|
|
12,454 |
|
|
|
(5,133 |
) |
|
|
8,607 |
|
|
|
2,514 |
|
|
Increase in accrued
expenses |
|
|
30,149 |
|
|
|
2,935 |
|
|
|
4,135 |
|
|
|
3,444 |
|
|
Increase (decrease) in
advance from customers |
|
|
(53,081 |
) |
|
|
79,884 |
|
|
|
13,561 |
|
|
|
24,268 |
|
|
Increase (decrease) in
advances from customers, held by trustees |
|
|
922 |
|
|
|
(2,243 |
) |
|
|
1,950 |
|
|
|
6,168 |
|
|
Increase
(decrease) in other current liabilities and other long term
liabilities |
|
3,666 |
|
|
|
(1,860 |
) |
|
|
2,036 |
|
|
|
(1,454 |
) |
|
Net cash
provided by (used in) operating activities |
|
|
10,778 |
|
|
|
(14,787 |
) |
|
|
283 |
|
|
|
140 |
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment |
|
|
(4,307 |
) |
|
|
(3,930 |
) |
|
|
(1,485 |
) |
|
|
(821 |
) |
|
Investment in
restricted cash held by trustees |
|
|
(16,200 |
) |
|
|
(16,634 |
) |
|
|
(5,275 |
) |
|
|
(10,525 |
) |
|
Proceeds from
restricted cash held by trustees |
|
|
16,498 |
|
|
|
21,501 |
|
|
|
3,025 |
|
|
|
2,852 |
|
|
Investment in
restricted cash (including long-term) |
|
|
(17,001 |
) |
|
|
(22,717 |
) |
|
|
(9,751 |
) |
|
|
(306 |
) |
|
Proceeds from
restricted cash (including long-term) |
|
|
7,441 |
|
|
|
34,120 |
|
|
|
- |
|
|
|
1,561 |
|
|
Net cash
provided by (used in) investing activities |
|
|
(13,569 |
) |
|
|
12,340 |
|
|
|
(13,486 |
) |
|
|
(7,239 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
Capital lease
payments |
|
|
(307 |
) |
|
|
(609 |
) |
|
|
- |
|
|
|
(201 |
) |
|
Issuance of shares in a
rights offering |
|
|
35,095 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Issuance of restricted
stock units and exercise of stock options |
|
|
576 |
|
|
|
5,683 |
|
|
|
49 |
|
|
|
88 |
|
|
Payment of obligation
related to the purchase of intangible assets |
|
|
- |
|
|
|
(500 |
) |
|
|
- |
|
|
|
- |
|
|
Short term bank credit,
net |
|
|
(7,000 |
) |
|
|
(5,897 |
) |
|
|
- |
|
|
|
(2,086 |
) |
|
Repayment of long-term
loans |
|
|
(4,443 |
) |
|
|
(4,544 |
) |
|
|
(27 |
) |
|
|
(135 |
) |
|
Net cash
provided by (used in) financing activities |
|
|
23,921 |
|
|
|
(5,867 |
) |
|
|
22 |
|
|
|
(2,334 |
) |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
|
568 |
|
|
|
(977 |
) |
|
|
(125 |
) |
|
|
145 |
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents |
|
|
21,698 |
|
|
|
(9,291 |
) |
|
|
(13,306 |
) |
|
|
(9,288 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents at the Beginning of the Period |
|
|
18,435 |
|
|
|
27,726 |
|
|
|
53,439 |
|
|
|
27,723 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents at the End of the Period |
|
$ |
40,133 |
|
|
$ |
18,435 |
|
|
$ |
40,133 |
|
|
$ |
18,435 |
|
|
Contact:
Gilat Satellite Networks
Doreet Oren
DoreetO@gilat.com
Comm-Partners LLC
June Filingeri, President
203-972-0186
junefil@optonline.net
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