PETAH TIKVA, Israel, Nov. 14,
2017 /PRNewswire/ -- 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,
2017.
Key Financial Highlights:
- Revenues for Q3 2017 were $69.9
million compared with $66.2
million in Q2 2017 and $78.6
million in Q3 2016.
- Profitability improvement continued in Q3 2017:
-
- GAAP operating income improved substantially to $3.3 million in Q3 2017 from $1.9 million in Q2 2017, and compared with an
operating loss of $0.2 million in Q3
2016.
- Non-GAAP operating income grew to $4.9
million from $4.1 million in
Q2 2017 and $3.3 million in Q3 2016.
- The Company achieved GAAP net income of $2.1 million, or $0.04 per diluted share in Q3 2017, in line with
$2.1 million, or $0.04 per diluted share, in Q2 2017, and compared
with a loss of $2.2 million, or
$0.04 per diluted share, in Q3
2016.
- Non-GAAP net income was $3.6
million, or $0.07 per diluted
share in Q3 2017, compared with $4.6
million, or $0.08 per diluted
share in Q2 2017, and $1.4 million,
or $0.02 per diluted share, in Q3
2016.
- Adjusted EBITDA increased to $7.1
million, or 10.2% of revenues, compared with $5.9 million, or 8.9% of revenues, in Q2 2017,
and $5.2 million, or 6.7% of
revenues, in Q3 2016.
- Updated management objectives for 2017: revenue range
maintained at between $280 to $290
million, GAAP operating income narrowed to upper range
between $9 and $11 million (from
$7 to $11 million), and Adjusted
EBITDA narrowed to upper range between $24
and $26 million (from $22 to $26
million).
Yona Ovadia, CEO of Gilat,
commented: "I am pleased to report that Gilat again achieved very
positive results in the third quarter as we see consistent
improvement in our operating income and in our Adjusted EBITDA -
two major indicators of our financial progress. I am in particular
pleased to note our GAAP net income of $2.1
million for the quarter, as we remain committed to our
long-term goal of profitability on a GAAP basis.
"Further, based on our progress year-to-date, we have narrowed
our profitability objectives for 2017 towards the high end of the
previous range, while maintaining our prior objective for
revenues.
"One of our growth initiatives has been to develop multi-year
cellular backhaul service projects with recurring revenues,
particularly with telco service providers. I am gratified that we
have closed four significant such deals in the past few months. We
believe they were awarded to Gilat due to both our LTE cellular
backhaul carrier-grade technology that meets the stringent
requirements of throughput and user experience, as well as our
expertise in integrating multi-site satellite-based networks into
the MNO's cellular network.
"In the United States, we have
just been awarded a major contract with T-Mobile for end-to-end
services for LTE cellular backhaul for their network expansion in
rural areas, destinations, highways, and elsewhere where fiber
delivery is challenging throughout the continental United States. In addition, Sprint has
expanded our contract to include a three-year project in addition
to the technology provided for their 3G/4G network.
"In the Philippines, we secured
a five-year multi-million dollar services contract with Globe for
satellite backhaul for 4G cellular services.
"And, we closed a deal with a major telecom service provider in
Latin America to provide an
end-to-end services project for rapid rollout of high-performance
broadband.
"In Mobility, we have reached a noteworthy milestone with our
customer, Gogo, with over 150 airplanes now flying with our
airborne modem, showing a strong pace of ramp-up, with potential of
approximately 2,000 aircraft.
"Equally important, we are making further inroads with our
airborne antennas. We are progressing towards completion of
development of our dual-band Ku-Ka antenna in early 2018, and have
started the development of our next generation antenna. I am
optimistic that the interest we see in the market will translate
into concrete achievements in the coming quarters.
Mr. Ovadia concluded: "We are pleased with the momentum we
gained in both growth engines, and we will continue to execute
according to our strategic priorities, with an ongoing emphasis on
improving profitability."
Key Recent Announcements:
- Major Telecom Service Provider in Latin America Selects Gilat
for Managed Service Cellular Backhaul Project
- Sprint Expands Gilat Contract to a Three-Year Multi-Million
Dollar Managed Service Project
- Globe Awards Gilat Five Year Multi-Million Dollar Contract for
Managed Service Satellite Backhaul for Cellular Services
Conference Call and Webcast Details:
Gilat management will host a conference call today, Tuesday, November 14, to discuss the third
quarter results. The details are as follows:
Conference Call and Webcast
Following the announcement, Yona
Ovadia, Chief Executive Officer, and Adi Sfadia, Chief
Financial Officer, will discuss Gilat's 2017 third quarter results,
participate in a question, and answer session:
Date:
|
Tuesday, November 14,
2017
|
Start:
|
09:30 AM EDT / 16:30
IDT
|
Dial-in:
|
US:
1-888-668-9141
|
|
International: (972)
3-918-0609
|
A simultaneous Webcast of the conference call will be available
on the Gilat website at www.gilat.com and through this link:
www.veidan-stream.com/gilatq3-2017.html
The webcast will also be archived for a period of 30 days on the
Company's website and through the link above.
Conference Call Replay
Start:
|
November 14, 2017 at
12:00 PM EDT / 19:00 IDT
|
End:
|
November 17, 2017 at
12:00 PM EDT / 19:00 IDT
|
Dial-in:
|
US:
1-888-326-9310
|
|
International: (972)
3-925-5901
|
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.
Adjusted EBITDA (operating income before depreciation,
amortization, non-cash stock option expenses, costs related to
acquisition transactions, restructuring cost, goodwill impairment,
impairment of long lived assets, trade secrets litigation expenses
and tax expenses under amnesty program) 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 GAAP 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.
This news release also contains a forward-looking estimate of
Adjusted EBITDA projected to be generated by Gilat in 2017. A
forward-looking estimate of net income and reconciliations of the
forward-looking estimates of Adjusted EBITDA to net income are not
provided because the items necessary to estimate net income are not
estimable at this time. 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 Gilat
Gilat 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.
|
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,
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
200,104
|
|
$
199,206
|
|
$
69,936
|
|
$
78,643
|
|
Cost of
revenues
|
|
142,845
|
|
147,914
|
|
49,587
|
|
54,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
57,259
|
|
51,292
|
|
20,349
|
|
23,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
20,648
|
|
19,374
|
|
7,181
|
|
6,781
|
|
Less -
grants
|
|
820
|
|
1,008
|
|
297
|
|
370
|
|
Research and
development expenses, net
|
|
19,828
|
|
18,366
|
|
6,884
|
|
6,411
|
|
Selling and marketing
expenses
|
|
|
17,187
|
|
17,224
|
|
5,837
|
|
6,248
|
|
General and
administrative expenses
|
|
15,026
|
|
21,435
|
|
4,303
|
|
11,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
52,041
|
|
57,025
|
|
17,024
|
|
23,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
5,218
|
|
(5,733)
|
|
3,325
|
|
(229)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
|
(3,169)
|
|
(3,175)
|
|
(1,123)
|
|
(1,572)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before taxes on income
|
|
2,049
|
|
(8,908)
|
|
2,202
|
|
(1,801)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on income (tax
benefit)
|
|
|
(1,349)
|
|
967
|
|
152
|
|
398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
$
3,398
|
|
$
(9,875)
|
|
$
2,050
|
|
$
(2,199)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share (basic and diluted)
|
|
$
0.06
|
|
$
(0.19)
|
|
$
0.04
|
|
$
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
|
|
|
computing earnings
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
54,667,795
|
|
51,096,829
|
|
54,703,658
|
|
54,523,585
|
|
|
Diluted
|
|
54,723,315
|
|
51,096,829
|
|
54,788,086
|
|
54,523,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2017
|
|
September 30,
2016
|
|
|
|
|
|
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
20,349
|
|
1,210
|
|
$
21,559
|
|
$
23,713
|
|
1,204
|
|
$
24,917
|
Operating
expenses
|
17,024
|
|
(357)
|
|
16,667
|
|
23,942
|
|
(2,357)
|
|
21,585
|
Operating income
(loss)
|
3,325
|
|
1,567
|
|
4,892
|
|
(229)
|
|
3,561
|
|
3,332
|
Income (loss) before
taxes on income
|
2,202
|
|
1,567
|
|
3,769
|
|
(1,801)
|
|
3,561
|
|
1,760
|
Net income
(loss)
|
$
2,050
|
|
1,567
|
|
$
3,617
|
|
$
(2,199)
|
|
3,561
|
|
$
1,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share (basic and diluted)
|
$
0.04
|
|
0.03
|
|
$
0.07
|
|
$
(0.04)
|
|
0.06
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
|
|
|
|
computing earnings
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
54,703,658
|
|
|
|
54,703,658
|
|
54,523,585
|
|
|
|
54,523,585
|
|
Diluted
|
54,788,086
|
|
|
|
54,979,360
|
|
54,523,585
|
|
|
|
54,614,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
reflect the effect of non-cash stock-based compensation as per ASC
718, amortization of intangible assets related to
|
|
shares acquisition
transactions and trade secrets litigation expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
|
|
|
|
September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
|
$
2,050
|
|
|
|
|
|
$
(2,199)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
|
|
15
|
|
|
|
|
|
9
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
|
|
1,195
|
|
|
|
|
|
1,195
|
|
|
|
|
|
|
|
|
|
|
|
1,210
|
|
|
|
|
|
1,204
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
|
|
193
|
|
|
|
|
|
180
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
|
|
164
|
|
|
|
|
|
194
|
|
|
Trade secrets
litigation expenses
|
|
|
-
|
|
|
|
|
|
1,983
|
|
|
|
|
|
|
|
|
|
|
|
357
|
|
|
|
|
|
2,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
income
|
|
|
$
3,617
|
|
|
|
|
|
$
1,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2017
|
|
September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
(1)
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
57,259
|
|
3,620
|
|
$
60,879
|
|
$
51,292
|
|
3,614
|
|
$
54,906
|
|
|
|
Operating
expenses
|
|
52,041
|
|
(2,642)
|
|
49,399
|
|
57,025
|
|
(4,826)
|
|
52,199
|
|
|
|
Operating income
(loss)
|
|
5,218
|
|
6,262
|
|
11,480
|
|
(5,733)
|
|
8,440
|
|
2,707
|
|
|
|
Income (loss) before
taxes on income
|
|
2,049
|
|
6,499
|
|
8,548
|
|
(8,908)
|
|
8,440
|
|
(468)
|
|
|
|
Net income
(loss)
|
|
$
3,398
|
|
6,499
|
|
$
9,897
|
|
$
(9,875)
|
|
8,440
|
|
$
(1,435)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share (basic and diluted)
|
|
$
0.06
|
|
0.12
|
|
$
0.18
|
|
$
(0.19)
|
|
0.16
|
|
$
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
computing earnings
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
54,667,795
|
|
|
|
54,667,795
|
|
51,096,829
|
|
|
|
51,096,829
|
|
|
|
|
Diluted
|
|
54,723,315
|
|
|
|
54,850,309
|
|
51,096,829
|
|
|
|
51,096,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
reflect the effect of non-cash stock-based compensation as per ASC
718, amortization of intangible assets related to
|
|
|
|
|
|
shares acquisition
transactions, trade secrets litigation expenses and tax expenses
under amnesty program.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 September
2017
|
|
|
|
|
|
30 September
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
|
|
$
3,398
|
|
|
|
|
|
$
(9,875)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
|
|
|
38
|
|
|
|
|
|
32
|
|
|
|
|
|
Amortization of
intangible assets related to acquisition transactions
|
|
|
|
3,582
|
|
|
|
|
|
3,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,620
|
|
|
|
|
|
3,614
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
|
|
|
588
|
|
|
|
|
|
660
|
|
|
|
|
|
Amortization of
intangible assets related to acquisition transactions:
|
|
|
|
553
|
|
|
|
|
|
583
|
|
|
|
|
|
Trade secrets
litigation expenses
|
|
|
|
873
|
|
|
|
|
|
3,583
|
|
|
|
|
|
Tax expenses under
amnesty program
|
|
|
|
628
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,642
|
|
|
|
|
|
4,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and taxes on
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expenses under
amnesty program
|
|
|
|
237
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income
(loss)
|
|
|
|
$
9,897
|
|
|
|
|
|
$
(1,435)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GILAT SATELLITE
NETWORKS LTD.
|
ADJUSTED
EBITDA
|
U.S. dollars in
thousands
|
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss)
|
$
5,218
|
|
$
(5,733)
|
|
$
3,325
|
|
$
(229)
|
Add:
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation expenses
|
626
|
|
692
|
|
208
|
|
189
|
Trade secrets
litigation expenses
|
873
|
|
3,583
|
|
-
|
|
1,983
|
Tax expenses under
amnesty program expenses
|
628
|
|
-
|
|
-
|
|
-
|
Depreciation and
amortization
|
9,884
|
|
9,831
|
|
3,580
|
|
3,306
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
17,229
|
|
$
8,373
|
|
$
7,113
|
|
$
5,249
|
|
GILAT SATELLITE
NETWORKS LTD.
|
|
CONSOLIDATED
BALANCE SHEET
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
77,234
|
|
$
40,133
|
|
Restricted
cash
|
|
24,275
|
|
62,229
|
|
Restricted cash held
by trustees
|
|
6,503
|
|
9,058
|
|
Trade receivables,
net
|
|
86,517
|
|
89,377
|
|
Inventories
|
|
29,921
|
|
21,469
|
|
Other current
assets
|
|
21,211
|
|
17,017
|
|
|
|
|
|
|
|
Total
current assets
|
|
245,661
|
|
239,283
|
|
|
|
|
|
|
|
LONG-TERM
INVESTMENTS:
|
|
|
|
|
|
Severance pay
funds
|
|
8,074
|
|
7,791
|
|
Other long term
receivables
|
|
400
|
|
436
|
|
|
|
|
|
|
|
Total long-term
investments
|
|
8,474
|
|
8,227
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
79,307
|
|
80,837
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS,
NET
|
|
7,084
|
|
11,383
|
|
|
|
|
|
|
|
GOODWILL
|
|
43,468
|
|
43,468
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
383,994
|
|
$
383,198
|
|
GILAT SATELLITE
NETWORKS LTD.
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEET
|
|
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Current maturities of
long-term loans
|
|
$
4,482
|
|
$
4,617
|
|
Trade
payables
|
|
28,611
|
|
29,625
|
|
Accrued
expenses
|
|
68,082
|
|
53,429
|
|
Advances from
customers and deferred revenues
|
|
25,768
|
|
37,659
|
|
Advances from
customers, held by trustees
|
|
5,349
|
|
7,498
|
|
Other current
liabilities
|
|
16,587
|
|
13,846
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
148,879
|
|
146,674
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Accrued severance
pay
|
|
7,896
|
|
7,485
|
|
Long-term loans, net
of current maturities
|
|
12,690
|
|
16,932
|
|
Other long-term
liabilities
|
|
19
|
|
2,281
|
|
|
|
|
|
|
|
Total
long-term liabilities
|
|
20,605
|
|
26,698
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
Share capital -
ordinary shares of NIS 0.2 par value
|
|
2,599
|
|
2,593
|
|
Additional paid-in
capital
|
|
921,405
|
|
920,162
|
|
Accumulated other
comprehensive loss
|
|
(3,132)
|
|
(3,224)
|
|
Accumulated
deficit
|
|
(706,362)
|
|
(709,705)
|
|
|
|
|
|
|
|
Total
equity
|
|
214,510
|
|
209,826
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
383,994
|
|
$
383,198
|
GILAT SATELLITE
NETWORKS LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
Unaudited
|
|
Unaudited
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
3,398
|
|
$
(9,875)
|
|
$
2,050
|
|
$
(2,199)
|
Adjustments
required to reconcile net income (loss)
|
|
|
|
|
|
|
|
|
to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
9,884
|
|
9,831
|
|
3,580
|
|
3,306
|
Stock-based
compensation of options and RSU's
|
|
626
|
|
692
|
|
208
|
|
189
|
Accrued severance
pay, net
|
|
129
|
|
(202)
|
|
23
|
|
(105)
|
Accrued interest and
exchange rate differences on
|
|
|
|
|
|
|
|
|
short and long-term
restricted cash, net
|
|
(104)
|
|
(1,454)
|
|
(114)
|
|
106
|
Exchange rate
differences on long-term loans
|
|
151
|
|
56
|
|
38
|
|
8
|
Deferred income
taxes, net
|
|
(300)
|
|
5
|
|
(141)
|
|
5
|
Decrease (increase)in
trade receivables, net
|
|
2,833
|
|
10,109
|
|
(2,215)
|
|
6,115
|
Decrease (increase)
in other assets (including short-term, long-term
|
|
|
|
|
|
|
|
|
and deferred
charges)
|
|
(3,629)
|
|
1,119
|
|
2,890
|
|
2,191
|
Decrease (increase)
in inventories
|
|
(9,229)
|
|
865
|
|
(5,671)
|
|
3,324
|
Decrease in
restricted cash directly related to operating activities,
net
|
|
38,123
|
|
28,482
|
|
144
|
|
6,908
|
Increase (decrease)
in trade payables
|
|
(1,082)
|
|
3,847
|
|
(1,619)
|
|
655
|
Increase in accrued
expenses
|
|
14,655
|
|
26,014
|
|
3,237
|
|
11,531
|
Decrease in advances
from customers
|
|
(11,714)
|
|
(66,642)
|
|
(6,004)
|
|
(30,357)
|
Increase (decrease)
in advances from customers, held
|
|
|
|
|
|
|
|
|
by
trustees
|
|
(2,340)
|
|
(1,028)
|
|
1,002
|
|
984
|
Increase in other
current liabilities and other long term liabilities
|
|
357
|
|
1,630
|
|
2,261
|
|
933
|
Net cash provided
by (used in) operating activities
|
|
41,758
|
|
3,449
|
|
(331)
|
|
3,594
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(3,409)
|
|
(2,822)
|
|
(1,236)
|
|
(790)
|
Investment in
restricted cash held by trustees
|
|
(10,802)
|
|
(10,925)
|
|
(5,493)
|
|
(5,497)
|
Proceeds from
restricted cash held by trustees
|
|
13,388
|
|
13,473
|
|
5,388
|
|
5,315
|
Investment in
restricted cash (including long-term)
|
|
(656)
|
|
(204)
|
|
(10)
|
|
(18)
|
Proceeds from
restricted cash (including long-term)
|
|
671
|
|
7,441
|
|
4
|
|
15
|
Net cash provided
by (used in) investing activities
|
|
(808)
|
|
6,963
|
|
(1,347)
|
|
(975)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Capital lease
payments
|
|
-
|
|
(307)
|
|
-
|
|
-
|
Issuance of shares in
a rights offering
|
|
-
|
|
35,095
|
|
-
|
|
-
|
Issuance of
restricted stock units and exercise of stock options
|
|
569
|
|
527
|
|
76
|
|
181
|
Short term bank
credit, net
|
|
-
|
|
(7,000)
|
|
-
|
|
-
|
Repayment of
long-term loans
|
|
(4,528)
|
|
(4,416)
|
|
(145)
|
|
(139)
|
Net cash provided
by (used in) financing activities
|
|
(3,959)
|
|
23,899
|
|
(69)
|
|
42
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
110
|
|
693
|
|
150
|
|
18
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
|
37,101
|
|
35,004
|
|
(1,597)
|
|
2,679
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
40,133
|
|
18,435
|
|
78,831
|
|
50,760
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
$
77,234
|
|
$
53,439
|
|
$
77,234
|
|
$
53,439
|
Contact:
Gilat Satellite Networks
Doreet Oren
DoreetO@gilat.com
Comm-Partners LLC
June Filingeri, President
+1-203-972-0186
junefil@optonline.net
View original
content:http://www.prnewswire.com/news-releases/gilat-reports-continued-growth-in-profitability-in-q3-2017-with-gaap-net-income-of-21-million-and-adjusted-ebitda-of-71-million-300555447.html
SOURCE Gilat Satellite Networks