Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide
leader in satellite networking technology, solutions and services,
today reported its results for the second quarter ended June 30,
2020.
Key Financial Highlights:
- Revenues for Q2 2020 totaled $38.3 million compared with $59.7
million for Q2 2019.
- Q2 2020 - GAAP operating loss was $3.5 million compared to
operating income of $4.9 million in Q2 2019. Q2 2020 Non-GAAP
operating loss was $2.6 million compared to Non-GAAP operating
income of $6.3 in Q2 2019.
- Q2 2020 GAAP net loss was $4.2 million, or loss of $0.08 per
diluted share, compared with net income of $3.4 million, or income
of $0.06 per diluted share in Q2 2019. Q2 2020 non-GAAP net loss
was $3.3 million, or $0.06 per diluted share, compared with net
income of $4.8 million, or $0.09 per diluted share, in Q2
2019.
- Q2 2020 Adjusted EBITDA was $0.1 million compared with Adjusted
EBITDA of $8.9 million in Q2 2019.
Adi Sfadia, Gilat's interim CEO, commented:
"The COVID-19 pandemic continued to affect
Gilat's second quarter 2020 results, as we continued to see
postponements and delays in orders. However, during the second
quarter we began to see and are continuing to see a recovery in
most of our areas of operations which is demonstrated by a
significant increase in pipeline opportunities. We believe that as
a result of these trends, coupled with the cost reduction
initiatives we have executed and are continuing to execute, the
second half of 2020 will be meaningfully better than the first
half, for Gilat.
"I am pleased to report that Bosmat Halpern,
Gilat's AVP Finance has been appointed as Gilat's interim CFO, and
I am confident in her ability to wisely navigate Gilat's finances
through these unprecedented times."
Comtech Transaction and
Litigation
The acquisition of Gilat by Comtech
Telecommunications Corp ("Comtech") remains subject to certain
conditions to closing, including regulatory approvals in Russia. As
previously reported, Comtech filed a complaint against Gilat in the
Delaware Court of Chancery seeking declaratory judgments that
certain actions, if taken by Gilat in connection with Russia
regulatory approval would breach Gilat’s obligations under the
Merger Agreement and that Gilat has suffered a Material Adverse
Effect, as defined in the Merger Agreement, as a result of the
COVID-19 pandemic. As a consequence, Comtech contends that it is
not required to consummate the merger.
Gilat strongly rejects all such allegations, and
on July 21, 2020, Gilat filed a complaint against Comtech in the
Delaware Court of Chancery, seeking a Court order requiring Comtech
to specifically perform its obligations under the merger agreement,
including using its reasonable best efforts to obtain regulatory
approval as soon as practicable (as well as seeking all other
relief deemed proper, including damages). The Complaint also seeks
a declaratory judgment that, if Russian regulatory approval is not
obtained by the termination date of the merger agreement,
satisfaction of the Russian regulatory condition be excused, and a
declaratory judgment that Gilat has not suffered a “Material
Adverse Effect”. Trial is scheduled for early October 2020.
Key Recent Announcements
- Gilat Awarded Over $10 Million for a Five-Year Service Project
for 4G Backhaul Services in Latin America
- US Tier-1 Mobile Operator Awards Gilat a Multi-Million Dollar
Service Contract for Cellular Backhaul
- Africa Mobile Networks (AMN) Extends Gilat’s Contract of
Powering Africa’s Largest Satellite Cellular Backhaul Network
- Gilat Awarded Cellular Backhaul Project for Kcell, Kazakhstan’s
Largest Mobile Network Operator
- Gilat Selected to Extend and Expand Managed Service Cellular
Backhaul Project by a Leading Mobile Operator in Mexico
- Telefonica International Wholesale Services (TIWS) Selects
Gilat for Broadband and Cellular Backhaul Project in Argentina
- Gilat’s Airborne Technology Enables Opening-up of the Chinese
Ka-Band IFEC Market and Driving a Multi-Million Dollar Market
Opportunity
- Gilat Announces Availability of its Flagship VSAT, Achieving
Half a Gigabit of Concurrent Speeds
Non-GAAP MeasuresThe 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. Non-GAAP financial measures mainly
exclude the effect of stock based compensation, amortization of
purchased intangibles, lease incentive amortization, litigation
expenses, income related to trade secrets claims, restructuring and
reorganization costs, merger and acquisition costs and initial
recognition of deferred tax asset with respect to carry-forward
losses.
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 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.
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
Safe Harbor
Statement Certain statements made herein that are not
historical are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve known and unknown risks and uncertainties that
could cause the actual results, performance or achievements of
Gilat, or the expected results of the proposed transaction with
Comtech to be materially different from any future results,
performance or achievements that may be expressed or implied by
such forward-looking statements. Due to such uncertainties and
risks, no assurances can be given that such expectations will prove
to have been correct, and readers are cautioned not to place undue
reliance on such forward-looking statements, which speak only as of
the date hereof. The forward-looking statements contained
herein include, but are not limited to, statements about the
results, performance or achievements of Gilat, Gilat’s plans,
objectives and expectations for future operations, the expected
completion of the proposed transaction with Comtech, the
satisfaction or waiver of any conditions to the proposed
transaction, and other events relating to the proposed transaction.
Forward-looking statements are often characterized by the use of
forward-looking terminology such as “may,” “will,” “expect,”
“anticipate,” “estimate,” “continue,” “believe,” “should,”
“intend,” “plan,” “project” or other similar words, but are not the
only way these statements are identified. These
forward-looking statements are based upon Gilat’s management’s
current estimates and projections of future results or
trends. In addition to the risks and uncertainties
described in the Annual Report on Form 20-F for the year ended
December 31, 2019 and in the proxy statement/prospectus dated April
3, 2020 and those described in any other documents filed with the
Securities and Exchange Commission, such risks and uncertainties
include, among others, (i) changes in general economic and business
conditions, (ii) the inability to maintain market acceptance of
Gilat's products, (iii) the inability to timely develop and
introduce new technologies, products and applications, (iv) rapid
changes in the market for Gilat's products, (v) loss of market
share and pressure on prices resulting from competition, (vi)
introduction of competing products by other companies, (vii) the
inability to manage growth and expansion, (viii) loss of key OEM
partners, (ix) the inability to attract and retain qualified
personnel, (x) the inability to protect the Company's proprietary
technology, (xi) risks associated with Gilat's international
operations and its location in Israel and (xii) risks relating to
the Merger of wholly owned subsidiary of Comtech with and into
Gilat (the “Merger”), including, among others: (1) the risk that
the conditions to the closing of the are not satisfied, including
the risk that required approvals for the Merger from governmental
authorities are not received; (2) changes or circumstances that
could give rise to the termination of the Merger Agreement; (3) the
risk that the value of the stock merger consideration will
fluctuate over time; (4) litigation relating to the Merger; (5)
uncertainties as to the timing of the consummation of the Merger
and the ability of each party to consummate the Merger; (6) risks
that the proposed Merger disrupts the current plans and operations
of Gilat or Comtech, or both; (7) the ability of Gilat and Comtech
to retain and hire key personnel; (8) competitive responses to the
proposed Merger and the impact of competitive products; (9)
unexpected costs, charges or expenses resulting from the Merger;
(10) potential adverse reactions or changes to business
relationships resulting from the announcement or completion of the
Merger; (11) the combined company’s ability to achieve the
financial and operating results, growth prospects and synergies
expected from the Merger, as well as delays, challenges and
expenses associated with integrating the existing businesses of
Comtech and Gilat; (12) the combined company’s ability to maintain
and improve relationships with customers, suppliers and other third
parties following the Merger; (13) the terms and availability of
the indebtedness that may be incurred in connection with the
Merger; (14) the timing and funding of government contracts; (15)
risks associated with international sales; (16) risks associated
with legal proceedings, customer claims for indemnification and
other similar matters; (17) risks associated with Comtech’s
obligations under its credit facility; (18) risks associated with
the outbreak and global spread of the coronavirus (COVID-19)
pandemic; and (19) legislative, regulatory, technological,
political and economic developments, including changing business
conditions in the industries in which Comtech and Gilat operate and
the overall economy. as well as the financial performance and
expectations of Comtech’s and Gilat’s existing and prospective
customers.
The foregoing list of factors is not exclusive
and you should not place undue reliance on any forward-looking
statement. All forward-looking statements contained herein are made
only as of the date of the date hereof and, except as required by
law, Gilat does not undertake any obligation to update publicly any
of these forward-looking statements to reflect events or
circumstances that may arise after the date hereof.
For additional information regarding these and
other risks and uncertainties associated with Gilat's business and
the pending acquisition of Gilat by Comtech, reference is made to
Gilat's reports filed from time to time with the Securities and
Exchange Commission.
Contact:Gilat Satellite NetworksDoreet Oren,
Director Corporate CommunicationsDoreetO@gilat.com
GILAT
SATELLITE NETWORKS
LTD. |
|
CONSOLIDATED
STATEMENTS OF
OPERATIONS |
|
U.S. dollars
in thousands (except share and per share
data) |
|
|
|
|
|
Six
months ended |
|
Three
months ended |
|
|
|
|
June, 30 |
|
June, 30 |
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
85,988 |
|
|
$ |
121,794 |
|
|
$ |
38,315 |
|
|
$ |
59,685 |
|
|
Cost of revenues |
|
|
|
67,514 |
|
|
|
76,239 |
|
|
|
28,727 |
|
|
|
37,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
18,474 |
|
|
|
45,555 |
|
|
|
9,588 |
|
|
|
21,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
|
13,773 |
|
|
|
16,492 |
|
|
|
6,139 |
|
|
|
7,635 |
|
|
Less - grants |
|
|
|
472 |
|
|
|
1,094 |
|
|
|
200 |
|
|
|
539 |
|
|
Research and development expenses, net |
|
|
13,301 |
|
|
|
15,398 |
|
|
|
5,939 |
|
|
|
7,096 |
|
|
Selling and marketing expenses |
|
|
8,650 |
|
|
|
11,288 |
|
|
|
3,584 |
|
|
|
5,417 |
|
|
General and administrative expenses (*) |
|
|
7,791 |
|
|
|
9,527 |
|
|
|
2,973 |
|
|
|
4,585 |
|
|
Merger and acquisition costs |
|
|
2,951 |
|
|
|
- |
|
|
|
546 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
32,693 |
|
|
|
36,213 |
|
|
|
13,042 |
|
|
|
17,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
(14,219 |
) |
|
|
9,342 |
|
|
|
(3,454 |
) |
|
|
4,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses, net |
|
|
|
(1,429 |
) |
|
|
(1,400 |
) |
|
|
(457 |
) |
|
|
(579 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes on income |
|
|
(15,648 |
) |
|
|
7,942 |
|
|
|
(3,911 |
) |
|
|
4,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on income |
|
|
|
332 |
|
|
|
1,713 |
|
|
|
314 |
|
|
|
903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
$ |
(15,980 |
) |
|
$ |
6,229 |
|
|
$ |
(4,225 |
) |
|
$ |
3,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted earnings (loss) per share |
|
$ |
(0.29 |
) |
|
$ |
0.11 |
|
|
$ |
(0.08 |
) |
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in |
|
|
|
|
|
|
|
|
|
computing earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
55,499,300 |
|
|
|
55,262,453 |
|
|
|
55,505,342 |
|
|
|
55,327,318 |
|
|
|
Diluted |
|
|
|
55,499,300 |
|
|
|
56,014,927 |
|
|
|
55,505,342 |
|
|
|
56,070,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Including restructuring cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
June 30, 2020 |
|
June 30, 2019 |
|
|
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
9,588 |
|
|
|
54 |
|
|
$ |
9,642 |
|
|
$ |
21,985 |
|
|
312 |
|
|
$ |
22,297 |
|
Operating expenses |
|
13,042 |
|
|
|
(831 |
) |
|
|
12,211 |
|
|
|
17,098 |
|
|
(1,077 |
) |
|
|
16,021 |
|
Operating income (loss) |
|
(3,454 |
) |
|
|
885 |
|
|
|
(2,569 |
) |
|
|
4,887 |
|
|
1,389 |
|
|
|
6,276 |
|
Income (loss) before taxes on income |
|
(3,911 |
) |
|
|
885 |
|
|
|
(3,026 |
) |
|
|
4,308 |
|
|
1,389 |
|
|
|
5,697 |
|
Net income (loss) |
|
(4,225 |
) |
|
|
885 |
|
|
|
(3,340 |
) |
|
|
3,405 |
|
|
1,389 |
|
|
|
4,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share (basic and diluted) |
$ |
(0.08 |
) |
|
$ |
0.02 |
|
|
$ |
(0.06 |
) |
|
$ |
0.06 |
|
$ |
0.03 |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in |
|
|
|
|
|
|
|
|
|
|
|
|
computing earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
55,505,342 |
|
|
|
|
|
55,505,342 |
|
|
|
55,327,318 |
|
|
|
|
55,327,318 |
|
Diluted |
|
|
55,505,342 |
|
|
|
|
|
55,505,342 |
|
|
|
56,070,351 |
|
|
|
|
56,218,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments reflect the effect of non-cash stock-based
compensation as per ASC 718, amortization of intangible assets
related to shares acquisition transactions, merger and
acquisition costs, trade secrets and other litigation
expenses and restructuring and re-organization costs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Three months
ended |
|
|
|
June 30,
2020 |
|
June 30,
2019 |
|
|
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
|
$ |
(4,225 |
) |
|
|
|
|
|
$ |
3,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expenses |
|
|
|
49 |
|
|
|
|
|
|
|
49 |
|
|
|
|
Amortization of intangible assets related to acquisition
transactions |
|
|
|
5 |
|
|
|
|
|
|
|
234 |
|
|
|
|
Restructuring and re-organization costs |
|
|
|
- |
|
|
|
|
|
|
|
29 |
|
|
|
|
|
|
|
|
|
54 |
|
|
|
|
|
|
|
312 |
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expenses |
|
|
|
235 |
|
|
|
|
|
|
|
373 |
|
|
|
|
Amortization of intangible assets related to acquisition
transactions |
|
|
|
50 |
|
|
|
|
|
|
|
49 |
|
|
|
|
Trade secrets and other litigation expenses |
|
|
|
- |
|
|
|
|
|
|
|
100 |
|
|
|
|
Merger and acquisition costs |
|
|
|
546 |
|
|
|
|
|
|
|
- |
|
|
|
|
Restructuring and re-organization costs |
|
|
|
- |
|
|
|
|
|
|
|
555 |
|
|
|
|
|
|
|
|
|
831 |
|
|
|
|
|
|
|
1,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) |
|
|
$ |
(3,340 |
) |
|
|
|
|
|
$ |
4,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
Six months
ended |
|
Six months
ended |
|
|
|
June 30, 2020 |
|
June 30, 2019 |
|
|
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
GAAP |
|
Adjustments (1) |
|
Non-GAAP |
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
18,474 |
|
|
|
116 |
|
|
$ |
18,590 |
|
|
$ |
45,555 |
|
|
638 |
|
|
$ |
46,193 |
|
Operating expenses |
|
32,693 |
|
|
|
(3,937 |
) |
|
|
28,756 |
|
|
|
36,213 |
|
|
(1,906 |
) |
|
|
34,307 |
|
Operating income (loss) |
|
(14,219 |
) |
|
|
4,053 |
|
|
|
(10,166 |
) |
|
|
9,342 |
|
|
2,544 |
|
|
|
11,886 |
|
Income (loss) before taxes on income |
|
(15,648 |
) |
|
|
4,053 |
|
|
|
(11,595 |
) |
|
|
7,942 |
|
|
2,544 |
|
|
|
10,486 |
|
Net income (loss) |
|
(15,980 |
) |
|
|
4,053 |
|
|
|
(11,927 |
) |
|
|
6,229 |
|
|
2,544 |
|
|
|
8,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share (basic and diluted) |
$ |
(0.29 |
) |
|
$ |
0.08 |
|
|
$ |
(0.21 |
) |
|
$ |
0.11 |
|
$ |
0.05 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in |
|
|
|
|
|
|
|
|
|
|
|
|
computing earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
55,499,300 |
|
|
|
|
|
55,499,300 |
|
|
|
55,262,453 |
|
|
|
|
55,262,453 |
|
Diluted |
|
|
55,499,300 |
|
|
|
|
|
55,499,300 |
|
|
|
56,014,927 |
|
|
|
|
56,180,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments reflect the effect of non-cash stock-based
compensation as per ASC 718, amortization of intangible assets
related to shares acquisition transactions, merger and
acquisition costs, trade secrets and other litigation
expenses and restructuring and re-organization costs. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended |
|
Six months
ended |
|
|
|
June 30,
2020 |
|
June 30,
2019 |
|
|
|
|
|
Unaudited |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
|
$ |
(15,980 |
) |
|
|
|
|
|
$ |
6,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expenses |
|
|
|
106 |
|
|
|
|
|
|
|
143 |
|
|
|
|
Amortization of intangible assets related to acquisition
transactions |
|
|
|
10 |
|
|
|
|
|
|
|
466 |
|
|
|
|
Restructuring and re-organization costs |
|
|
|
- |
|
|
|
|
|
|
|
29 |
|
|
|
|
|
|
|
|
|
116 |
|
|
|
|
|
|
|
638 |
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expenses |
|
|
|
601 |
|
|
|
|
|
|
|
1,150 |
|
|
|
|
Amortization of intangible assets related to acquisition
transactions |
|
|
|
101 |
|
|
|
|
|
|
|
101 |
|
|
|
|
Trade secrets and other litigation expenses |
|
|
|
11 |
|
|
|
|
|
|
|
100 |
|
|
|
|
Merger and acquisition costs |
|
|
|
2,951 |
|
|
|
|
|
|
|
- |
|
|
|
|
Restructuring and re-organization costs |
|
|
|
273 |
|
|
|
|
|
|
|
555 |
|
|
|
|
|
|
|
|
|
3,937 |
|
|
|
|
|
|
|
1,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) |
|
|
$ |
(11,927 |
) |
|
|
|
|
|
$ |
8,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GILAT
SATELLITE NETWORKS
LTD. |
|
SUPPLEMENTAL
INFORMATION |
|
U.S. dollars
in
thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
months ended |
|
Three
months ended |
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss) |
|
|
|
|
$ |
(14,219 |
) |
|
$ |
9,342 |
|
$ |
(3,454 |
) |
|
$ |
4,887 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
stock-based compensation expenses |
|
|
|
|
|
|
|
707 |
|
|
|
1,293 |
|
|
284 |
|
|
|
422 |
|
Trade secrets and other litigation expenses |
|
|
|
|
11 |
|
|
|
100 |
|
|
- |
|
|
|
100 |
|
Restructuring and re-organization costs |
|
|
|
|
273 |
|
|
|
584 |
|
|
- |
|
|
|
584 |
|
Merger and acquisition costs |
|
|
|
|
|
2,951 |
|
|
|
- |
|
|
546 |
|
|
|
- |
|
Depreciation and amortization (*) |
|
|
|
|
5,382 |
|
|
|
5,786 |
|
|
2,718 |
|
|
|
2,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
$ |
(4,895 |
) |
|
$ |
17,105 |
|
$ |
94 |
|
|
$ |
8,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Including amortization of lease incentive |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
months ended |
|
Three
months ended |
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
Unaudited |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Networks |
|
|
|
|
|
$ |
44,790 |
|
|
$ |
66,836 |
|
$ |
21,779 |
|
|
$ |
30,408 |
|
Mobility Solutions |
|
|
|
|
|
33,207 |
|
|
|
43,499 |
|
|
14,006 |
|
|
|
22,587 |
|
Terrestrial Infrastructure Projects |
|
|
|
|
7,991 |
|
|
|
11,459 |
|
|
2,530 |
|
|
|
6,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
|
|
|
$ |
85,988 |
|
|
$ |
121,794 |
|
$ |
38,315 |
|
|
$ |
59,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS
LTD. |
|
CONSOLIDATED BALANCE
SHEETS |
|
U.S. dollars in
thousands |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
59,601 |
|
|
$ |
74,778 |
|
|
Restricted cash |
|
|
25,579 |
|
|
|
27,067 |
|
|
Trade receivables, net |
|
|
28,560 |
|
|
|
47,731 |
|
|
Contract assets |
|
|
32,060 |
|
|
|
23,698 |
|
|
Inventories |
|
|
32,489 |
|
|
|
27,203 |
|
|
Other current assets |
|
|
15,581 |
|
|
|
23,007 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
193,870 |
|
|
|
223,484 |
|
|
|
|
|
|
|
|
LONG-TERM ASSETS: |
|
|
|
|
|
Long-term restricted cash |
|
|
117 |
|
|
|
124 |
|
|
Severance pay funds |
|
|
6,425 |
|
|
|
6,831 |
|
|
Deferred taxes |
|
|
18,291 |
|
|
|
18,455 |
|
|
Operating lease right-of-use assets |
|
|
6,353 |
|
|
|
5,211 |
|
|
Other long term receivables |
|
|
9,699 |
|
|
|
10,156 |
|
|
|
|
|
|
|
|
Total long-term assets |
|
|
40,885 |
|
|
|
40,777 |
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
|
78,781 |
|
|
|
82,584 |
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS, NET |
|
|
1,302 |
|
|
|
1,523 |
|
|
|
|
|
|
|
|
GOODWILL |
|
|
43,468 |
|
|
|
43,468 |
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
358,306 |
|
|
$ |
391,836 |
|
|
|
|
|
|
|
|
GILAT SATELLITE NETWORKS
LTD. |
|
CONSOLIDATED BALANCE SHEETS
(Cont.) |
|
U.S. dollars in
thousands |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
Unaudited |
|
Audited |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Current maturities of long-term loans |
|
$ |
4,000 |
|
|
$ |
4,096 |
|
|
Trade payables |
|
|
20,129 |
|
|
|
20,725 |
|
|
Accrued expenses |
|
|
48,194 |
|
|
|
54,676 |
|
|
Advances from customers and deferred revenues |
|
|
23,124 |
|
|
|
27,220 |
|
|
Operating lease liabilities |
|
|
2,145 |
|
|
|
1,977 |
|
|
Other current liabilities |
|
|
10,552 |
|
|
|
12,261 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
108,144 |
|
|
|
120,955 |
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
Long-term loans, net of current maturities |
|
|
- |
|
|
|
4,000 |
|
|
Accrued severance pay |
|
|
6,681 |
|
|
|
7,061 |
|
|
Long-term advances from customers |
|
|
1,180 |
|
|
|
2,866 |
|
|
Operating lease liabilities |
|
|
4,153 |
|
|
|
3,258 |
|
|
Other long-term liabilities |
|
|
1,218 |
|
|
|
108 |
|
|
|
|
|
|
|
|
Total long-term liabilities |
|
|
13,232 |
|
|
|
17,293 |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
Share capital - ordinary shares of NIS 0.2 par value |
|
|
2,644 |
|
|
|
2,643 |
|
|
Additional paid-in capital |
|
|
928,054 |
|
|
|
927,348 |
|
|
Accumulated other comprehensive loss |
|
|
(6,433 |
) |
|
|
(5,048 |
) |
|
Accumulated deficit |
|
|
(687,335 |
) |
|
|
(671,355 |
) |
|
|
|
|
|
|
|
Total shareholders' equity |
|
|
236,930 |
|
|
|
253,588 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
358,306 |
|
|
$ |
391,836 |
|
|
|
|
|
|
|
|
GILAT
SATELLITE NETWORKS
LTD. |
|
CONSOLIDATED
STATEMENTS OF CASH
FLOWS |
|
U.S. dollars
in
thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
months ended |
|
Three
months ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
Unaudited |
|
Unaudited |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(15,980 |
) |
|
$ |
6,229 |
|
|
$ |
(4,225 |
) |
|
$ |
3,405 |
|
|
Adjustments required to reconcile net income to net
cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,271 |
|
|
|
5,681 |
|
|
|
2,667 |
|
|
|
2,859 |
|
|
Capital loss from disposal of property and equipment |
|
|
23 |
|
|
|
- |
|
|
|
56 |
|
|
|
- |
|
|
Stock-based compensation of options |
|
|
707 |
|
|
|
1,293 |
|
|
|
284 |
|
|
|
422 |
|
|
Accrued severance pay, net |
|
|
26 |
|
|
|
382 |
|
|
|
(17 |
) |
|
|
97 |
|
|
Deferred income taxes, net |
|
|
140 |
|
|
|
1,385 |
|
|
|
(494 |
) |
|
|
702 |
|
|
Decrease (increase) in trade receivables, net |
|
|
18,364 |
|
|
|
2,506 |
|
|
|
4,757 |
|
|
|
(5,325 |
) |
|
Decrease (increase) in contract assets |
|
|
(8,362 |
) |
|
|
(232 |
) |
|
|
(3,511 |
) |
|
|
198 |
|
|
Decrease (increase) in other assets (including short-term,
long-term and deferred charges) |
|
|
6,710 |
|
|
|
(29 |
) |
|
|
5,037 |
|
|
|
50 |
|
|
Decrease (increase) in inventories |
|
|
(5,698 |
) |
|
|
(6,137 |
) |
|
|
937 |
|
|
|
(2,478 |
) |
|
Increase (decrease) in trade payables |
|
|
(510 |
) |
|
|
3,933 |
|
|
|
(2,885 |
) |
|
|
4,855 |
|
|
Decrease in accrued expenses |
|
|
(5,809 |
) |
|
|
(7,076 |
) |
|
|
(4,157 |
) |
|
|
(4,907 |
) |
|
Decrease in advance from customers |
|
|
(5,725 |
) |
|
|
(8,405 |
) |
|
|
(2,898 |
) |
|
|
(5,318 |
) |
|
Increase (decrease) in current and non current liabilities |
|
|
685 |
|
|
|
(1,950 |
) |
|
|
(2,126 |
) |
|
|
(2,813 |
) |
|
Net cash used in operating activities |
|
|
(10,158 |
) |
|
|
(2,420 |
) |
|
|
(6,575 |
) |
|
|
(8,253 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(1,879 |
) |
|
|
(3,587 |
) |
|
|
(928 |
) |
|
|
(1,573 |
) |
|
Net cash used in investing activities |
|
|
(1,879 |
) |
|
|
(3,587 |
) |
|
|
(928 |
) |
|
|
(1,573 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Exercise of stock options |
|
|
- |
|
|
|
375 |
|
|
|
- |
|
|
|
37 |
|
|
Dividend payment |
|
|
- |
|
|
|
(24,864 |
) |
|
|
- |
|
|
|
(24,864 |
) |
|
Repayment of long-term loans |
|
|
(4,096 |
) |
|
|
(4,231 |
) |
|
|
- |
|
|
|
(108 |
) |
|
Net cash used in financing activities |
|
|
(4,096 |
) |
|
|
(28,720 |
) |
|
|
- |
|
|
|
(24,935 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents
and restricted cash |
|
|
(539 |
) |
|
|
21 |
|
|
|
156 |
|
|
|
(76 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash, cash equivalents and restricted
cash |
|
|
(16,672 |
) |
|
|
(34,706 |
) |
|
|
(7,347 |
) |
|
|
(34,837 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at the beginning
of the period |
|
|
101,969 |
|
|
|
104,204 |
|
|
|
92,644 |
|
|
|
104,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at the end of
the period |
|
$ |
85,297 |
|
|
$ |
69,498 |
|
|
$ |
85,297 |
|
|
$ |
69,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gilat Satellite Networks (NASDAQ:GILT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gilat Satellite Networks (NASDAQ:GILT)
Historical Stock Chart
From Apr 2023 to Apr 2024