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Gilat Presents Strong Growth and Results for Third Quarter 2022

Gilat Satellite Networks Ltd.
Gilat Satellite Networks Ltd.

Revenue of $60.4 million, up 21% year-over-year, GAAP operating income of $3.4 million versus $0.8 million in Q3 last year, and adjusted EBITDA of $7.3 million, up 88% year-over-year

PETAH TIKVA, Israel, Nov. 14, 2022 (GLOBE NEWSWIRE) -- 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, 2022.

Third Quarter 2022 Financial Highlights

  • Revenues of $60.4 million,up 21% compared with $49.8 million in Q3 last year;

  • GAAP operating income of $3.4 million versus $0.8 million in Q3 last year;

  • Non-GAAP operating income of $4.4 million versus $1.3 million in Q3 last year;

  • GAAP net income of $2.1 million versus breakeven in Q3 last year;

  • Non-GAAP net income of $3 million versus $0.6 million in Q3 last year;

  • Adjusted EBITDA of $7.3 million versus $3.9 million in Q3 last year;

Forward-Looking Expectations

The Company adjusted and narrowed the range of its 2022 revenue guidance, with expectations of between $240 million and $245 million, representing year-over-year growth of approximately 13%.

The Company also increased and narrowed the GAAP operating income guidance range to between $8 million to $10 million representing significant year-over-year growth versus $2.2 million in 2021.

The Company increased and narrowed the adjusted EBITDA range to between $23 to $25 million, representing year-over-year growth of approximately 56%.

Management Commentary

Adi Sfadia, Gilat's CEO, commented: "We are very pleased with our strong third quarter results showing continued year-over-year growth and a recovery in all our markets, in particular IFC. We are also very encouraged with the solid and continued improvement in our profitability demonstrating substantial improvement in our gross, operating and net margins with adjusted EBITDA growing by 88% year-over-year.

Strategically we are very excited with the progress of our newly launched, world leading, SkyEdge IV platform. During the third quarter, a leading service provider selected SkyEdge IV, Gilat's high-performance, multi-orbit platform, to power maritime connectivity. We are confident that this platform will allow us to focus and gain market share in the growing multibillion-dollar market of the next era of satellite communication.

The mobility business continued to pick up, with recent IFC orders of over $12 million. We further solidified our leadership in the cellular backhaul market this quarter, with multimillion-dollar orders from both new customers and mobile operators trusting Gilat's technology to extend their networks even further. In addition, we received multimillion-dollar orders in the Defense segment, where we see significant potential and have increased our focus, as well as in the Enterprise sector for utility and banking applications."

Mr. Sfadia concluded, "Our pipeline continues to increase and broaden, and the release of our next generation platform and growth engine – the SkyEdge IV for VHTS & NGSO satellites – is gaining strong traction among new and existing customers. As such, we are increasingly optimistic and expect to maintain our strong momentum ahead. For 2022 as a whole, we are tracking ahead of our profitability targets, and we look forward to continuing the growth trend into 2023."

Key Recent Announcements

  • World-Leading UAV Manufacturer Selects Gilat in Multi-Year, Multimillion-Dollar Strategic Agreement for UAV Terminals

  • Telefónica Global Solutions Selects Gilat to Extend 4G Cellular Coverage for Mobile Operators in Latin America

  • Antamina Selects Gilat for Multimillion-Dollar E-Learning Project

  • Gilat Awarded Over $10M to Power IFC Applications of Tier-1 Global Aerospace System Integrator

  • Gilat Selected by Sencinet for Petrobras’ Oil and Gas Industry Satellite Connectivity Project

  • SES and Gilat Extend Global Strategic Cooperation with Orders for GEO VHTS and O3b mPOWER NGSO Constellation

Conference Call Details
Gilat’s management will discuss its third quarter 2022 results and business achievements and participate in a question and answer session:

Date: Monday, November 14, 2022
Start: 09:30 AM EST / 16:30 IST
Dial-in: US: 1-888-407-2553
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: https://veidan.activetrail.biz/gilatq3-2022

The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.

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. 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, acquisition and related litigation expense (income), impairment of held for sale asset, other expenses, income tax effect on adjustments and one-time changes of deferred tax assets.

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 over 30 years of experience, we create and deliver deep technology solutions for satellite, ground and new space connectivity and provide comprehensive end-to-end solutions and services, powered by our innovative technology. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.

Delivering high value solutions, our portfolio is comprised of a cloud-based platform and high performance satellite terminals designed to work in harmony with satellite constellations, including Very High Throughput Satellites (VHTS) and Software-Defined Satellites (SDS) in multiple orbits; high performance Satellite On-the-Move (SOTM) antennas; and highly efficient, high-power Solid State Power 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, mobility, cellular backhaul, military, government, and enterprise, all while meeting the most stringent service level requirements. 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, risks associated with the outbreak and global spread of the coronavirus (COVID-19) pandemic; 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. 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. We undertake no obligation to update or revise any forward-looking statements for any reason.

Contact:
Gilat Satellite Networks
Doreet Oren, Senior Director Corporate Communications
DoreetO@gilat.com

Ehud Helft
EK Global Investor Relations
ehud@ekgir.com
+1 212 378 8040

GILAT SATELLITE NETWORKS LTD.

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

 

 

 

 

 

 

 

U.S. dollars in thousands (except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

Three months ended

 

 

 

 

September 30,

 

September 30,

 

 

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

$

167,213

 

 

$

147,947

 

 

$

60,350

 

 

$

49,778

 

Cost of revenues

 

 

 

108,021

 

 

 

101,376

 

 

 

37,315

 

 

 

32,306

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

59,192

 

 

 

46,571

 

 

 

23,035

 

 

 

17,472

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses, net

 

 

25,542

 

 

 

22,884

 

 

 

9,156

 

 

 

7,224

 

Selling and marketing expenses

 

 

15,724

 

 

 

15,827

 

 

 

5,414

 

 

 

5,359

 

General and administrative expenses

 

 

13,325

 

 

 

11,042

 

 

 

4,770

 

 

 

4,104

 

Impairment of held for sale asset

 

 

718

 

 

 

-

 

 

 

279

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

 

55,309

 

 

 

49,753

 

 

 

19,619

 

 

 

16,687

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

3,883

 

 

 

(3,182

)

 

 

3,416

 

 

 

785

 

 

 

 

 

 

 

 

 

 

 

 

Financial expenses, net

 

 

 

(2,716

)

 

 

(1,458

)

 

 

(1,053

)

 

 

(701

)

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes on income

 

 

1,167

 

 

 

(4,640

)

 

 

2,363

 

 

 

84

 

 

 

 

 

 

 

 

 

 

 

 

Taxes on income

 

 

 

1,075

 

 

 

523

 

 

 

243

 

 

 

49

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

$

92

 

 

$

(5,163

)

 

$

2,120

 

 

$

35

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share (basic and diluted)

 

$

0.00

 

 

$

(0.09

)

 

$

0.04

 

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing earning (loss) per share

 

 

 

 

 

 

 

 

 

Basic

 

 

 

56,585,858

 

 

 

56,355,020

 

 

 

56,608,981

 

 

 

56,525,177

 

 

Diluted

 

 

 

56,604,854

 

 

 

56,355,020

 

 

 

56,626,283

 

 

 

56,958,250

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021.

For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A filed with the U.S. Securities and Exchange Commission on September 14, 2022.

 

 

 

 

 

 

 

 


GILAT SATELLITE NETWORKS LTD.

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (LOSS)

 

 

 

 

FOR COMPARATIVE PURPOSES

 

 

 

 

 

 

 

 

 

 

 

U.S. dollars in thousands (except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Three months ended

 

 

September 30, 2022

 

September 30, 2021

 

 

GAAP

 

Adjustments (*)

 

Non-GAAP

 

GAAP

 

Adjustments (*)

 

Non-GAAP

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

23,035

 

 

74

 

 

$

23,109

 

$

17,472

 

 

96

 

 

$

17,568

Operating expenses

 

19,619

 

 

(879

)

 

 

18,740

 

 

16,687

 

 

(448

)

 

 

16,239

Operating income

 

3,416

 

 

953

 

 

 

4,369

 

 

785

 

 

544

 

 

 

1,329

Income before taxes on income

 

2,363

 

 

953

 

 

 

3,316

 

 

84

 

 

544

 

 

 

628

Net income

$

2,120

 

 

911

 

 

$

3,031

 

$

35

 

 

544

 

 

$

579

 

 

 

 

 

 

 

 

 

 

 

 

 

Earning per share (basic and diluted)

$

0.04

 

$

0.02

 

 

$

0.06

 

$

0.00

 

$

0.01

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing earning per share

 

 

 

 

 

 

 

 

 

 

 

      Basic

 

56,608,981

 

 

 

 

56,608,981

 

 

56,525,177

 

 

 

 

56,525,177

      Diluted

 

56,626,283

 

 

 

 

56,652,855

 

 

56,958,250

 

 

 

 

57,227,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*) Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to acquisition transactions, impairment of held for sale asset, other expenses and income tax effect on adjustments which is calculated using the blended effective tax rate on the adjustments, based on the statutory tax rates applicable to the adjustments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

 

September 30, 2022

 

 

 

 

 

 

September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

 

 

 

Unaudited

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

 

$

2,120

 

 

 

 

 

 

$

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

74

 

 

 

 

 

 

 

91

 

 

 

Amortization of intangible assets related to acquisition transactions

 

 

 

 

-

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

74

 

 

 

 

 

 

 

96

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

498

 

 

 

 

 

 

 

398

 

 

 

Amortization of intangible assets related to acquisition transactions

 

 

 

 

51

 

 

 

 

 

 

 

50

 

 

 

Impairment of held for sale asset

 

 

 

279

 

 

 

 

 

 

 

-

 

 

 

Other

 

 

 

51

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

879

 

 

 

 

 

 

 

448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect on adjustments

 

 

 

(42

)

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 

 

$

3,031

 

 

 

 

 

 

$

579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021.

For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A   filed with the U.S. Securities and Exchange Commission on September 14, 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 


GILAT SATELLITE NETWORKS LTD.

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (LOSS)

 

 

FOR COMPARATIVE PURPOSES

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. dollars in thousands (except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

Nine months ended

 

 

 

 

September 30, 2022

 

September 30, 2021

 

 

 

 

GAAP

 

Adjustments (*)

Non-GAAP

 

GAAP

 

Adjustments (*)

Non-GAAP

 

 

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

$

59,192

 

 

230

 

 

$

59,422

 

$

46,571

 

 

 

226

 

 

$

46,797

 

Operating expenses

 

 

 

55,309

 

 

(2,394

)

 

 

52,915

 

 

49,753

 

 

 

(735

)

 

 

49,018

 

Operating income (loss)

 

 

 

3,883

 

 

2,624

 

 

 

6,507

 

 

(3,182

)

 

 

961

 

 

 

(2,221

)

Income (loss) before taxes on income

 

 

 

1,167

 

 

2,624

 

 

 

3,791

 

 

(4,640

)

 

 

961

 

 

 

(3,679

)

Net income (loss)

 

 

 

92

 

 

2,582

 

 

 

2,674

 

 

(5,163

)

 

 

961

 

 

 

(4,202

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earning (loss) per share (basic and diluted)

$

0.00

 

$

0.05

 

 

$

0.05

 

$

(0.09

)

 

$

0.02

 

 

$

(0.07

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing earning (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

      Basic

 

 

 

 

56,585,858

 

 

 

 

56,585,858

 

 

56,355,020

 

 

 

 

 

56,355,020

 

      Diluted

 

 

 

 

56,604,854

 

 

 

 

56,659,298

 

 

56,355,020

 

 

 

 

 

56,355,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*) Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to acquisition transactions, impairment of held for sale asset, other expenses and income tax effect on adjustments which is calculated using the blended effective tax rate on the adjustments, based on the statutory tax rates applicable to the adjustments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

 

 

 

 

 

 

 

 

September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

 

 

 

$

92

 

 

 

 

 

 

$

(5,163

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

 

220

 

 

 

 

 

 

 

211

 

 

 

Amortization of intangible assets related to acquisition transactions

 

 

 

 

 

 

10

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

 

230

 

 

 

 

 

 

 

226

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

 

1,413

 

 

 

 

 

 

 

584

 

 

 

Amortization of intangible assets related to acquisition transactions

 

 

 

 

 

 

152

 

 

 

 

 

 

 

151

 

 

 

Impairment of held for sale asset

 

 

 

 

 

718

 

 

 

 

 

 

 

-

 

 

 

Other

 

 

 

 

 

111

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

2,394

 

 

 

 

 

 

 

735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect on adjustments

 

 

 

 

 

(42

)

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss)

 

 

 

 

$

2,674

 

 

 

 

 

 

$

(4,202

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021.

For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A  filed with the U.S. Securities and Exchange Commission on September 14, 2022.

 

 

 

 

 

 

 


GILAT SATELLITE NETWORKS LTD.

 

 

 

 

 

 

 

 

SUPPLEMENTAL INFORMATION

 

 

 

 

 

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

Three months ended

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

 

$

92

 

$

(5,163

)

 

$

2,120

 

$

35

Adjustments:

 

 

 

 

 

 

 

 

 

 

Financial expenses, net

 

 

 

 

 

2,716

 

 

1,458

 

 

 

1,053

 

 

701

Taxes on income

 

 

 

 

 

1,075

 

 

523

 

 

 

243

 

 

49

Non-cash stock-based compensation expenses

 

1,633

 

 

795

 

 

 

572

 

 

489

Impairment of held for sale asset

 

 

 

718

 

 

-

 

 

 

279

 

 

-

Other

 

 

 

 

111

 

 

-

 

 

 

51

 

 

-

Depreciation and amortization (*)

 

 

8,770

 

 

7,365

 

 

 

2,978

 

 

2,608

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

$

15,115

 

$

4,978

 

 

$

7,296

 

$

3,882

 

 

 

 

 

 

 

 

 

 

 

 

(*) Including amortization of lease incentive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

Three months ended

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

Satellite Networks

 

 

 

$

83,993

 

$

83,157

 

 

$

32,366

 

$

23,182

Integrated Solutions

 

 

 

 

45,047

 

 

33,540

 

 

 

15,650

 

 

14,704

Network Infrastructure and Services

 

 

38,173

 

 

31,250

 

 

 

12,334

 

 

11,892

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

$

167,213

 

$

147,947

 

 

$

60,350

 

$

49,778

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021.

For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A  filed with the U.S. Securities and Exchange Commission on September 14, 2022.

 

 

 

 

 

 

 


 

 

 

 

 

 

 

GILAT SATELLITE NETWORKS LTD.

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

 

 

2022

 

 

 

2021

 

 

 

 

Unaudited

 

Audited

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

 

$

68,439

 

 

$

81,859

 

 

Short-term deposits

 

 

-

 

 

 

2,159

 

 

Restricted cash

 

 

1,425

 

 

 

2,592

 

 

Trade receivables, net

 

 

51,677

 

 

 

39,161

 

 

Contract assets

 

 

29,688

 

 

 

26,008

 

 

Inventories

 

 

33,925

 

 

 

28,432

 

 

Other current assets

 

 

24,808

 

 

 

14,607

 

 

Held for sale asset

 

 

3,997

 

 

 

4,587

 

 

 

 

 

 

 

 

   Total current assets

 

 

213,959

 

 

 

199,405

 

 

 

 

 

 

 

 

LONG-TERM ASSETS:

 

 

 

 

 

Restricted cash

 

 

12

 

 

 

12

 

 

Long- term contract assets

 

 

11,149

 

 

 

12,539

 

 

Severance pay funds

 

 

5,884

 

 

 

6,795

 

 

Deferred taxes

 

 

15,816

 

 

 

17,551

 

 

Operating lease right-of-use assets

 

 

3,857

 

 

 

4,478

 

 

Other long term assets

 

 

10,654

 

 

 

10,456

 

 

 

 

 

 

 

 

Total long-term assets

 

 

47,372

 

 

 

51,831

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

73,312

 

 

 

72,391

 

 

 

 

 

 

 

 

INTANGIBLE ASSETS, NET

 

 

364

 

 

 

640

 

 

 

 

 

 

 

 

GOODWILL

 

 

43,468

 

 

 

43,468

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

378,475

 

 

$

367,735

 

 

 

 

 

 

 

 

GILAT SATELLITE NETWORKS LTD.

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS (Cont.)

 

 

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

 

 

2022

 

 

 

2021

 

 

 

 

Unaudited

 

Audited

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Trade payables

 

$

24,880

 

 

$

19,776

 

 

Accrued expenses

 

 

46,207

 

 

 

49,202

 

 

Advances from customers and deferred revenues

 

 

31,192

 

 

 

24,373

 

 

Operating lease liabilities

 

 

1,813

 

 

 

1,818

 

 

Other current liabilities

 

 

15,430

 

 

 

13,339

 

 

 

 

 

 

 

 

   Total current liabilities

 

 

119,522

 

 

 

108,508

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

 

Accrued severance pay

 

 

6,473

 

 

 

7,292

 

 

Long-term advances from customers

 

 

1,838

 

 

 

1,209

 

 

Operating lease liabilities

 

 

1,945

 

 

 

2,283

 

 

Other long-term liabilities

 

 

127

 

 

 

120

 

 

 

 

 

 

 

 

   Total long-term liabilities

 

 

10,383

 

 

 

10,904

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY:

 

 

 

 

 

Share capital - ordinary shares of NIS 0.2 par value

 

 

2,711

 

 

 

2,706

 

 

Additional paid-in capital

 

 

931,500

 

 

 

929,871

 

 

Accumulated other comprehensive loss

 

 

(7,836

)

 

 

(6,357

)

 

Accumulated deficit

 

 

(677,805

)

 

 

(677,897

)

 

 

 

 

 

 

 

Total shareholders' equity

 

 

248,570

 

 

 

248,323

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

378,475

 

 

$

367,735

 

 

 

 

 

 

 


GILAT SATELLITE NETWORKS LTD.

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

Three months ended

 

 

 

September 30,

 

September 30,

 

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

 

Unaudited

 

Unaudited

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

92

 

 

$

(5,163

)

 

$

2,120

 

 

$

35

 

Adjustments required to reconcile net income (loss)

 

 

 

 

 

 

 

 

 to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

8,604

 

 

 

7,202

 

 

 

2,921

 

 

 

2,556

 

Impairment of held for sale asset

 

 

718

 

 

 

-

 

 

 

279

 

 

 

-

 

Stock-based compensation of options

 

 

1,633

 

 

 

795

 

 

 

572

 

 

 

489

 

Accrued severance pay, net

 

 

92

 

 

 

(177

)

 

 

(22

)

 

 

(49

)

Deferred taxes, net

 

 

1,823

 

 

 

(47

)

 

 

159

 

 

 

(232

)

Decrease (increase) in trade receivables, net

 

 

(12,270

)

 

 

(2,490

)

 

 

(387

)

 

 

4,867

 

Decrease (increase) in contract assets

 

 

(2,290

)

 

 

21,334

 

 

 

318

 

 

 

(313

)

Increase in other assets (including short-term, long-term

 

 

 

 

 

 

 

 

and deferred charges)

 

 

(8,652

)

 

 

(5,485

)

 

 

(889

)

 

 

(1,476

)

Increase in inventories

 

 

(6,030

)

 

 

(347

)

 

 

(1,955

)

 

 

(2,121

)

Increase (decrease) in trade payables

 

 

4,315

 

 

 

(2,719

)

 

 

110

 

 

 

(1,929

)

Decrease in accrued expenses

 

 

(1,767

)

 

 

(2,344

)

 

 

(77

)

 

 

(542

)

Increase in advance from customers and deferred revenue

 

 

7,397

 

 

 

4,473

 

 

 

387

 

 

 

4,811

 

Increase (decrease) in other liabilities

 

 

365

 

 

 

(1,301

)

 

 

1,175

 

 

 

(1,107

)

Net cash provided by (used in) operating activities

 

 

(5,970

)

 

 

13,731

 

 

 

4,711

 

 

 

4,989

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(9,225

)

 

 

(5,024

)

 

 

(4,710

)

 

 

(1,452

)

Repayment of short term deposits

 

 

2,159

 

 

 

-

 

 

 

-

 

 

 

2,159

 

Investment in financial instrument

 

 

(1,536

)

 

 

-

 

 

 

(1,536

)

 

 

-

 

Net cash provided by (used in) investing activities

 

 

(8,602

)

 

 

(5,024

)

 

 

(6,246

)

 

 

707

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Dividend payment

 

 

-

 

 

 

(35,003

)

 

 

-

 

 

 

-

 

Repayment of long-term loan

 

 

-

 

 

 

(4,000

)

 

 

-

 

 

 

-

 

Net cash used in financing activities

 

 

-

 

 

 

(39,003

)

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(15

)

 

 

(252

)

 

 

(47

)

 

 

(91

)

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

(14,587

)

 

 

(30,548

)

 

 

(1,582

)

 

 

5,605

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash at the beginning of the period

 

 

84,463

 

 

 

115,958

 

 

 

71,458

 

 

 

79,805

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash at the end of the period

 

$

69,876

 

 

$

85,410

 

 

$

69,876

 

 

$

85,410

 

 

 

 

 

 

 

 

 

 

 

(1) The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021.

 

 

For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A filed with the U.S. Securities and Exchange Commission on September 14, 2022.