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Gilat Reports First Quarter 2022 Results with Strong Revenue Growth

·11-min read
Gilat Satellite Networks Ltd.
Gilat Satellite Networks Ltd.

Reiterates 2022 guidance

PETAH TIKVA, Israel, May 23, 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 first quarter, ended March 31, 2022.

First Quarter 2022 Financial Highlights

  • Revenues of $51.4 million up 19% year-over-year;

  • GAAP operating loss of $1.0 million versus loss of $3.5 million in Q1 last year;

  • Non-GAAP operating loss of $0.3 million versus loss of $3.6 million in Q1 last year;

  • GAAP net loss of $2.5 million versus loss of $5.0 million in Q1 last year;

  • Non-GAAP net loss of $1.8 million versus loss of $5.1 million in Q1 last year;

  • Adjusted EBITDA of $2.5 million versus Adjusted EBITDA loss of $1.3 million in Q1 last year;

Forward-Looking Expectations
The company today reiterated its guidance for 2022. Expectations are for revenues of between $245 to $265 million, representing year-over-year growth of between 14% and 23%. GAAP operating income of between $5 to $9 million and adjusted EBITDA of between $20 to $24 million, representing year-over-year growth of between 30% to 56%.

Adi Sfadia, Gilat's CEO, commented: "We are pleased with our results showing ongoing revenue growth and EBITDA improvement. Our performance shows that we are successfully capturing market share and capitalizing on the opportunities in our end-markets.

"During this quarter we continued to solidify our presence with additional orders and a broadening pipeline in the next generation satellite communication multi-billion market opportunity. Both our next generation platform, SkyEdge IV that we recently launched, and our SSPA business for this market are progressing as planned. Furthermore, I am pleased with our growth in our target markets, namely: Mobility, Cellular Backhaul, Enterprise and Defense, as well as with the growing opportunities ahead of us."

Mr. Sfadia concluded"I am encouraged with our progress, and despite challenges such as the global supply chain crisis, we feel comfortable with our targets for 2022, and expect to enjoy another year of solid growth in revenue and profitability."

Key Recent Announcements

  • Gilat Announces Filing of 2021 Annual Report

  • Intelsat Selects Gilat in Multimillion-Dollar Deal to Provide Satellite Cellular Backhaul Solution to a Leading Mobile Telecom in the DRC

  • Gilat’s Electronically Steerable Antenna (ESA) for IFC Achieves Breakthrough During Airbus Flight Tests Operating on Spacecom’s Advanced Satellite

  • Intelsat Expands In-Flight Connectivity Capabilities with Strategic Multimillion-Dollar Order for Gilat’s SkyEdge IV Taurus Modems

  • TIM Brasil Reaches Over 1,000 Sites Leveraging Gilat’s Platform to Build the Largest 4G Satellite Cellular Backhaul Network in Latin America

Conference Call Details

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

Date:

Monday, May 23, 2022

Start:

09:30 AM EDT / 16:30 IDT

Dial-in:

US: 1-866-744-5399

 

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/gilatq1-2022

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, 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 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. 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 Gilats products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilats 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 Companys proprietary technology and risks associated with Gilats international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with Gilats business, reference is made to Gilats 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
GK Investor & Public Relations
gilat@gkir.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)

 

 

 

 

 Three months ended 

 

 March 31, 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

Revenues

$

51,409

 

 

$

43,371

 

Cost of revenues

 

35,021

 

 

 

30,891

 

 

 

 

 

Gross profit

 

16,388

 

 

 

12,480

 

 

 

 

 

Research and development expenses, net

 

7,668

 

 

 

7,927

 

Selling and marketing expenses

 

5,350

 

 

 

5,004

 

General and administrative expenses

 

4,184

 

 

 

3,083

 

Impairment of held for sale asset

 

210

 

 

 

-

 

 

 

 

 

Total operating expenses

 

17,412

 

 

 

16,014

 

 

 

 

 

Operating loss

 

(1,024

)

 

 

(3,534

)

 

 

 

 

Financial expenses, net

 

(1,195

)

 

 

(1,192

)

 

 

 

 

Loss before taxes on income

 

(2,219

)

 

 

(4,726

)

 

 

 

 

Taxes on income

 

315

 

 

 

247

 

 

 

 

 

Net loss

$

(2,534

)

 

$

(4,973

)

 

 

 

 

Basic and Diluted loss per share

$

(0.04

)

 

$

(0.09

)

 

 

 

 

Weighted average number of shares used in

 

 

 

computing loss per share

 

 

 

Basic

 

56,551,070

 

 

 

56,031,343

 

Diluted

 

56,551,070

 

 

 

56,031,343

 

 

 

 

 


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

 

 

March 31, 2022

 

March 31, 2021

 

 

GAAP

 

Adjustments (1)

 

Non-GAAP

 

GAAP

 

Adjustments (1)

 

Non-GAAP

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

16,388

 

 

 

75

 

 

$

16,463

 

 

$

12,480

 

 

 

66

 

 

$

12,546

 

Operating expenses

 

17,412

 

 

 

(683

)

 

 

16,729

 

 

 

16,014

 

 

 

169

 

 

 

16,183

 

Operating loss

 

(1,024

)

 

 

758

 

 

 

(266

)

 

 

(3,534

)

 

 

(103

)

 

 

(3,637

)

Loss before taxes on income

 

(2,219

)

 

 

758

 

 

 

(1,461

)

 

 

(4,726

)

 

 

(103

)

 

 

(4,829

)

Net loss

$

(2,534

)

 

 

758

 

 

$

(1,776

)

 

$

(4,973

)

 

 

(103

)

 

$

(5,076

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic loss per share

$

(0.04

)

 

$

0.01

 

 

$

(0.03

)

 

$

(0.09

)

 

$

-

 

 

$

(0.09

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted loss per share

$

(0.04

)

 

$

0.01

 

 

$

(0.03

)

 

$

(0.09

)

 

$

-

 

 

$

(0.09

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in

 

 

 

 

 

 

 

 

 

 

 

computing loss per share

 

 

 

 

 

 

 

 

 

 

 

Basic

 

56,551,070

 

 

 

 

 

56,551,070

 

 

 

56,031,343

 

 

 

 

 

56,031,343

 

Diluted

 

56,551,070

 

 

 

 

 

56,551,070

 

 

 

56,031,343

 

 

 

 

 

56,031,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 impairment of held for sale asset.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Three months ended

 

 

March 31, 2022

 

March 31, 2021

 

 

 

 

Unaudited

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

 

$

(2,534

)

 

 

 

 

 

$

(4,973

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

 

 

 

 

70

 

 

 

 

 

 

 

 

 

 

 

61

 

 

 

Amortization of intangible assets related to acquisition transactions

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

75

 

 

 

 

 

 

 

66

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

 

 

 

 

422

 

 

 

 

 

 

 

 

 

 

 

(220

)

 

 

Amortization of intangible assets related to acquisition transactions

 

 

 

 

 

 

51

 

 

 

 

 

 

 

 

 

 

 

51

 

 

 

Impairment of held for sale asset

 

 

 

210

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

683

 

 

 

 

 

 

 

(169

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

 

$

(1,776

)

 

 

 

 

 

$

(5,076

)

 

 


 

 

 

 

GILAT SATELLITE NETWORKS LTD.

 

 

 

SUPPLEMENTAL INFORMATION

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA:

 

 

 

 

 

 

 

 

 Three months ended 

 

 March 31, 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

GAAP operating profit

$

(1,024

)

 

$

(3,534

)

Add:

 

 

 

Non-cash stock-based compensation expenses

 

492

 

 

 

(159

)

Impairment of held for sale asset

 

210

 

 

 

-

 

Depreciation and amortization (*)

 

2,851

 

 

 

2,385

 

 

 

 

 

Adjusted EBITDA

$

2,529

 

 

$

(1,308

)

 

 

 

 

(*) Including amortization of lease incentive

 

 

 

 

 

 

 

SEGMENT REVENUE:

 

 

 

 

 

 

 

 

 Three months ended 

 

March 31, 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

Satellite Networks

$

24,770

 

 

$

25,623

 

Integrated Solutions

 

13,706

 

 

 

6,709

 

Network Infrastructure and Services

 

12,933

 

 

 

11,039

 

 

 

 

 

Total revenues

$

51,409

 

 

$

43,371

 

 

 

 

 


GILAT SATELLITE NETWORKS LTD.

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2022

 

 

 

2021

 

 

Unaudited

 

Audited

 

 

 

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

73,611

 

 

$

81,859

 

Short-term deposits

 

2,159

 

 

 

2,159

 

Restricted cash

 

1,516

 

 

 

2,592

 

Trade receivables, net

 

45,909

 

 

 

39,161

 

Contract assets

 

28,587

 

 

 

26,008

 

Inventories

 

30,642

 

 

 

28,432

 

Other current assets

 

18,959

 

 

 

14,607

 

Held for sale asset

 

4,377

 

 

 

4,587

 

 

 

 

 

Total current assets

 

205,760

 

 

 

199,405

 

 

 

 

 

LONG-TERM ASSETS:

 

 

 

Restricted cash

 

13

 

 

 

12

 

Long- term contract assets

 

11,989

 

 

 

12,539

 

Severance pay funds

 

6,485

 

 

 

6,795

 

Deferred taxes

 

17,245

 

 

 

17,551

 

Operating lease right-of-use assets

 

3,652

 

 

 

4,478

 

Other long term receivables

 

11,076

 

 

 

10,456

 

 

 

 

 

Total long-term assets

 

50,460

 

 

 

51,831

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

71,975

 

 

 

72,391

 

 

 

 

 

INTANGIBLE ASSETS, NET

 

530

 

 

 

640

 

 

 

 

 

GOODWILL

 

43,468

 

 

 

43,468

 

 

 

 

 

TOTAL ASSETS

$

372,193

 

 

$

367,735

 

 

 

 

 

 

 

 

 

GILAT SATELLITE NETWORKS LTD.

 

 

 

CONSOLIDATED BALANCE SHEETS (Cont.)

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2022

 

 

 

2021

 

 

Unaudited

 

Audited

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

Trade payables

$

21,482

 

 

$

19,776

 

Accrued expenses

 

49,799

 

 

 

49,202

 

Advances from customers and deferred revenues

 

27,265

 

 

 

24,373

 

Operating lease liabilities

 

1,728

 

 

 

1,818

 

Other current liabilities

 

15,201

 

 

 

13,339

 

 

 

 

 

Total current liabilities

 

115,475

 

 

 

108,508

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

Accrued severance pay

 

6,919

 

 

 

7,292

 

Long-term advances from customers

 

730

 

 

 

1,209

 

Operating lease liabilities

 

1,981

 

 

 

2,283

 

Other long-term liabilities

 

141

 

 

 

120

 

 

 

 

 

Total long-term liabilities

 

9,771

 

 

 

10,904

 

 

 

 

 

SHAREHOLDERS' EQUITY:

 

 

 

Share capital - ordinary shares of NIS 0.2 par value

 

2,709

 

 

 

2,706

 

Additional paid-in capital

 

930,361

 

 

 

929,871

 

Accumulated other comprehensive loss

 

(5,692

)

 

 

(6,357

)

Accumulated deficit

 

(680,431

)

 

 

(677,897

)

 

 

 

 

Total shareholders' equity

 

246,947

 

 

 

248,323

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

372,193

 

 

$

367,735

 


 

 

 

 

GILAT SATELLITE NETWORKS LTD.

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

Three months ended 

 

March 31, 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Unaudited

Cash flows from operating activities:

 

 

 

Net loss

$

(2,534

)

 

$

(4,973

)

Adjustments required to reconcile net loss

 

 

 

to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

2,796

 

 

 

2,330

 

Stock-based compensation of options

 

492

 

 

 

(159

)

Accrued severance pay, net

 

(63

)

 

 

(10

)

Deferred taxes, net

 

306

 

 

 

518

 

Increase in trade receivables, net

 

(6,412

)

 

 

(1,933

)

Increase in contract assets

 

(2,009

)

 

 

(3,179

)

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

 

 

 

and deferred charges)

 

(3,716

)

 

 

(220

)

Increase in inventories

 

(2,344

)

 

 

(2,212

)

Increase in trade payables

 

1,672

 

 

 

950

 

Increase (decrease) in accrued expenses

 

752

 

 

 

(498

)

Increase in advance from customers and deferred revenue

 

2,310

 

 

 

7,724

 

Increase in current and non current liabilities

 

1,375

 

 

 

2,003

 

Net cash provided by (used in) operating activities

 

(7,375

)

 

 

341

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchase of property and equipment

 

(2,201

)

 

 

(1,483

)

Net cash used in investing activities

 

(2,201

)

 

 

(1,483

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Dividend payment

 

-

 

 

 

(35,003

)

Repayment of long-term loans

 

-

 

 

 

(4,000

)

Net cash used in financing activities

 

-

 

 

 

(39,003

)

 

 

 

 

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

 

253

 

 

 

(254

)

 

 

 

 

Decrease in cash, cash equivalents and restricted cash

 

(9,323

)

 

 

(40,399

)

 

 

 

 

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

 

84,463

 

 

 

115,958

 

 

 

 

 

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

$

75,140

 

 

$

75,559

 

 

 

 

 


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