New Zealand markets closed
  • NZX 50

    12,348.00
    -149.10 (-1.19%)
     
  • NZD/USD

    0.6713
    -0.0047 (-0.70%)
     
  • NZD/EUR

    0.5911
    -0.0058 (-0.97%)
     
  • ALL ORDS

    7,490.10
    -178.80 (-2.33%)
     
  • ASX 200

    7,175.80
    -166.60 (-2.27%)
     
  • OIL

    84.83
    -0.72 (-0.84%)
     
  • GOLD

    1,836.10
    -6.50 (-0.35%)
     
  • NASDAQ

    14,438.40
    -408.06 (-2.75%)
     
  • FTSE

    7,494.13
    -90.88 (-1.20%)
     
  • Dow Jones

    34,265.37
    -450.02 (-1.30%)
     
  • DAX

    15,603.88
    -308.45 (-1.94%)
     
  • Hang Seng

    24,965.55
    +13.20 (+0.05%)
     
  • NIKKEI 225

    27,522.26
    -250.67 (-0.90%)
     
  • NZD/JPY

    76.2790
    -0.7870 (-1.02%)
     

Gilat Reports Strong Revenue & Profitability Growth in Third Quarter 2021

·15-min read

Revenue up 34% year-over-year to $49.9M, GAAP operating income of $0.9 million and Adjusted EBITDA reached $4.0 million

PETAH TIKVA, Israel, Nov. 09, 2021 (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 of 2021.

Third Quarter Financial Highlights

  • Revenues of $49.9 million, a 34% increase from $37.3 million in Q3 2020 and 12% lower than $56.9 million in the previous quarter;

  • GAAP operating income of $0.9 million, a significant improvement compared with an operating loss of $10.9 million in Q3 2020 (which included $8.2 million of Comtech merger and acquisition expenses) and an operating loss of $0.3 million in the previous quarter;

  • Non-GAAP operating income of $1.5 million, compared with operating loss of $1.9 million in Q3 2020, and an operating income of $0.2 million in the previous quarter;

  • GAAP net income of $0.2 million, or $0.00 per diluted share, compared with a net loss of $11.6 million, or loss of $0.21 per share in Q3 2020 and net loss of $0.1 million in the previous quarter, or $0.00 per share;

  • Non-GAAP net income of $0.7 million, or $0.01 per diluted share, compared with a net loss of $2.6 million, or loss of $0.05 per share in Q3 2020, and compared with a net income of $0.4 million, or $0.01 per diluted share, in the previous quarter;

  • Adjusted EBITDA of $4.0 million compared with adjusted EBITDA of $0.6 million in Q3 2020; and adjusted EBITDA of $2.5 million in the previous quarter;

Management Commentary

Adi Sfadia, Gilat's CEO, commented: “Our revenue this quarter showed significant year over year growth as we continue to increase profitability reaching an Adjusted EBITDA of $4 million. We are especially pleased with our success in signing new deals, some of which are potentially transformable in nature and strategic.

"I am most excited about major progress this quarter in the NGSO and VHTS market segments. Furthermore, we experienced improved performance and significant bookings in our strategic market segments including Cellular Backhaul and IFC where we received several orders from key market players to be delivered over the next few quarters.

"In our Peru operation we have made significant progress with awards of $28 million in multi-year service agreements, and achieved our target goal of approximately $50 million in annual recurring revenue from Peru, well before the stated target date."

Continued Mr. Sfadia, “Although the global supply chain presents challenges, so far we have been able to mitigate these issues and we hope that this will continue to be the case. Looking ahead, given the recent wins and awards as well as the strong and improving momentum we are seeing across our business, we are increasingly confident that we will show significant growth in the top line and in the Adjusted EBITDA, both in Q4 of this year and in 2022.”

Key Recent Announcements

  • Tier-1 Mobile Operator in Asia Expands 4G Network with Gilat’s Cellular Backhaul Solution

  • Gilat Expands 4G Network with Tier-1 Mobile Operator in North America

  • Gilat Signs Service Agreements of Over $16 Million for Operating Transport-Networks to Support Broadband Services in Peru

  • Gilat Receives $12 Million Service Agreement for Operation of Transport Network in Cusco, Peru

  • Gilat Received $17 Million in Orders for Support of Low Earth Orbit Constellation

  • SES Awards Gilat Multi-Million Dollar Contract for Multiple Broadband Applications in Latin America

Conference Call Details

Gilat’s management will discuss its third quarter 2021 results and business achievements and participate in a questions and answers session:

Date: Tuesday, November 9, 2021
Start: 9:30 AM ET / 4:30 PM IT
Dial-in: US: 1-866-744-5399
International: +972-3-918-0610

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/gilatq3-2021

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), net 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

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 OPERATIONS

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

Three months ended

Nine months ended

September, 30

September, 30

2021

2020

2021

2020

Unaudited

Unaudited

Revenues

$

49,911

$

37,270

$

151,547

$

123,258

Cost of revenues

32,306

27,827

104,870

95,341

Gross profit

17,605

9,443

46,677

27,917

Research and development expenses

7,640

6,442

23,674

20,215

Less - grants

416

460

790

932

Research and development expenses, net

7,224

5,982

22,884

19,283

Selling and marketing expenses

5,359

3,687

15,827

12,337

General and administrative expenses

4,104

2,478

11,042

10,269

Merger, acquisition and related litigation expense, net

-

8,198

-

11,149

Total operating expenses

16,687

20,345

49,753

53,038

Operating income (loss)

918

(10,902

)

(3,076

)

(25,121

)

Financial expenses, net

(701

)

(286

)

(1,458

)

(1,715

)

Income (loss) before taxes on income

217

(11,188

)

(4,534

)

(26,836

)

Taxes on income

49

363

523

695

Net income (loss)

$

168

$

(11,551

)

$

(5,057

)

$

(27,531

)

Basic and Diluted earnings (loss) per share

$

0.00

$

(0.21

)

$

(0.09

)

$

(0.50

)

Weighted average number of shares used in

computing earnings (loss) per share

Basic

56,525,177

55,520,197

56,355,020

55,506,266

Diluted

56,958,250

55,520,197

56,355,020

55,506,266


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, 2021

September 30, 2020

GAAP

Adjustments (1)

Non-GAAP

GAAP

Adjustments (1)

Non-GAAP

Unaudited

Unaudited

Gross profit

$

17,605

96

$

17,701

$

9,443

28

$

9,471

Operating expenses (income)

16,687

(448

)

16,239

20,345

(8,950

)

11,395

Operating income (loss)

918

544

1,462

(10,902

)

8,978

(1,924

)

Income (loss) before taxes on income

217

544

761

(11,188

)

8,978

(2,210

)

Net income (loss)

168

544

712

(11,551

)

8,978

(2,573

)

Earnings (loss) per share (basic and diluted)

$

0.00

$

0.01

$

0.01

$

(0.21

)

$

0.16

$

(0.05

)

Weighted average number of shares used in computing earnings per share

Basic

56,525,177

56,525,177

55,520,197

55,520,197

Diluted

56,958,250

57,227,810

55,520,197

55,520,197

(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 and related litigation, net. and restructuring and re-organization costs


Three months ended

Three months ended

September 30, 2021

September 30, 2020

Unaudited

Unaudited

GAAP net income (loss)

$

168

$

(11,551

)

Gross profit

Non-cash stock-based compensation expenses

91

21

Amortization of intangible assets related to acquisition transactions

5

7

96

28

Operating expenses

Non-cash stock-based compensation expenses

398

259

Amortization of intangible assets related to acquisition transactions

50

49

Merger and acquisition and related litigation, net

-

8,198

Restructuring and re-organization costs

-

444

448

8,950

Non-GAAP net income (loss)

$

712

$

(2,573

)


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, 2021

September 30, 2020

GAAP

Adjustments (1)

Non-GAAP

GAAP

Adjustments (1)

Non-GAAP

Unaudited

Unaudited

Gross profit

$

46,677

226

$

46,903

$

27,917

144

$

28,061

Operating expenses (income)

49,753

(735

)

49,018

53,038

(12,887

)

40,151

Operating income (loss)

(3,076

)

961

(2,115

)

(25,121

)

13,031

(12,090

)

Income (loss) before taxes on income

(4,534

)

961

(3,573

)

(26,836

)

13,031

(13,805

)

Net income (loss)

(5,057

)

961

(4,096

)

(27,531

)

13,031

(14,500

)

Earnings (loss) per share (basic and diluted)

$

(0.09

)

$

0.02

$

(0.07

)

$

(0.50

)

$

0.24

$

(0.26

)

Weighted average number of shares used in

computing earnings per share

Basic and Diluted

56,355,020

56,355,020

55,506,266

55,506,266

(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 and related litigation, net, trade secrets and other litigation expenses and restructuring and re-organization costs .


Nine months ended

Nine months ended

September 30, 2021

September 30, 2020

Unaudited

Unaudited

GAAP net loss

$

(5,057

)

$

(27,531

)

Gross profit

Non-cash stock-based compensation expenses

211

127

Amortization of intangible assets related to acquisition transactions

15

17

226

144

Operating expenses

Non-cash stock-based compensation expenses

584

860

Amortization of intangible assets related to acquisition transactions

151

150

Trade secrets and other litigation expenses

-

11

Merger, acquisition and related litigation expense, net

-

11,149

Restructuring and re-organization costs

-

717

735

12,887

Non-GAAP net loss

$

(4,096

)

$

(14,500

)


GILAT SATELLITE NETWORKS LTD.

SUPPLEMENTAL INFORMATION

U.S. dollars in thousands

ADJUSTED EBITDA:

Three months ended

Nine months ended

September 30,

September 30,

2021

2020

2021

2020

Unaudited

Unaudited

GAAP operating profit (loss)

$

918

$

(10,902

)

$

(3,076

)

$

(25,121

)

Add:

Non-cash stock-based compensation expenses

489

280

795

987

Trade secrets and other litigation expenses

-

-

-

11

Restructuring and re-organization costs

-

444

-

717

Merger, acquisition and related litigation expense, net

-

8,198

-

11,149

Depreciation and amortization (*)

2,608

2,542

7,365

7,924

Adjusted EBITDA

$

4,015

$

562

$

5,084

$

(4,333

)

(*) Including amortization of lease incentive

SEGMENT REVENUE:

Three months ended

Nine months ended

September 30,

September 30,

2021

2020

2021

2020

Unaudited

Unaudited

Fixed Networks

$

22,328

$

22,797

$

78,455

$

67,587

Mobility Solutions

21,624

9,210

52,626

42,417

Terrestrial Infrastructure Projects

5,959

5,263

20,466

13,254

Total revenue

$

49,911

$

37,270

$

151,547

$

123,258

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

September 30,

December 31,

2021

2020

Unaudited

Audited

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

63,774

$

88,754

Restricted cash

21,624

27,162

Trade receivables, net

29,705

27,976

Contract assets

24,469

41,573

Inventories

31,577

31,304

Other current assets

24,189

16,637

Total current assets

195,338

233,406

LONG-TERM ASSETS:

Restricted cash

12

42

Severance pay funds

6,524

6,665

Deferred taxes

19,343

19,295

Operating lease right-of-use assets

4,129

4,879

Other long term receivables

6,474

7,797

Total long-term assets

36,482

38,678

PROPERTY AND EQUIPMENT, NET

75,631

77,172

INTANGIBLE ASSETS, NET

750

1,082

GOODWILL

43,468

43,468

TOTAL ASSETS

$

351,669

$

393,806

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED BALANCE SHEETS (Cont.)

U.S. dollars in thousands

September 30,

December 31,

2021

2020

Unaudited

Audited

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Current maturities of long-term loans

$

-

$

4,000

Trade payables

17,767

20,487

Accrued expenses

47,722

46,387

Advances from customers and deferred revenues

29,550

26,244

Operating lease liabilities

1,804

1,911

Dividend payable

-

35,003

Other current liabilities

13,342

13,322

Total current liabilities

110,185

147,354

LONG-TERM LIABILITIES:

Accrued severance pay

6,819

7,136

Long-term advances from customers

3,022

1,890

Operating lease liabilities

2,325

2,985

Other long-term liabilities

120

631

Total long-term liabilities

12,286

12,642

SHAREHOLDERS' EQUITY:

Share capital - ordinary shares of NIS 0.2 par value

2,706

2,647

Additional paid-in capital

929,359

928,626

Accumulated other comprehensive loss

(6,364

)

(6,017

)

Accumulated deficit

(696,503

)

(691,446

)

Total shareholders' equity

229,198

233,810

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

351,669

$

393,806


GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Three months ended

Nine months ended

September 30,

September 30,

2021

2020

2021

2020

Unaudited

Unaudited

Cash flows from operating activities:

Net income (loss)

$

168

$

(11,551

)

$

(5,057

)

$

(27,531

)

Adjustments required to reconcile net income

to net cash provided by operating activities:

Depreciation and amortization

2,556

2,486

7,202

7,757

Capital loss from disposal of property and equipment

-

11

-

34

Stock-based compensation of options

489

280

795

987

Accrued severance pay, net

(49

)

11

(177

)

37

Deferred taxes, net

(232

)

(39

)

(47

)

101

Decrease (increase) in trade receivables, net

5,311

2,488

(1,757

)

20,852

Decrease (increase) in contract assets

(639

)

(6,042

)

17,104

(14,404

)

Decrease (increase) in other assets (including short-term, long-term

and deferred charges)

(1,476

)

1,209

(5,485

)

7,919

Decrease (increase) in inventories

(2,121

)

548

(347

)

(5,150

)

Decrease in trade payables

(1,929

)

(2,825

)

(2,719

)

(3,335

)

Increase (decrease) in accrued expenses

(542

)

5,616

1,151

(193

)

Increase (decrease) in advance from customers and deferred revenue

4,560

1,609

4,369

(4,116

)

Decrease in current and non current liabilities

(1,107

)

(904

)

(1,301

)

(219

)

Net cash provided by (used in) operating activities

4,989

(7,103

)

13,731

(17,261

)

Cash flows from investing activities:

Purchase of property and equipment

(1,452

)

(861

)

(5,024

)

(2,740

)

Proceeds from short term deposits

2,159

-

-

-

Net cash used in investing activities

707

(861

)

(5,024

)

(2,740

)

Cash flows from financing activities:

Dividend payment

-

-

(35,003

)

-

Repayment of long-term loans

-

-

(4,000

)

(4,096

)

Net cash used in financing activities

-

-

(39,003

)

(4,096

)

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

(91

)

(91

)

(252

)

(630

)

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

5,605

(8,055

)

(30,548

)

(24,727

)

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

79,805

85,297

115,958

101,969

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

$

85,410

$

77,242

$

85,410

$

77,242


Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting