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Gilat Reports Strong Second Quarter 2022 Results

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

Revenue of $55.5 million, operating profit $1.5 million and Adjusted EBITDA of $5.3 million; Reiterates 2022 guidance

PETAH TIKVA, Israel, Aug. 09, 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 second quarter ended June 30, 2022.

Second Quarter 2022 Financial Highlights

  • Revenues of $55.5 million,up 1.2% compared with Q2 of last year;

  • GAAP operating income of $1.5 million versus operating loss of $0.4 million in Q2 last year;

  • Non-GAAP operating income of $2.4 million versus Non-GAAP operating income of $0.1 million in Q2 last year;

  • GAAP net income of $0.5 million versus loss of $0.2 million in Q2 last year;

  • Non-GAAP net income of $1.4 million versus Non-GAAP income of $0.3 million in Q2 last year;

  • Adjusted EBITDA of $5.3 million versus Adjusted EBITDA of $2.4 million in Q2 last year;

  • Reiterates and on-track with 2022 financial guidance;

Forward-Looking Expectations

The Company reiterates its 2022 guidance issued in 2022, of revenues 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 Adjusted EBITDA between 30% to 56%.

Management Commentary

Adi Sfadia, Gilat's CEO, commented: "We are pleased with our strong results, especially with the solid improvement in our profitability. We continue to successfully capitalize on the opportunities in our pipeline, and we see increasing growth potential in our end-markets for the coming years. Looking out to the rest of the year, we feel increasingly comfortable and remain on target to meet our goals.

This was an exceptional quarter with significant multimillion dollar orders for Gilat's next generation platform, SkyEdge IV. We expanded the global strategic relationships with our partners, the satellite operators, SES and Intelsat, and are competing on important GEO VHTS opportunities in our pipeline with additional major satellite operators. Furthermore, our SSPA business for this new and exciting market is progressing as planned, and as such, we believe we are well positioned to seize opportunities in the multibillion market of the next era of satellite communication.

We received more than $10 million in new Cellular Backhaul orders this quarter as we continue to expand our global leadership. We are encouraged with the progress in our strategic markets of Inflight Connectivity and Maritime as well as with our growing business in Defense and Enterprise, and we see a growing set of additional opportunities."

Mr. Sfadia concluded, “Given our ongoing strong performance, we reiterate our 2022 guidance and expect a year of solid growth in revenue and improved profitability."

Key Recent Announcements

  • Internet Para Todos Expands Services Contract with Gilat

  • Gilat Signs Agreement to Enable a Central Asian Government to Provide Digital Services over Satellite

  • Gilat and Intelsat Expand Their Strategic In-Flight Connectivity Partnership in Japan

  • Tier-1 MNO Awards Multimillion-Dollar Order to Gilat for 4G Cellular Backhaul Network Expansion in Latin America

  • Gilat Awarded Order of Over $7M from Tier-1 Mobile Network Carrier in APAC for 4G Cellular Backhaul Network Expansion

  • Gilat Awarded Follow-On Orders to Expand Defense Force SATCOM Network in an Asian Nation

  • Gilat Receives Over $8 Million Follow-On Order for Support of Low Earth Orbit Constellation

Conference Call Details

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

Date:              Tuesday, August 9, 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/gilatq2-2022

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
EK Global Investor Relations
gilat@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)

 

 

 

 

 

 

 

 

 

Six months ended

 

Three months ended

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

 

As Restated (1)

 

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

$

106,863

 

 

$

98,169

 

 

$

55,454

 

 

$

54,798

 

 

Cost of revenues

 

 

70,706

 

 

 

69,070

 

 

 

35,685

 

 

 

38,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

36,157

 

 

 

29,099

 

 

 

19,769

 

 

 

16,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses, net

 

 

 

 

16,386

 

 

 

15,660

 

 

 

8,718

 

 

 

7,733

 

 

Selling and marketing expenses

 

 

 

 

10,310

 

 

 

10,468

 

 

 

4,960

 

 

 

5,464

 

 

General and administrative expenses

 

 

 

 

8,555

 

 

 

6,938

 

 

 

4,371

 

 

 

3,855

 

 

Impairment of held for sale asset

 

 

 

 

439

 

 

 

-

 

 

 

229

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

35,690

 

 

 

33,066

 

 

 

18,278

 

 

 

17,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

467

 

 

 

(3,967

)

 

 

1,491

 

 

 

(433

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial income (expenses), net

 

 

 

 

(1,663

)

 

 

(757

)

 

 

(468

)

 

 

435

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes on income

 

 

 

 

(1,196

)

 

 

(4,724

)

 

 

1,023

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes on income

 

 

832

 

 

 

474

 

 

 

517

 

 

 

227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(2,028

)

 

$

(5,198

)

 

$

506

 

 

$

(225

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share (basic and diluted)

 

 

 

$

(0.04

)

 

$

(0.09

)

 

$

0.01

 

 

$

(0.00

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in

 

 

 

 

 

 

 

computing earning (loss) per share

 

 

 

 

 

 

 

Basic

 

 

 

56,574,296

 

 

 

56,269,941

 

 

 

56,597,523

 

 

 

56,508,539

 

 

Diluted

 

 

56,574,296

 

 

 

56,269,941

 

 

 

56,637,208

 

 

 

56,508,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed

with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 

 

 

 

 

 

 

 

June 30, 2022

 

June 30, 2021

 

 

 

 

 

 

 

 

GAAP

 

Adjustments (*)

 

Non-GAAP

 

GAAP

 

 

Adjustments (*)

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

 

 

 

As Restated (1)

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

$

19,769

 

 

81

 

 

$

19,850

 

$

16,619

 

 

 

 

64

 

 

$

16,683

 

Operating expenses

 

 

 

 

 

18,278

 

 

(832

)

 

 

17,446

 

 

17,052

 

 

 

 

(456

)

 

 

16,596

 

Operating income (loss)

 

 

 

 

1,491

 

 

913

 

 

 

2,404

 

 

(433

)

 

 

520

 

 

 

87

 

Income before taxes on income

 

 

 

1,023

 

 

913

 

 

 

1,936

 

 

2

 

 

 

520

 

 

 

522

 

Net income (loss)

 

 

 

 

$

506

 

 

913

 

 

$

1,419

 

$

(225

)

 

 

 

520

 

 

$

295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share (basic and diluted)

$

0.01

 

$

0.02

 

 

$

0.03

 

$

(0.00

)

 

 

$

0.01

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in

 

 

 

 

 

 

 

 

 

 

 

 

computing earning (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

56,597,523

 

 

 

 

56,597,523

 

 

56,508,539

 

 

 

 

 

 

56,508,539

 

Diluted

 

 

 

 

 

56,637,208

 

 

 

 

56,773,970

 

 

56,508,539

 

 

 

 

 

 

57,328,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*) 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

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

 

 

 

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

 

 

 

 

$

506

 

 

 

 

 

 

$

(225

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

 

75

 

 

 

 

 

 

 

59

 

 

 

 

Amortization of intangible assets related to acquisition transactions

 

 

 

 

 

 

 

 

 

55

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

130

 

 

 

 

 

 

 

64

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

 

494

 

 

 

 

 

 

 

406

 

 

 

 

Amortization of intangible assets related to acquisition transactions

 

 

 

 

 

 

 

 

 

60

 

 

 

 

 

 

 

50

 

 

 

 

Impairment of held for sale asset

 

 

 

 

 

229

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

783

 

 

 

 

 

 

 

456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 

 

 

 

 

$

1,419

 

 

 

 

 

 

$

295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed

with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Six months ended

 

 

 

 

 

 

 

 

June 30, 2022

 

June 30, 2021

 

 

 

 

 

 

 

 

GAAP

 

Adjustments (*)

 

Non-GAAP

 

GAAP

 

Adjustments (*)

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

$

36,157

 

 

 

156

 

 

$

36,313

 

 

$

29,099

 

 

 

130

 

 

$

29,229

 

 

Operating expenses

 

 

 

 

 

35,690

 

 

 

(1,515

)

 

 

34,175

 

 

 

33,066

 

 

 

(287

)

 

 

32,779

 

 

Operating income (loss)

 

 

 

 

467

 

 

 

1,671

 

 

 

2,138

 

 

 

(3,967

)

 

 

417

 

 

 

(3,550

)

 

Income (loss) before taxes on income

 

 

(1,196

)

 

 

1,671

 

 

 

475

 

 

 

(4,724

)

 

 

417

 

 

 

(4,307

)

 

Net loss

 

 

 

 

 

 

(2,028

)

 

 

1,671

 

 

 

(357

)

 

 

(5,198

)

 

 

417

 

 

 

(4,781

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share (basic and diluted)

 

 

$

(0.04

)

 

$

0.03

 

 

$

(0.01

)

 

$

(0.09

)

 

$

0.01

 

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in

 

 

 

 

 

 

 

 

 

 

 

 

computing loss per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

56,574,296

 

 

 

 

 

56,574,296

 

 

 

56,269,941

 

 

 

 

 

56,269,941

 

 

 

Diluted

 

 

 

 

 

56,574,296

 

 

 

 

 

56,574,296

 

 

 

56,269,941

 

 

 

 

 

56,269,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*) 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

 

 

 

 

 

 

 

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

 

 

 

 

 

$

(2,028

)

 

 

 

 

 

$

(5,198

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

 

145

 

 

 

 

 

 

 

120

 

 

 

 

Amortization of intangible assets related to acquisition transactions

 

60

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

205

 

 

 

 

 

 

 

130

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation expenses

 

 

 

916

 

 

 

 

 

 

 

186

 

 

 

 

Amortization of intangible assets related to acquisition transactions

 

111

 

 

 

 

 

 

 

101

 

 

 

 

Impairment of held for sale asset

 

 

 

 

 

439

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1466

 

 

 

 

 

 

 

287

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

 

 

 

 

 

$

(357

)

 

 

 

 

 

$

(4,781

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed

 

 

with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

GILAT SATELLITE NETWORKS LTD.

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL INFORMATION

 

 

 

 

 

 

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Three months ended

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

 

$

(2,028

)

 

$

(5,198

)

 

$

506

 

$

(225

)

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Financial expenses (income), net

 

 

 

1,663

 

 

 

757

 

 

 

468

 

 

(435

)

 

Taxes on income

 

 

 

 

832

 

 

 

474

 

 

 

517

 

 

227

 

 

Non-cash stock-based compensation expenses

 

 

 

 

1,061

 

 

 

306

 

 

 

569

 

 

465

 

 

Impairment of held for sale asset

 

 

 

439

 

 

 

-

 

 

 

229

 

 

-

 

 

Other

 

 

 

 

60

 

 

 

-

 

 

 

60

 

 

-

 

 

Depreciation and amortization (*)

 

 

5,792

 

 

 

4,758

 

 

 

2,941

 

 

2,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

$

7,819

 

 

$

1,097

 

 

$

5,290

 

$

2,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*) Including amortization of lease incentive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT REVENUE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Three months ended

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

Satellite Networks

 

 

 

$

51,627

 

 

$

59,975

 

 

$

26,857

 

$

34,351

 

 

Integrated Solutions

 

 

 

 

29,397

 

 

 

18,836

 

 

 

15,691

 

 

12,127

 

 

Network Infrastructure and Services

 

 

25,839

 

 

 

19,358

 

 

 

12,906

 

 

8,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

$

106,863

 

 

$

98,169

 

 

$

55,454

 

$

54,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

    For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed

 

    with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

GILAT SATELLITE NETWORKS LTD.

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

2022

 

 

 

2021

 

 

 

 

Unaudited

 

Audited

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

$

70,133

 

 

$

81,859

 

 

Short-term deposits

 

-

 

 

 

2,159

 

 

Restricted cash

 

1,313

 

 

 

2,592

 

 

Trade receivables, net

 

51,303

 

 

 

39,161

 

 

Contract assets

 

29,310

 

 

 

26,008

 

 

Inventories

 

32,156

 

 

 

28,432

 

 

Other current assets

 

22,458

 

 

 

14,607

 

 

Held for sale asset

 

4,276

 

 

 

4,587

 

 

 

 

 

 

 

 

Total current assets

 

210,949

 

 

 

199,405

 

 

 

 

 

 

 

 

LONG-TERM ASSETS:

 

 

 

 

Restricted cash

 

12

 

 

 

12

 

 

Long- term contract assets

 

11,845

 

 

 

12,539

 

 

Severance pay funds

 

5,937

 

 

 

6,795

 

 

Deferred taxes

 

15,885

 

 

 

17,551

 

 

Operating lease right-of-use assets

 

 

3,845

 

 

 

4,478

 

 

Other long term assets

 

11,225

 

 

 

10,456

 

 

 

 

 

 

 

 

Total long-term assets

 

48,749

 

 

 

51,831

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

72,410

 

 

 

72,391

 

 

 

 

 

 

 

 

INTANGIBLE ASSETS, NET

 

 

419

 

 

 

640

 

 

 

 

 

 

 

 

GOODWILL

 

43,468

 

 

 

43,468

 

 

 

 

 

 

 

 

TOTAL ASSETS

$

375,995

 

 

$

367,735

 

 

 

 

 

 

 

 

GILAT SATELLITE NETWORKS LTD.

 

 

 

CONSOLIDATED BALANCE SHEETS (Cont.)

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

2022

 

 

 

2021

 

 

 

 

Unaudited

 

Audited

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

Trade payables

$

24,010

 

 

$

19,776

 

 

Accrued expenses

 

47,654

 

 

 

49,202

 

 

Advances from customers and deferred revenues

 

 

31,932

 

 

 

24,373

 

 

Operating lease liabilities

 

1,747

 

 

 

1,818

 

 

Other current liabilities

 

15,458

 

 

 

13,339

 

 

 

 

 

 

 

 

Total current liabilities

 

120,801

 

 

 

108,508

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

Accrued severance pay

 

6,548

 

 

 

7,292

 

 

Long-term advances from customers

 

 

722

 

 

 

1,209

 

 

Operating lease liabilities

 

2,056

 

 

 

2,283

 

 

Other long-term liabilities

 

132

 

 

 

120

 

 

 

 

 

 

 

 

Total long-term liabilities

 

 

9,458

 

 

 

10,904

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY:

 

 

 

Share capital - ordinary shares of NIS 0.2 par value

 

 

2,711

 

 

 

2,706

 

 

Additional paid-in capital

 

930,927

 

 

 

929,871

 

 

Accumulated other comprehensive loss

 

 

(7,977

)

 

 

(6,357

)

 

Accumulated deficit

 

(679,925

)

 

 

(677,897

)

 

 

 

 

 

 

 

Total shareholders' equity

 

 

245,736

 

 

 

248,323

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

375,995

 

 

$

367,735

 

 

 

 

 

 

 

 


GILAT SATELLITE NETWORKS LTD.

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Three months ended

 

 

June 30,

 

June 30,

 

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

As Restated (1)

 

 

 

As Restated (1)

 

 

 

Unaudited

 

Unaudited

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

$

(2,028

)

 

$

(5,198

)

 

$

506

 

 

$

(225

)

 

Adjustments required to reconcile net loss

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

5,683

 

 

 

4,646

 

 

 

2,887

 

 

 

2,316

 

 

Impairment of held for sale asset

 

439

 

 

 

-

 

 

 

229

 

 

 

-

 

 

Stock-based compensation of options

 

1,061

 

 

 

306

 

 

 

569

 

 

 

465

 

 

Accrued severance pay, net

 

114

 

 

 

(128

)

 

 

177

 

 

 

(118

)

 

Deferred taxes, net

 

1,664

 

 

 

185

 

 

 

1,358

 

 

 

(333

)

 

Increase in trade receivables, net

 

(11,883

)

 

 

(7,357

)

 

 

(5,471

)

 

 

(5,424

)

 

Decrease (increase) in contract assets

 

(2,608

)

 

 

21,647

 

 

 

(599

)

 

 

24,826

 

 

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

 

 

 

 

 

 

 

 

and deferred charges)

 

(7,763

)

 

 

(4,009

)

 

 

(4,047

)

 

 

(3,789

)

 

Decrease (increase) in inventories

 

(4,075

)

 

 

1,774

 

 

 

(1,731

)

 

 

3,986

 

 

Increase (decrease) in trade payables

 

4,205

 

 

 

(790

)

 

 

2,533

 

 

 

(1,740

)

 

Decrease in accrued expenses

 

(1,690

)

 

 

(1,802

)

 

 

(2,442

)

 

 

(1,304

)

 

Increase (decrease) in advance from customers and deferred revenue

 

7,010

 

 

 

(338

)

 

 

4,700

 

 

 

(8,062

)

 

Decrease in other liabilities

 

(810

)

 

 

(194

)

 

 

(1,975

)

 

 

(2,197

)

 

Net cash provided by (used in) operating activities

 

(10,681

)

 

 

8,742

 

 

 

(3,306

)

 

 

8,401

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

(4,515

)

 

 

(3,572

)

 

 

(2,314

)

 

 

(2,089

)

 

Repayment of (investment in) short term deposits

 

2,159

 

 

 

(2,159

)

 

 

2,159

 

 

 

(2,159

)

 

Net cash used in investing activities

 

(2,356

)

 

 

(5,731

)

 

 

(155

)

 

 

(4,248

)

 

 

 

 

 

 

 

 

 

 

 

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

 

32

 

 

 

(161

)

 

 

(221

)

 

 

93

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(13,005

)

 

 

(36,153

)

 

 

(3,682

)

 

 

4,246

 

 

 

 

 

 

 

 

 

 

 

 

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

 

84,463

 

 

 

115,958

 

 

 

75,140

 

 

 

75,559

 

 

 

 

 

 

 

 

 

 

 

 

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

$

71,458

 

 

$

79,805

 

 

$

71,458

 

 

$

79,805

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed

 

 

 

with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.