CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION [Abstract]

CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

NOTE 14:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

The Group applies ASC 280, "Segment Reporting" ("ASC 280") (formerly: SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information"). Segments are managed separately and can be described as follows:

Gilat Worldwide which is comprised of two reportable segments:

Gilat International: Gilat International focuses on sales of solutions to operators by provision of its proprietary standard VSAT technology and hybrid solutions. The business of Gilat International reflects the generation of revenue from sales of the Group's satellite-based networking equipment, professional services and applications. The charges to customers for satellite networking products, applications or professional services vary with the number of sites, the location of sites, installation services required and the types of technologies and protocols employed.

Gilat Peru & Colombia: The business of Gilat Peru & Colombia is comprised of several government-sponsored rural projects for telephony and/or internet and data connectivity. To date, this business segment includes satellite-based rural telephony and internet access solutions in remote areas in Latin America.

Spacenet: Spacenet's business consists of business activity as an operator of communications networks for the provision of telephony, data and Internet services to its customers, primarily in the Americas. The charges to customers for networking services vary with the type of operations provided, the length of the contract, the amount of satellite capacity and the types of technologies and protocols employed.

Wavestream: Wavestream's business provides high power SSPA and BUCs with field-proven, high performance solutions designed for mobile and fixed Satcom systems worldwide, primarily in the defense market.

a.     Information on the reportable segments:

  1. The measurement of the reportable operating segments is based on the same accounting principles applied in these financial statements.

  2. When reported by segment, the results of Gilat Worldwide (consisting of Gilat International and Gilat Peru & Colombia), Spacenet and Wavestream are presented based upon intercompany transfer prices.

  3. Financial data relating to reportable operating segments:

	Year ended December 31, 2011
	Gilat Worldwide
	Gilat International			Gilat Peru & Colombia			Spacenet Inc			Wavestream			Consolidation			Total
Revenue:
External revenue	$	127,505		$	48,893		$	104,453		$	58,350		$	-		$	339,201
Internal revenue		21,643			55			-			873			(22,571	)		-
	$	149,148		$	48,948		$	104,453		$	59,223		$	(22,571	)	$	339,201
Financial income (expenses), net	$	(2,354	)	$	(611	)	$	1,302		$	(268	)	$	-		$	(1,931	)
Income (loss) before taxes on income	$	3,574		$	6,005		$	(4,336	)	$	(13,446	)	$	2,010		$	(6,193	)
Taxes on income (tax benefit)	$	(210	)	$	98		$	(7,811	)	$	7,580		$	-		$	(343	)

	Year ended December 31, 2010
	Gilat Worldwide
	Gilat International			Gilat Peru & Colombia			Spacenet Inc			Wavestream*			Consolidation			Total
Revenue:
External revenue	$	113,723		$	35,862		$	79,359		$	4,041		$	-		$	232,985
Internal revenue		17,064			-			-			-			(17,064	)		-
	$	130,787		$	35,862		$	79,359		$	4,041		$	(17,064	)	$	232,985
Financial income (expenses), net	$	346		$	(717	)	$	(169	)	$	(17	)	$	-		$	(557	)
Income (loss) before taxes on income	$	37,534		$	2,329		$	(8,539	)	$	(802	)	$	108		$	30,630
Taxes on income (tax benefit)	$	(873	)	$	1,189		$	(470	)	$	165		$	-		$	11

   *) Wavestream became a reportable segment since it was acquired on November 29, 2010, therefore its results represent only one month of operations.

	Year ended December 31, 2009
	Gilat Worldwide
	Gilat International		Gilat Peru & Colombia		Spacenet Inc			Consolidation			Total
Revenue:
External revenue	$	97,846	$	46,676	$	83,537		$	-		$	228,059
Internal revenue		11,870		-		-			(11,870	)		-
	$	109,716	$	46,676	$	83,537		$	(11,870	)	$	228,059
Financial income, net	$	208	$	534	$	308		$	-		$	1,050
Income (loss) before taxes on income	$	234	$	8,325	$	(5,070	)	$	(707	)	$	2,782
Taxes on income	$	866	$	38	$	-		$	-		$	904

b. Revenues by geographic areas:

Following is a summary of revenues by geographic areas. Revenues attributed to geographic areas, based on the location of the end customers and in accordance with ASC 280, are as follows:

	Year ended December 31,
	2011		2010		2009
North America	$	156,326	$	83,314	$	84,590
South America and Central America		100,457		84,388		89,170
Asia and Asia Pacific		51,554		36,350		36,131
Europe		21,126		12,693		6,948
Africa		9,738		16,240		11,220
	$	339,201	$	232,985	$	228,059

c. During 2011 and 2010, the Group did not have any single customer or country generating revenues exceeding 10% of the Group's total revenues.

Net revenues of one major customer located in Colombia accounted for 11% of total consolidated revenues for the year ended December 31, 2009.

d. The Group's long-lived assets are located as follows:

	December 31,
	2011		2010
Israel	$	73,760	$	74,268
Latin America		4,867		5,977
United States		12,490		14,025
Europe		9,197		8,959
Other		612		261
	$	100,926	$	103,490