Gilat Satellite Networks Ltd.
|
||
(Registrant)
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||
Dated May 16, 2017
|
By: /s/ Yael Shofar
|
|
Yael Shofar
|
||
General Counsel
|
· |
Revenues for Q1 2017 increased 21% to $63.9 million from $52.7 million in Q1 2016.
|
· |
Profitability continued to improve year-over-year:
|
o |
GAAP operating profitability improved to $18 thousand in Q1 2017, compared with an operating loss of $3.0 million in Q1 2016.
|
o |
Non-GAAP operating income improved to $2.5 million, compared with a non-GAAP operating loss of $1.2 million in Q1 2016.
|
o |
GAAP loss was $0.8 million, or $0.01 per diluted share, compared with a GAAP loss of $4.0 million, or $0.09 per diluted share, in Q1 2016.
|
o |
Non-GAAP net income was $1.7 million, or $0.03 per diluted share, compared with a non-GAAP loss of $2.2 million, or $0.05 per diluted share, in Q1 2016.
|
o |
Adjusted EBITDA increased to $4.2 million, or 6.6% of revenues, compared with Adjusted EBITDA of $0.8 million, or 1.4% of revenues, in Q1 2016.
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· |
Reiterated management objectives for 2017: revenues between $280 to $300 million, GAAP operating income between $4 and $8 million, and Adjusted EBITDA of between $20 and $24 million.
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· |
Gilat's In-Flight Modem Exhibits Unprecedented Performance in Gogo's Live Airborne Media and Investor Event
|
· |
Gilat Announces Availability of Mobility-Ready Solution for On-the-Move Applications on Land, Sea and Air
|
· |
Gilat and Hughes to Unveil High Performance Dual-Band Aero Antenna for In-Flight Connectivity (IFC) at Satellite 2017
|
· |
Gilat Announces Availability of Ultra-Compact, High Throughput SATCOM Terminal for Unmanned Aircraft Systems (UAS)
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· |
SES and Gilat Join Forces to Make Connectivity at Sea More Accessible
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||
U.S. dollars in thousands (except share and per share data)
|
Three months ended | ||||||||
March 31, | ||||||||
2017
|
2016
|
|||||||
Unaudited
|
||||||||
Revenues
|
$
|
63,931
|
$
|
52,665
|
||||
Cost of revenues
|
46,590
|
40,267
|
||||||
Gross profit
|
17,341
|
12,398
|
||||||
Research and development expenses
|
6,755
|
5,888
|
||||||
Less - grants
|
47
|
86
|
||||||
Research and development, net
|
6,708
|
5,802
|
||||||
Selling and marketing expenses
|
5,795
|
5,123
|
||||||
General and administrative expenses
|
4,820
|
4,438
|
||||||
Total operating expenses
|
17,323
|
15,363
|
||||||
Operating income (loss)
|
18
|
(2,965
|
)
|
|||||
Financial expenses, net
|
(804
|
)
|
(743
|
)
|
||||
Loss before taxes on income
|
(786
|
)
|
(3,708
|
)
|
||||
Taxes on income (tax benefit)
|
(2
|
)
|
318
|
|||||
Loss
|
$
|
(784
|
)
|
$
|
(4,026
|
)
|
||
Loss per share (basic and diluted)
|
$
|
(0.01
|
)
|
$
|
(0.09
|
)
|
||
Weighted average number of shares used in
|
||||||||
computing loss per share (basic and diluted)
|
54,623,685
|
44,382,379
|
GILAT SATELLITE NETWORKS LTD.
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|||||||||||||||
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
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|||||||||||||||
FOR COMPARATIVE PURPOSES
|
|||||||||||||||
U.S. dollars in thousands (except share and per share data)
|
Three months ended
|
Three months ended
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|||||||||||||||||||||||
March 31, 2017
|
March 31, 2016
|
|||||||||||||||||||||||
GAAP
|
Adjustments (1)
|
Non-GAAP
|
GAAP
|
Adjustments (1)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
17,341
|
1,205
|
$
|
18,546
|
$
|
12,398
|
1,184
|
$
|
13,582
|
||||||||||||||
Operating expenses
|
17,323
|
(1,236
|
)
|
16,087
|
15,363
|
(631
|
)
|
14,732
|
||||||||||||||||
Operating income (loss)
|
18
|
2,441
|
2,459
|
(2,965
|
)
|
1,815
|
(1,150
|
)
|
||||||||||||||||
Income (loss) before taxes on income
|
(786
|
)
|
2,441
|
1,655
|
(3,708
|
)
|
1,815
|
(1,893
|
)
|
|||||||||||||||
Income (loss)
|
$
|
(784
|
)
|
2,441
|
$
|
1,657
|
$
|
(4,026
|
)
|
1,815
|
$
|
(2,211
|
)
|
|||||||||||
Income (loss) per share (basic and diluted)
|
$
|
(0.01
|
)
|
0.04
|
$
|
0.03
|
$
|
(0.09
|
)
|
0.04
|
$
|
(0.05
|
)
|
|||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing income (loss) per share
|
||||||||||||||||||||||||
Basic
|
54,623,685
|
54,623,685
|
44,382,379
|
44,382,379
|
||||||||||||||||||||
Diluted
|
54,623,685
|
54,836,436
|
44,382,379
|
44,382,379
|
(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 trade secrets
litigation expenses.
|
Three months ended
|
Three months ended
|
|||||||
March 31, 2017
|
March 31, 2016
|
|||||||
Unaudited
|
Unaudited
|
|||||||
GAAP loss
|
$
|
(784
|
)
|
$
|
(4,026
|
)
|
||
Gross profit
|
||||||||
Non-cash stock-based compensation expenses (income)
|
10
|
(11
|
)
|
|||||
Amortization of intangible assets related to acquisition transactions
|
1,195
|
1,195
|
||||||
1,205
|
1,184
|
|||||||
Operating expenses
|
||||||||
Non-cash stock-based compensation expenses
|
194
|
212
|
||||||
Amortization of intangible assets related to acquisition transactions
|
194
|
193
|
||||||
Trade secrets litigation expenses
|
848
|
226
|
||||||
1,236
|
631
|
|||||||
Non GAAP income (loss)
|
$
|
1,657
|
$
|
(2,211
|
)
|
GILAT SATELLITE NETWORKS LTD.
|
||||
CONDENSED CONSOLIDATED BALANCE SHEET
|
||||
U.S. dollars in thousands
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
65,076
|
$
|
40,133
|
||||
Restricted cash
|
23,817
|
62,229
|
||||||
Restricted cash held by trustees
|
4,081
|
9,058
|
||||||
Trade receivables, net
|
96,360
|
89,377
|
||||||
Inventories
|
24,634
|
21,469
|
||||||
Other current assets
|
20,996
|
17,017
|
||||||
Total current assets
|
234,964
|
239,283
|
||||||
LONG-TERM INVESTMENTS AND RECEIVABLES:
|
||||||||
Severance pay funds
|
8,228
|
7,791
|
||||||
Other long term receivables
|
402
|
436
|
||||||
Total long-term investments and receivables
|
8,630
|
8,227
|
||||||
PROPERTY AND EQUIPMENT, NET
|
80,408
|
80,837
|
||||||
INTANGIBLE ASSETS, NET
|
9,940
|
11,383
|
||||||
GOODWILL
|
43,468
|
43,468
|
||||||
TOTAL ASSETS
|
$
|
377,410
|
$
|
383,198
|
GILAT SATELLITE NETWORKS LTD.
|
||||
CONDENSED CONSOLIDATED BALANCE SHEET
|
||||
U.S. dollars in thousands
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Unaudited
|
Audited
|
|||||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long-term loans
|
4,493
|
4,617
|
||||||
Trade payables
|
29,317
|
29,625
|
||||||
Accrued expenses
|
61,025
|
53,429
|
||||||
Advances from customers and deferred revenues
|
32,147
|
37,659
|
||||||
Advances from customers, held by trustees
|
3,334
|
7,498
|
||||||
Other current liabilities
|
14,368
|
13,846
|
||||||
Total current liabilities
|
144,684
|
146,674
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay
|
7,860
|
7,485
|
||||||
Long-term loans, net of current maturities
|
12,840
|
16,932
|
||||||
Other long-term liabilities
|
1,768
|
2,281
|
||||||
Total long-term liabilities
|
22,468
|
26,698
|
||||||
EQUITY:
|
||||||||
Share capital - ordinary shares of NIS 0.2 par value
|
2,596
|
2,593
|
||||||
Additional paid-in capital
|
920,687
|
920,162
|
||||||
Accumulated other comprehensive loss
|
(2,481
|
)
|
(3,224
|
)
|
||||
Accumulated deficit
|
(710,544
|
)
|
(709,705
|
)
|
||||
Total equity
|
210,258
|
209,826
|
||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
377,410
|
$
|
383,198
|
GILAT SATELLITE NETWORKS LTD.
|
|||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||
U.S. dollars in thousands
|
Three months ended
|
||||||||
March 31,
|
||||||||
2017
|
2016
|
|||||||
Unaudited
|
||||||||
Cash flows from operating activities:
|
||||||||
Loss
|
$
|
(784
|
)
|
$
|
(4,026
|
)
|
||
Adjustments required to reconcile loss
|
||||||||
to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
3,165
|
3,301
|
||||||
Stock-based compensation of options and RSU's
|
204
|
201
|
||||||
Accrued severance pay, net
|
(61
|
)
|
(123
|
)
|
||||
Accrued interest and exchange rate differences on
|
||||||||
short and long-term restricted cash, net
|
(141
|
)
|
(409
|
)
|
||||
Exchange rate differences on long-term loans
|
25
|
90
|
||||||
Deferred income taxes, net
|
(16
|
)
|
-
|
|||||
Increase in trade receivables, net
|
(6,955
|
)
|
(1,394
|
)
|
||||
Increase in other assets (including short-term, long-term
|
||||||||
and deferred charges)
|
(3,254
|
)
|
(2,154
|
)
|
||||
Increase in inventories
|
(3,312
|
)
|
(2,685
|
)
|
||||
Decrease in restricted cash directly related to operating activities, net
|
37,879
|
6,304
|
||||||
Increase (decrease) in trade payables
|
(392
|
)
|
4,089
|
|||||
Increase in accrued expenses
|
7,493
|
7,408
|
||||||
Decrease in advances from customers
|
(3,098
|
)
|
(11,823
|
)
|
||||
Decrease in advances from customers, held
|
||||||||
by trustees
|
(4,412
|
)
|
(4,063
|
)
|
||||
Increase (decrease) in other current liabilities and other long term liabilities
|
(2,338
|
)
|
1,221
|
|||||
Net cash provided by (used in) operating activities
|
$
|
24,003
|
$
|
(4,063
|
)
|
GILAT SATELLITE NETWORKS LTD.
|
|||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||
U.S. dollars in thousands
|
Three months ended
|
||||||||
March 31,
|
||||||||
2017
|
2016
|
|||||||
Unaudited
|
||||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
$
|
(1,212
|
)
|
$
|
(1,104
|
)
|
||
Proceeds from restricted cash held by trustees
|
5,356
|
3,675
|
||||||
Investment in restricted cash (including long-term)
|
(28
|
)
|
(179
|
)
|
||||
Proceeds from restricted cash (including long-term)
|
670
|
7,347
|
||||||
Net cash provided by investing activities
|
4,786
|
9,739
|
||||||
Cash flows from financing activities:
|
||||||||
Capital lease payments
|
-
|
(51
|
)
|
|||||
Issuance of shares in a rights offering
|
-
|
15,243
|
||||||
Issuance of restricted stock units and exercise of stock options
|
266
|
336
|
||||||
Short term bank credit, net
|
-
|
(2,750
|
)
|
|||||
Repayment of long-term loans
|
(4,241
|
)
|
(4,139
|
)
|
||||
Net cash provided by (used in) financing activities
|
(3,975
|
)
|
8,639
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
129
|
410
|
||||||
Increase in cash and cash equivalents
|
24,943
|
14,725
|
||||||
Cash and cash equivalents at the beginning of the period
|
40,133
|
18,435
|
||||||
Cash and cash equivalents at the end of the period
|
$
|
65,076
|
$
|
33,160
|