FORM 6 – K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report on Foreign Issuer
Pursuant to Rule 13a – 16 or 15d – 16
of the Securities Exchange Act of 1934
For the Month of May, 2021
Gilat Satellite Networks Ltd.
(Translation of Registrant’s Name into English)
Gilat House, Yegia Kapayim Street
Daniv Park, Kiryat Arye, Petah Tikva, Israel
(Address of Principal Corporate Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.
Yes ☐ No ☒
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
Attached hereto is Registrant’s IR presentation as posted on Registrant’s website.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Gilat Satellite Networks Ltd.
|
|||
|
(Registrant)
|
|||
|
Dated May 20, 2021
|
By:
|
/s/ Yael Shofar
|
|
|
Yael Shofar
|
|||
|
General Counsel
|
|||
GILATSATELLITENETWORKS MAY 2021 Investors Presentation
FORWARD LOOKING STATEMENTS DISCLAIMER Certain statements made in this presentation 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, changes in general economic and business conditions, inability to maintain market acceptance to Gilat's products,
inability to obtain financing and/or timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat's 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 Company's proprietary technology and
risks associated with Gilat's international operations and its location in Israel. Gilat undertakes no obligation to update or revise any forward-looking statements for any reason. For additional information regarding these and other risks
and uncertainties associated with Gilat's business, reference is made to Gilat's reports filed from time to time with the Securities and Exchange Commission.Unaudited/Non-GAAP Financial MeasuresThis presentation includes financial data that
is not audited and financial data that was not prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Non-GAAP financial measures appearing in this presentation consist of GAAP financial measures adjusted to
exclude, non cash share-based compensation expenses, impairment of goodwill and long lived assets, amortization of acquired intangible assets, restructuring, trade secrets litigation expenses, tax expenses under amnesty program, deferred
tax benefit that was recorded for the first time and other non-recurring expenses and net income or loss from discontinued operations. Gilat believes these non-GAAP financial measures provide consistent and comparable measures to help
investors understand Gilat’s current and future operating performance. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read in conjunction
with Gilat’s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
A WORLD LEADER IN SATELLITE COMMUNICATIONS FIXED NETWORKS MOBILITYSOLUTIONS NGSO INNOVATIVE
GROUND EQUIPMENT TECHNOLOGY 1987 Founded 5 R&D Centers 3 NOC Centers GILT NASDAQ /TASE 20 Sales Offices +800 Employees Cellular Backhaul 2G 3G 4G 5G Enterprise Telecom services Consumer Aero /
IFC Maritime Land Defense
LEADING GLOBAL CUSTOMER BASE SYSTEM INTEGRATORS 100+ COUNTRIES 900+ NETWORKS 300+
CUSTOMERS SATELLITE OPERATOR RTRS RTComm
UNIQUELY POSITIONED TO UNLOCK GROWTH OPPORTUNITIES 1 Post COVID-19 IFC Rebound, Free WIFI
Tailwind Long term IFC investment cycle 2 4G/5G Ubiquitous Connectivity Bridging the Digital Divide 5G Total Addressable Market expanding dramatically 3 NGSO Constellations - Abundance of Capacity Large capital spending in satellite
industry 4 Strong Tailwinds in DefenseIncreased focus on military SATCOM networks 5 Peru Terrestrial Networks "Investment" Shifting to HarvestRecurring revenue model
LONG TERM IFC INVESTMENT CYCLE Transceivers Aero Antennas 400Mbps Modem Ground
Equipment POST COVID-19 IFC REBOUND INCLUDES FREE WIFI TAILWIND Superior Passenger Experience ENABLING LARGE IFC GLOBAL NETWORK GLOBAL COVERAGE | > 30 SATELLITES | 18 TELEPORTS | 20 AIRLINES | GLOBAL NETWORK
MANAGEMENT SYSTEM 1
GROWTH OPPORTUNITIES DRIVEN BY INCREASE IN DEMAND AND MARKET PENETRATION 1 POST COVID-19 IFC
REBOUND INCLUDES FREE WIFI TAILWIND LONG TERM IFC INVESTMENT CYCLE Expanding Fleets (2029) The Shift to Free WiFi ~ 6,800(2020) ~14,500(2029) COMMERCIAL AIRCRAFT(Ka/Ku) ~1,400(2020) ~7,700(2029) BUSINESS JETS
(Ka/Ku) CAGR 7.9% CAGR 18.4% Service Revenues (Commercial Aviation) Source: Euroconsult 2020 Source: Valour 2020 $B 543210 2014 2017 2020 2023 2026 2029 Average
4G/5G UBIQUITOUS CONNECTIVITY BRIDGING THE DIGITAL DIVIDE 5G TOTAL ADDRESSABLE MARKET EXPANDING
DRAMATICALLY OF SATELLITE BACKHAUL 4G/LTE MARKET SHARE 2 GILAT CONTINUES TO LEAD IN SHIPMENTSWITH BIG WINS AND BUSINESS EXPANSIONS WORLDWIDE { NSR, 2021 } MANAGED SERVICESEnd-to-end service with recurring
revenue ~$100M(2020) ~$500M(2029) EQUIPMENT ~CAGR 19% ~$1.6B(2020) ~$6.4B(2029) CAPACITY, SERVICE & EQUIPMENT ~CAGR 16% { GILAT, 2021 }
2 4G/5G UBIQUITOUS CONNECTIVITY BRIDGING THE DIGITAL DIVIDE 5G TOTAL ADDRESSABLE MARKET EXPANDING
DRAMATICALLY HIGH SPEED Speeds >1Gbps Innovative Wideband Technology FLEXIBLE NETWORK ARCHITECTURE Satellite Ground Segment Integration Into 5G Eco-System Utilize SDN/NFV, Cloud, Edge Computing & Network Slicing LOW
LATENCY Order of Magnitude Reduction in Latency Leverage Our NGSO Baseband GILAT EXPERTISE AND INNOVATION MAKING 5G A REALITY
NGSO CONSTELLATIONS - ABUNDANCE OF CAPACITY OneWeb~2.5 Tbps 650 Satellites
Telesat ~3-8 Tbps192-300 Satellites SpaceX~10+ Tbps1584 -> 42,000 Satellites Amazon ~10+Tbps 3263 Satellites HTS/VHTS ~50-500 Gbps SES/O3B~1-3 Tbps 22 Satellites MEO2,000-10,000 km~120msec GEO35,786
km~550msec LEO500-2,000 km~15msec MORE THAN 50,000 LEO SATELLITES EXPECTED WITHIN A DECADE; INVESTMENT OVER $30 BILLION 3 LARGE CAPITAL SPENDING IN SATELLITE INDUSTRY
Gilat to provide ground segment for O3B mPower Potential of over $50 million to supply gateway
solid state power amplifiers Successful demonstrations with Telesat's phase 1 LEO satellite LEO CUSTOMER GILAT'S PROVEN NGSO TECHNOLOGY 3 NGSO CONSTELLATIONS - ABUNDANCE OF CAPACITY LARGE CAPITAL SPENDING IN SATELLITE
INDUSTRY mPOWER
STRONG TAILWINDS IN DEFENSE Transportable On-the-Move Military
Aircraft On-the-Pause Unmanned Aerial Vehicle HIGH-BANDWIDTH REQUIRED IN BATTLEFIELD | EMERGING THREAT OF ELECTRONIC WARFARE 4 INCREASED FOCUS ON MILITARY SATCOM NETWORKS GOVERNMENT & MILITARY SATELLITE
COMMUNICATIONSExpected Market Value~$930M in 2025 Source: NSR 2020 Satcom Network
Six regions awarded to Gilat (~$550M) ~$335M construction revenueFour regions passed government
acceptance, 2 regions planned by mid 2022Revenue recognized by March 31, 2021 ~$275M ~$215M in operational revenue over ten yearsThree regions entered operations phase in 2019One region entered operations phase in Q2 2021Two regions
expected to enter into operations phase in 2022Target: Recurring revenues >$50M per year by the end of 2022 PERU – PRONATEL (FITEL) PROJECTS 5 RECURRING REVENUE MODEL PERU TERRESTRIAL NETWORKS "INVESTMENT" SHIFTING TO HARVEST
FINANCIAL INDICATORS HIGHLIGHTS
SEGMENT COMMENTARY US$ MILLIONS FIXED NETWORKS 2020 was effected by the COVID19 pandemic2021
revenue to be significantly higher than 2020 MOBILITY 2020 was heavily effected by the COVID19 pandemic2021 is a transition year, IFC is expected to pick up in the second half of the year TERRESTRIAL Construction of six regional
projects in Peru – consider as “Investment” for future recurring revenuesOperations services of the networks under the agreement and additional services are profitable and included under Fixed Networks Four regions ended construction and
are in operation phase. The last two regions expected to enter operation in 2022
Q1 2021 PROFIT AND LOSS HIGHLIGHTS US$ MILLIONS 1) GAAP excluding CMTL settlement – OPEX Q4/20
$15.3M, Q3/20 $12.1M; Operating loss Q4/20 $2.1M, Q3/20 $2.7M; Net loss Q4/20 $2.3M, Q3/20 $3.4M Revenue Gross Margin Operating Expenses / (Income)1 Operating Income / (Loss) 1 Net Income / (Loss) 1 Adj. EDITDA Operating
Expenses Operating Income / (Loss) Net Income /
(Loss) Q4/20 42.6 31% (49.4) 62.7 62.4 1.1 15.0 (1.6) (1.9) Q3/20 37.3 25% 20.3 (10.9) (11.6) 0.6 11.4 (1.9) (2.6) Q2/20 38.3 25% 13.0 (3.5) (4.2) 0.1 12.2 (2.6) (3.3) Q1/20 47.7 19% 19.7 (10.8) (11.8) (5.0) 16.5 (7.6) (8.6) GAAP Non-GAAP Q1/21 44.7 28% 16.0 (3.7) (5.1) (1.4) 16.2 (3.8) (5.2)
BALANCE SHEET HIGHLIGHTS US$ MILLIONS Cash, cash equivalents & restricted
cash DSO1 Debt Cash from (used in) operations2 Equity Q4/20 116 76 4.0 60.4 233.8 Q3/20 77.2 84 4.0 (7.1) 225.3 Q2/20 85.3 79 4.0 (6.6) 236.9 Q1/20 92.6 79 4.0 (3.6) 239.7 Q1/21 75.6 77 0.0 0.3 228.1 DSO
calculation excludes Terrestrial Infrastructure Projects SegmentQ4-20 includes net proceeds from CMTL - $60.4M
NGSO/VHTS Opening New Markets Leading in Main Growth Areas – Cellular Backhaul (4G, 5G)
&In-Flight Connectivity SUMMARY UNIQUELY POSITIONED TO UNLOCK GROWTH OPPORTUNITIES Investing in Product Leadershipand Innovation Focused on Profitable Growth Increased Focus on Military SATCOM Networks
