Gilat Satellite Networks Ltd.
|
|||
(Registrant)
|
|||
Dated August 10, 2021
|
By:
|
/s/ Yael Shofar
|
|
Yael Shofar
|
|||
General Counsel
|
• |
Revenues of $56.9 million, a 49% increase from $38.3 million in Q2 2020 and up 27% from $44.7 million in the previous quarter.
|
• |
GAAP operating loss of $0.3 million, an improvement compared with an operating loss of $3.5 million in Q2 2020 and an operating loss of $3.7 million in Q1 2021.
|
• |
Non-GAAP operating income of $0.2 million, compared with an operating loss of $2.6 million in Q2 2020 and an operating loss of $3.8 million in the previous quarter.
|
• |
GAAP net loss of $0.1 million, or zero per share, compared with a net loss of $4.2 million, or a loss of $0.08 per share in Q2 2020 and a net loss of $5.1 million, or a loss of $0.09 per share in
the previous quarter.
|
• |
Non-GAAP net income of $0.4 million, which is $0.01 per share, compared with a net loss of $3.3 million, or a loss of $0.06 per share in Q2 2020, and compared with a net loss of $5.2 million, or
a loss of $0.09 per share, in the previous quarter.
|
• |
Adjusted EBITDA of $2.5 million compared with adjusted EBITDA of $0.1 million in Q2 2020; and an adjusted EBITDA loss of $1.4 million in the previous quarter.
|
• |
Tier-1 US Terminal Provider Awards Gilat over $5M for Solid State Amplifiers Powering Militaries Worldwide
|
• |
Gilat’s Global Mobility Platform Selected by SES in Multi-Million Dollar Order
|
• |
Gilat Receives Multi-Million Dollar Award from US Army to Supply High Performance BUCs for Tactical Communications
|
• |
Gilat Signed a Strategic Agreement Estimated at Over $5 Million with Pacific Dataport for Delivery of Ubiquitous Broadband Coverage in Alaska
|
• |
Gilat Received $2 Million in Orders for Support of Low Earth Orbit Constellation
|
• |
Gilat Awarded Multi-Million Dollar Contract to Provide Satellite Communication Equipment for Defense Forces in Asia
|
• |
Gilat Awarded $9 Million in Orders for Support of Low Earth Orbit Constellation
|
• |
Gilat Awarded Multiple Projects for Armed Forces in Latin America
|
• |
Gilat Awarded Contract to Supply Satellite Communication Equipment for Military Usage
|
• |
Gilat Awarded $13M Contract by Pronatel for Delivery of Internet Services to Hundreds of Sites in Peru
|
• |
Gilat Extends Multi-Million Dollar IoT Project in Latin America
|
• |
Gilat Awarded Over $4 Million in Orders for Support of Low Earth Orbit Constellation
|
• |
Telefonica Global Solutions (TGS) Selects Gilat to Equip Strategic Teleport in Arica, Chile
|
Date:
|
Tuesday, August 10, 2021
|
|
Start:
|
9:30 AM ET / 4:30 PM IT
|
|
Dial-in:
|
US: 1-866-744-5399
|
|
International: +972-3-918-0610
|
GILAT SATELLITE NETWORKS LTD.
|
||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||
U.S. dollars in thousands (except share and per share data)
|
Six months ended
|
Three months ended
|
|||||||||||||||
June, 30
|
June, 30
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Revenues
|
$
|
101,636
|
$
|
85,988
|
$
|
56,923
|
$
|
38,315
|
||||||||
Cost of revenues
|
72,564
|
67,514
|
40,208
|
28,727
|
||||||||||||
Gross profit
|
29,072
|
18,474
|
16,715
|
9,588
|
||||||||||||
Research and development expenses
|
16,034
|
13,773
|
7,923
|
6,139
|
||||||||||||
Less - grants
|
374
|
472
|
190
|
200
|
||||||||||||
Research and development expenses, net
|
15,660
|
13,301
|
7,733
|
5,939
|
||||||||||||
Selling and marketing expenses
|
10,468
|
8,650
|
5,464
|
3,584
|
||||||||||||
General and administrative expenses
|
6,938
|
7,518
|
3,855
|
2,973
|
||||||||||||
Restructuring costs
|
-
|
273
|
-
|
-
|
||||||||||||
Merger, acquisition and related litigation expense, net
|
-
|
2,951
|
-
|
546
|
||||||||||||
Total operating expenses
|
33,066
|
32,693
|
17,052
|
13,042
|
||||||||||||
Operating loss
|
(3,994
|
)
|
(14,219
|
)
|
(337
|
)
|
(3,454
|
)
|
||||||||
Financial income (expenses), net
|
(757
|
)
|
(1,429
|
)
|
435
|
(457
|
)
|
|||||||||
Income (loss) before taxes on income
|
(4,751
|
)
|
(15,648
|
)
|
98
|
(3,911
|
)
|
|||||||||
Taxes on income
|
474
|
332
|
227
|
314
|
||||||||||||
Net loss
|
$
|
(5,225
|
)
|
$
|
(15,980
|
)
|
$
|
(129
|
)
|
$
|
(4,225
|
)
|
||||
Basic and Diluted loss per share
|
$
|
(0.09
|
)
|
$
|
(0.29
|
)
|
$
|
(0.00
|
)
|
$
|
(0.08
|
)
|
||||
Weighted average number of shares used in
|
||||||||||||||||
computing earnings (loss) per share
|
||||||||||||||||
Basic and Diluted
|
56,269,941
|
55,499,300
|
56,508,539
|
55,505,342
|
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
|
|||||||||||||||||||||||
June 30, 2021
|
June 30, 2020
|
|||||||||||||||||||||||
GAAP
|
Adjustments (1)
|
Non-GAAP
|
GAAP
|
Adjustments (1)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
16,715
|
64
|
$
|
16,779
|
$
|
9,588
|
54
|
$
|
9,642
|
||||||||||||||
Operating expenses (income)
|
17,052
|
(456
|
)
|
16,596
|
13,042
|
(831
|
)
|
12,211
|
||||||||||||||||
Operating income (loss)
|
(337
|
)
|
520
|
183
|
(3,454
|
)
|
885
|
(2,569
|
)
|
|||||||||||||||
Income (loss) before taxes on income
|
98
|
520
|
618
|
(3,911
|
)
|
885
|
(3,026
|
)
|
||||||||||||||||
Net income (loss)
|
(129
|
)
|
520
|
391
|
(4,225
|
)
|
885
|
(3,340
|
)
|
|||||||||||||||
Earnings (loss) per share (basic and diluted)
|
$
|
(0.00
|
)
|
$
|
0.01
|
$
|
0.01
|
$
|
(0.08
|
)
|
$
|
0.02
|
$
|
(0.06
|
) | |||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earnings per share
|
||||||||||||||||||||||||
Basic
|
56,508,539
|
56,508,539
|
55,505,342
|
55,505,342
|
||||||||||||||||||||
Diluted
|
56,508,539
|
57,328,088
|
55,505,342
|
55,505,342
|
||||||||||||||||||||
(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 merger and acquisition and related litigation, net.
|
||||||||||||||||||||||||
Three months ended
|
Three months ended
|
|||||||||||||||||||||||
June 30, 2021
|
June 30, 2020
|
|||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
GAAP net loss
|
$
|
(129
|
)
|
$
|
(4,225
|
)
|
||||||||||||||||||
Gross profit
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
59 | 49 | ||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
5 | 5 | ||||||||||||||||||||||
64
|
54
|
|||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
406 | 235 | ||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
50 | 50 | ||||||||||||||||||||||
Merger and acquisition and related litigation, net
|
- | 546 | ||||||||||||||||||||||
456
|
831
|
|||||||||||||||||||||||
Non-GAAP net income (loss)
|
$
|
391
|
$
|
(3,340
|
)
|
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)
|
Six months ended
|
Six months ended
|
|||||||||||||||||||||||
June 30, 2021
|
June 30, 2020
|
|||||||||||||||||||||||
GAAP
|
Adjustments (1)
|
Non-GAAP
|
GAAP
|
Adjustments (1)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
29,072
|
130
|
$
|
29,202
|
$
|
18,474
|
116
|
$
|
18,590
|
||||||||||||||
Operating expenses (income)
|
33,066
|
(287
|
)
|
32,779
|
32,693
|
(3,937
|
)
|
28,756
|
||||||||||||||||
Operating income (loss)
|
(3,994
|
)
|
417
|
(3,577
|
)
|
(14,219
|
)
|
4,053
|
(10,166
|
)
|
||||||||||||||
Income (loss) before taxes on income
|
(4,751
|
)
|
417
|
(4,334
|
)
|
(15,648
|
)
|
4,053
|
(11,595
|
)
|
||||||||||||||
Net income (loss)
|
(5,225
|
)
|
417
|
(4,808
|
)
|
(15,980
|
)
|
4,053
|
(11,927
|
)
|
||||||||||||||
Earnings (loss) per share (basic and diluted)
|
$
|
(0.09
|
)
|
$
|
0.01
|
$
|
(0.08
|
)
|
$
|
(0.29
|
)
|
$
|
0.08
|
$
|
(0.21
|
)
|
||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earnings per share
|
||||||||||||||||||||||||
Basic and Diluted
|
56,269,941
|
56,269,941
|
55,499,300
|
55,499,300
|
||||||||||||||||||||
(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 costs.
|
||||||||||||||||||||||||
Six months ended
|
Six months ended
|
|||||||||||||||||||||||
June 30, 2021
|
June 30, 2020
|
|||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
GAAP net loss
|
$
|
(5,225
|
)
|
$
|
(15,980
|
)
|
||||||||||||||||||
Gross profit
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
120
|
106 | ||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
10 | 10 | ||||||||||||||||||||||
130
|
116
|
|||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
186 | 601 | ||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
101 | 101 | ||||||||||||||||||||||
Trade secrets and other litigation expenses
|
-
|
11
|
||||||||||||||||||||||
Merger, acquisition and related litigation expense, net
|
- |
2,951
|
||||||||||||||||||||||
Restructuring costs
|
-
|
273
|
||||||||||||||||||||||
287
|
3,937
|
|||||||||||||||||||||||
Non-GAAP net loss
|
$
|
(4,808
|
)
|
$
|
(11,927
|
)
|
GILAT SATELLITE NETWORKS LTD.
|
|||
SUPPLEMENTAL INFORMATION
|
|||
U.S. dollars in thousands
|
|||
ADJUSTED EBITDA:
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
GAAP operating loss
|
$
|
(3,994
|
)
|
$
|
(14,219
|
)
|
$
|
(337
|
)
|
$
|
(3,454
|
)
|
||||
Add:
|
||||||||||||||||
Non-cash stock-based compensation expenses
|
306
|
707
|
465
|
284
|
||||||||||||
Trade secrets and other litigation expenses
|
-
|
11
|
-
|
-
|
||||||||||||
Restructuring and re-organization costs
|
-
|
273
|
-
|
-
|
||||||||||||
Merger, acquisition and related litigation expense, net
|
-
|
2,951
|
- |
546
|
||||||||||||
Depreciation and amortization (*)
|
4,758
|
5,382
|
2,373
|
2,718
|
||||||||||||
Adjusted EBITDA
|
$
|
1,070
|
$
|
(4,895
|
)
|
$
|
2,501
|
$
|
94
|
SEGMENT REVENUE:
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Fixed Networks
|
$
|
56,127
|
$
|
44,790
|
$
|
30,825
|
$
|
21,779
|
||||||||
Mobility Solutions
|
31,002
|
33,207
|
19,923
|
14,006
|
||||||||||||
Terrestrial Infrastructure Projects
|
14,507
|
7,991
|
6,175
|
2,530
|
||||||||||||
Total revenue
|
$
|
101,636
|
$
|
85,988
|
$
|
56,923
|
$
|
38,315
|
GILAT SATELLITE NETWORKS LTD.
|
||||
CONSOLIDATED BALANCE SHEETS
|
||||
U.S. dollars in thousands
|
June 30,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
57,882
|
$
|
88,754
|
||||
Short-term deposits
|
2,159
|
-
|
||||||
Restricted cash
|
21,910
|
27,162
|
||||||
Trade receivables, net
|
33,009
|
27,976
|
||||||
Contract assets
|
23,830
|
41,573
|
||||||
Inventories
|
29,644
|
31,304
|
||||||
Other current assets
|
22,508
|
16,637
|
||||||
Total current assets
|
190,942
|
233,406
|
||||||
LONG-TERM ASSETS:
|
||||||||
Restricted cash
|
13
|
42
|
||||||
Severance pay funds
|
6,616
|
6,665
|
||||||
Tax assets
|
2,489
|
2,482
|
||||||
Deferred taxes
|
16,621
|
16,813
|
||||||
Operating lease right-of-use assets
|
4,338
|
4,879
|
||||||
Other long term receivables
|
8,691
|
7,797
|
||||||
Total long-term assets
|
38,768
|
38,678
|
||||||
PROPERTY AND EQUIPMENT, NET
|
76,584
|
77,172
|
||||||
INTANGIBLE ASSETS, NET
|
861
|
1,082
|
||||||
GOODWILL
|
43,468
|
43,468
|
||||||
TOTAL ASSETS
|
$
|
350,623
|
$
|
393,806
|
GILAT SATELLITE NETWORKS LTD.
|
||||
CONSOLIDATED BALANCE SHEETS (Cont.)
|
||||
U.S. dollars in thousands
|
June 30,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
Unaudited
|
Audited
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long-term loans
|
$
|
-
|
$
|
4,000
|
||||
Trade payables
|
19,705
|
20,487
|
||||||
Accrued expenses
|
48,359
|
46,387
|
||||||
Advances from customers and deferred revenues
|
23,881
|
26,244
|
||||||
Operating lease liabilities
|
1,800
|
1,911
|
||||||
Dividend payable
|
-
|
35,003
|
||||||
Other current liabilities
|
14,319
|
13,322
|
||||||
Total current liabilities
|
108,064
|
147,354
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay
|
6,959
|
7,136
|
||||||
Long-term advances from customers
|
4,184
|
1,890
|
||||||
Operating lease liabilities
|
2,584
|
2,985
|
||||||
Other long-term liabilities
|
118
|
631
|
||||||
Total long-term liabilities
|
13,845
|
12,642
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital - ordinary shares of NIS 0.2 par value
|
2,705
|
2,647
|
||||||
Additional paid-in capital
|
928,874
|
928,626
|
||||||
Accumulated other comprehensive loss
|
(6,194
|
)
|
(6,017
|
)
|
||||
Accumulated deficit
|
(696,671
|
)
|
(691,446
|
)
|
||||
Total shareholders' equity
|
228,714
|
233,810
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
350,623
|
$
|
393,806
|
GILAT SATELLITE NETWORKS LTD.
|
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
U.S. dollars in thousands
|
Six months ended
June 30,
|
Three months ended
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net loss
|
$
|
(5,225
|
)
|
$
|
(15,980
|
)
|
$
|
(129
|
)
|
$
|
(4,225
|
)
|
||||
Adjustments required to reconcile net income
|
||||||||||||||||
to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
4,646
|
5,271
|
2,316
|
2,667
|
||||||||||||
Capital loss from disposal of property and equipment
|
-
|
23
|
-
|
56
|
||||||||||||
Stock-based compensation of options
|
306
|
707
|
465
|
284
|
||||||||||||
Accrued severance pay, net
|
(128
|
)
|
26
|
(118
|
)
|
(17
|
)
|
|||||||||
Deferred taxes, net
|
185
|
140
|
(333
|
)
|
(494
|
)
|
||||||||||
Decrease (increase) in trade receivables, net
|
(7,068
|
)
|
18,364
|
(5,135
|
)
|
4,757
|
||||||||||
Decrease (increase) in contract assets
|
17,743
|
(8,362
|
)
|
22,230
|
(3,511
|
)
|
||||||||||
Decrease (increase) in other assets (including short-term, long-term
|
||||||||||||||||
and deferred charges)
|
(4,009
|
)
|
6,710
|
(3,789
|
)
|
5,037
|
||||||||||
Decrease (increase) in inventories
|
1,774
|
(5,698
|
)
|
3,986
|
937
|
|||||||||||
Decrease in trade payables
|
(790
|
)
|
(510
|
)
|
(1,740
|
)
|
(2,885
|
)
|
||||||||
Increase (decrease) in accrued expenses
|
1,693
|
(5,809
|
)
|
724
|
(4,157
|
)
|
||||||||||
Decrease in advance from customers and deferred revenue
|
(191
|
)
|
(5,725
|
)
|
(7,879
|
)
|
(2,898
|
)
|
||||||||
Increase (decrease) in current and non current liabilities
|
(194
|
)
|
685
|
(2,197
|
)
|
(2,126
|
)
|
|||||||||
Net cash provided by (used in) operating activities
|
8,742
|
(10,158
|
)
|
8,401
|
(6,575
|
)
|
||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchase of property and equipment
|
(3,572
|
)
|
(1,879
|
)
|
(2,089
|
)
|
(928
|
)
|
||||||||
Investment in short term deposits
|
(2,159
|
)
|
-
|
(2,159
|
)
|
-
|
||||||||||
Net cash used in investing activities
|
(5,731
|
)
|
(1,879
|
)
|
(4,248
|
)
|
(928
|
)
|
||||||||
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
|
(161
|
)
|
(539
|
)
|
93
|
156
|
||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(36,153
|
)
|
(16,672
|
)
|
4,246
|
(7,347
|
)
|
|||||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
115,958
|
101,969
|
75,559
|
92,644
|
||||||||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
79,805
|
$
|
85,297
|
$
|
79,805
|
$
|
85,297
|