RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 17:- RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

The following tables present the impact of adjustments made in the Company’s revenues and cost of revenues in its consolidated financial statements as of and for the years ended December 31, 2019 and 2020. See Note 2 for additional information.

The consolidated statements of cash flows are not presented in the following tables because there is no impact on total cash flows from operating activities, investing activities and financing activities. The impact from the restatements within the operating activities section of the cash flow statement are illustrated in the consolidated balance sheets adjustments below.

Consolidated Balance Sheets:

ASSETS	December 31, 2020
	As Reported		Adjustments		As Restated
Contract assets	$	41,573	$	5,506	$	47,079
Total current assets		233,406		5,506		238,912
Long-term contract assets		-		12,880		12,880
Total long-term assets		38,678		12,880		51,558
Total assets	$	393,806	$	18,386	$	412,192

LIABILITIES AND SHAREHOLDERS' EQUITY

	December 31, 2020
	As Reported			Adjustments			As Restated
Accrued expenses	$	46,387		$	3,495		$	49,882
Advances from customers and deferred revenues		26,244			(2,039	)		24,205
Total current liabilities		147,354			1,456			148,810
Long-term advances from customers		1,890			348			2,238
Total long-term liabilities		12,642			348			12,990
Accumulated deficit		(691,446	)		16,582			(674,864	)
Total shareholders' equity		233,810			16,582			250,392
Total liabilities and shareholders' equity	$	393,806		$	18,386		$	412,192

Consolidated Statements of Income:

	Year ended December 31, 2020
	As Reported		Adjustments			As Restated
Revenues:
Products	$	94,010	$	425		$	94,435
Services		71,875		(175	)		71,700
Total revenues		165,885		250			166,135
Cost of revenues:
Products		84,300		85			84,385
Services		40,370		-			40,370
Total cost of revenues		124,670		85			124,755
Gross profit		41,215		165			41,380
Operating income		37,611		165			37,776
Income before taxes on income		35,704		165			35,869
Net income	$	34,911	$	165		$	35,076
*)  Adjustment for total basic and diluted earnings per share is lower than $0.01

	Year ended December 31, 2019
	As Reported		Adjustments			As Restated
Revenues:
Products	$	185,721	$	(6,036	)	$	179,685
Services		77,771		(122	)		77,649
Total revenues		263,492		(6,158	)		257,334
Cost of revenues:
Products		122,071		(6,478	)		115,593
Services		45,544		-			45,544
Total cost of revenues		167,615		(6,478	)		161,137
Gross profit		95,877		320			96,197
Operating income		25,572		320			25,892
Income before taxes on income		22,955		320			23,275
Net income	$	36,538	$	320		$	36,858
Total earnings per share:
Basic	$	0.66	$	0.01		$	0.67
Diluted	$	0.65	$	0.01		$	0.66

Consolidated Statements of Comprehensive Income:

	Year ended December 31, 2020
	As Reported		Adjustments		As Restated
Net income	$	34,911	$	165	$	35,076
Comprehensive income	$	33,942	$	165	$	34,107

	Year ended December 31, 2019
	As Reported		Adjustments		As Restated
Net income	$	36,538	$	320	$	36,858
Comprehensive income	$	36,870	$	320	$	37,190

Restated segments information

Terrestrial Infrastructure Projects

	Year ended December 31, 2020								Year ended December 31, 2019
	As Reported			Adjustments		As Restated			As Reported			Adjustments			As Restated
Revenues	$	19,045		$	425	$	19,470		$	31,562		$	(6,035	)	$	25,527
Cost of revenues		25,003			85		25,088			34,314			(6,478	)		27,836
Gross loss		(5,958	)		340		(5,618	)		(2,752	)		443			(2,309	)
Operating loss	$	(7,534	)	$	340	$	(7,194	)	$	(4,122	)	$	443		$	(3,679	)

Fixed Networks

	Year ended December 31, 2020							Year ended December 31, 2019
	As Reported		Adjustments			As Restated		As Reported		Adjustments			As Restated
Revenues	$	92,671	$	(175	)	$	92,496	$	127,265	$	(123	)	$	127,142
Cost of revenues		61,939		-			61,939		80,038		-			80,038
Gross profit		30,732		(175	)		30,557		47,227		(123	)		47,104
Operating profit	$	2,474	$	(175	)	$	2,299	$	10,074	$	(123	)	$	9,951