6-K 1 zk2228708.htm 6-K


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 November, 2022

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


On November 14, 2022, the Registrant issued a press release announcing Gilat’s unaudited third quarter 2022 results. A copy of this press release is furnished herewith.

The attached press release is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form S-8 (Registration Nos. 333-180552, 333-187021, 333-204867, 333-210820, 333-217022, 333-221546, 333-223839, 333-231442, 333-236028, 333-253972 333-255740 and 333-264974) and on Form F-3 (Registration No. 333-266044).

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 November 14, 2022
By: /s/ Doron Kerbel
 
Doron Kerbel
 
General Counsel & Company Secretary

2


Gilat Presents Strong Growth and Results for Third Quarter 2022

Revenue of $60.4 million, up 21% year-over-year, GAAP operating
income of $3.4 million versus $0.8 million in Q3 last year, and adjusted
EBITDA of $7.3 million, up 88% year-over-year

Petah Tikva, Israel – November 14, 2022 – Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the third quarter ended September 30, 2022.
 
Third Quarter 2022 Financial Highlights
 
Revenues of $60.4 million, up 21% compared with $49.8 million in Q3 last year;
GAAP operating income of $3.4 million versus $0.8 million in Q3 last year;
Non-GAAP operating income of $4.4 million versus $1.3 million in Q3 last year;
GAAP net income of $2.1 million versus breakeven in Q3 last year;
Non-GAAP net income of $3 million versus $0.6 million in Q3 last year;
Adjusted EBITDA of $7.3 million versus $3.9 million in Q3 last year;
 
Forward-Looking Expectations
 
The Company adjusted and narrowed the range of its 2022 revenue guidance, with expectations of between $240 million and $245 million, representing year-over-year growth of approximately 13%.
 
The Company also increased and narrowed the GAAP operating income guidance range to between $8 million to $10 million representing significant year-over-year growth versus $2.2 million in 2021.
 
The Company increased and narrowed the adjusted EBITDA range to between $23 to $25 million, representing year-over-year growth of approximately 56%.
 
Management Commentary
 
Adi Sfadia, Gilat's CEO, commented: "We are very pleased with our strong third quarter results showing continued year-over-year growth and a recovery in all our markets, in particular IFC. We are also very encouraged with the solid and continued improvement in our profitability demonstrating substantial improvement in our gross, operating and net margins with adjusted EBITDA growing by 88% year-over-year.
 
Strategically we are very excited with the progress of our newly launched, world leading, SkyEdge IV platform. During the third quarter, a leading service provider selected SkyEdge IV, Gilat's high-performance, multi-orbit platform, to power maritime connectivity. We are confident that this platform will allow us to focus and gain market share in the growing multibillion-dollar market of the next era of satellite communication.


3

 
The mobility business continued to pick up, with recent IFC orders of over $12 million. We further solidified our leadership in the cellular backhaul market this quarter, with multimillion-dollar orders from both new customers and mobile operators trusting Gilat's technology to extend their networks even further. In addition, we received multimillion-dollar orders in the Defense segment, where we see significant potential and have increased our focus, as well as in the Enterprise sector for utility and banking applications."
 
Mr. Sfadia concluded, "Our pipeline continues to increase and broaden, and the release of our next generation platform and growth engine – the SkyEdge IV for VHTS & NGSO satellites – is gaining strong traction among new and existing customers. As such, we are increasingly optimistic and expect to maintain our strong momentum ahead. For 2022 as a whole, we are tracking ahead of our profitability targets, and we look forward to continuing the growth trend into 2023."

Key Recent Announcements

o
World-Leading UAV Manufacturer Selects Gilat in Multi-Year, Multimillion-Dollar Strategic Agreement for UAV Terminals
 
o
Telefónica Global Solutions Selects Gilat to Extend 4G Cellular Coverage for Mobile Operators in Latin America
 
o
Antamina Selects Gilat for Multimillion-Dollar E-Learning Project
 
o
Gilat Awarded Over $10M to Power IFC Applications of Tier-1 Global Aerospace System Integrator
 
o
Gilat Selected by Sencinet for Petrobras’ Oil and Gas Industry Satellite Connectivity Project
 
o
SES and Gilat Extend Global Strategic Cooperation with Orders for GEO VHTS and O3b mPOWER NGSO Constellation
 
Conference Call Details
Gilat’s management will discuss its third quarter 2022 results and business achievements and participate in a question-and-answer session:

Date:             Monday, November 14, 2022
Start:             09:30 AM EST / 16:30 IST
Dial-in:          US: 1-888-407-2553
                      International: +972-3-918-0609

A simultaneous webcast of the conference call will be available on the Gilat website at www.gilat.com and through this link: https://veidan.activetrail.biz/gilatq3-2022

The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.

4


Non-GAAP Measures

The attached summary unaudited financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents non-GAAP presentations of net income, operating income, Adjusted EBITDA and earnings per share.

The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude the effect of stock-based compensation, amortization of purchased intangibles, lease incentive amortization, litigation expenses, income related to trade secrets claims, restructuring and reorganization costs, merger, acquisition and related litigation expense (income), impairment of held for sale asset, other expenses, income tax effect on adjustments and one-time changes of deferred tax assets.
 
Adjusted EBITDA is presented to compare the Company’s performance to that of prior periods and evaluate the Company’s financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company’s financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company's operating income and adjusted EBITDA is presented in the attached summary financial statements.
 
Non-GAAP presentations of net income, operating income, adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat’s operating performance or liquidity.
 
About Gilat
 
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications.
 
With over 30 years of experience, we create and deliver deep technology solutions for satellite, ground and new space connectivity and provide comprehensive end-to-end solutions and services, powered by our innovative technology. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.
 
Delivering high value solutions, our portfolio is comprised of a cloud-based platform and high performance satellite terminals designed to work in harmony with satellite constellations, including Very High Throughput Satellites (VHTS) and Software-Defined Satellites (SDS) in multiple orbits; high performance Satellite On-the-Move (SOTM) antennas; and highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC).
 
Gilat’s comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, mobility, cellular backhaul, military, government, and enterprise, all while meeting the most stringent service level requirements. For more information, please visit: www.gilat.com
 
Certain statements made herein 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, risks associated with the outbreak and global spread of the coronavirus (COVID-19) pandemic; changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to 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. 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. We undertake no obligation to update or revise any forward-looking statements for any reason.

Contact:
Gilat Satellite Networks
Doreet Oren, Senior Director Corporate Communications
DoreetO@gilat.com

Ehud Helft
EK Global Investor Relations
ehud@ekgir.com
+1 212 378 8040

5




GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
U.S. dollars in thousands (except share and per share data)

   
Nine months ended
   
Three months ended
 
   
September 30,
   
September 30,
 
   
2022
   
2021
   
2022
   
2021
 
         
As Restated (1)
         
As Restated (1)
 
   
Unaudited
   
Unaudited
 
                         
Revenues
 
$
167,213
   
$
147,947
   
$
60,350
   
$
49,778
 
Cost of revenues
   
108,021
     
101,376
     
37,315
     
32,306
 
                                 
Gross profit
   
59,192
     
46,571
     
23,035
     
17,472
 
                                 
Research and development expenses, net
   
25,542
     
22,884
     
9,156
     
7,224
 
Selling and marketing expenses
   
15,724
     
15,827
     
5,414
     
5,359
 
General and administrative expenses
   
13,325
     
11,042
     
4,770
     
4,104
 
Impairment of held for sale asset
   
718
     
-
     
279
     
-
 
                                 
Total operating expenses
   
55,309
     
49,753
     
19,619
     
16,687
 
                                 
Operating income (loss)
   
3,883
     
(3,182
)
   
3,416
     
785
 
                                 
Financial expenses, net
   
(2,716
)
   
(1,458
)
   
(1,053
)
   
(701
)
                                 
Income (loss) before taxes on income
   
1,167
     
(4,640
)
   
2,363
     
84
 
                                 
Taxes on income
   
1,075
     
523
     
243
     
49
 
                                 
Net income (loss)
 
$
92
   
$
(5,163
)
 
$
2,120
   
$
35
 
                                 
Earnings (loss) per share (basic and diluted)
 
$
0.00
   
$
(0.09
)
 
$
0.04
   
$
0.00
 
                                 
Weighted average number of shares used in
                               
computing earning (loss) per share
                               
Basic
   
56,585,858
     
56,355,020
     
56,608,981
     
56,525,177
 
Diluted
   
56,604,854
     
56,355,020
     
56,626,283
     
56,958,250
 

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021. For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A filed with the U.S. Securities and Exchange Commission on September 14, 2022.

6

GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)

   
Three months ended
   
Three months ended
 
   
September 30, 2022
   
September 30, 2021
 
   
GAAP
   
Adjustments (*)
   
Non-GAAP
   
GAAP
   
Adjustments (*)
   
Non-GAAP
 
         
As Restated (1)
         
As Restated (1)
 
   
Unaudited
   
Unaudited
 
                                     
Gross profit
 
$
23,035
     
74
   
$
23,109
   
$
17,472
     
96
   
$
17,568
 
Operating expenses
   
19,619
     
(879
)
   
18,740
     
16,687
     
(448
)
   
16,239
 
Operating income
   
3,416
     
953
     
4,369
     
785
     
544
     
1,329
 
Income before taxes on income
   
2,363
     
953
     
3,316
     
84
     
544
     
628
 
Net income
 
$
2,120
     
911
   
$
3,031
   
$
35
     
544
   
$
579
 
                                                 
Earning per share (basic and diluted)
  $ 0.04     $ 0.02     $ 0.06    
$
0.00
   
$
0.01
   
$
0.01
 
                                                 
Weighted average number of shares used in
                 
   computing earning per share
                                               
    Basic
   
56,608,981
             
56,608,981
     
56,525,177
             
56,525,177
 
    Diluted
   
56,626,283
             
56,652,855
     
56,958,250
             
57,227,810
 

(*)
Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to acquisition transactions, impairment of held for sale asset, other expenses and income tax effect on adjustments which is calculated using the blended effective tax rate on the adjustments, based on the statutory tax rates applicable to the adjustments.

         
Three months ended
               
Three months ended
       
         
September 30, 2022
               
September 30, 2021
       
                           
As Restated (1)
       
         
Unaudited
               
Unaudited
       
                                     
GAAP net income
   
   
$
2,120
     
     
   
$
35
     
 
                                                 
Gross profit
                                               
Non-cash stock-based compensation expenses
            74
                      91
         
Amortization of intangible assets related to acquisition transactions
            -
                      5
         
             
74
                     
96
         
Operating expenses
                                               
Non-cash stock-based compensation expenses
            498
                      398
         
Amortization of intangible assets related to acquisition transactions
            51
                      50
         
Impairment of held for sale asset
            279
                      -
         
Other
           
51
                     
-
         
             
879
                     
448
         
                                                 
Income tax effect on adjustments
            (42
)
                    -
         
                                                 
Non-GAAP net income
         
$
3,031
                   
$
579
         

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021. For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A filed with the U.S. Securities and Exchange Commission on September 14, 2022.

7

GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)



   
Nine months ended
   
Nine months ended
 
   
September 30, 2022
   
September 30, 2021
 
   
GAAP
   
Adjustments (*)
   
Non-GAAP
   
GAAP
   
Adjustments (*)
   
Non-GAAP
 
                     
As Restated (1)
         
As Restated (1)
 
   
Unaudited
   
Unaudited
 
                                     
Gross profit
 
$
59,192
     
230
   
$
59,422
   
$
46,571
     
226
   
$
46,797
 
Operating expenses
   
55,309
     
(2,394
)
   
52,915
     
49,753
     
(735
)
   
49,018
 
Operating income (loss)
   
3,883
     
2,624
     
6,507
     
(3,182
)
   
961
     
(2,221
)
Income (loss) before taxes on income
    1,167
      2,624
     
3,791
     
(4,640
)
   
961
     
(3,679
)
Net income (loss)
   
92
     
2,582
     
2,674
     
(5,163
)
   
961
     
(4,202
)
                                                 
Earning (loss) per share (basic and diluted)
  $ 0.00     $ 0.05    
$
0.05
   
$
(0.09
)  
$
0.02
   
$
(0.07
)
                                                 
Weighted average number of shares used in
                                 
computing earning (loss) per share
                                 
     Basic
   
56,585,858
             
56,585,858
     
56,355,020
             
56,355,020
 
     Diluted
   
56,604,854
             
56,659,298
     
56,355,020
             
56,355,020
 

 
(*) Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to acquisition transactions, impairment of held for sale asset, other expenses and income tax effect on adjustments which is calculated using the blended effective tax rate on the adjustments, based on the statutory tax rates applicable to the adjustments.

                         
         
Nine months ended
               
Nine months ended
       
         
September 30, 2022
               
September 30, 2021
       
                           
As Restated (1)
       
         
Unaudited
               
Unaudited
       
                                     
GAAP net income (loss)
   
   
$
92
     
     
   
$
(5,163
)
   
 
                                                 
Gross profit
                                               
Non-cash stock-based compensation expenses
            220
                     
211
         
Amortization of intangible assets related to acquisition transactions
            10
                      15
         
             
230
                     
226
         
Operating expenses
                                               
Non-cash stock-based compensation expenses
            1,413
                     
584
         
Amortization of intangible assets related to acquisition transactions
            152
                     
151
         
Impairment of held for sale asset
           
718
                     
-
         
Other
           
111
                     
-
         
             
2,394
                     
735
         
                                                 
Income tax effect on adjustments
     
(42
)
                   
-
         
                                                 
Non-GAAP net income (loss)
         
$
2,674
                   
$
(4,202
)
       

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021. For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A filed with the U.S. Securities and Exchange Commission on September 14, 2022.

8

GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands

ADJUSTED EBITDA:

   
Nine months ended
   
Three months ended
 
   
September 30,
   
September 30,
 
   
2022
   
2021
   
2022
   
2021
 
         
As Restated (1)
         
As Restated (1)
 
   
Unaudited
   
Unaudited
 
                         
GAAP net income (loss)
 
$
92
   
$
(5,163
)
 
$
2,120
   
$
35
 
Adjustments:
                               
Financial expenses, net
   
2,716
     
1,458
     
1,053
     
701
 
Taxes on income
   
1,075
     
523
     
243
     
49
 
Non-cash stock-based compensation expenses
   
1,633
     
795
     
572
     
489
 
Impairment of held for sale asset
   
718
     
-
     
279
     
-
 
Other
   
111
     
-
     
51
     
-
 
Depreciation and amortization (*)
   
8,770
     
7,365
     
2,978
     
2,608
 
                                 
Adjusted EBITDA
 
$
15,115
   
$
4,978
   
$
7,296
   
$
3,882
 

(*) Including amortization of lease incentive

SEGMENT REVENUES:

   
Nine months ended
   
Three months ended
 
   
September 30,
   
September 30,
 
   
2022
   
2021
   
2022
   
2021
 
         
As Restated (1)
         
As Restated (1)
 
   
Unaudited
   
Unaudited
 
                         
Satellite Networks
 
$
83,993
   
$
83,157
   
$
32,366
   
$
23,182
 
Integrated Solutions
   
45,047
     
33,540
     
15,650
     
14,704
 
Network Infrastructure and Services
   
38,173
     
31,250
     
12,334
     
11,892
 
                                 
Total revenues
 
$
167,213
   
$
147,947
   
$
60,350
   
$
49,778
 

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021. For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A filed with the U.S. Securities and Exchange Commission on September 14, 2022.

9

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

   
September 30,
   
December 31,
 
   
2022
   
2021
 
   
Unaudited
   
Audited
 
             
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
68,439
   
$
81,859
 
Short-term deposits
   
-
     
2,159
 
Restricted cash
   
1,425
     
2,592
 
Trade receivables, net
   
51,677
     
39,161
 
Contract assets
   
29,688
     
26,008
 
Inventories
   
33,925
     
28,432
 
Other current assets
   
24,808
     
14,607
 
Held for sale asset
   
3,997
     
4,587
 
                 
   Total current assets
   
213,959
     
199,405
 
                 
LONG-TERM ASSETS:
               
Restricted cash
   
12
     
12
 
Long- term contract assets
   
11,149
     
12,539
 
Severance pay funds
   
5,884
     
6,795
 
Deferred taxes
   
15,816
     
17,551
 
Operating lease right-of-use assets
   
3,857
     
4,478
 
Other long term assets
   
10,654
     
10,456
 
                 
Total long-term assets
   
47,372
     
51,831
 
                 
PROPERTY AND EQUIPMENT, NET
   
73,312
     
72,391
 
                 
INTANGIBLE ASSETS, NET
   
364
     
640
 
                 
GOODWILL
   
43,468
     
43,468
 
                 
TOTAL ASSETS
 
$
378,475
   
$
367,735
 

10

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands

   
September 30,
   
December 31,
 
   
2022
   
2021
 
   
Unaudited
   
Audited
 
             
LIABILITIES AND SHAREHOLDERS' EQUITY
           
             
CURRENT LIABILITIES:
           
Trade payables
 
$
24,880
   
$
19,776
 
Accrued expenses
   
46,207
     
49,202
 
Advances from customers and deferred revenues
   
31,192
     
24,373
 
Operating lease liabilities
   
1,813
     
1,818
 
Other current liabilities
   
15,430
     
13,339
 
 
               
   Total current liabilities
   
119,522
     
108,508
 
                 
LONG-TERM LIABILITIES:
               
Accrued severance pay
   
6,473
     
7,292
 
Long-term advances from customers
   
1,838
     
1,209
 
Operating lease liabilities
   
1,945
     
2,283
 
Other long-term liabilities
   
127
     
120
 
                 
   Total long-term liabilities
   
10,383
     
10,904
 
                 
SHAREHOLDERS' EQUITY:
               
Share capital - ordinary shares of NIS 0.2 par value
   
2,711
     
2,706
 
Additional paid-in capital
   
931,500
     
929,871
 
Accumulated other comprehensive loss
   
(7,836
)
   
(6,357
)
Accumulated deficit
   
(677,805
)
   
(677,897
)
                 
Total shareholders' equity
   
248,570
     
248,323
 
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
378,475
   
$
367,735
 

11

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

   
Nine months ended
   
Three months ended
 
   
September 30,
   
September 30,
 
   
2022
   
2021
   
2022
   
2021
 
         
As Restated (1)
         
As Restated (1)
 
   
Unaudited
   
Unaudited
 
Cash flows from operating activities:
                       
Net income (loss)
 
$
92
   
$
(5,163
)
 
$
2,120
   
$
35
 
Adjustments required to reconcile net income (loss)
                               
 to net cash provided by (used in) operating activities:
                               
Depreciation and amortization
   
8,604
     
7,202
     
2,921
     
2,556
 
Impairment of held for sale asset
   
718
     
-
     
279
     
-
 
Stock-based compensation of options
   
1,633
     
795
     
572
     
489
 
Accrued severance pay, net
   
92
     
(177
)
   
(22
)
   
(49
)
Deferred taxes, net
   
1,823
     
(47
)
   
159
     
(232
)
Decrease (increase) in trade receivables, net
   
(12,270
)
   
(2,490
)
   
(387
)
   
4,867
 
Decrease (increase) in contract assets
   
(2,290
)
   
21,334
     
318
     
(313
)
Increase in other assets (including short-term, long-term
                               
   and deferred charges)
   
(8,652
)
   
(5,485
)
   
(889
)
   
(1,476
)
Increase in inventories
   
(6,030
)
   
(347
)
   
(1,955
)
   
(2,121
)
Increase (decrease) in trade payables
   
4,315
     
(2,719
)
   
110
     
(1,929
)
Decrease in accrued expenses
   
(1,767
)
   
(2,344
)
   
(77
)
   
(542
)
Increase in advance from customers and deferred revenue
   
7,397
     
4,473
     
387
     
4,811
 
Increase (decrease) in other liabilities
   
365
     
(1,301
)
   
1,175
     
(1,107
)
Net cash provided by (used in) operating activities
   
(5,970
)
   
13,731
     
4,711
     
4,989
 
                                 
Cash flows from investing activities:
                               
Purchase of property and equipment
   
(9,225
)
   
(5,024
)
   
(4,710
)
   
(1,452
)
Repayment of short term deposits
   
2,159
     
-
     
-
     
2,159
 
Investment in financial instrument
   
(1,536
)
   
-
     
(1,536
)
   
-
 
Net cash provided by (used in) investing activities
   
(8,602
)
   
(5,024
)
   
(6,246
)
   
707
 
                                 
Cash flows from financing activities:
                               
Dividend payment
   
-
     
(35,003
)
   
-
     
-
 
Repayment of long-term loan
   
-
     
(4,000
)
   
-
     
-
 
Net cash used in financing activities
   
-
     
(39,003
)
   
-
     
-
 
                                 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
   
(15
)
   
(252
)
   
(47
)
   
(91
)
                                 
Increase (decrease) in cash, cash equivalents and restricted cash
   
(14,587
)
   
(30,548
)
   
(1,582
)
   
5,605
 
                                 
Cash, cash equivalents and restricted cash at the beginning of the period
   
84,463
     
115,958
     
71,458
     
79,805
 
                                 
Cash, cash equivalents and restricted cash at the end of the period
 
$
69,876
   
$
85,410
   
$
69,876
   
$
85,410
 

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and nine months ended September 30, 2021. For additional information, see Note 2 and Note 17 to the audited consolidated financial statements included in Part III, Item 18 of our 2021 Form 20-F/A filed with the U.S. Securities and Exchange Commission on September 14, 2022.

12