08/09/2022 | Press release | Distributed by Public on 08/09/2022 05:52
• |
Revenues of $55.5 million,up 1.2% compared with Q2 of last year;
|
• |
GAAP operating income of $1.5 million versus operating loss of $0.4 million in Q2 last year;
|
• |
Non-GAAP operating income of $2.4 million versus Non-GAAP operating income of $0.1 million in Q2 last year;
|
• |
GAAP net income of $0.5 million versus loss of $0.2 million in Q2 last year;
|
• |
Non-GAAP net income of $1.4 million versus Non-GAAP income of $0.3 million in Q2 last year;
|
• |
Adjusted EBITDA of $5.3 million versus Adjusted EBITDA of $2.4 million in Q2 last year;
|
• |
Reiterates and on-track with 2022 financial guidance;
|
o |
Internet Para Todos Expands Services Contract with Gilat
|
o |
Gilat Signs Agreement to Enable a Central Asian Government to Provide Digital Services over Satellite
|
o |
Gilat and Intelsat Expand Their Strategic In-Flight Connectivity Partnership in Japan
|
o |
Tier-1 MNO Awards Multimillion-Dollar Order to Gilat for 4G Cellular Backhaul Network Expansion in Latin America
|
o |
Gilat Awarded Order of Over $7M from Tier-1 Mobile Network Carrier in APAC for 4G Cellular Backhaul Network Expansion
|
o |
Gilat Awarded Follow-On Orders to Expand Defense Force SATCOM Network in an Asian Nation
|
o |
Gilat Receives Over $8 Million Follow-On Order for Support of Low Earth Orbit Constellation
|
Date:
|
Tuesday, August 9, 2022
|
Start:
|
09:30 AM EDT / 16:30 IDT
|
Dial-in:
|
US: 1-866-744-5399
|
International: +972-3-918-0609
|
GILAT SATELLITE NETWORKS LTD.
|
||||||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
||||||||
U.S. dollars in thousands (except share and per share data)
|
Six months ended
|
Three months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
As Restated (1)
|
As Restated (1)
|
|||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Revenues
|
$
|
106,863
|
$
|
98,169
|
$
|
55,454
|
$
|
54,798
|
||||||||
Cost of revenues
|
70,706
|
69,070
|
35,685
|
38,179
|
||||||||||||
Gross profit
|
36,157
|
29,099
|
19,769
|
16,619
|
||||||||||||
Research and development expenses, net
|
16,386
|
15,660
|
8,718
|
7,733
|
||||||||||||
Selling and marketing expenses
|
10,310
|
10,468
|
4,960
|
5,464
|
||||||||||||
General and administrative expenses
|
8,555
|
6,938
|
4,371
|
3,855
|
||||||||||||
Impairment of held for sale asset
|
439
|
-
|
229
|
-
|
||||||||||||
Total operating expenses
|
35,690
|
33,066
|
18,278
|
17,052
|
||||||||||||
Operating income (loss)
|
467
|
(3,967
|
)
|
1,491
|
(433
|
)
|
||||||||||
Financial income (expenses), net
|
(1,663
|
)
|
(757
|
)
|
(468
|
)
|
435
|
|||||||||
Income (loss) before taxes on income
|
(1,196
|
)
|
(4,724
|
)
|
1,023
|
2
|
||||||||||
Taxes on income
|
832
|
474
|
517
|
227
|
||||||||||||
Net income (loss)
|
$
|
(2,028
|
)
|
$
|
(5,198
|
)
|
$
|
506
|
$
|
(225
|
)
|
|||||
Earnings (loss) per share (basic and diluted)
|
$
|
(0.04
|
)
|
$
|
(0.09
|
)
|
$
|
0.01
|
$
|
(0.00
|
)
|
|||||
Weighted average number of shares used in
|
||||||||||||||||
computing earning (loss) per share
|
||||||||||||||||
Basic
|
56,574,296
|
56,269,941
|
56,597,523
|
56,508,539
|
||||||||||||
Diluted
|
56,574,296
|
56,269,941
|
56,637,208
|
56,508,539
|
(1)
|
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.
|
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
|
|||||||||||||||||||||||
June 30, 2022
|
June 30, 2021
|
|||||||||||||||||||||||
GAAP
|
Adjustments (*)
|
Non-GAAP
|
GAAP
|
Adjustments (*)
|
Non-GAAP
|
|||||||||||||||||||
As Restated (1)
|
As Restated (1)
|
|||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
19,769
|
81
|
$
|
19,850
|
$
|
16,619
|
64
|
$
|
16,683
|
||||||||||||||
Operating expenses
|
18,278
|
(832
|
)
|
17,446
|
17,052
|
(456
|
)
|
16,596
|
||||||||||||||||
Operating income (loss)
|
1,491
|
913
|
2,404
|
(433
|
)
|
520
|
87
|
|||||||||||||||||
Income before taxes on income
|
1,023
|
913
|
1,936
|
2
|
520
|
522
|
||||||||||||||||||
Net income (loss)
|
$
|
506
|
913
|
$
|
1,419
|
$
|
(225
|
)
|
520
|
$
|
295
|
|||||||||||||
Earnings (loss) per share (basic and diluted)
|
$
|
0.01
|
$
|
0.02
|
$
|
0.03
|
$
|
(0.00
|
)
|
$
|
0.01
|
$
|
0.01
|
|||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earning (loss) per share
|
||||||||||||||||||||||||
Basic
|
56,597,523
|
56,597,523
|
56,508,539
|
56,508,539
|
||||||||||||||||||||
Diluted
|
56,637,208
|
56,773,970
|
56,508,539
|
57,328,088
|
(*)
|
Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions and impairment of held for sale asset.
|
Three months ended
|
Three months ended
|
|||||||||||||||||||||||
|
June 30, 2022
|
June 30, 2021
|
||||||||||||||||||||||
As Restated (1)
|
||||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
GAAP net income (loss)
|
$
|
506
|
$
|
(225
|
)
|
|||||||||||||||||||
Gross profit
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
75
|
59
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
55
|
5
|
||||||||||||||||||||||
130
|
64
|
|||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
494
|
406
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
60 |
50
|
||||||||||||||||||||||
Impairment of held for sale asset
|
229
|
-
|
||||||||||||||||||||||
783
|
456
|
|||||||||||||||||||||||
Non-GAAP net income
|
$
|
1,419
|
$
|
295
|
(1)
|
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.
|
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)
|
Six months ended
|
Six months ended
|
|||||||||||||||||||||||
June 30, 2022
|
June 30, 2021
|
|||||||||||||||||||||||
GAAP
|
Adjustments (*)
|
Non-GAAP
|
GAAP
|
Adjustments (*)
|
Non-GAAP
|
|||||||||||||||||||
As Restated (1)
|
As Restated (1)
|
|||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
36,157
|
156
|
$
|
36,313
|
$
|
29,099
|
130
|
$
|
29,229
|
||||||||||||||
Operating expenses
|
35,690
|
(1,515
|
)
|
34,175
|
33,066
|
(287
|
)
|
32,779
|
||||||||||||||||
Operating income (loss)
|
467
|
1,671
|
2,138
|
(3,967
|
)
|
417
|
(3,550
|
)
|
||||||||||||||||
Income (loss) before taxes on income
|
(1,196
|
)
|
1,671
|
475
|
(4,724
|
)
|
417
|
(4,307
|
)
|
|||||||||||||||
Net loss
|
(2,028
|
)
|
1,671
|
(357
|
)
|
(5,198
|
)
|
417
|
(4,781
|
)
|
||||||||||||||
Loss per share (basic and diluted)
|
$
|
(0.04
|
)
|
$
|
0.03
|
$
|
(0.01
|
)
|
$
|
(0.09
|
)
|
$
|
0.01
|
$
|
(0.08
|
)
|
||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing loss per share
|
||||||||||||||||||||||||
Basic
|
56,574,296
|
56,574,296
|
56,269,941
|
56,269,941
|
||||||||||||||||||||
Diluted
|
56,574,296
|
56,574,296
|
56,269,941
|
56,269,941
|
(*)
|
Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions and impairment of held for sale asset.
|
Six months ended
|
Six months ended
|
|||||||||||||||||||||||
|
June 30, 2022
|
|
June 30, 2021
|
|||||||||||||||||||||
As Restated (1)
|
||||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
GAAP net loss
|
$
|
(2,028
|
)
|
$
|
(5,198
|
)
|
||||||||||||||||||
Gross profit
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
145
|
120
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
60
|
10
|
||||||||||||||||||||||
205
|
130
|
|||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
916
|
186
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
111
|
101
|
||||||||||||||||||||||
Impairment of held for sale asset
|
439
|
-
|
||||||||||||||||||||||
1,466
|
287
|
|||||||||||||||||||||||
Non-GAAP net loss
|
$
|
(357
|
)
|
$
|
(4,781
|
)
|
(1)
|
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.
|
GILAT SATELLITE NETWORKS LTD.
|
|||||||||||
SUPPLEMENTAL INFORMATION
|
|||||||||||
U.S. dollars in thousands
|
|||||||||||
ADJUSTED EBITDA:
|
Six months ended
|
Three months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
As Restated (1)
|
As Restated (1)
|
|||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
GAAP net income (loss)
|
$
|
(2,028
|
)
|
$
|
(5,198
|
)
|
$
|
506
|
$
|
(225
|
)
|
|||||
Adjustments:
|
||||||||||||||||
Financial expenses (income), net
|
1,663
|
757
|
468
|
(435
|
)
|
|||||||||||
Taxes on income
|
832
|
474
|
517
|
227
|
||||||||||||
Non-cash stock-based compensation expenses
|
1,061
|
306
|
569
|
465
|
||||||||||||
Impairment of held for sale asset
|
439
|
-
|
229
|
-
|
||||||||||||
Other
|
60
|
-
|
60
|
-
|
||||||||||||
Depreciation and amortization (*)
|
5,792
|
4,758
|
2,941
|
2,373
|
||||||||||||
Adjusted EBITDA
|
$
|
7,819
|
$
|
1,097
|
$
|
5,290
|
$
|
2,405
|
SEGMENT REVENUE:
|
Six months ended
|
Three months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
As Restated (1)
|
As Restated (1)
|
|||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Satellite Networks
|
$
|
51,627
|
$
|
59,975
|
$
|
26,857
|
$
|
34,351
|
||||||||
Integrated Solutions
|
29,397
|
18,836
|
15,691
|
12,127
|
||||||||||||
Network Infrastructure and Services
|
25,839
|
19,358
|
12,906
|
8,320
|
||||||||||||
Total revenues
|
$
|
106,863
|
$
|
98,169
|
$
|
55,454
|
$
|
54,798
|
(1)
|
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.
|
GILAT SATELLITE NETWORKS LTD.
|
||||
CONSOLIDATED BALANCE SHEETS
|
||||
U.S. dollars in thousands
|
June 30,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
70,133
|
$
|
81,859
|
||||
Short-term deposits
|
-
|
2,159
|
||||||
Restricted cash
|
1,313
|
2,592
|
||||||
Trade receivables, net
|
51,303
|
39,161
|
||||||
Contract assets
|
29,310
|
26,008
|
||||||
Inventories
|
32,156
|
28,432
|
||||||
Other current assets
|
22,458
|
14,607
|
||||||
Held for sale asset
|
4,276
|
4,587
|
||||||
Total current assets
|
210,949
|
199,405
|
||||||
LONG-TERM ASSETS:
|
||||||||
Restricted cash
|
12
|
12
|
||||||
Long- term contract assets
|
11,845
|
12,539
|
||||||
Severance pay funds
|
5,937
|
6,795
|
||||||
Deferred taxes
|
15,885
|
17,551
|
||||||
Operating lease right-of-use assets
|
3,845
|
4,478
|
||||||
Other long term assets
|
11,225
|
10,456
|
||||||
Total long-term assets
|
48,749
|
51,831
|
||||||
PROPERTY AND EQUIPMENT, NET
|
72,410
|
72,391
|
||||||
INTANGIBLE ASSETS, NET
|
419
|
640
|
||||||
GOODWILL
|
43,468
|
43,468
|
||||||
TOTAL ASSETS
|
$
|
375,995
|
$
|
367,735
|
GILAT SATELLITE NETWORKS LTD.
|
||||
CONSOLIDATED BALANCE SHEETS (Cont.)
|
||||
U.S. dollars in thousands
|
June 30,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
Unaudited
|
Audited
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
24,010
|
$
|
19,776
|
||||
Accrued expenses
|
47,654
|
49,202
|
||||||
Advances from customers and deferred revenues
|
31,932
|
24,373
|
||||||
Operating lease liabilities
|
1,747
|
1,818
|
||||||
Other current liabilities
|
15,458
|
13,339
|
||||||
Total current liabilities
|
120,801
|
108,508
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay
|
6,548
|
7,292
|
||||||
Long-term advances from customers
|
722
|
1,209
|
||||||
Operating lease liabilities
|
2,056
|
2,283
|
||||||
Other long-term liabilities
|
132
|
120
|
||||||
Total long-term liabilities
|
9,458
|
10,904
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital - ordinary shares of NIS 0.2 par value
|
2,711
|
2,706
|
||||||
Additional paid-in capital
|
930,927
|
929,871
|
||||||
Accumulated other comprehensive loss
|
(7,977
|
)
|
(6,357
|
)
|
||||
Accumulated deficit
|
(679,925
|
)
|
(677,897
|
)
|
||||
Total shareholders' equity
|
245,736
|
248,323
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
375,995
|
$
|
367,735
|
GILAT SATELLITE NETWORKS LTD.
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
U.S. dollars in thousands
|
Six months ended
|
Three months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
As Restated (1)
|
As Restated (1)
|
|||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income (loss)
|
$
|
(2,028
|
)
|
$
|
(5,198
|
)
|
$
|
506
|
$
|
(225
|
)
|
|||||
Adjustments required to reconcile net loss
|
||||||||||||||||
to net cash provided by (used in) operating activities:
|
||||||||||||||||
Depreciation and amortization
|
5,683
|
4,646
|
2,887
|
2,316
|
||||||||||||
Impairment of held for sale asset
|
439
|
-
|
229
|
-
|
||||||||||||
Stock-based compensation of options
|
1,061
|
306
|
569
|
465
|
||||||||||||
Accrued severance pay, net
|
114
|
(128
|
)
|
177
|
(118
|
)
|
||||||||||
Deferred taxes, net
|
1,664
|
185
|
1,358
|
(333
|
)
|
|||||||||||
Increase in trade receivables, net
|
(11,883
|
)
|
(7,357
|
)
|
(5,471
|
)
|
(5,424
|
)
|
||||||||
Decrease (increase) in contract assets
|
(2,608
|
)
|
21,647
|
(599
|
)
|
24,826
|
||||||||||
Increase in other assets (including short-term, long-term
|
||||||||||||||||
and deferred charges)
|
(7,763
|
)
|
(4,009
|
)
|
(4,047
|
)
|
(3,789
|
)
|
||||||||
Decrease (increase) in inventories
|
(4,075
|
)
|
1,774
|
(1,731
|
)
|
3,986
|
||||||||||
Increase (decrease) in trade payables
|
4,205
|
(790
|
)
|
2,533
|
(1,740
|
)
|
||||||||||
Decrease in accrued expenses
|
(1,690
|
)
|
(1,802
|
)
|
(2,442
|
)
|
(1,304
|
)
|
||||||||
Increase (decrease) in advance from customers and deferred revenue
|
7,010
|
(338
|
)
|
4,700
|
(8,062
|
)
|
||||||||||
Decrease in other liabilities
|
(810
|
)
|
(194
|
)
|
(1,975
|
)
|
(2,197
|
)
|
||||||||
Net cash provided by (used in) operating activities
|
(10,681
|
)
|
8,742
|
(3,306
|
)
|
8,401
|
||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchase of property and equipment
|
(4,515
|
)
|
(3,572
|
)
|
(2,314
|
)
|
(2,089
|
)
|
||||||||
Repayment of (investment in) short term deposits
|
2,159
|
(2,159
|
)
|
2,159
|
(2,159
|
)
|
||||||||||
Net cash used in investing activities
|
(2,356
|
)
|
(5,731
|
)
|
(155
|
)
|
(4,248
|
)
|
||||||||
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
|
32
|
(161
|
)
|
(221
|
)
|
93
|
||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(13,005
|
)
|
(36,153
|
)
|
(3,682
|
)
|
4,246
|
|||||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
84,463
|
115,958
|
75,140
|
75,559
|
||||||||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
71,458
|
$
|
79,805
|
$
|
71,458
|
$
|
79,805
|
(1)
|
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and Notes 2 and 13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.
|