Gilat Satellite Networks Ltd.
|
||
(Registrant)
|
||
Dated November 7, 2023
|
By: /s/ Doron Kerbel
|
|
Doron Kerbel
General Counsel & Company Secretary
|
• |
Revenues of $63.9 million, up 6% compared with $60.4 million in Q3 2022;
|
• |
GAAP operating income of $12.7 million compared with $3.4 million in Q3 2022;
|
• |
Non-GAAP operating income of $6.1 million, up 40% compared with $4.4 million in Q3 2022;
|
• |
GAAP net income of $10.2 million, or $0.18 per diluted share, compared with $2.1 million, or $0.04 per diluted share in Q3 2022; GAAP net income in Q3 2023 excluding
the one-time other income, net, mentioned above and its relevant tax effect, was $3.8 million, or $0.07 per diluted share;
|
• |
Non-GAAP net income of $4.6 million, or $0.08 per diluted share, up 51% compared with $3 million, or $0.06 per diluted share in Q3 2022;
|
• |
Adjusted EBITDA of $9.5 million, up 30% compared with $7.3 million in Q3 2022.
|
• |
Gilat Awarded Approximately $20 Million in Contract Renewal and Extension from Tier-1 MNO in the USA
|
• |
Gilat Awarded Contract for Satellite Network Modernization at Ethio Telecom
|
Date:
Start:
Dial-in:
|
Tuesday, November 7, 2023
09:30 AM EST / 16:30 IST
US: 1-888-407-2553
International: +972-3-918-0609
|
GILAT SATELLITE NETWORKS LTD.
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
U.S. dollars in thousands (except share and per share data)
|
|
Nine months ended
|
Three months ended
|
||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
Unaudited
|
Unaudited
|
||||||||||||||
|
||||||||||||||||
Revenues
|
$
|
190,478
|
$
|
167,213
|
$
|
63,927
|
$
|
60,350
|
||||||||
Cost of revenues
|
114,453
|
108,021
|
38,123
|
37,315
|
||||||||||||
|
||||||||||||||||
Gross profit
|
76,025
|
59,192
|
25,804
|
23,035
|
||||||||||||
|
||||||||||||||||
Research and development expenses, net
|
29,549
|
25,542
|
10,546
|
9,156
|
||||||||||||
Selling and marketing expenses
|
18,124
|
15,724
|
6,183
|
5,414
|
||||||||||||
General and administrative expenses
|
12,903
|
*) 13,214
|
|
3,748
|
*) 4,719
|
|
||||||||||
Impairment of held for sale asset
|
-
|
718
|
-
|
279
|
||||||||||||
Other operating expenses (income), net
|
(9,757
|
)
|
*) 111
|
|
(7,417
|
)
|
*) 51
|
|
||||||||
|
||||||||||||||||
Total operating expenses
|
50,819
|
55,309
|
13,060
|
19,619
|
||||||||||||
|
||||||||||||||||
Operating income
|
25,206
|
3,883
|
12,744
|
3,416
|
||||||||||||
|
||||||||||||||||
Financial expenses, net
|
1,087
|
2,716
|
352
|
1,053
|
||||||||||||
|
||||||||||||||||
Income before taxes on income
|
24,119
|
1,167
|
12,392
|
2,363
|
||||||||||||
|
||||||||||||||||
Taxes on income
|
4,062
|
1,075
|
2,240
|
243
|
||||||||||||
|
||||||||||||||||
Net income
|
$
|
20,057
|
$
|
92
|
$
|
10,152
|
$
|
2,120
|
||||||||
|
||||||||||||||||
Earnings per share (basic and diluted)
|
$
|
0.35
|
$
|
0.00
|
$
|
0.18
|
$
|
0.04
|
||||||||
|
||||||||||||||||
Weighted average number of shares used in
|
||||||||||||||||
computing earnings per share
|
||||||||||||||||
Basic
|
56,618,407
|
56,585,858
|
56,623,793
|
56,608,981
|
||||||||||||
Diluted
|
56,623,125
|
56,604,854
|
56,624,966
|
56,626,283
|
*) Reclassified
|
GILAT SATELLITE NETWORKS LTD.
|
||||||||||||
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||
FOR COMPARATIVE PURPOSES
|
||||||||||||
U.S. dollars in thousands (except share and per share data)
|
Three months ended
|
Three months ended
|
|||||||||||||||||||||||
September 30, 2023
|
September 30, 2022
|
|||||||||||||||||||||||
GAAP
|
Adjustments (*)
|
Non-GAAP
|
GAAP
|
Adjustments (*)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
25,804
|
$
|
108
|
$
|
25,912
|
$
|
23,035
|
$
|
74
|
$
|
23,109
|
||||||||||||
Operating expenses
|
13,060
|
6,753
|
19,813
|
19,619
|
(879
|
)
|
18,740
|
|||||||||||||||||
Operating income
|
12,744
|
(6,645
|
)
|
6,099
|
3,416
|
953
|
4,369
|
|||||||||||||||||
Income before taxes on income
|
12,392
|
(6,645
|
)
|
5,747
|
2,363
|
953
|
3,316
|
|||||||||||||||||
Net income
|
$
|
10,152
|
$
|
(5,568
|
)
|
$
|
4,584
|
$
|
2,120
|
$
|
911
|
$
|
3,031
|
|||||||||||
Earnings per share (basic and diluted)
|
$
|
0.18
|
$
|
(0.10
|
)
|
$
|
0.08
|
$
|
0.04
|
$
|
0.02
|
$
|
0.06
|
|||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earnings per share
|
||||||||||||||||||||||||
Basic
|
56,623,793
|
56,623,793
|
56,608,981
|
56,608,981
|
||||||||||||||||||||
Diluted
|
56,624,966
|
56,906,057
|
56,626,283
|
56,652,855
|
(*)
|
Adjustments reflect the effect of non-cash stock-based compensation expenses as per ASC 718, amortization of intangible assets related to acquisition transactions, impairment of held for sale asset, other
operating expenses (income), net and income tax effect on adjustments which is calculated using the relevant effective tax rate.
|
Three months ended
September 30, 2023
|
Three months ended
September 30, 2022
|
|||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
GAAP net income
|
$
|
10,152
|
$
|
2,120
|
||||||||||||||||||||
Gross profit
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
108
|
74
|
||||||||||||||||||||||
108
|
74
|
|||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
614
|
498
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
50
|
51
|
||||||||||||||||||||||
Impairment of held for sale asset
|
-
|
279
|
||||||||||||||||||||||
Other operating expenses (income), net
|
(7,417
|
)
|
51
|
|||||||||||||||||||||
(6,753
|
)
|
879
|
||||||||||||||||||||||
Income tax effect on adjustments
|
1,077
|
(42
|
)
|
|||||||||||||||||||||
Non-GAAP net income
|
$
|
4,584
|
$
|
3,031
|
GILAT SATELLITE NETWORKS LTD.
|
||||||||||||||
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||
FOR COMPARATIVE PURPOSES
|
||||||||||||||
U.S. dollars in thousands (except share and per share data)
|
Nine months ended
|
Nine months ended
|
|||||||||||||||||||||||
September 30, 2023
|
September 30, 2022
|
|||||||||||||||||||||||
GAAP
|
Adjustments (*)
|
Non-GAAP
|
GAAP
|
Adjustments (*)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
76,025
|
$
|
278
|
$
|
76,303
|
$
|
59,192
|
$
|
230
|
$
|
59,422
|
||||||||||||
Operating expenses
|
50,819
|
8,049
|
58,868
|
55,309
|
(2,394
|
)
|
52,915
|
|||||||||||||||||
Operating income
|
25,206
|
(7,771
|
)
|
17,435
|
3,883
|
2,624
|
6,507
|
|||||||||||||||||
Income before taxes on income
|
24,119
|
(7,771
|
)
|
16,348
|
1,167
|
2,624
|
3,791
|
|||||||||||||||||
Net income
|
$
|
20,057
|
$
|
(6,694
|
)
|
$
|
13,363
|
$
|
92
|
$
|
2,582
|
$
|
2,674
|
|||||||||||
Earnings per share (basic and diluted)
|
$
|
0.35
|
$
|
(0.11
|
)
|
$
|
0.24
|
$
|
0.00
|
$
|
0.05
|
$
|
0.05
|
|||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earnings per share
|
||||||||||||||||||||||||
Basic
|
56,618,407
|
56,618,407
|
56,585,858
|
56,585,858
|
||||||||||||||||||||
Diluted
|
56,623,125
|
56,716,822
|
56,604,854
|
56,659,298
|
(*)
|
Adjustments reflect the effect of non-cash stock-based compensation expenses as per ASC 718, amortization of intangible assets related to acquisition transactions, impairment of held for sale asset, other
operating expenses (income), net and income tax effect on adjustments which is calculated using the relevant effective tax rate.
|
Nine months ended
|
Nine months ended
|
|||||||||||||||||||||||
September 30, 2023
|
September 30, 2022
|
|||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
GAAP net income
|
$
|
20,057
|
$
|
92
|
||||||||||||||||||||
Gross profit
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
278
|
220
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
-
|
10
|
||||||||||||||||||||||
278
|
230
|
|||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
1,558
|
1,413
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
150
|
152
|
||||||||||||||||||||||
Impairment of held for sale asset
|
-
|
718
|
||||||||||||||||||||||
Other operating expenses (income), net
|
(9,757
|
)
|
111
|
|||||||||||||||||||||
(8,049
|
)
|
2,394
|
||||||||||||||||||||||
Income tax effect on adjustments
|
1,077
|
(42
|
)
|
|||||||||||||||||||||
Non-GAAP net income
|
$
|
13,363
|
$
|
2,674
|
GILAT SATELLITE NETWORKS LTD.
|
|||||||||||
SUPPLEMENTAL INFORMATION
|
|||||||||||
U.S. dollars in thousands
|
Nine months ended
|
Three months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
GAAP net income
|
$
|
20,057
|
$
|
92
|
$
|
10,152
|
$
|
2,120
|
||||||||
Adjustments:
|
||||||||||||||||
Financial expenses, net
|
1,087
|
2,716
|
352
|
1,053
|
||||||||||||
Taxes on income
|
4,062
|
1,075
|
2,240
|
243
|
||||||||||||
Non-cash stock-based compensation expenses
|
1,836
|
1,633
|
722
|
572
|
||||||||||||
Impairment of held for sale asset
|
-
|
718
|
-
|
279
|
||||||||||||
Other operating expenses (income), net
|
(9,757
|
)
|
111
|
(7,417
|
)
|
51
|
||||||||||
Depreciation and amortization (*)
|
9,765
|
8,770
|
3,430
|
2,978
|
||||||||||||
Adjusted EBITDA
|
$
|
27,050
|
$
|
15,115
|
$
|
9,479
|
$
|
7,296
|
(*) Including amortization of lease incentive
|
Nine months ended
|
Three months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Satellite Networks
|
$
|
115,010
|
$
|
83,993
|
$
|
40,737
|
$
|
32,366
|
||||||||
Integrated Solutions
|
36,630
|
45,047
|
11,011
|
15,650
|
||||||||||||
Network Infrastructure and Services
|
38,838
|
38,173
|
12,179
|
12,334
|
||||||||||||
Total revenues
|
$
|
190,478
|
$
|
167,213
|
$
|
63,927
|
$
|
60,350
|
GILAT SATELLITE NETWORKS LTD.
|
|||||
CONSOLIDATED BALANCE SHEETS
|
|||||
U.S. dollars in thousands
|
September 30,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
99,530
|
$
|
86,591
|
||||
Restricted cash
|
749
|
541
|
||||||
Trade receivables, net
|
46,966
|
50,644
|
||||||
Contract assets
|
20,522
|
24,971
|
||||||
Inventories
|
37,673
|
33,024
|
||||||
Other current assets
|
20,407
|
19,283
|
||||||
Total current assets
|
225,847
|
215,054
|
||||||
LONG-TERM ASSETS:
|
||||||||
Restricted cash
|
14
|
13
|
||||||
Long-term contract assets
|
9,283
|
11,149
|
||||||
Severance pay funds
|
5,407
|
5,947
|
||||||
Deferred taxes
|
14,500
|
18,265
|
||||||
Operating lease right-of-use assets
|
3,609
|
3,891
|
||||||
Other long-term assets
|
8,920
|
10,737
|
||||||
Total long-term assets
|
41,733
|
50,002
|
||||||
PROPERTY AND EQUIPMENT, NET
|
73,697
|
76,578
|
||||||
INTANGIBLE ASSETS, NET
|
165
|
309
|
||||||
GOODWILL
|
43,468
|
43,468
|
||||||
TOTAL ASSETS
|
$
|
384,910
|
$
|
385,411
|
GILAT SATELLITE NETWORKS LTD.
|
||||
CONSOLIDATED BALANCE SHEETS (Cont.)
|
||||
U.S. dollars in thousands
|
September 30,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Unaudited
|
Audited
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
13,884
|
$
|
20,668
|
||||
Accrued expenses
|
45,534
|
50,356
|
||||||
Advances from customers and deferred revenues
|
33,108
|
30,531
|
||||||
Operating lease liabilities
|
2,128
|
1,941
|
||||||
Other current liabilities
|
15,745
|
22,291
|
||||||
Total current liabilities
|
110,399
|
125,787
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay
|
6,195
|
6,580
|
||||||
Long-term advances from customers and deferred revenues
|
1,123
|
1,041
|
||||||
Operating lease liabilities
|
1,403
|
1,890
|
||||||
Other long-term liabilities
|
279
|
5,988
|
||||||
Total long-term liabilities
|
9,000
|
15,499
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital - ordinary shares of NIS 0.2 par value
|
2,712
|
2,711
|
||||||
Additional paid-in capital
|
933,921
|
932,086
|
||||||
Accumulated other comprehensive loss
|
(7,354
|
)
|
(6,847
|
)
|
||||
Accumulated deficit
|
(663,768
|
)
|
(683,825
|
)
|
||||
Total shareholders' equity
|
265,511
|
244,125
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
384,910
|
$
|
385,411
|
GILAT SATELLITE NETWORKS LTD.
|
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
U.S. dollars in thousands
|
Nine months ended
|
Three months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
$
|
20,057
|
$
|
92
|
$
|
10,152
|
$
|
2,120
|
||||||||
Adjustments required to reconcile net income
|
||||||||||||||||
to net cash provided by (used in) operating activities:
|
||||||||||||||||
Depreciation and amortization
|
9,597
|
8,604
|
3,375
|
2,921
|
||||||||||||
Capital gain from sale of property
|
(2,084
|
)
|
-
|
(2,084
|
)
|
-
|
||||||||||
Impairment of held for sale asset
|
-
|
718
|
-
|
279
|
||||||||||||
Stock-based compensation
|
1,836
|
1,633
|
722
|
572
|
||||||||||||
Accrued severance pay, net
|
155
|
92
|
(41
|
)
|
(22
|
)
|
||||||||||
Deferred taxes, net
|
3,865
|
1,823
|
2,045
|
159
|
||||||||||||
Decrease (increase) in trade receivables, net
|
3,887
|
(12,270
|
)
|
(5,511
|
)
|
(387
|
)
|
|||||||||
Decrease (increase) in contract assets
|
6,110
|
(2,290
|
)
|
(2,268
|
)
|
318
|
||||||||||
Decrease (increase) in other assets and other adjustments (including short-term, long-term
|
||||||||||||||||
and effect of exchange rate changes on cash and cash equivalents)
|
3,598
|
(8,652
|
)
|
3,355
|
(889
|
)
|
||||||||||
Decrease (increase) in inventories
|
(6,185
|
)
|
(6,030
|
)
|
1,710
|
(1,955
|
)
|
|||||||||
Increase (decrease) in trade payables
|
(5,321
|
)
|
4,315
|
(1,081
|
)
|
110
|
||||||||||
Increase (decrease) in accrued expenses
|
(2,782
|
)
|
(1,767
|
)
|
2,257
|
(77
|
)
|
|||||||||
Increase (decrease) in advance from customers and deferred revenues
|
2,646
|
7,397
|
(478
|
)
|
387
|
|||||||||||
Increase (decrease) in other liabilities
|
(13,392
|
)
|
365
|
1,617
|
1,175
|
|||||||||||
Net cash provided by (used in) operating activities
|
21,987
|
(5,970
|
)
|
13,770
|
4,711
|
|||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchase of property and equipment
|
(8,656
|
)
|
(9,225
|
)
|
(2,100
|
)
|
(4,710
|
)
|
||||||||
Proceeds from short term deposits
|
-
|
2,159
|
-
|
-
|
||||||||||||
Investment in financial instrument
|
-
|
(1,536
|
)
|
-
|
(1,536
|
)
|
||||||||||
Receipts from sale of property
|
2,168
|
-
|
2,168
|
-
|
||||||||||||
Net cash provided by (used in) investing activities
|
(6,488
|
)
|
(8,602
|
)
|
68
|
(6,246
|
)
|
|||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(2,351
|
)
|
(15
|
)
|
(1,341
|
)
|
(47
|
)
|
||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
13,148
|
(14,587
|
)
|
12,497
|
(1,582
|
)
|
||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
87,145
|
84,463
|
87,796
|
71,458
|
||||||||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
100,293
|
$
|
69,876
|
$
|
100,293
|
$
|
69,876
|