Gilat Satellite Networks Ltd.
|
|
(Registrant)
|
|
Dated February 26, 2024
|
By: /s/ Doron Kerbel
|
Doron Kerbel
|
|
General Counsel & Company Secretary
|
• |
Revenue of $75.6 million, up 4% compared with $72.6 million in Q4 2022;
|
• |
GAAP operating income of $2.9 million, compared with $6.1 million in Q4 2022;
|
• |
Non-GAAP operating income of $6.1 million, compared with $7.1 million in Q4 2022;
|
• |
GAAP net income of $3.4 million, or $0.06 per diluted share, compared with GAAP net loss of $6.0 million, or $0.11 loss per share, in Q4 2022;
|
• |
Non-GAAP net income of $6.5 million, or $0.11 per diluted share, compared with $7.9 million, or $0.14 per diluted share, in Q4 2022;
|
• |
Adjusted EBITDA of $9.4 million compared with $10.1 million in Q4 2022.
|
• |
Revenue of $266.1 million, up 11% compared with $239.8 million in 2022;
|
• |
GAAP operating income of $28.1 million, almost tripled compared to $10.0 million in 2022;
|
• |
Non-GAAP operating income of $23.5 million, up 73% compared with $13.6 million in 2022;
|
• |
GAAP net income of $23.5 million, or $0.41 per diluted share, compared with GAAP net loss of $5.9 million in 2022, or $0.10 loss per share;
|
• |
Non-GAAP net income of $19.9 million, or $0.35 per diluted share, almost doubled compared to non-GAAP net income of $10.6 million or $0.19 per diluted share in 2022;
|
• |
Adjusted EBITDA was $36.4 million, up 44% compared with adjusted EBITDA of $25.2 million in 2022.
|
• |
Gilat Awarded $10 Million Follow-On Order from the US Department of Defense
|
• |
Gilat Awarded Multimillion-Dollar Defense Satellite Connectivity Project
|
• |
Gilat Awarded $17 Million by Pronatel for Expansion of Regional Telecommunications Project in Peru
|
• |
Gilat Announces New Brand Identity Embracing the Company’s Commitment to the New Space Revolution
|
• |
Gilat Awarded Approximately $3M for a Satellite Connectivity Project for a National Police Force
|
• |
US Army Awards Nearly $20 Million Contract Extension to Gilat to Sustain Anytime, Anywhere Satellite Connectivity
|
• |
Gilat Completes Acquisition of DataPath, Inc.
|
Date:
|
Monday, February 26, 2024
|
Start:
|
09:30 AM EST / 16:30 IST
|
Dial-in:
|
US: 1-888-407-2553
|
|
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)
|
Twelve months ended
|
Three months ended | |||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
||||||||||||||
Revenues
|
$
|
266,090
|
$
|
239,840
|
$
|
75,612
|
$
|
72,627
|
||||||||
Cost of revenues
|
161,145
|
152,932
|
46,692
|
44,911
|
||||||||||||
Gross profit
|
104,945
|
86,908
|
28,920
|
27,716
|
||||||||||||
Research and development expenses, net
|
41,173
|
35,640
|
11,624
|
10,098
|
||||||||||||
Selling and marketing expenses
|
25,243
|
21,694
|
7,119
|
5,970
|
||||||||||||
General and administrative expenses
|
19,215
|
*) |
18,412
|
|
6,312
|
*) |
5,198
|
|
||||||||
Impairment of held for sale asset
|
-
|
771
|
-
|
53
|
||||||||||||
Other operating expenses (income), net
|
(8,771
|
)
|
*) | 438 |
|
986
|
*) |
327
|
|
|||||||
Total operating expenses
|
76,860
|
76,955
|
26,041
|
21,646
|
||||||||||||
Operating income
|
28,085
|
9,953
|
2,879
|
6,070
|
||||||||||||
Financial income (expenses), net
|
109
|
(2,818
|
)
|
1,196
|
(102
|
)
|
||||||||||
Income before taxes on income
|
28,194
|
7,135
|
4,075
|
5,968
|
||||||||||||
Taxes on income
|
4,690
|
13,063
|
628
|
11,988
|
||||||||||||
Net income (loss)
|
$
|
23,504
|
$
|
(5,928
|
)
|
$
|
3,447
|
$
|
(6,020
|
)
|
||||||
Earnings (losses) per share (basic and diluted)
|
$
|
0.41
|
$
|
(0.10
|
)
|
$ |
0.06
|
$
|
(0.11
|
)
|
||||||
Weighted average number of shares used in
|
||||||||||||||||
computing earnings (losses) per share
|
||||||||||||||||
Basic
|
56,668,999
|
56,591,994
|
56,820,774
|
56,610,404
|
||||||||||||
Diluted
|
56,672,537
|
56,591,994
|
56,820,774
|
56,610,404
|
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
|
|||||||||||||||||||||||
December 31, 2023
|
December 31, 2022
|
|||||||||||||||||||||||
GAAP
|
Adjustments (*)
|
Non-GAAP
|
GAAP
|
Adjustments (*)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
28,920
|
$
|
617
|
$
|
29,537
|
$
|
27,716
|
$
|
73
|
$
|
27,789
|
||||||||||||
Operating expenses
|
26,041
|
(2,615
|
)
|
23,426
|
21,646
|
(943
|
)
|
20,703
|
||||||||||||||||
Operating income
|
2,879
|
3,232
|
6,111
|
6,070
|
1,016
|
7,086
|
||||||||||||||||||
Income before taxes on income
|
4,075 |
3,232 |
7,307 |
5,968
|
1,016
|
6,984
|
||||||||||||||||||
Net income (loss)
|
$
|
3,447
|
$
|
3,097
|
$
|
6,544
|
$
|
(6,020
|
)
|
$
|
13,896
|
$
|
7,876
|
|||||||||||
Basic earnings (losses) per share
|
$ | 0.06 |
$ | 0.06 |
$ |
0.12 |
$
|
(0.11
|
)
|
$ | 0.25 |
$
|
0.14
|
|||||||||||
Diluted earnings (losses) per share
|
$ | 0.06 |
$ | 0.05 |
$ |
0.11 |
$ | (0.11 | ) |
$
|
0.25
|
$
|
0.14
|
|||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earnings (losses) per share
|
||||||||||||||||||||||||
Basic
|
56,820,774
|
56,820,774
|
56,610,404
|
56,610,404
|
||||||||||||||||||||
Diluted
|
56,820,774
|
56,987,939
|
56,610,404
|
56,623,366
|
(*) 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, one-time tax expense related to the release of historical tax-exempt earnings and income tax effect on adjustments which is calculated using the
relevant effective tax rate.
|
Three months ended
|
Three months ended
|
|||||||
December 31, 2023
|
December 31, 2022
|
|||||||
Unaudited
|
Unaudited
|
|||||||
GAAP net income (loss)
|
$
|
3,447
|
$
|
(6,020
|
)
|
|||
Gross profit
|
||||||||
Non-cash stock-based compensation expenses
|
129 |
73 |
||||||
Amortization of intangible assets related to acquisition transactions
|
448 |
- |
||||||
Others | 40 |
- |
||||||
617
|
73
|
|||||||
Operating expenses
|
||||||||
Non-cash stock-based compensation expenses
|
1,458 |
513 |
||||||
Amortization of intangible assets related to acquisition transactions
|
162 |
50
|
||||||
Impairment of held for sale asset
|
- |
53
|
||||||
Other operating expenses (income), net
|
986 |
327
|
||||||
Others
|
9
|
-
|
||||||
2,615
|
943
|
|||||||
|
||||||||
Taxes on income
|
(135 |
) |
12,880
|
|||||
Non-GAAP net income
|
$
|
6,544
|
$
|
7,876
|
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)
|
Twelve months ended
|
Twelve months ended
|
|||||||||||||||||||||||
December 31, 2023
|
December 31, 2022
|
|||||||||||||||||||||||
GAAP
|
Adjustments (*)
|
Non-GAAP
|
GAAP
|
Adjustments (*)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Audited
|
Unaudited
|
||||||||||||||||||||||
Gross profit
|
$
|
104,945
|
$
|
895
|
$
|
105,840
|
$
|
86,908
|
$
|
303
|
$
|
87,211
|
||||||||||||
Operating expenses
|
76,860
|
5,434
|
82,294
|
76,955
|
(3,337
|
)
|
73,618
|
|||||||||||||||||
Operating income
|
28,085
|
(4,539
|
)
|
23,546
|
9,953
|
3,640
|
13,593
|
|||||||||||||||||
Income before taxes on income
|
28,194 | (4,539 | ) | 23,655 |
7,135
|
3,640
|
10,775
|
|||||||||||||||||
Net income (loss)
|
$
|
23,504
|
$
|
(3,597
|
)
|
$
|
19,907
|
$
|
(5,928
|
)
|
$
|
16,478
|
$
|
10,550
|
||||||||||
Earnings (losses) per share (basic and diluted)
|
$ |
0.41 | $ |
(0.06
|
)
|
$
|
0.35
|
$
|
(0.10
|
)
|
$
|
0.29
|
$
|
0.19
|
||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earnings (losses) per share
|
||||||||||||||||||||||||
Basic
|
56,668,999
|
56,668,999
|
56,591,994
|
56,591,994
|
||||||||||||||||||||
Diluted
|
56,672,537
|
56,784,601
|
56,591,994
|
56,650,362
|
(*) 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, one-time tax expense related to the release of historical tax-exempt earnings and income tax effect on adjustments which is calculated using the relevant effective tax rate.
|
Twelve months ended
December 31, 2023
|
Twelve months ended
December 31, 2022
|
|||||||
Unaudited
|
Unaudited
|
|||||||
GAAP net income (loss)
|
$
|
23,504
|
$
|
(5,928
|
)
|
|||
Gross profit
|
||||||||
Non-cash stock-based compensation expenses
|
407 |
293 |
||||||
Amortization of intangible assets related to acquisition transactions
|
448 |
10 |
||||||
Others
|
40
|
-
|
||||||
895
|
303
|
|||||||
Operating expenses
|
||||||||
Non-cash stock-based compensation expenses
|
3,016 |
1,927
|
||||||
Amortization of intangible assets related to acquisition transactions
|
312 |
201
|
||||||
Impairment of held for sale asset
|
- |
771
|
||||||
Other operating expenses (income), net
|
(8,771 |
) |
438
|
|||||
Others | 9 |
- |
||||||
(5,434
|
) |
3,337
|
||||||
Taxes on income
|
942 |
12,838
|
||||||
Non-GAAP net income
|
$
|
19,907
|
$
|
10,550
|
GILAT SATELLITE NETWORKS LTD.
|
SUPPLEMENTAL INFORMATION
|
U.S. dollars in thousands
|
Twelve months ended
|
Three months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
GAAP net income (loss)
|
$
|
23,504
|
$
|
(5,928
|
)
|
$
|
3,447
|
$
|
(6,020
|
)
|
||||||
Adjustments:
|
||||||||||||||||
Financial expenses (income), net
|
(109
|
)
|
2,818
|
(1,196
|
)
|
102
|
||||||||||
Taxes on income
|
4,690
|
13,063
|
628
|
11,988
|
||||||||||||
Non-cash stock-based compensation expenses
|
3,423
|
2,220
|
1,587
|
586
|
||||||||||||
Impairment of held for sale asset
|
-
|
771
|
-
|
53
|
||||||||||||
Depreciation and amortization (*)
|
13,627
|
11,832
|
3,862
|
3,063
|
||||||||||||
Other operating expenses (income), net
|
(8,771
|
) |
438
|
986
|
327
|
|||||||||||
Others
|
49
|
-
|
49
|
-
|
||||||||||||
Adjusted EBITDA
|
$
|
36,413
|
$
|
25,214
|
$
|
9,363
|
$
|
10,099
|
Twelve months ended
|
Three months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
||||||||||||||
Satellite Networks
|
$
|
168,527
|
$
|
120,381
|
$
|
53,517
|
$
|
36,388
|
||||||||
Integrated Solutions
|
46,133
|
61,376
|
9,503
|
16,329
|
||||||||||||
Network Infrastructure and Services
|
51,430
|
58,083
|
12,592
|
19,910
|
||||||||||||
Total revenues
|
$
|
266,090
|
$
|
239,840
|
$
|
75,612
|
$
|
72,627
|
GILAT SATELLITE NETWORKS LTD.
|
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in thousands
|
December 31,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
103,961
|
$
|
86,591
|
||||
Restricted cash
|
736
|
541
|
||||||
Trade receivables, net
|
44,725
|
50,644
|
||||||
Contract assets
|
28,327
|
24,971
|
||||||
Inventories
|
38,525
|
33,024
|
||||||
Other current assets
|
24,299
|
19,283
|
||||||
Total current assets
|
240,573
|
215,054
|
||||||
LONG-TERM ASSETS:
|
||||||||
Restricted cash
|
54
|
13
|
||||||
Long-term contract assets
|
9,283
|
11,149
|
||||||
Severance pay funds
|
5,737
|
5,947
|
||||||
Deferred taxes
|
11,484
|
18,265
|
||||||
Operating lease right-of-use assets
|
5,105
|
3,891
|
||||||
Other long-term assets
|
9,544
|
10,737
|
||||||
Total long-term assets
|
41,207
|
|
50,002
|
|||||
PROPERTY AND EQUIPMENT, NET
|
74,315
|
76,578
|
||||||
INTANGIBLE ASSETS, NET
|
16,051
|
309
|
||||||
GOODWILL
|
54,740
|
43,468
|
||||||
TOTAL ASSETS
|
$
|
426,886
|
$
|
385,411
|
GILAT SATELLITE NETWORKS LTD.
|
CONSOLIDATED BALANCE SHEETS (Cont.)
|
U.S. dollars in thousands
|
December 31,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Unaudited
|
Audited
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term loan
|
$
|
7,453
|
$
|
-
|
||||
Trade payables
|
13,873
|
20,668
|
||||||
Accrued expenses
|
51,906
|
50,356
|
||||||
Advances from customers and deferred revenues
|
34,495
|
30,531
|
||||||
Operating lease liabilities
|
2,426
|
1,941
|
||||||
Other current liabilities
|
16,431
|
22,291
|
||||||
Total current liabilities
|
126,584
|
125,787
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term loan
|
2,000
|
-
|
||||||
Accrued severance pay
|
6,537
|
6,580
|
||||||
Long-term advances from customers and deferred revenues
|
1,139
|
1,041
|
||||||
Operating lease liabilities
|
3,022
|
1,890
|
||||||
Other long-term liabilities
|
12,916
|
5,988
|
||||||
|
||||||||
Total long-term liabilities
|
25,614
|
15,499
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital - ordinary shares of NIS 0.2 par value
|
2,733
|
2,711
|
||||||
Additional paid-in capital
|
937,591
|
932,086
|
||||||
Accumulated other comprehensive loss
|
(5,315
|
)
|
(6,847
|
)
|
||||
Accumulated deficit
|
(660,321
|
)
|
(683,825
|
)
|
||||
Total shareholders' equity
|
274,688
|
244,125
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
426,886
|
$
|
385,411
|
GILAT SATELLITE NETWORKS LTD.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
U.S. dollars in thousands
|
Twelve months ended
|
Three months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income (loss)
|
$
|
23,504
|
$
|
(5,928
|
)
|
$
|
3,447
|
$
|
(6,020
|
)
|
||||||
Adjustments required to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
13,402
|
11,608
|
3,805
|
3,004
|
||||||||||||
Capital gain from sale of property
|
(2,084
|
)
|
-
|
-
|
-
|
|||||||||||
Impairment of held for sale asset
|
-
|
771
|
-
|
53
|
||||||||||||
Stock-based compensation
|
3,423
|
2,220
|
1,587
|
586
|
||||||||||||
Accrued severance pay, net
|
167
|
136
|
12
|
44
|
||||||||||||
Deferred taxes, net
|
2,662
|
(627
|
)
|
(1,203
|
)
|
(2,450
|
)
|
|||||||||
Decrease (increase) in trade receivables, net
|
13,448
|
(11,162
|
)
|
9,561
|
1,108
|
|||||||||||
Decrease (increase) in contract assets
|
(1,694
|
)
|
2,481
|
(7,804
|
)
|
4,771
|
||||||||||
Decrease (increase) in other assets and other adjustments (including short-term, long-term
|
||||||||||||||||
and effect of exchange rate changes on cash and cash equivalents)
|
(351
|
)
|
(3,445
|
)
|
(3,949
|
)
|
5,208
|
|||||||||
Decrease (increase) in inventories
|
(2,387
|
)
|
(5,416
|
)
|
3,798
|
614
|
||||||||||
Decrease in trade payables
|
(7,635
|
)
|
(259
|
)
|
(2,314
|
)
|
(4,574
|
)
|
||||||||
Increase in accrued expenses
|
735
|
549
|
3,517
|
2,316
|
||||||||||||
Increase (decrease) in advance from customers and deferred revenues
|
803
|
5,929
|
(1,843
|
)
|
(1,468
|
)
|
||||||||||
Increase (decrease) in other liabilities
|
(12,049
|
)
|
13,957
|
1,343
|
13,592
|
|||||||||||
Net cash provided by operating activities
|
31,944
|
10,814
|
9,957
|
16,784
|
||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchase of property and equipment
|
(10,746
|
)
|
(12,793
|
)
|
(2,090
|
)
|
(3,568
|
)
|
||||||||
Proceeds from short-term deposits
|
-
|
2,159
|
-
|
-
|
||||||||||||
Investment in financial instrument
|
-
|
(1,536
|
)
|
-
|
-
|
|||||||||||
Acquisitions of subsidiary, net of cash acquired
|
(4,107
|
)
|
-
|
(4,107
|
)
|
-
|
||||||||||
Receipts from sales of properties
|
2,168
|
4,006
|
-
|
4,006
|
||||||||||||
Net cash provided by (used in) investing activities
|
(12,685
|
)
|
(8,164
|
)
|
(6,197
|
)
|
438
|
|||||||||
Cash flows from financing activities:
|
||||||||||||||||
Repayment of short-term loan
|
(1,590
|
)
|
-
|
(1,590
|
)
|
-
|
||||||||||
Net cash used in financing activities
|
(1,590
|
)
|
-
|
(1,590
|
)
|
-
|
||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(63
|
)
|
32
|
2,288
|
47
|
|||||||||||
Increase in cash, cash equivalents and restricted cash
|
17,606
|
2,682
|
4,458
|
17,269
|
||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
87,145
|
84,463
|
100,293
|
69,876
|
||||||||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
104,751
|
$
|
87,145
|
$
|
104,751
|
$
|
87,145
|