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Published: 2023-02-14 07:03:38 ET
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6-K 1 zk2329162.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 February, 2023

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 February 14, 2023, the Registrant issued a press release announcing its unaudited fourth quarter and full year 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.


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 February 14, 2023
By: /s/ Doron Kerbel
  
 
Doron Kerbel
  
 
General Counsel & Company Secretary
  

Page 2

Gilat Presents Strong Fourth Quarter and Full Year 2022 Results

Q4 revenue of $73 million, up 8% year over year, GAAP operating income
of $6 million and Adjusted EBITDA of $10 million

2022 revenue of $240 million, up 12% year over year, GAAP operating
income of $10 million and Adjusted EBITDA of $25 million, up 64% YoY
 
Mr. Isaac Angel, Chairman of the Board, announced his plans to step
down. Mr. Ami Boehm named as the new Chairman of the Board
 
Petah Tikva, Israel – February 14, 2023 – Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its unaudited results for the fourth quarter and full year ended December 31, 2022.
 
Fourth Quarter 2022 Financial Highlights
 
•
Revenues of $72.6 million, up 8% compared with $67.0 million in Q4 2021;
 
•
GAAP operating income of $6.1 million, up 13% compared with $5.4 million in Q4 2021;
•
Non-GAAP operating income of $7.1 million, up 8% compared with $6.6 million in Q4 2021;
•
GAAP net loss of $6.0 million, or $0.11 per share, compared with GAAP net income of $2.1 million, or $0.04 per diluted share, in Q4 2021;

o
GAAP net loss in Q4 2022 includes a one-time tax expense of $12.9 million that was recorded with respect to historical trapped earnings. The Company elected to take advantage of the temporary Israeli tax relief of 2022 and pay a reduced tax rate to allow certain distribution of dividends or acquisitions without additional corporate tax liability in the future;

o
Net income in Q4 2022 excluding this one-time tax expense was $6.9 million;
•
Non-GAAP net income of $7.9 million, or $0.14 per diluted share, compared with $5.6 million, or $0.1 per diluted share, in Q4 2021;
•
Adjusted EBITDA of $10.1 million compared with $10.4 million in Q4 2021.

Full year 2022 Financial Highlights
 
•
Revenue of $239.8 million, up 12% compared with $215.0 million in 2021;
 
•
GAAP operating income of $10.0 million, up 4.6x compared to $2.2 million in 2021;
 
•
Non-GAAP operating income of $13.6 million, up 3.1x compared with $4.4 million in 2021;
 
•
GAAP net loss of $5.9 million or $0.1 per share, compared with GAAP net loss of $3.0 million in 2021 or $0.05 per share; GAAP net income excluding the above-mentioned one-time tax expense of $12.9 million was $7.0 million;
 
•
Non-GAAP net income of $10.6 million or $0.19 per diluted share, up 7.3x compared to non-GAAP net income of $1.4 million or $0.03 per diluted share in 2021;
 
•
Adjusted EBITDA was $25.2 million, up 64% compared with adjusted EBITDA of $15.4 million in 2021.
 
Page 3

Forward-Looking Expectations
 
Management guidance for 2023 are for revenues of between $260 to $280 million, representing year-over-year growth of 13% at the midpoint, GAAP operating income of between $15 to $19 million, representing year-over-year growth of 70% at the midpoint, and Adjusted EBITDA of between $30 to $34 million, representing year-over-year growth of 27% at the mid-point.
 
Changes in Chairman of the Board Position
 
Mr. Isaac Angel, Chairman of the Board, announced his plans to step down from his chairman and directorship positions effective March 8, 2023. The Board has appointed Mr. Ami Boehm as the new Chairman of the Board.
 
Management Commentary
 
Adi Sfadia, Gilat's CEO, commented: "We are very pleased with our financial results for the fourth quarter, capping off a strong 2022. For both the quarter and the year, we achieved solid revenue growth, strong gross margins, and significant improvement in our profitability-  particularly in our operating income and adjusted EBITDA.
 
2022 marked key achievements in several strategic areas. We delivered SkyEdge IV, our leading ground segment for next generation satellite communication to over 20 gateways worldwide, enabling hundreds of Gbps of capacity and securing tens of millions of dollars’ worth of contract awards.
 
We had a record year in Mobility with Inflight Connectivity (IFC), bringing in orders valued at tens of millions of dollars, for both our ground segment platform, modems and our transceiver product line. In the Maritime sector, we secured a new win for SkyEdge IV to enable maritime applications and are making excellent progress with SES on the cruise premium maritime service with SkyEdge IV.
 
In Cellular Backhaul, we also had a record year with tens of millions of dollars in orders and in Defense, we made progress with important multi-million dollar wins and a growing pipeline."
 
Mr. Sfadia concluded, "In summary, we are very pleased with our performance over the past year. We look forward to further growth on our top and bottom lines in 2023 as the satellite communications sector strongly gains additional traction. Our pipeline continues to increase and broaden as we continue to see growing demand for our products and services among new as well as existing customers. As we move through 2023, we are increasingly optimistic and as our guidance demonstrates, we expect to maintain our strong momentum ahead.
 
After an intensive two-year period of helping to rebuild the company following the pandemic’s repercussions, Mr. Isaac Angel has decided to retire as Chairman of the Board, effective March 8, 2023, due to personal time constraints. I would like thank Mr. Angel for his great contribution over the past two years and to wish him success in the future.
 
The Board has appointed Mr. Ami Boehm as Chairman of the Board effective upon Mr. Angel's departure. On behalf of Gilat, I would like to welcome Mr. Boehm who has been an invaluable Board Member for the last 10 years and I am most pleased that we will now gain even more from his vast experience in directing Gilat to maximize the great potential that we see ahead."

Page 4

Key Recent Announcements

•
Gilat Awarded Multimillion-Dollar Contract for SATCOM Expansion on Trains in Asia-Pacific
•
Gilat and Intelsat Expand Their Strategic IFC Partnership with Multimillion-Dollar Agreements for the Americas
•
Comlabs Selects Gilat for US Government Critical Communications Requirements

Conference Call Details
Gilat’s management will discuss its fourth quarter and full year 2022 results and business achievements and participate in a question-and-answer session:

Date:             Tuesday February 14, 2023
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/gilatq4-2022

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

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 gross profit, operating expenses, operating income, income before taxes on income, net 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, if and when applicable, 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, one-time changes of deferred tax assets and one-time tax expense related to the release of historical tax-trapped earnings.
 
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 net income (loss) and adjusted EBITDA is presented in the attached summary financial statements.
 
Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net 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.

Page 5
 
About Gilat
 
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications.
 
With over 35 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

Gilat Satellite Networks
Mayrav Sher, Head of Finance and Investor Relations
MayravS@gilat.com

EK Global IR
Ehud Helft, Managing Partner
ehud@ekgir.com

Page 6

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,
  
   
2022
    
2021
    
2022
    
2021
  
                     
As Restated (1)
  
   
Unaudited
    
Audited
    
Unaudited
  
                         
Revenues
  
$
239,840
    
$
214,970
    
$
72,627
    
$
67,024
  
Cost of revenues
    
152,932
      
143,703
      
44,911
      
42,328
  
                                 
Gross profit
    
86,908
      
71,267
      
27,716
      
24,696
  
                                 
Research and development expenses, net
    
35,640
      
31,336
      
10,098
      
8,452
  
Selling and marketing expenses
    
21,694
      
21,512
      
5,970
      
5,685
  
General and administrative expenses
    
18,850
      
15,587
      
5,525
      
4,545
  
Impairment of held for sale asset
    
771
      
651
      
53
      
651
  
                                 
Total operating expenses
    
76,955
      
69,086
      
21,646
      
19,333
  
                                 
Operating income
    
9,953
      
2,181
      
6,070
      
5,363
  
                                 
Financial expenses, net
    
(2,818
)
    
(1,722
)
    
(102
)
    
(264
)
                                 
Income before taxes on income
    
7,135
      
459
      
5,968
      
5,099
  
                                 
Taxes on income
    
13,063
      
3,492
      
11,988
      
2,969
  
                                 
Net income (loss)
  
$
(5,928
)
  
$
(3,033
)
  
$
(6,020
)
  
$
2,130
  
                                 
Earnings (losses) per share (basic and diluted)
  
$
(0.10
)
  
$
(0.05
)
  
$
(0.11
)
  
$
0.04
  
                                 
Weighted average number of shares used in
                                
computing earnings (losses) per share
                                
Basic
    
56,591,994
      
56,401,074
      
56,610,404
      
56,539,237
  
Diluted
    
56,591,994
      
56,401,074
      
56,610,404
      
56,627,907
  

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three months ended December 31, 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.

Page 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)

   
Three months ended
    
Three months ended
  
   
December 31, 2022
    
December 31, 2021
  
   
GAAP
    
Adjustments (*)
    
Non-GAAP
    
GAAP
    
Adjustments (*)
    
Non-GAAP
  
                     
As Restated (1)
          
As Restated (1)
  
   
Unaudited
    
Unaudited
  
                                     
Gross profit
  
$
27,716
      
73
    
$
27,789
    
$
24,696
      
71
    
$
24,767
  
Operating expenses
    
21,646
      
(943
)
    
20,703
      
19,333
      
(1,147
)
    
18,186
  
Operating income
    
6,070
      
1,016
      
7,086
      
5,363
      
1,218
      
6,581
  
Income before taxes on income
    
5,968
      
1,016
      
6,984
      
5,099
      
1,218
      
6,317
  
Net income (loss)
  
$
(6,020
)
    
13,896
    
$
7,876
    
$
2,130
      
3,517
    
$
5,647
  
                                                 
Earnings (losses) per share (basic and diluted)
   $ (0.11 )     0.25
     $ 0.14     $ 0.04     $ 0.06     $ 0.10  
                                                 
Weighted average number of shares used in
                  
computing earnings (losses) per share
                          
    Basic
    
56,610,404
              
56,610,404
      
56,539,237
              
56,539,237
  
    Diluted
    
56,610,404
              
56,623,366
      
56,627,907
              
56,928,169
  

(*)
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 certain taxes on income adjustments (mainly one-time tax expense related to the release of historical tax-exempt earnings and one-time changes to deferred tax assets)

         
Three months ended
                
Three months ended
        
         
December 31, 2022
                
December 31, 2021
    
 
                           
As Restated (1)
    
 
         
Unaudited
      
     
   
Unaudited
    
 
                 
     
         
 
GAAP net income (loss)
    
   
$
(6,020
)
    
     
   
$
2,130
    

 
     
                                   

 
Gross profit
                                          

 
Non-cash stock-based compensation expenses
             73
                       66
          
Amortization of intangible assets related to acquisition transactions
             -
                       5
          
             
73
                      
71
    

 
Operating expenses
                                          

 
Non-cash stock-based compensation expenses
             513
                      
445
          
Amortization of intangible assets related to acquisition transactions
             50
                      
51
          
Impairment of held for sale asset
             53
                      
651
          
Other
            
327
                      
-
    

 
             
943
                      
1,147
    

 
                                           

 
Taxes on income
            
12,880
                      
2,299
    

 
                                           

 
Non-GAAP net income
          
$
7,876
                    
$
5,647
    

 

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three months ended December 31, 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.

Page 8
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, 2022
    
December 31, 2021
  
   
GAAP
    
Adjustments (*)
    
Non-GAAP
    
GAAP
    
Adjustments (*)
    
Non-GAAP
  
                                 
As Restated (1)
  
   
Unaudited
    
Audited
    
Unaudited
  
                                     
Gross profit
  
$
86,908
      
303
    
$
87,211
    
$
71,267
      
297
    
$
71,564
  
Operating expenses
    
76,955
      
(3,337
)
    
73,618
      
69,086
      
(1,882
)
    
67,204
  
Operating income
    
9,953
      
3,640
      
13,593
      
2,181
      
2,179
      
4,360
  
Income before taxes on income
  
7,135


3,640


10,775


459


2,179


2,638
  
Net income (loss)
    
(5,928
)
    
16,478
      
10,550
      
(3,033
)
    
4,478
      
1,445
  
                                                 
Earnings (losses) per share (basic and diluted)
  
$
 (0.10
 )
$
 0.29

$
0.19

$
(0.05
 )
$
0.08

$
0.03
  
                                                 
Weighted average number of shares used in
                          
computing earnings (losses) per share
                                  
     Basic
    
56,591,994
              
56,591,994
      
56,401,074
              
56,401,074
  
     Diluted
    
56,591,994
              
56,650,362
      
56,401,074
              
56,878,852
  

(*)
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 certain taxes on income adjustments (mainly one-time tax expense related to the release of historical tax-exempt earnings and one-time changes to deferred tax assets)

         
Twelve months ended
                
Twelve months ended
        
         
December 31, 2022
                
December 31, 2021
        
                           
As Restated (1)
        
     
   
Unaudited
      




   
Unaudited
        
     
           




           
 
GAAP net loss
    
   
$
(5,928
)
    




   
$
(3,033
)
    
 
     
             




             
 
Gross profit
                                            
 
Non-cash stock-based compensation expenses





293










277



 
Amortization of intangible assets related to acquisition transactions





10










20



 
             
303
                      
297
          
Operating expenses
                                                
Non-cash stock-based compensation expenses





1,927










1,027
          
Amortization of intangible assets related to acquisition transactions





201










204
          
Impairment of held for sale asset





771










651
          
Other
            
438
                      
-
          
             
3,337
                      
1,882
          
                                                 
Taxes on income
            
12,838
                      
2,299
          
                                                 
Non-GAAP net income
          
$
10,550
                    
$
1,445
          

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three months ended December 31, 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.

Page 9
GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands

ADJUSTED EBITDA:

   
Twelve months ended
    
Three months ended
  
   
December 31,
    
December 31,
  
   
2022
    
2021
    
2022
    
2021
  
         
As Restated (1)
          
As Restated (1)
  
   
Unaudited
    
Unaudited
  
                         
GAAP net income (loss)
  
$
(5,928
)
  
$
(3,033
)
  
$
(6,020
)
  
$
2,130
  
Adjustments:
                                
Financial expenses, net
    
2,818
      
1,722
      
102
      
264
  
Taxes on income
    
13,063
      
3,492
      
11,988
      
2,969
  
Non-cash stock-based compensation expenses
    
2,220
      
1,304
      
586
      
511
  
Impairment of held for sale asset
    
771
      
651
      
53
      
651
  
Other
    
438
      
-
      
327
      
-
  
Depreciation and amortization (*)
    
11,832
      
11,214
      
3,063
      
3,848
  
                                 
Adjusted EBITDA
  
$
25,214
    
$
15,350
    
$
10,099
    
$
10,373
  

(*) Including amortization of lease incentive

SEGMENT REVENUES:

   
Twelve months ended
    
Three months ended
  
   
December 31,
    
December 31,
  
   
2022
    
2021
    
2022
    
2021
  
                     
As Restated (1)
  
   
Unaudited
    
Audited
    
Unaudited
  
                         
Satellite Networks
  
$
120,381
    
$
115,408
    
$
36,388
    
$
32,252
  
Integrated Solutions
    
61,376
      
50,054
      
16,329
      
16,514
  
Network Infrastructure and Services
    
58,083
      
49,508
      
19,910
      
18,258
  
                                 
Total revenues
  
$
239,840
    
$
214,970
    
$
72,627
    
$
67,024
  

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three months ended December 31, 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.

Page 10
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

   
December 31,
  
   
2022
    
2021
  
   
Unaudited
    
Audited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
86,591
    
$
81,859
  
Short-term deposits
    
-
      
2,159
  
Restricted cash
    
541
      
2,592
  
Trade receivables, net
    
50,644
      
39,161
  
Contract assets
    
24,971
      
26,008
  
Inventories
    
33,024
      
28,432
  
Other current assets
    
19,283
      
14,607
  
Held for sale asset
    
-
      
4,587
  
                 
   Total current assets
    
215,054
      
199,405
  
                 
LONG-TERM ASSETS:
                
Restricted cash
    
13
      
12
  
Long-term contract assets
    
11,149
      
12,539
  
Severance pay funds
    
5,947
      
6,795
  
Deferred taxes
    
18,265
      
17,551
  
Operating lease right-of-use assets
    
3,891
      
4,478
  
Other long-term assets
    
10,737
      
10,456
  
                 
Total long-term assets
    
50,002
      
51,831
  
                 
PROPERTY AND EQUIPMENT, NET
    
76,578
      
72,391
  
                 
INTANGIBLE ASSETS, NET
    
309
      
640
  
                 
GOODWILL
    
43,468
      
43,468
  
                 
TOTAL ASSETS
  
$
385,411
    
$
367,735
  

Page 11
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands

   
December 31,
  
   
2022
    
2021
  
   
Unaudited
    
Audited
  
             
LIABILITIES AND SHAREHOLDERS' EQUITY
            
             
CURRENT LIABILITIES:
            
Trade payables
  
$
20,668
    
$
19,776
  
Accrued expenses
    
50,356
      
49,202
  
Advances from customers and deferred revenues
    
30,531
      
24,373
  
Operating lease liabilities
    
1,941
      
1,818
  
Other current liabilities
    
22,291
      
13,339
  
                 
   Total current liabilities
    
125,787
      
108,508
  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
    
6,580
      
7,292
  
Long-term advances from customers and deferred revenues
    
1,041
      
1,209
  
Operating lease liabilities
    
1,890
      
2,283
  
Other long-term liabilities
    
5,988
      
120
  
                 
   Total long-term liabilities
    
15,499
      
10,904
  
                 
SHAREHOLDERS' EQUITY:
                
Share capital - ordinary shares of NIS 0.2 par value
    
2,711
      
2,706
  
Additional paid-in capital
    
932,086
      
929,871
  
Accumulated other comprehensive loss
    
(6,847
)
    
(6,357
)
Accumulated deficit
    
(683,825
)
    
(677,897
)
                 
Total shareholders' equity
    
244,125
      
248,323
  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
385,411
    
$
367,735
  

Page 12
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

   
Twelve months ended
    
Three months ended
  
   
December 31,
    
December 31,
  
   
2022
    
2021
    
2022
    
2021
  
                     
As Restated (1)
  
   
Unaudited
    
Audited
    
Unaudited
  
Cash flows from operating activities:
                        
Net income (loss)
  
$
(5,928
)
  
$
(3,033
)
  
$
(6,020
)
  
$
2,130
  
Adjustments required to reconcile net income (loss)
                                
 to net cash provided by operating activities:
                                
Depreciation and amortization
    
11,608
      
10,991
      
3,004
      
3,789
  
Impairment of held for sale asset
    
771
      
651
      
53
      
651
  
Stock-based compensation of options
    
2,220
      
1,304
      
586
      
511
  
Accrued severance pay, net
    
136
      
26
      
44
      
203
  
Deferred taxes, net
    
(627
)
    
1,744
      
(2,450
)
    
1,694
  
Decrease (increase) in trade receivables, net
    
(11,162
)
    
(11,205
)
    
1,108
      
(8,715
)
Decrease in contract assets
    
2,481
      
21,412
      
4,771
      
78
  
Decrease (increase) in other assets (including short-term, long-term
                                
   and deferred charges)
    
(3,445
)
    
(247
)
    
5,208
      
5,238
  
Decrease (increase) in inventories
    
(5,416
)
    
2,449
      
614
      
2,796
  
Increase (decrease) in trade payables
    
(259
)
    
(711
)
    
(4,574
)
    
2,007
  
Increase (decrease) in accrued expenses
    
549
      
(1,482
)
    
2,316
      
861
  
Increase (decrease) in advance from customers and deferred revenue
    
5,929
      
(917
)
    
(1,468
)
    
(5,390
)
Increase (decrease) in other liabilities
    
13,957
      
(2,079
)
    
13,592
      
(681
)
Net cash provided by operating activities
    
10,814
      
18,903
      
16,784
      
5,172
  
                                 
Cash flows from investing activities:
                                
Purchase of property and equipment
    
(12,793
)
    
(8,933
)
    
(3,568
)
    
(3,909
)
Repayment of (investment in) short term deposits
    
2,159
      
(2,159
)
    
-
      
(2,159
)
Investment in financial instrument
    
(1,536
)
    
-
      
-
      
-
  
Receipts from sale of held for sale asset
    
4,006
      
-
      
4,006
      
-
  
Net cash provided by (used in) investing activities
    
(8,164
)
    
(11,092
)
    
438
      
(6,068
)
                                 
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
      
(303
)
    
47
      
(51
)
                                 
Increase (decrease) in cash, cash equivalents and restricted cash
    
2,682
      
(31,495
)
    
17,269
      
(947
)
                                 
Cash, cash equivalents and restricted cash at the beginning of the period
    
84,463
      
115,958
      
69,876
      
85,410
  
                                 
Cash, cash equivalents and restricted cash at the end of the period
  
$
87,145
    
$
84,463
    
$
87,145
    
$
84,463
  

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three months ended December 31, 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.


Page 13