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Published: 2022-05-23 07:03:11 ET
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6-K 1 zk2227883.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 May, 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


Attached hereto is Registrant’s press release dated May 23, 2022, announcing first quarter 2022 results.

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. 333-232597).

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 May 23, 2022
By:  /s/ Yael Shofar
 
 Yael Shofar
 
 General Counsel



Gilat Reports First Quarter 2022 Results with Strong Revenue Growth
 
Reiterates 2022 guidance

Petah Tikva, Israel – May 23, 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 first quarter, ended March 31, 2022.
 
First Quarter 2022 Financial Highlights
 
•
Revenues of $51.4 million up 19% year-over-year;
•
GAAP operating loss of $1.0 million versus loss of $3.5 million in Q1 last year;
•
Non-GAAP operating loss of $0.3 million versus loss of $3.6 million in Q1 last year;
•
GAAP net loss of $2.5 million versus loss of $5.0 million in Q1 last year;
•
Non-GAAP net loss of $1.8 million versus loss of $5.1 million in Q1 last year;
•
Adjusted EBITDA of $2.5 million versus Adjusted EBITDA loss of $1.3 million in Q1 last year;

Forward-Looking Expectations
 
The company today reiterated its guidance for 2022. Expectations are for revenues of between $245 to $265 million, representing year-over-year growth of between 14% and 23%. GAAP operating income of between $5 to $9 million and adjusted EBITDA of between $20 to $24 million, representing year-over-year growth of between 30% to 56%.
 
Adi Sfadia, Gilat's CEO, commented: "We are pleased with our results showing ongoing revenue growth and EBITDA improvement. Our performance shows that we are successfully capturing market share and capitalizing on the opportunities in our end-markets.
 
"During this quarter we continued to solidify our presence with additional orders and a broadening pipeline in the next generation satellite communication multi-billion market opportunity. Both our next generation platform, SkyEdge IV that we recently launched, and our SSPA business for this market are progressing as planned. Furthermore, I am pleased with our growth in our target markets, namely: Mobility, Cellular Backhaul, Enterprise and Defense, as well as with the growing opportunities ahead of us."
 
Mr. Sfadia concluded: "I am encouraged with our progress, and despite challenges such as the global supply chain crisis, we feel comfortable with our targets for 2022, and expect to enjoy another year of solid growth in revenue and profitability."
 


Key Recent Announcements

o
Gilat Announces Filing of 2021 Annual Report
 
o
Intelsat Selects Gilat in Multimillion-Dollar Deal to Provide Satellite Cellular Backhaul Solution to a Leading Mobile Telecom in the DRC
 
o
Gilat’s Electronically Steerable Antenna (ESA) for IFC Achieves Breakthrough During Airbus Flight Tests Operating on Spacecom’s Advanced Satellite
 
o
Intelsat Expands In-Flight Connectivity Capabilities with Strategic Multimillion-Dollar Order for Gilat’s SkyEdge IV Taurus Modems
 
o
TIM Brasil Reaches Over 1,000 Sites Leveraging Gilat’s Platform to Build the Largest 4G Satellite Cellular Backhaul Network in Latin America
 
Conference Call Details

Gilat’s management will discuss its first quarter 2022 results and business achievements and participate in a question and answer session:

Date:              Monday, May 23, 2022
Start:              09:30 AM EDT / 16:30 IDT
Dial-in:           US: 1-866-744-5399
                       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/gilatq1-2022

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 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, 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.
 
Page 2

About Gilat
 
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With 30 years of experience, we design and manufacture cutting-edge ground segment equipment, and provide comprehensive solutions and end-to-end services, powered by our innovative technology. Delivering high value competitive solutions, our portfolio comprises of a cloud based VSAT network platform, high-speed modems, high performance on-the-move antennas and high efficiency, high power Solid-State 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, Cellular Backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety, 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
GK Investor & Public Relations
gilat@gkir.com
+1 212 378 8040

Page 3
GILAT SATELLITE NETWORKS LTD.
            
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
  
U.S. dollars in thousands (except share and per share data)
  
   
Three months ended
  
   
March 31,
  
   
2022
    
2021
  
   
Unaudited
  
             
Revenues
  
$
51,409
    
$
43,371
  
Cost of revenues
    
35,021
      
30,891
  
                 
Gross profit
    
16,388
      
12,480
  
                 
Research and development expenses, net
    
7,668
      
7,927
  
Selling and marketing expenses
    
5,350
      
5,004
  
General and administrative expenses
    
4,184
      
3,083
  
Impairment of held for sale asset
    
210
      
-
  
                 
Total operating expenses
    
17,412
      
16,014
  
                 
Operating loss
    
(1,024
)
    
(3,534
)
                 
Financial expenses, net
    
(1,195
)
    
(1,192
)
                 
Loss before taxes on income
    
(2,219
)
    
(4,726
)
                 
Taxes on income
    
315
      
247
  
                 
Net loss
  
$
(2,534
)
  
$
(4,973
)
                 
Basic and Diluted loss per share
  
$
(0.04
)
  
$
(0.09
)
                 
Weighted average number of shares used in
                
computing loss per share
                
Basic
    
56,551,070
      
56,031,343
  
Diluted
    
56,551,070
      
56,031,343
  

Page 4

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
  
   
March 31, 2022
    
March 31, 2021
  
   
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
   
Unaudited
    
Unaudited
  
                                     
Gross profit
  
$
16,388
      
75
    
$
16,463
    
$
12,480
      
66
    
$
12,546
  
Operating expenses
    
17,412
      
(683
)
    
16,729
      
16,014
      
169
      
16,183
  
Operating loss
    
(1,024
)
    
758
      
(266
)
    
(3,534
)
    
(103
)
    
(3,637
)
Loss before taxes on income
    
(2,219
)
    
758
      
(1,461
)
    
(4,726
)
    
(103
)
    
(4,829
)
Net loss
  
$
(2,534
)
    
758
    
$
(1,776
)
  
$
(4,973
)
    
(103
)
  
$
(5,076
)
                                                 
Basic loss per share
  
$
(0.04
)
  
$
0.01
    
$
(0.03
)
  
$
(0.09
)
  
$
-
    
$
(0.09
)
                                                 
Diluted loss per share
  
$
(0.04
)
  
$
0.01
    
$
(0.03
)
  
$
(0.09
)
  
$
-
    
$
(0.09
)
                                                 
Weighted average number of shares used in
                          
   computing loss per share
                                                
    Basic
    
56,551,070
              
56,551,070
      
56,031,343
              
56,031,343
  
    Diluted
    
56,551,070
              
56,551,070
      
56,031,343
              
56,031,343
  

(1)
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
March 31, 2022
    
Three months ended
March 31, 2021
  
   
Unaudited
    
Unaudited
  
             
GAAP net loss
  
$
(2,534
)
  
$
(4,973
)
                 
Gross profit
                
Non-cash stock-based compensation expenses
     70
      
61
  
Amortization of intangible assets related to acquisition transactions
     5
       5  
     
75
      
66
  

               
Operating expenses
          
Non-cash stock-based compensation expenses
     422
      
(220
 )
Amortization of intangible assets related to acquisition transactions
     51
       51
  
Impairment of held for sale asset
    
210
      
-
  
     
683
      
(169
)
Non-GAAP net loss
   $ (1,776 )   $ (5,076 )

Page 5

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

   
Three months ended
  
   
March 31,
  
   
2022
    
2021
  
   
Unaudited
  
             
GAAP operating profit
  
$
(1,024
)
  
$
(3,534
)
Add:
                
Non-cash stock-based compensation expenses
    
492
      
(159
)
Impairment of held for sale asset
    
210
      
-
  
Depreciation and amortization (*)
    
2,851
      
2,385
  
                 
Adjusted EBITDA
  
$
2,529
    
$
(1,308
)

(*) Including amortization of lease incentive
        

SEGMENT REVENUE:
          

   
Three months ended
  
   
March 31,
  
   
2022
    
2021
  
   
Unaudited
  
             
Satellite Networks
  
$
24,770
    
$
25,623
  
Integrated Solutions
    
13,706
      
6,709
  
Network Infrastructure and Services
    
12,933
      
11,039
  
                 
Total revenues
  
$
51,409
    
$
43,371
  

Page 6
GILAT SATELLITE NETWORKS LTD.
        
CONSOLIDATED BALANCE SHEETS
        
U.S. dollars in thousands
        

   
March 31,
    
December 31,
  
   
2022
    
2021
  
   
Unaudited
    
Audited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
73,611
    
$
81,859
  
Short-term deposits
    
2,159
      
2,159
  
Restricted cash
    
1,516
      
2,592
  
Trade receivables, net
    
45,909
      
39,161
  
Contract assets
    
28,587
      
26,008
  
Inventories
    
30,642
      
28,432
  
Other current assets
    
18,959
      
14,607
  
Held for sale asset
    
4,377
      
4,587
  
                 
   Total current assets
    
205,760
      
199,405
  
                 
LONG-TERM ASSETS:
                
Restricted cash
    
13
      
12
  
Long- term contract assets
    
11,989
      
12,539
  
Severance pay funds
    
6,485
      
6,795
  
Deferred taxes
    
17,245
      
17,551
  
Operating lease right-of-use assets
    
3,652
      
4,478
  
Other long term receivables
    
11,076
      
10,456
  
                 
Total long-term assets
    
50,460
      
51,831
  
                 
PROPERTY AND EQUIPMENT, NET
    
71,975
      
72,391
  
                 
INTANGIBLE ASSETS, NET
    
530
      
640
  
                 
GOODWILL
    
43,468
      
43,468
  
                 
TOTAL ASSETS
  
$
372,193
    
$
367,735
  


Page 7
GILAT SATELLITE NETWORKS LTD.
        
CONSOLIDATED BALANCE SHEETS (Cont.)
        
U.S. dollars in thousands
        

   
March 31,
    
December 31,
  
   
2022
    
2021
  
   
Unaudited
    
Audited
  
             
LIABILITIES AND SHAREHOLDERS' EQUITY
            
             
CURRENT LIABILITIES:
            
Trade payables
  
$
21,482
    
$
19,776
  
Accrued expenses
    
49,799
      
49,202
  
Advances from customers and deferred revenues
    
27,265
      
24,373
  
Operating lease liabilities
    
1,728
      
1,818
  
Other current liabilities
    
15,201
      
13,339
  
                 
   Total current liabilities
    
115,475
      
108,508
  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
    
6,919
      
7,292
  
Long-term advances from customers
    
730
      
1,209
  
Operating lease liabilities
    
1,981
      
2,283
  
Other long-term liabilities
    
141
      
120
  
                 
   Total long-term liabilities
    
9,771
      
10,904
  
                 
SHAREHOLDERS' EQUITY:
                
Share capital - ordinary shares of NIS 0.2 par value
    
2,709
      
2,706
  
Additional paid-in capital
    
930,361
      
929,871
  
Accumulated other comprehensive loss
    
(5,692
)
    
(6,357
)
Accumulated deficit
    
(680,431
)
    
(677,897
)
                 
Total shareholders' equity
    
246,947
      
248,323
  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
372,193
    
$
367,735
  

Page 8
GILAT SATELLITE NETWORKS LTD.
        
CONSOLIDATED STATEMENTS OF CASH FLOWS
        
U.S. dollars in thousands
        

   
Three months ended
  
   
March 31,
  
   
2022
    
2021
  
   
Unaudited
  
Cash flows from operating activities:
            
Net loss
  
$
(2,534
)
  
$
(4,973
)
Adjustments required to reconcile net loss
                
 to net cash provided by operating activities:
                
Depreciation and amortization
    
2,796
      
2,330
  
Stock-based compensation of options
    
492
      
(159
)
Accrued severance pay, net
    
(63
)
    
(10
)
Deferred taxes, net
    
306
      
518
  
Increase in trade receivables, net
    
(6,412
)
    
(1,933
)
Increase in contract assets
    
(2,009
)
    
(3,179
)
Increase in other assets (including short-term, long-term
                
   and deferred charges)
    
(3,716
)
    
(220
)
Increase in inventories
    
(2,344
)
    
(2,212
)
Increase in trade payables
    
1,672
      
950
  
Increase (decrease) in accrued expenses
    
752
      
(498
)
Increase in advance from customers and deferred revenue
    
2,310
      
7,724
  
Increase in current and non current liabilities
    
1,375
      
2,003
  
Net cash provided by (used in) operating activities
    
(7,375
)
    
341
  
                 
Cash flows from investing activities:
                
Purchase of property and equipment
    
(2,201
)
    
(1,483
)
Net cash used in investing activities
    
(2,201
)
    
(1,483
)
                 
Cash flows from financing activities:
                
Dividend payment
    
-
      
(35,003
)
Repayment of long-term loans
    
-
      
(4,000
)
Net cash used in financing activities
    
-
      
(39,003
)
                 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
    
253
      
(254
)
                 
Decrease in cash, cash equivalents and restricted cash
    
(9,323
)
    
(40,399
)
                 
Cash, cash equivalents and restricted cash at the beginning of the period
    
84,463
      
115,958
  
                 
Cash, cash equivalents and restricted cash at the end of the period
  
$
75,140
    
$
75,559
  

Page 9