Gilat Satellite Networks Ltd.
|
|
(Registrant)
|
|
Dated May 4, 2021
|
By: /s/ Yael Shofar
|
Yael Shofar
|
|
General Counsel
|
• |
Revenues of $44.7 million versus $47.7 million in Q1 2020 and up from $42.6 million in the previous quarter;
|
• |
GAAP operating loss of $3.7 million versus operating loss of $10.8 million in Q1 2020 and an operating income of $62.7 million in Q4 2020; GAAP operating income in Q4 2020 included income related
to the legal settlement with Comtech, net of related expenses, of $64.8 million;
|
• |
Non-GAAP operating loss of $3.8 million, compared with operating loss of $7.6 million in Q1 2020, and an operating loss of $1.6 million in the previous quarter;
|
• |
GAAP net loss of $5.1 million, or loss of $0.09 per diluted share, compared with net loss of $11.8 million, or loss of $0.21 per diluted share in Q1 2020 and net income in the previous quarter of
$62.4 million, or income of $1.12 per share; GAAP net income in the previous quarter included $64.8 million income related to the settlement with Comtech, net of related expenses;
|
• |
Non-GAAP net loss of $5.2 million, or loss of $0.09 per diluted share, compared with net loss of $8.6 million, or loss of $0.15 per diluted share in Q1 2020, and compared with a net loss of $1.9
million, or loss of $0.03 per share, as reported in the previous quarter;
|
• |
Adjusted EBITDA loss of $1.4 million compared with adjusted EBITDA loss of $5.0 million in Q1 2020; and adjusted EBITDA of $1.1 million in the previous quarter;
|
• |
Gilat Enters Strategic Agreement Valued at Tens of Millions of Dollars with a Large Government Corporation in Asia Pacific
|
• |
Gilat Achieves Critical Milestone in Peru with Approval to Enter Operational Phase, Unlocking Access to Recurring Revenue of Multi Million Dollars per Annum
|
• |
Tier-1 Telco in Latin America Awards Gilat Over $3M to Provide Broadband Connectivity in Support of Bridging the Digital Divide
|
• |
Gilat Receives Over $5M for Cellular Backhaul Expansion from Tier-1 Mobile Network Carrier in Japan
|
• |
Gilat Awarded Over $20 Million in Orders for Support of Low Earth Orbit Constellation
|
• |
SES Selected Gilat to Enable Tier-1 4G/LTE MNO in Brazil to Provide Broadband Connectivity for Education
|
• |
Telespazio Selects Gilat to Supply Enterprise Connectivity in Brazil for a Multinational Leading Energy Company
|
• |
Gilat Announces Appointment of Isaac Angel as Chairman of the Board
|
• |
Gilat’s In-Flight Connectivity High-Power Transceiver Successfully Tested by Global Eagle Entertainment for DO-160G Certification
|
• |
Gilat Launches Next Generation VSAT Family Supporting 5G Networks and LEO/MEO Constellations
|
Date:
Start:
Dial-in:
|
Tuesday, May 4, 2021
9:30 AM ET / 4:30 PM IT
US: 1-866-744-5399
International: +972-3-918-0610
|
GILAT SATELLITE NETWORKS LTD.
|
|||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||
U.S. dollars in thousands (except share and per share data)
|
Three months ended
March 31,
|
||||||||
2021
|
2020
|
|||||||
Unaudited
|
||||||||
Revenues
|
$
|
44,713
|
$
|
47,673
|
||||
Cost of revenues
|
32,356
|
38,787
|
||||||
Gross profit
|
12,357
|
8,886
|
||||||
Research and development expenses
|
8,111
|
7,634
|
||||||
Less - grants
|
184
|
272
|
||||||
Research and development expenses, net
|
7,927
|
7,362
|
||||||
Selling and marketing expenses
|
5,004
|
5,066
|
||||||
General and administrative expenses
|
3,083
|
4,818
|
||||||
Merger, acquisition and related litigation expenses
|
- | 2,405 | ||||||
Total operating expenses
|
16,014
|
19,651
|
||||||
Operating loss
|
(3,657
|
)
|
(10,765
|
)
|
||||
Financial expenses, net
|
(1,192
|
)
|
(972
|
)
|
||||
Loss before taxes on income
|
(4,849
|
)
|
(11,737
|
)
|
||||
Taxes on income
|
247
|
18
|
||||||
Net loss
|
$
|
(5,096
|
)
|
$
|
(11,755
|
)
|
||
Basic loss per share
|
$ |
(0.09
|
) |
$ |
(0.21
|
) |
||
Diluted loss per share
|
$
|
(0.09
|
)
|
$
|
(0.21
|
)
|
||
Weighted average number of shares used in
|
||||||||
computing loss per share
|
||||||||
Basic
|
56,031,343
|
55,493,258
|
||||||
Diluted |
56,031,343
|
55,493,258
|
GILAT SATELLITE NETWORKS LTD.
|
||||||||||
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
|
||||||||||
FOR COMPARATIVE PURPOSES
|
||||||||||
U.S. dollars in thousands (except share and per share data)
|
Three months ended
|
Three months ended
|
||||||||||||||||||||||||
March 31, 2021
|
March 31, 2020
|
||||||||||||||||||||||||
GAAP
|
Adjustments
|
Non-GAAP
|
GAAP
|
Adjustments
|
Non-GAAP
|
||||||||||||||||||||
Unaudited
|
Unaudited
|
||||||||||||||||||||||||
Gross profit
|
$
|
12,357
|
66
|
$
|
12,423
|
$
|
8,886
|
62
|
$
|
8,948
|
|||||||||||||||
Operating expenses
|
16,014
|
169
|
16,183
|
19,651
|
(3,106
|
)
|
16,545
|
||||||||||||||||||
Operating loss
|
(3,657
|
)
|
(103
|
)
|
(3,760
|
)
|
(10,765
|
)
|
3,168
|
(7,597
|
)
|
||||||||||||||
Loss before taxes on income
|
(4,849 | ) |
(103
|
) |
(4,952 | ) |
(11,737
|
)
|
3,168
|
(8,569
|
)
|
||||||||||||||
Net loss
|
(5,096
|
)
|
(103
|
)
|
(5,199
|
)
|
(11,755
|
)
|
3,168
|
(8,587
|
)
|
||||||||||||||
Basic loss per share
|
$ |
(0.09 | ) |
$ |
- | $ |
(0.09 | ) |
$
|
(0.21
|
)
|
$
|
0.06
|
$
|
(0.15
|
)
|
|||||||||
Diluted loss per share | $ |
(0.09 | ) |
$ |
- |
$ |
(0.09 | ) |
$ |
(0.21 | ) |
$ |
0.06 |
$ |
(0.15 | ) |
|||||||||
Weighted average number of shares used in
|
|||||||||||||||||||||||||
computing loss per share
|
|||||||||||||||||||||||||
Basic
|
56,031,343
|
56,031,343
|
55,493,258
|
55,493,258
|
|||||||||||||||||||||
Diluted |
56,031,343
|
56,031,343
|
55,493,258
|
55,493,258
|
|||||||||||||||||||||
Three months ended
March 31, 2021
|
Three months ended
March 31, 2020 |
||||||||||||||||||||||||
Unaudited | Unaudited |
||||||||||||||||||||||||
GAAP net loss
|
$
|
(5,096
|
)
|
$
|
(11,755
|
)
|
|||||||||||||||||||
Gross profit
|
|||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
61 |
57
|
|||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
5 |
5
|
|||||||||||||||||||||||
66
|
62
|
||||||||||||||||||||||||
Operating expenses (income)
|
|||||||||||||||||||||||||
Non-cash stock-based compensation expenses
|
(220 | ) |
366
|
||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions
|
51 |
51
|
|||||||||||||||||||||||
Trade secrets and other litigation expenses
|
- |
11
|
|||||||||||||||||||||||
Merger, acquisition and related litigation expenses
|
- |
2,405
|
|||||||||||||||||||||||
Restructuring and re-organization costs
|
- |
273
|
|||||||||||||||||||||||
(169
|
)
|
3,106
|
|||||||||||||||||||||||
Non-GAAP net loss
|
$
|
(5,199
|
)
|
$
|
(8,587
|
)
|
GILAT SATELLITE NETWORKS LTD.
|
|||||||||||
SUPPLEMENTAL INFORMATION
|
|||||||||||
U.S. dollars in thousands
|
Three months ended
March 31,
|
||||||||
2021
|
2020
|
|||||||
GAAP operating loss
|
$
|
(3,657
|
)
|
$
|
(10,765
|
)
|
||
Add (deduct):
|
||||||||
Non-cash stock-based compensation expenses
|
(159
|
)
|
423
|
|||||
Trade secrets and other litigation expenses
|
-
|
11
|
||||||
Restructuring and re-organization costs
|
-
|
273
|
||||||
Merger, acquisition and related litigation expenses
|
- | 2,405 | ||||||
Depreciation and amortization (*)
|
2,385
|
2,664
|
||||||
Adjusted EBITDA
|
$
|
(1,431
|
)
|
$
|
(4,989
|
)
|
Three months ended
|
||||||||
March 31,
|
||||||||
2021
|
2020
|
|||||||
Unaudited
|
||||||||
Fixed Networks
|
$
|
25,302
|
$
|
23,011
|
||||
Mobility Solutions
|
11,079
|
19,201
|
||||||
Terrestrial Infrastructure Projects
|
8,332
|
5,461
|
||||||
Total revenue
|
$
|
44,713
|
$
|
47,673
|
GILAT SATELLITE NETWORKS LTD.
|
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in thousands
|
|
March 31,
|
December 31,
|
||||||
|
2021
|
2020
|
||||||
|
Unaudited
|
Audited
|
||||||
|
||||||||
ASSETS
|
||||||||
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
48,905
|
$
|
88,754
|
||||
Restricted cash
|
26,642
|
27,162
|
||||||
Trade receivables, net
|
27,820
|
27,976
|
||||||
Contract assets
|
46,060
|
41,573
|
||||||
Inventories
|
33,339
|
31,304
|
||||||
Other current assets
|
18,832
|
16,637
|
||||||
|
||||||||
Total current assets
|
201,598
|
233,406
|
||||||
|
||||||||
LONG-TERM ASSETS:
|
||||||||
Long-term restricted cash
|
12
|
42
|
||||||
Severance pay funds
|
6,414
|
6,665
|
||||||
Deferred taxes
|
18,778
|
19,295
|
||||||
Operating lease right-of-use assets
|
4,478
|
4,879
|
||||||
Other long term receivables
|
8,339
|
7,797
|
||||||
|
||||||||
Total long-term assets
|
38,021
|
38,678
|
||||||
|
||||||||
PROPERTY AND EQUIPMENT, NET
|
76,612
|
77,172
|
||||||
|
||||||||
INTANGIBLE ASSETS, NET
|
971
|
1,082
|
||||||
|
||||||||
GOODWILL
|
43,468
|
43,468
|
||||||
|
||||||||
TOTAL ASSETS
|
$
|
360,670
|
$
|
393,806
|
GILAT SATELLITE NETWORKS LTD.
|
CONSOLIDATED BALANCE SHEETS (Cont.)
|
U.S. dollars in thousands
|
March 31,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
Unaudited
|
Audited
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long-term loans
|
$
|
-
|
$
|
4,000
|
||||
Trade payables
|
21,428
|
20,487
|
||||||
Accrued expenses
|
47,465
|
46,387
|
||||||
Advances from customers and deferred revenues
|
35,404
|
26,244
|
||||||
Operating lease liabilities
|
1,678
|
1,911
|
||||||
Dividend payable
|
-
|
35,003
|
||||||
Other current liabilities
|
16,161
|
13,322
|
||||||
Total current liabilities
|
122,136
|
147,354
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay
|
6,875
|
7,136
|
||||||
Long-term advances from customers
|
307
|
1,890
|
||||||
Operating lease liabilities
|
2,847
|
2,985
|
||||||
Other long-term liabilities
|
396
|
631
|
||||||
Total long-term liabilities
|
10,425
|
12,642
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital - ordinary shares of NIS 0.2 par value
|
2,704
|
2,647
|
||||||
Additional paid-in capital
|
928,410
|
928,626
|
||||||
Accumulated other comprehensive loss
|
(6,463
|
)
|
(6,017
|
)
|
||||
Accumulated deficit
|
(696,542
|
)
|
(691,446
|
)
|
||||
Total shareholders' equity
|
228,109
|
233,810
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
360,670
|
$
|
393,806
|
GILAT SATELLITE NETWORKS LTD.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
U.S. dollars in thousands
|
Three months ended
|
||||||||
March 31,
|
||||||||
2021
|
2020
|
|||||||
Unaudited
|
||||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(5,096
|
)
|
$
|
(11,755
|
)
|
||
Adjustments required to reconcile net income
|
||||||||
to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
2,330
|
2,604
|
||||||
Capital loss from disposal of property and equipment
|
-
|
(33
|
)
|
|||||
Stock-based compensation of options
|
(159
|
)
|
423
|
|||||
Accrued severance pay, net
|
(10
|
)
|
43
|
|||||
Deferred income taxes, net
|
518
|
634
|
||||||
Decrease (increase) in trade receivables, net
|
(1,933
|
)
|
13,607
|
|||||
Increase in contract assets
|
(4,487
|
)
|
(4,851
|
)
|
||||
Decrease (increase) in other assets (including short-term, long-term
|
||||||||
and deferred charges)
|
(220
|
)
|
1,673
|
|||||
Increase in inventories
|
(2,212
|
)
|
(6,635
|
)
|
||||
Increase in trade payables
|
950
|
2,375
|
||||||
Increase (decrease) in accrued expenses
|
969
|
(1,652
|
)
|
|||||
Increase (decrease) in advance from customer and deferred revenues
|
7,688
|
(2,827
|
)
|
|||||
Increase in current and non current liabilities
|
2,003
|
2,811
|
||||||
Net cash provided by (used in) operating activities
|
341
|
(3,583
|
)
|
|||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(1,483
|
)
|
(951
|
)
|
||||
Net cash used in investing activities
|
(1,483
|
)
|
(951
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Dividend payment
|
(35,003
|
)
|
-
|
|||||
Repayment of long-term loans
|
(4,000
|
)
|
(4,096
|
)
|
||||
Net cash used in financing activities
|
(39,003
|
)
|
(4,096
|
)
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(254
|
)
|
(695
|
)
|
||||
Decrease in cash, cash equivalents and restricted cash
|
(40,399
|
)
|
(9,325
|
)
|
||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
115,958
|
101,969
|
||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
75,559
|
$
|
92,644
|