SEC Form 6-K filed by Gilat Satellite Networks Ltd.
Gilat Satellite Networks Ltd.
|
|
(Registrant)
|
|
Dated November 13, 2024
|
By: /s/ Doron Kerbel
|
Doron Kerbel
|
|
General Counsel & Company Secretary
|
• |
Revenues of $74.6 million, up 17% compared with $63.9 million in Q3 2023;
|
• |
GAAP operating income of $6.7 million, compared with $12.7 million in Q3 2023;
|
o |
GAAP operating income includes other income, net, of $1.3 million. Q3 2023 GAAP operating income included other income, net, of $7.4 million;
|
• |
Non-GAAP operating income of $8.3 million, up 36% compared with $6.1 million in Q3 2023;
|
• |
GAAP net income of $6.8 million, or $0.12 per diluted share, compared with $10.2 million, or $0.18 per diluted share, in Q3 2023;
|
o |
GAAP net income includes other income, net, of $1.3 million. Q3 2023 GAAP net income included other income, net, of $7.4 million;
|
• |
Non-GAAP net income of $8.1 million, or $0.14 per diluted share, almost doubled compared with $4.6 million, or $0.08 per
diluted share, in Q3 2023;
|
• |
Adjusted EBITDA of $10.7 million, up 13% compared with $9.5 million in Q3 2023.
|
• |
Gilat Receives Approximately $5 Million in Orders from US Defense Customers
|
• |
Gilat Received Over $4 Million Order from the US Department of Defense
|
• |
Gilat Secures Approximately $15 Million in Orders from Leading Satellite Operators for GEO, MEO and LEO Constellations
|
• |
Gilat Satellite Networks Awarded approximately $4 Million Contract to Provide Connectivity for rural areas in Latin America
|
• |
Gilat Satellite Networks Receives Multimillion Service Contract from Leading Satellite Operator in APAC region
|
• |
Gilat Satellite Networks Awarded Over $5M in Support of the US Department of Defense
|
• |
Gilat Secures Over $12 Million Orders for SkyEdge Platforms from Leading Satellite Operator
|
Date:
|
Wednesday, November 13, 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
|
U.S. dollars in thousands (except share and per share data)
|
Nine months ended
|
Three months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Revenues
|
$
|
227,320
|
$
|
190,478
|
$
|
74,611
|
$
|
63,927
|
||||||||
Cost of revenues
|
145,010
|
114,453
|
46,928
|
38,123
|
||||||||||||
Gross profit
|
82,310
|
76,025
|
27,683
|
25,804
|
||||||||||||
Research and development expenses, net
|
28,028
|
29,549
|
9,481
|
10,546
|
||||||||||||
Selling and marketing expenses
|
20,724
|
18,124
|
6,615
|
6,183
|
||||||||||||
General and administrative expenses
|
20,676
|
12,903
|
6,162
|
3,748
|
||||||||||||
Other operating income, net
|
(2,045
|
)
|
(9,757
|
)
|
(1,320
|
)
|
(7,417
|
)
|
||||||||
Total operating expenses
|
67,383
|
50,819
|
20,938
|
13,060
|
||||||||||||
Operating income
|
14,927
|
25,206
|
6,745
|
12,744
|
||||||||||||
Financial income (expenses), net
|
1,441
|
(1,087
|
)
|
662
|
(352
|
)
|
||||||||||
Income before taxes on income
|
16,368
|
24,119
|
7,407
|
12,392
|
||||||||||||
Taxes on income
|
(3,283
|
)
|
(4,062
|
)
|
(588
|
)
|
(2,240
|
)
|
||||||||
Net income
|
$
|
13,085
|
$
|
20,057
|
$
|
6,819
|
$
|
10,152
|
||||||||
Earnings per share (basic and diluted)
|
$
|
0.23
|
$
|
0.35
|
$
|
0.12
|
$
|
0.18
|
||||||||
Weighted average number of shares used in
|
||||||||||||||||
computing earnings per share
|
||||||||||||||||
Basic
|
57,016,883
|
56,618,407
|
57,017,032
|
56,623,793
|
||||||||||||
Diluted
|
57,016,883
|
56,623,125
|
57,017,032
|
56,624,966
|
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, 2024
|
September 30, 2023
|
|||||||||||||||||||||||
GAAP
|
Adjustments (*)
|
Non-GAAP
|
GAAP
|
Adjustments (*)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
27,683
|
$
|
755
|
$
|
28,438
|
$
|
25,804
|
$
|
108
|
$
|
25,912
|
||||||||||||
Operating expenses
|
20,938
|
(767
|
)
|
20,171
|
13,060
|
6,753
|
19,813
|
|||||||||||||||||
Operating income
|
6,745
|
1,522
|
8,267
|
12,744
|
(6,645
|
)
|
6,099
|
|||||||||||||||||
Income before taxes on income
|
7,407
|
1,522
|
8,929
|
12,392
|
(6,645
|
)
|
5,747
|
|||||||||||||||||
Net income
|
$
|
6,819
|
$
|
1,325
|
$
|
8,144
|
$
|
10,152
|
$
|
(5,568
|
)
|
$
|
4,584
|
|||||||||||
Earnings per share (basic and diluted)
|
$ |
0.12 |
$ |
0.02 |
$ |
0.14 |
$ |
0.18
|
(0.10
|
) |
$ |
0.08
|
||||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earnings per share
|
||||||||||||||||||||||||
Basic
|
57,017,032
|
57,017,032
|
56,623,793
|
56,623,793
|
||||||||||||||||||||
Diluted
|
57,017,032
|
57,017,032
|
56,624,966
|
56,906,057
|
(*) Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income, net, other integration expenses and income tax effect on
such adjustments which is calculated using the relevant effective tax rate.
|
Three months ended
September 30, 2024
|
Three months ended
September 30, 2023
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||
GAAP net income
|
$
|
6,819
|
$
|
10,152
|
||||||||||||||||
Gross profit
|
||||||||||||||||||||
Stock-based compensation expenses
|
85 |
108
|
||||||||||||||||||
Amortization of purchased intangibles
|
596 |
- |
||||||||||||||||||
Other integration expenses
|
74
|
-
|
||||||||||||||||||
755
|
108
|
|||||||||||||||||||
Operating expenses
|
||||||||||||||||||||
Stock-based compensation expenses
|
696 |
614
|
||||||||||||||||||
Stock-based compensation expenses related to business combination
|
1,131 |
- |
||||||||||||||||||
Amortization of purchased intangibles
|
248 |
50 |
||||||||||||||||||
Other operating income, net and other integration expenses
|
(1,308 | ) |
(7,417
|
) | ||||||||||||||||
767
|
(6,753
|
) | ||||||||||||||||||
Taxes on income
|
(197
|
)
|
1,077
|
|||||||||||||||||
Non-GAAP net income
|
$
|
8,144
|
$
|
4,584
|
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, 2024
|
September 30, 2023
|
|||||||||||||||||||||||
GAAP
|
Adjustments (*)
|
Non-GAAP
|
GAAP
|
Adjustments (*)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Gross profit
|
$
|
82,310
|
$
|
3,098
|
$
|
85,408
|
$
|
76,025
|
$
|
278
|
$
|
76,303
|
||||||||||||
Operating expenses
|
67,383
|
(4,180
|
)
|
63,203
|
50,819
|
8,049
|
58,868
|
|||||||||||||||||
Operating income
|
14,927
|
7,278
|
22,205
|
25,206
|
(7,771
|
)
|
17,435
|
|||||||||||||||||
Income before taxes on income
|
16,368
|
7,278
|
23,646
|
24,119
|
(7,771
|
)
|
16,348
|
|||||||||||||||||
Net income
|
$
|
13,085
|
$
|
6,628
|
$
|
19,713
|
$
|
20,057
|
$
|
(6,694
|
)
|
$
|
13,363
|
|||||||||||
Earnings per share (basic and diluted)
|
$ |
0.23 |
$ |
0.12 |
$ |
0.35
|
$ |
0.35 |
$ |
(0.11
|
) |
$ |
0.24
|
|||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing earnings per share
|
||||||||||||||||||||||||
Basic
|
57,016,883
|
57,016,883
|
56,618,407
|
56,618,407
|
||||||||||||||||||||
Diluted
|
57,016,883
|
57,047,599
|
56,623,125
|
56,716,822
|
(*) Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income, net, other non-recurring expenses, other integration
expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.
|
Nine months ended
September 30, 2024
|
Nine months ended
September 30, 2023
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||
GAAP net income
|
$
|
13,085
|
$
|
20,057
|
||||||||||||||||
Gross profit
|
||||||||||||||||||||
Stock-based compensation expenses
|
385 | 278 | ||||||||||||||||||
Amortization of purchased intangibles
|
2,023 | - | ||||||||||||||||||
Other non-recurring expenses
|
466
|
-
|
||||||||||||||||||
Other integration expenses
|
224
|
-
|
||||||||||||||||||
3,098
|
278
|
|||||||||||||||||||
Operating expenses
|
||||||||||||||||||||
Stock-based compensation expenses
|
2,118 | 1,558 | ||||||||||||||||||
Stock-based compensation expenses related to business combination
|
3,297 | - | ||||||||||||||||||
Amortization of purchased intangibles
|
772 | 150 | ||||||||||||||||||
Other operating income, net and other integration expenses
|
(2,007 | ) | (9,757 | ) | ||||||||||||||||
4,180 | (8,049 | ) |
||||||||||||||||||
Taxes on income
|
(650
|
)
|
1,077
|
|||||||||||||||||
Non-GAAP net income
|
$
|
19,713
|
$
|
13,363
|
GILAT SATELLITE NETWORKS LTD.
|
||||||
SUPPLEMENTAL INFORMATION
|
||||||
U.S. dollars in thousands
|
ADJUSTED EBITDA:
|
||||||||||||||||
Nine months ended
|
Three months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
GAAP net income
|
$
|
13,085
|
$
|
20,057
|
$
|
6,819
|
$
|
10,152
|
||||||||
Adjustments:
|
||||||||||||||||
Financial expenses (income), net
|
(1,441
|
)
|
1,087
|
(662
|
)
|
352
|
||||||||||
Taxes on income
|
3,283
|
4,062
|
588
|
2,240
|
||||||||||||
Stock-based compensation expenses
|
2,503
|
1,836
|
781
|
722
|
||||||||||||
Stock-based compensation expenses related to business combination
|
3,297
|
-
|
1,131
|
-
|
||||||||||||
Depreciation and amortization (*)
|
10,709
|
9,765
|
3,266
|
3,430
|
||||||||||||
Other operating income, net
|
(2,045
|
)
|
(9,757
|
)
|
(1,320
|
)
|
(7,417
|
)
|
||||||||
Other non-recurring expenses
|
466
|
-
|
-
|
-
|
||||||||||||
Other integration expenses
|
262
|
-
|
86
|
-
|
||||||||||||
Adjusted EBITDA
|
$
|
30,119
|
$
|
27,050
|
$
|
10,689
|
$
|
9,479
|
SEGMENT REVENUES:
|
||||||||||||||||
Nine months ended
|
Three months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Satellite Networks
|
$
|
149,110
|
$
|
115,010
|
$
|
51,732
|
$
|
40,737
|
||||||||
Integrated Solutions
|
37,668
|
36,630
|
13,049
|
11,011
|
||||||||||||
Network Infrastructure and Services
|
40,542
|
38,838
|
9,830
|
12,179
|
||||||||||||
Total revenues
|
$
|
227,320
|
$
|
190,478
|
$
|
74,611
|
$
|
63,927
|
GILAT SATELLITE NETWORKS LTD.
|
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in thousands
|
September 30,
|
December 31,
|
|||||||
2024
|
2023
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
109,554
|
$
|
103,961
|
||||
Restricted cash
|
1,192
|
736
|
||||||
Trade receivables, net
|
51,506
|
44,725
|
||||||
Contract assets
|
32,010
|
28,327
|
||||||
Inventories
|
39,892
|
38,525
|
||||||
Other current assets
|
23,304
|
24,299
|
||||||
Total current assets
|
257,458
|
240,573
|
||||||
LONG-TERM ASSETS:
|
||||||||
Restricted cash
|
13
|
54
|
||||||
Long-term contract assets
|
8,587
|
9,283
|
||||||
Severance pay funds
|
5,764
|
5,737
|
||||||
Deferred taxes
|
9,948
|
11,484
|
||||||
Operating lease right-of-use assets
|
4,427
|
5,105
|
||||||
Other long-term assets
|
8,177
|
9,544
|
||||||
Total long-term assets
|
36,916
|
41,207
|
||||||
PROPERTY AND EQUIPMENT, NET
|
70,607
|
74,315
|
||||||
INTANGIBLE ASSETS, NET
|
13,463
|
16,051
|
||||||
GOODWILL
|
54,740
|
54,740
|
||||||
TOTAL ASSETS
|
$
|
433,184
|
$
|
426,886
|
GILAT SATELLITE NETWORKS LTD.
|
CONSOLIDATED BALANCE SHEETS (Cont.)
|
U.S. dollars in thousands
|
September 30,
|
December 31,
|
|||||||
2024
|
2023
|
|||||||
Unaudited
|
Audited
|
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term debt
|
$
|
2,727
|
$
|
7,453
|
||||
Trade payables
|
19,134
|
13,873
|
||||||
Accrued expenses
|
53,477
|
51,906
|
||||||
Advances from customers and deferred revenues
|
22,672
|
34,495
|
||||||
Operating lease liabilities
|
2,431
|
2,426
|
||||||
Other current liabilities
|
18,085
|
16,431
|
||||||
Total current liabilities
|
118,526
|
126,584
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term loan
|
2,000
|
2,000
|
||||||
Accrued severance pay
|
6,547
|
6,537
|
||||||
Long-term advances from customers and deferred revenues
|
759
|
1,139
|
||||||
Operating lease liabilities
|
2,124
|
3,022
|
||||||
Other long-term liabilities
|
11,753
|
12,916
|
||||||
|
||||||||
Total long-term liabilities
|
23,183
|
25,614
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital - ordinary shares of NIS 0.2 par value
|
2,733
|
2,733
|
||||||
Additional paid-in capital
|
941,904
|
937,591
|
||||||
Accumulated other comprehensive loss
|
(5,926
|
)
|
(5,315
|
)
|
||||
Accumulated deficit
|
(647,236
|
)
|
(660,321
|
)
|
||||
Total shareholders' equity
|
291,475
|
274,688
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
433,184
|
$
|
426,886
|
GILAT SATELLITE NETWORKS LTD.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
U.S. dollars in thousands
|
Nine months ended
|
Three months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
$
|
13,085
|
$
|
20,057
|
$
|
6,819
|
$
|
10,152
|
||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
10,542
|
9,597
|
3,209
|
3,375
|
||||||||||||
Capital gain from sale of property
|
-
|
(2,084
|
)
|
-
|
(2,084
|
)
|
||||||||||
Stock-based compensation *)
|
5,800
|
1,836
|
1,912
|
722
|
||||||||||||
Accrued severance pay, net
|
(17
|
)
|
155
|
(77
|
)
|
(41
|
)
|
|||||||||
Deferred taxes, net
|
1,536
|
3,865
|
(188
|
)
|
2,045
|
|||||||||||
Decrease (increase) in trade receivables, net
|
(7,019
|
)
|
3,887
|
10,715
|
(5,511
|
)
|
||||||||||
Decrease (increase) in contract assets
|
(2,987
|
)
|
6,110
|
(5,969
|
)
|
(2,268
|
)
|
|||||||||
Decrease (increase) in other assets and other adjustments (including short-term, long-term
|
||||||||||||||||
and effect of exchange rate changes on cash and cash equivalents)
|
3,071
|
3,598
|
(2,441
|
)
|
3,355
|
|||||||||||
Decrease (increase) in inventories, net
|
(2,472
|
)
|
(6,185
|
)
|
(3,446
|
)
|
1,710
|
|||||||||
Increase (decrease) in trade payables
|
5,080
|
(5,321
|
)
|
1,501
|
(1,081
|
)
|
||||||||||
Increase (decrease) in accrued expenses
|
2,675
|
(2,782
|
)
|
4,904
|
2,257
|
|||||||||||
Increase (decrease) in advances from customers and deferred revenues
|
(12,162
|
)
|
2,646
|
(2,676
|
)
|
(478
|
)
|
|||||||||
Increase (decrease) in other liabilities
|
(1,745
|
)
|
(13,392
|
)
|
432
|
1,617
|
||||||||||
Net cash provided by operating activities
|
15,387
|
21,987
|
14,695
|
13,770
|
||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchase of property and equipment
|
(4,095
|
)
|
(8,656
|
)
|
(1,445
|
)
|
(2,100
|
)
|
||||||||
Receipts from sale of property
|
-
|
2,168
|
-
|
2,168
|
||||||||||||
Net cash provided by (used in) investing activities
|
(4,095
|
)
|
(6,488
|
)
|
(1,445
|
)
|
68
|
|||||||||
Cash flows from financing activities:
|
||||||||||||||||
Repayment of credit facility, net
|
(7,453
|
)
|
-
|
-
|
-
|
|||||||||||
Repayments of short-term debts
|
(4,043
|
)
|
-
|
(2,703
|
)
|
-
|
||||||||||
Proceeds from short-term debts
|
6,770
|
-
|
5,301
|
-
|
||||||||||||
Net cash provided by (used in) financing activities
|
(4,726
|
)
|
-
|
2,598
|
-
|
|||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(558
|
)
|
(2,351
|
)
|
160
|
(1,341
|
)
|
|||||||||
Increase in cash, cash equivalents and restricted cash
|
6,008
|
13,148
|
16,008
|
12,497
|
||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
104,751
|
87,145
|
94,751
|
87,796
|
||||||||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
110,759
|
$
|
100,293
|
$
|
110,759
|
$
|
100,293
|
*) Stock-based compensation including expenses related to business combination in the amounts of $3,297 and $1,131 for the nine months and three months ended September 30, 2024, respectively.
|