zk1313073.htm
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 2013

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 x   Form 40-F o

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 o   No x

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 8, 2013, announcing Registrant’s financial results for the first quarter 2013.
 
We consent to the incorporation by reference in the Registration Statements on Form F-3 (Registration Nos. 333-160683 and No. 333-174142) and the Registration Statements on Form S-8 (Registration Nos. 333-96630, 333-113932, 333-123410, 333-132649, 333-158476, 333-180552 and 333-187021).
 
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 8, 2013
By:
/s/ Alon Levy  
    Alon Levy  
   
General Counsel
  
       
 
 
 
 
Gilat Announces First Quarter 2013 Results

First Quarter Highlights: Year-over-Year Growth in Revenue up 8% to $82.8 million
and EBITDA up 74% to $5.1 million

Petah Tikva, Israel – May 8, 2013 – Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the first quarter ended March 31, 2013.

Key Financial Highlights:
 
 
·
Quarterly revenues of $82.8 million, up 8% compared to $76.6 million in the first quarter of 2012
 
·
EBITDA increased to $5.1 million, up 74% compared to $3.0 million in the first quarter of 2012
 
·
Total Cash increased by $3.3 million

Revenues for the first quarter of 2013 were $82.8 million, compared to $76.6 million for the same period in 2012.

On a non-GAAP basis, operating income for the first quarter of 2013 was $1.0 million compared to an operating loss of $0.3 million in the first quarter of 2012. Net loss for the period on a non-GAAP basis was $0.3 million, or $0.01 per diluted share, compared to net loss of $0.8 million, or $0.02 per diluted share, in the comparable period in 2012.

EBITDA for the first quarter of 2013 reached $5.1 million compared with $3.0 million in the comparable period in 2012, representing a margin of 6.2%.
 
 “We are pleased with our results for the first quarter of 2013 as we achieved year-over-year improvement in revenue and EBITDA,” said Erez Antebi, Chief Executive Officer of Gilat. “Our Commercial division continues to be a significant source of revenue as we executed well on existing projects while closing new deals.

In addition to securing various enterprise deals, in the area of broadband internet access we have continued our progress with implementation ahead of schedule at NBN Co. with over 30,000 CPEs installed, over 6,000 CPEs delivered in support of the SBBS service and a major win in our Services division with the Peruvian Ministry of Education to connect thousands of schools nationwide.”

“In our Defense division, although Sequestration has limited our overall visibility,” continued Antebi, “we continue to deliver on new and existing projects with defense and aviation system integrators. We are confident in our ability to increase service to international defense markets and believe this will offset to some degree, the uncertainty in the U.S.”

Key Recent Announcements:
 
·
NordNet Deploys Gilat's SkyEdge II-c VSATs for High-end Broadband-Over-Satellite Service in France;
 
 
 
 
 
·
Gilat to Equip IDF with SatTrooper-1000 Military Manpack for Advanced Tactical Communications;
 
·
HISPASAT Expands Broadband Satellite-based Network With Additional SkyEdge II System from Gilat;
 
·
Gilat Peru Wins $12.8 Million Contract with Peruvian Ministry of Education to Connect Thousands of Schools Nationwide;
 
·
Gilat Launches the New Scalable SkyEdge II-c Platform For Ka and Ku-band Internet Access.
 
Conference Call and Webcast Details:
 
Gilat management will host a conference call today at 13:30 GMT/ 09:30 EDT/ 16:30 IDT (Israel Daylight Time) to discuss the results. International participants are invited to access the call at (972) 3-918-0610, and US-based participants are invited to access the call by dialing (888) 407-2553. A replay of the conference call will be available beginning at approximately 16:00 GMT/ 12:00 EDT/ 19:00 IDT today, until 16:00 GMT/ 12:00 EDT/ 19:00 IDT May 10, 2013.  International participants are invited to access the replay at (972) 3-925-5900 and US-based participants are invited to access the replay by dialing (888) 782-4291. A replay of the call may also be accessed as a webcast via Gilat’s website at www.gilat.com and will be archived for 30 days.

Notes:
 
(1) The attached summary financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The attached summary financial statements are unaudited. To supplement the consolidated financial information and statements presented in accordance with GAAP, the Company presents its EBITDA before the impact of non-cash stock based compensation, depreciation and amortization, other income and other costs related to acquisition transactions. Non-GAAP presentations of net income, EBITDA and earnings per share are provided to enhance the understanding of the Company's historical financial performance and comparability between periods.
 
(2) Operating income before depreciation, amortization, non-cash stock based compensation as per ASC 718 and other costs related to acquisition transactions ('EBITDA') is presented because it is a measure commonly used and is presented solely in order to improve the understanding of the Company's operating results and to provide further perspective on these results. EBITDA, however, should not be considered as an alternative to operating income or net income for the period as an indicator of the operating performance of the Company.
 
Similarly, EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity. EBITDA is not a measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Reconciliation between the Company's Operating income and EBITDA is presented in the attached summary financial statements.
 
About Gilat Satellite Networks Ltd.
 
Gilat Satellite Networks Ltd (NASDAQ, TASE: GILT) is a leading provider of products and services for satellite-based broadband communications. Gilat develops and markets a wide range of high-performance satellite ground segment equipment and VSATs, with an increasing focus on the consumer and Ka-band market. In addition, Gilat enables mobile SOTM (Satellite-on-the-Move) solutions providing low-profile antennas, next generation solid-state power amplifiers and modems. Gilat also provides managed network and satellite-based services for rural telephony and Internet access via its subsidiaries in the United States, Peru and Colombia.
 
 
 
 

With over 25 years of experience, and over a million products shipped to more than 85 countries, Gilat has provided enterprises, service providers and operators with efficient and reliable satellite-based connectivity solutions, including cellular backhaul, banking, retail, e-government and rural communication networks. Gilat also enables leading defense, public security and news organizations to implement advanced, on-the-move tactical communications on board their land, air and sea fleets using Gilat's high-performance SOTM solutions. For more information, please visit us at 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, 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.
 
Contact:
Phil Carlson / Josh Dver, KCSA
pcarlson@kcsa.com / jdver@kcsa.com
1 (212) 896 1233 / 1239          
 
David Leichner, Gilat Satellite Networks Ltd.
davidle@gilat.com
(972) 3 925 2321
                                                           
 
 
 

GILAT SATELLITE NETWORKS LTD.
        
CONDENSED CONSOLIDATED BALANCE SHEET
        
US dollars in thousands
        
 
   
March 31,
    
December 31,
  
   
2013
    
2012
  
   
Unaudited
        
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
     71,517       66,968  
Short-term restricted cash
     4,369       3,794  
Restricted cash held by trustees
     12       1,664  
Trade receivables, net
     55,086       60,991  
Inventories
     28,432       24,973  
Other current assets
     29,209       29,140  
   Total current assets
     188,625       187,530  
                 
LONG-TERM INVESTMENTS AND RECEIVABLES:
                
Long-term restricted cash
     1,457       1,151  
Severance pay fund
     9,671       9,703  
Long-term trade receivables, receivables in respect of capital
                
   leases and other receivables
     19,422       19,781  
Total long-term investments and receivables
     30,550       30,635  
                 
PROPERTY AND EQUIPMENT, NET
     93,311       94,727  
                 
INTANGIBLE ASSETS, NET
     34,343       35,991  
                 
GOODWILL
     65,760       65,760  
                 
TOTAL ASSETS
     412,589       414,643  
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
        
CONDENSED CONSOLIDATED BALANCE SHEET
        
US dollars in thousands
        
 
   
March 31,
    
December 31,
  
   
2013
    
2012
  
   
Unaudited
        
             
LIABILITIES AND EQUITY
            
             
CURRENT LIABILITIES:
            
Short-term bank credit
     4,034       3,517  
Current maturities of long-term loans
     7,945       7,963  
Trade payables
     24,049       23,240  
Accrued expenses
     23,739       24,353  
Short-term advances from customer, held by trustees
     219       4,448  
Other current liabilities
     37,024       40,336  
                 
   Total current liabilities
     97,010       103,857  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
     9,495       9,513  
Long-term loans, net
     35,646       40,747  
Other long-term liabilities
     30,270       18,569  
                 
   Total long-term liabilities
     75,411       68,829  
                 
COMMITMENTS AND CONTINGENCIES
                
                 
EQUITY:
                
Share capital - ordinary shares of NIS 0.2 par value
     1,917       1,909  
Additional paid in capital
     870,929       869,822  
Accumulated other comprehensive income
     2,316       2,864  
Accumulated deficit
     (634,994 )     (632,638 )
                 
Total equity
     240,168       241,957  
                 
TOTAL LIABILITIES AND EQUITY
     412,589       414,643  
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
  
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except per share data)
  
 
         
Three months ended
                
Three months ended
        
         
March 31, 2013
                
March 31, 2012
        
   
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                                     
Revenues
     82,827       -       82,827       76,607       -       76,607  
Cost of revenues
     57,286       (1,288 )     55,998       52,318       (1,638 )     50,680  
Gross profit
     25,541       1,288       26,829       24,289       1,638       25,927  
      31 %             32 %     32 %             34 %
Research and development expenses:
                                                
Expenses incurred
     7,631       (99 )     7,532       8,220       (54 )     8,166  
Less - grants
     332       -       332       457       -       457  
      7,299       (99 )     7,200       7,763       (54 )     7,709  
Selling and marketing expenses
     11,195       (320 )     10,875       11,154       (314 )     10,840  
General and administrative expenses
     8,043       (333 )     7,710       7,952       (292 )     7,660  
Operating income (loss)
     (996 )     2,040       1,044       (2,580 )     2,298       (282 )
Financial expenses, net
     (934 )     -       (934 )     (458 )     -       (458 )
Income (loss) before taxes on income
     (1,930 )     2,040       110       (3,038 )     2,298       (740 )
Taxes on income
     426       -       426       23       -       23  
Net loss
     (2,356 )     2,040       (316 )     (3,061 )     2,298       (763 )
                                                 
Basic net loss per share
     (0.06 )             (0.01 )     (0.07 )             (0.02 )
Diluted net loss per share
     (0.06 )             (0.01 )     (0.07 )             (0.02 )
                                                 
Weighted average number of shares used in
                                                
   computing net loss per share:
                                                
      Basic     41,766               41,766       41,230               41,230  
      Diluted     41,766               41,766       41,230               41,230  
 
(1) Adjustments reflect the effect of non-cash stock based compensation as per ASC 718 and amortization of intangible assets related to acquisition transactions.
  
 
   
Three months ended
    
Three months ended
  
   
March 31, 2013
    
March 31, 2012
  
   
Unaudited
    
Unaudited
  
Non-cash stock-based compensation expenses:
            
Cost of Revenues
     40       66  
Research and development
     99       54  
Selling and marketing
     91       85  
General and administrative
     333       292  
      563       497  
                 
Amortization of intangible assets related to acquisition transactions:
                
Cost of Revenues     1,248       1,572  
Selling and marketing
     229       229  
      1,477       1,801  
 
 
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  
U.S. dollars in thousands (except per share data)
 
      Three months ended  
      March 31,  
   
2013
    
2012
  
   
Unaudited
    
Unaudited
  
             
Revenues
     82,827       76,607  
Cost of revenues
     57,286       52,318  
Gross profit
     25,541       24,289  
Research and development expenses:
                
Expenses incurred
     7,631       8,220  
Less - grants
     332       457  
      7,299       7,763  
Selling and marketing expenses
     11,195       11,154  
General and administrative expenses
     8,043       7,952  
Operating loss
     (996 )     (2,580 )
Financial expenses, net
     (934 )     (458 )
Loss before taxes on income
     (1,930 )     (3,038 )
Taxes on income
     426       23  
Net loss
     (2,356 )     (3,061 )
                 
Basic net loss per share
     (0.06 )     (0.07 )
Diluted net loss per share
     (0.06 )     (0.07 )
                 
Weighted average number of shares used in
                
computing net loss per share:
                
Basic
     41,766       41,230  
Diluted
     41,766       41,230  
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
    
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    
US dollars in thousands
  
 
      Three months ended  
      March 31,  
   
2013
    
2012
  
   
Unaudited
    
Unaudited
  
             
Cash flows from operating activities:
            
Net loss
     (2,356 )     (3,061 )
Adjustments required to reconcile net loss
                
   to net cash used in operating activities:
                
Depreciation and amortization
     5,560       5,038  
Stock-based compensation
     563       497  
Accrued severance pay, net
     14       (99 )
Accrued interest and exchange rate differences on
                
   short and long-term restricted cash, net
     39       (247 )
Exchange rate differences on long-term loans
     (132 )     160  
Capital loss (gain) from disposal of property and equipment
     12       (6 )
Deferred income taxes
     (16 )     (178 )
Decrease (increase) in trade receivables, net
     5,999       (7,925 )
Decrease (increase) in other assets (including short-term, long-term
                
   and deferred charges)
     (1,207 )     270  
Increase in inventories
     (3,824 )     (3,264 )
Increase (decrease) in trade payables
     797       (2,186 )
Decrease in accrued expenses
     (613 )     (3,906 )
Increase (decrease) in advances from customer, held
                
   by trustees, net
     (4,229 )     5,655  
Increase (decrease) in other accounts payable and other long term liabilities
     (5,952 )     962  
Net cash used in operating activities
     (5,345 )     (8,290 )
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
          
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
          
US dollars in thousands
          
 
        Three months ended  
        March 31,  
     
2013
    
2012
  
     
Unaudited
    
Unaudited
  
Cash flows from investing activities:
            
Purchase of property and equipment
     (1,131 )     (1,035 )
Investment in restricted cash held by trustees
     (1,782 )     (13,238 )
Proceeds from restricted cash held by trustees
     3,407       4,059  
Investment in restricted cash (including long-term)
     (8,703 )     (5,749 )
Proceeds from restricted cash (including long-term)
     7,813       8,128  
Purchase of intangible asset
     (16 )     (9 )
                   
Net cash used in investing activities     (412 )     (7,844 )
                   
Cash flows from financing activities:
                
Issuance of restricted stock units and exercise of stock options
     553       6  
Proceeds from financing contract
     14,472       -  
Short-term bank credit, net
     517       (417 )
Repayment according to financing contract
     (212 )     -  
Repayment of long-term loans
     (4,987 )     (4,248 )
Net cash generated from (used in) financing activities
     10,343       (4,659 )
                   
Effect of exchange rate changes on cash and cash equivalents
     (37 )     131  
                   
Increase (decrease) in cash and cash equivalents
     4,549       (20,662 )
                   
Cash and cash equivalents at the beginning of the period
     66,968       56,231  
                   
Cash and cash equivalents at the end of the period
     71,517       35,569  
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
          
CONDENSED EBITDA
          
US dollars in thousands
          
 
      Three months ended  
      March 31,  
   
2013
    
2012
  
   
Unaudited
    
Unaudited
  
             
Operating loss
     (996 )     (2,580 )
Add:
                
Non-cash stock-based compensation expenses
     563       497  
Depreciation and amortization
     5,560       5,038  
EBITDA
     5,127       2,955