Gilat Satellite Networks Ltd.
(Registrant)
|
|||
Dated August 12, 2015
|
By:
|
/s/ Ran Tal | |
Ran Tal
|
|||
VP General Counsel
|
|||
|
·
|
Revenues for the second quarter of 2015 were $44.3 million compared to $45.2 million in the first quarter of 2015 and $54.1 million in the comparable period of 2014.
|
|
·
|
EBITDA for the second quarter of 2015 was a loss of $2.5 million compared to an income of $0.2 million in the first quarter of 2015 and an income of $3.9 million in the comparable period of 2014.
|
|
·
|
Cash balances, including restricted cash, net of short-term bank credits, increased by $42.4 million compared to December 31, 2014, resulting in a cash balance of $95.9 million as of June 30, 2015.
|
|
·
|
Modified management objectives for 2015: reiterated revenues objective to between $250 to $260 million and modified EBITDA objective to between $20 to $21 million.
|
|
·
|
Bolivian Space Agency Selects Gilat for its National VSAT Platform Enabling Comprehensive Connectivity Capabilities
|
|
·
|
Fixed VSAT operators can now take advantage of Inmarsat’s wholesale service, powered by Gilat Satellite Networks and Global Xpress
|
|
·
|
Gilat Presents Compelling Business Case for MNOs to Deploy Satellite Backhaul for their LTE Networks
|
|
·
|
Gilat Delivers Mission-Critical UAV Connectivity and Maximizes Payload with Comprehensive BLoS SATCOM Solutions
|
GILAT SATELLITE NETWORKS LTD.
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEET
|
||||||||
US dollars in thousands
|
||||||||
June 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
Unaudited
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
25,596 | 27,726 | ||||||
Restricted cash
|
73,156 | 25,983 | ||||||
Restricted cash held by trustees
|
6,162 | 15,441 | ||||||
Trade receivables, net
|
50,558 | 57,728 | ||||||
Inventories
|
26,922 | 25,112 | ||||||
Other current assets
|
16,390 | 14,760 | ||||||
Total current assets
|
198,784 | 166,750 | ||||||
LONG-TERM INVESTMENTS AND RECEIVABLES:
|
||||||||
Long-term restricted cash
|
201 | 216 | ||||||
Severance pay funds
|
8,372 | 8,085 | ||||||
Other long term receivables and deferred charges
|
9,483 | 12,124 | ||||||
Total long-term investments and receivables
|
18,056 | 20,425 | ||||||
PROPERTY AND EQUIPMENT, NET
|
88,263 | 90,893 | ||||||
INTANGIBLE ASSETS, NET
|
20,040 | 22,970 | ||||||
GOODWILL
|
63,870 | 63,870 | ||||||
TOTAL ASSETS
|
389,013 | 364,908 |
GILAT SATELLITE NETWORKS LTD.
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEET
|
||||||||
US dollars in thousands
|
||||||||
June 30,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
Unaudited
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term bank credit and loans
|
9,220 | 15,857 | ||||||
Current maturities of long-term loans
|
4,552 | 4,595 | ||||||
Trade payables
|
17,310 | 22,850 | ||||||
Accrued expenses
|
20,092 | 22,475 | ||||||
Advances from customers
|
60,268 | 2,940 | ||||||
Short-term advances from customers, held by trustees
|
8,132 | 12,858 | ||||||
Other current liabilities
|
19,532 | 18,587 | ||||||
Total current liabilities
|
139,106 | 100,162 | ||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay
|
8,175 | 8,157 | ||||||
Long-term loans, net of current maturities
|
21,816 | 26,271 | ||||||
Other long-term liabilities
|
4,880 | 5,179 | ||||||
Total long-term liabilities
|
34,871 | 39,607 | ||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
EQUITY:
|
||||||||
Share capital - ordinary shares of NIS 0.2 par value
|
2,019 | 1,966 | ||||||
Additional paid-in capital
|
881,439 | 876,624 | ||||||
Accumulated other comprehensive loss
|
(1,703 | ) | (1,420 | ) | ||||
Accumulated deficit
|
(666,719 | ) | (652,031 | ) | ||||
Total equity
|
215,036 | 225,139 | ||||||
TOTAL LIABILITIES AND EQUITY
|
389,013 | 364,908 |
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 | |||||||||||||||||||||||
30 June 2015 | 30 June 2014 | |||||||||||||||||||||||
GAAP
|
Adjustments (1)
|
Non-GAAP
|
GAAP
|
Adjustments (1)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||||||||
Revenues
|
44,324 | - | 44,324 | 54,050 | - | 54,050 | ||||||||||||||||||
Cost of revenues
|
33,274 | (1,230 | ) | 32,044 | 34,730 | (1,248 | ) | 33,482 | ||||||||||||||||
Gross profit
|
11,050 | 1,230 | 12,280 | 19,320 | 1,248 | 20,568 | ||||||||||||||||||
25 | % | 28 | % | 36 | % | 38 | % | |||||||||||||||||
Research and development expenses:
|
||||||||||||||||||||||||
Expenses incurred
|
6,594 | (109 | ) | 6,485 | 6,878 | (119 | ) | 6,759 | ||||||||||||||||
Less - grants
|
222 | - | 222 | 594 | - | 594 | ||||||||||||||||||
6,372 | (109 | ) | 6,263 | 6,284 | (119 | ) | 6,165 | |||||||||||||||||
Selling and marketing expenses
|
6,412 | (346 | ) | 6,066 | 8,677 | (350 | ) | 8,327 | ||||||||||||||||
General and administrative expenses
|
5,471 | (339 | ) | 5,132 | 4,841 | (290 | ) | 4,551 | ||||||||||||||||
Operating income (loss)
|
(7,205 | ) | 2,024 | (5,181 | ) | (482 | ) | 2,007 | 1,525 | |||||||||||||||
Financial expenses, net
|
(1,559 | ) | - | (1,559 | ) | (515 | ) | - | (515 | ) | ||||||||||||||
Income (loss) before taxes on income
|
(8,764 | ) | 2,024 | (6,740 | ) | (997 | ) | 2,007 | 1,010 | |||||||||||||||
Taxes on income
|
318 | - | 318 | 434 | - | 434 | ||||||||||||||||||
Net income (loss) from continuing operations
|
(9,082 | ) | 2,024 | (7,058 | ) | (1,431 | ) | 2,007 | 576 | |||||||||||||||
Net income (loss) from discontinued operations
|
- | - | - | 8 | (8 | ) | - | |||||||||||||||||
Net income (loss)
|
(9,082 | ) | 2,024 | (7,058 | ) | (1,423 | ) | 1,999 | 576 | |||||||||||||||
Basic net income (loss) per share from continuing operations
|
(0.21 | ) | (0.03 | ) | ||||||||||||||||||||
Basic net income (loss) per share from discontinued operations
|
- | (0.00 | ) | |||||||||||||||||||||
Basic net income (loss) per share
|
(0.21 | ) | (0.16 | ) | (0.03 | ) | 0.01 | |||||||||||||||||
Diluted net income (loss) per share from continuing operations
|
(0.21 | ) | (0.03 | ) | ||||||||||||||||||||
Diluted net income (loss) per share from discontinued operations
|
- | (0.00 | ) | |||||||||||||||||||||
Diluted net income (loss) per share
|
(0.21 | ) | (0.16 | ) | (0.03 | ) | 0.01 | |||||||||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing net income (loss) per share
|
||||||||||||||||||||||||
Basic
|
42,883,469 | 42,883,469 | 42,357,784 | 42,357,784 | ||||||||||||||||||||
Diluted
|
42,883,469 | 42,883,469 | 42,357,784 | 43,579,048 |
(1)
|
Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related toShares acquisition transactions, and net income (loss) from discontinued operations.
|
Three months ended
|
Three months ended
|
|||||||||||||||||||||||
30 June 2015
|
30 June 2014
|
|||||||||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||||||||||
Non-cash stock-based compensation expenses:
|
||||||||||||||||||||||||
Cost of revenues
|
54 | 60 | ||||||||||||||||||||||
Research and development
|
109 | 119 | ||||||||||||||||||||||
Selling and marketing
|
133 | 138 | ||||||||||||||||||||||
General and administrative
|
339 | 290 | ||||||||||||||||||||||
635 | 607 | |||||||||||||||||||||||
Amortization of intangible assets related to acquisition transactions:
|
||||||||||||||||||||||||
Cost of revenues
|
1,176 | 1,188 | ||||||||||||||||||||||
Selling and marketing
|
213 | 212 | ||||||||||||||||||||||
1,389 | 1,400 |
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)
|
Six months ended | Six months ended | |||||||||||||||||||||||
30 June 2015 | 30 June 2014 | |||||||||||||||||||||||
GAAP
|
Adjustments (1)
|
Non-GAAP
|
GAAP
|
Adjustments (1)
|
Non-GAAP
|
|||||||||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||||||||
Revenues
|
89,514 | - | 89,514 | 104,901 | - | 104,901 | ||||||||||||||||||
Cost of revenues
|
65,272 | (2,481 | ) | 62,791 | 65,606 | (2,515 | ) | 63,091 | ||||||||||||||||
Gross profit
|
24,242 | 2,481 | 26,723 | 39,295 | 2,515 | 41,810 | ||||||||||||||||||
27 | % | 30 | % | 37 | % | 40 | % | |||||||||||||||||
Research and development expenses:
|
||||||||||||||||||||||||
Expenses incurred
|
13,128 | (219 | ) | 12,909 | 14,117 | (241 | ) | 13,876 | ||||||||||||||||
Less - grants
|
412 | - | 412 | 948 | - | 948 | ||||||||||||||||||
12,716 | (219 | ) | 12,497 | 13,169 | (241 | ) | 12,928 | |||||||||||||||||
Selling and marketing expenses
|
12,675 | (683 | ) | 11,992 | 18,367 | (692 | ) | 17,675 | ||||||||||||||||
General and administrative expenses
|
10,062 | (580 | ) | 9,482 | 9,753 | (593 | ) | 9,160 | ||||||||||||||||
Operating income (loss)
|
(11,211 | ) | 3,963 | (7,248 | ) | (1,994 | ) | 4,041 | 2,047 | |||||||||||||||
Financial expenses, net
|
(2,910 | ) | - | (2,910 | ) | (1,549 | ) | - | (1,549 | ) | ||||||||||||||
Income (loss) before taxes on income
|
(14,121 | ) | 3,963 | (10,158 | ) | (3,543 | ) | 4,041 | 498 | |||||||||||||||
Taxes on income
|
567 | - | 567 | 524 | - | 524 | ||||||||||||||||||
Loss from continuing operations
|
(14,688 | ) | 3,963 | (10,725 | ) | (4,067 | ) | 4,041 | (26 | ) | ||||||||||||||
Loss from discontinued operations
|
- | - | - | (43 | ) | 43 | - | |||||||||||||||||
Loss
|
(14,688 | ) | 3,963 | (10,725 | ) | (4,110 | ) | 4,084 | (26 | ) | ||||||||||||||
Basic loss per share from continuing operations
|
(0.34 | ) | (0.10 | ) | ||||||||||||||||||||
Basic loss per share from discontinued operations
|
- | (0.00 | ) | |||||||||||||||||||||
Basic loss per share
|
(0.34 | ) | (0.25 | ) | (0.10 | ) | (0.00 | ) | ||||||||||||||||
Diluted loss per share from continuing operations
|
(0.34 | ) | (0.10 | ) | ||||||||||||||||||||
Diluted loss per share from discontinued operations
|
- | (0.00 | ) | |||||||||||||||||||||
Diluted loss per share
|
(0.34 | ) | (0.25 | ) | (0.10 | ) | (0.00 | ) | ||||||||||||||||
Weighted average number of shares used in
|
||||||||||||||||||||||||
computing loss per share
|
||||||||||||||||||||||||
Basic | 43,139,303 | 43,139,303 | 42,266,861 | 42,266,861 | ||||||||||||||||||||
Diluted | 43,139,303 | 43,139,303 | 42,266,861 | 42,266,861 |
(1)
|
Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related toShares acquisition transactions, and net income (loss) from discontinued operations.
|
Six months ended
|
Six months ended
|
|||||||
30 June 2015
|
30 June 2014
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Non-cash stock-based compensation expenses:
|
||||||||
Cost of revenues
|
106 | 118 | ||||||
Research and development
|
219 | 241 | ||||||
Selling and marketing
|
258 | 268 | ||||||
General and administrative
|
580 | 593 | ||||||
1,163 | 1,220 | |||||||
Amortization of intangible assets related to acquisition transactions:
|
||||||||
Cost of revenues
|
2,375 | 2,397 | ||||||
Selling and marketing
|
425 | 424 | ||||||
2,800 | 2,821 |
GILAT SATELLITE NETWORKS LTD.
|
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||
U.S. dollars in thousands (except share and per share data)
|
Six months ended
|
Three months ended
|
|||||||||||||||
June 30, | June 30, | |||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
Revenues
|
89,514 | 104,901 | 44,324 | 54,050 | ||||||||||||
Cost of revenues
|
65,272 | 65,606 | 33,274 | 34,730 | ||||||||||||
Gross profit
|
24,242 | 39,295 | 11,050 | 19,320 | ||||||||||||
Research and development expenses:
|
||||||||||||||||
Expenses incurred
|
13,128 | 14,117 | 6,594 | 6,878 | ||||||||||||
Less - grants
|
412 | 948 | 222 | 594 | ||||||||||||
12,716 | 13,169 | 6,372 | 6,284 | |||||||||||||
Selling and marketing expenses
|
12,675 | 18,367 | 6,412 | 8,677 | ||||||||||||
General and administrative expenses
|
10,062 | 9,753 | 5,471 | 4,841 | ||||||||||||
Operating loss
|
(11,211 | ) | (1,994 | ) | (7,205 | ) | (482 | ) | ||||||||
Financial expenses, net
|
(2,910 | ) | (1,549 | ) | (1,559 | ) | (515 | ) | ||||||||
Loss before taxes on income
|
(14,121 | ) | (3,543 | ) | (8,764 | ) | (997 | ) | ||||||||
Taxes on income
|
567 | 524 | 318 | 434 | ||||||||||||
Loss from continuing operations
|
(14,688 | ) | (4,067 | ) | (9,082 | ) | (1,431 | ) | ||||||||
Net income (loss) from discontinued operations
|
- | (43 | ) | - | 8 | |||||||||||
Loss
|
(14,688 | ) | (4,110 | ) | (9,082 | ) | (1,423 | ) | ||||||||
Loss per share from continuing operations (basic and diluted)
|
(0.34 | ) | (0.10 | ) | (0.21 | ) | (0.03 | ) | ||||||||
Net income (loss) per share from discontinued operations (basic and diluted)
|
- | (0.00 | ) | - | (0.00 | ) | ||||||||||
Loss per share (basic and diluted)
|
(0.34 | ) | (0.10 | ) | (0.21 | ) | (0.03 | ) | ||||||||
Weighted average number of shares used in
|
||||||||||||||||
computing net loss per share
|
||||||||||||||||
Basic
|
43,139,303 | 42,266,861 | 42,883,469 | 42,357,784 | ||||||||||||
Diluted
|
43,139,303 | 42,266,861 | 42,883,469 | 42,357,784 |
GILAT SATELLITE NETWORKS LTD.
|
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||
US dollars in thousands
|
Six months ended | Three months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
Cash flows from continuing operations
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Loss
|
(14,688 | ) | (4,110 | ) | (9,082 | ) | (1,423 | ) | ||||||||
Net income (loss) from discontinued operations
|
- | (43 | ) | - | 8 | |||||||||||
Loss from continuing operations
|
(14,688 | ) | (4,067 | ) | (9,082 | ) | (1,431 | ) | ||||||||
Adjustments required to reconcile net loss
|
||||||||||||||||
to net cash generated provided by (used in) operating activities:
|
||||||||||||||||
Depreciation and amortization
|
7,699 | 7,428 | 4,041 | 3,744 | ||||||||||||
Stock-based compensation
|
1,163 | 1,220 | 635 | 607 | ||||||||||||
Accrued severance pay, net
|
(270 | ) | (103 | ) | (169 | ) | 19 | |||||||||
Accrued interest and exchange rate differences on
|
||||||||||||||||
short and long-term restricted cash, net
|
87 | (32 | ) | 44 | (118 | ) | ||||||||||
Exchange rate differences on long-term loans
|
(226 | ) | (34 | ) | 103 | (40 | ) | |||||||||
Capital loss from disposal of property and equipment
|
48 | 60 | 48 | 43 | ||||||||||||
Deferred income taxes
|
(38 | ) | (47 | ) | 3 | (11 | ) | |||||||||
Decrease (increase) in trade receivables, net
|
6,335 | (8,034 | ) | 5,614 | (5,994 | ) | ||||||||||
Decrease (increase) in other assets (including short-term, long-term
|
||||||||||||||||
and deferred charges)
|
16 | (12,535 | ) | (2,918 | ) | (4,752 | ) | |||||||||
Decrease (increase) in inventories
|
(2,817 | ) | 699 | 1,365 | 29 | |||||||||||
Increase in restricted cash directly related to operating activities
|
(54,318 | ) | - | (54,318 | ) | - | ||||||||||
Increase (decrease) in trade payables
|
(5,301 | ) | (52 | ) | (5,106 | ) | 1,998 | |||||||||
Increase (decrease) in accrued expenses
|
(1,760 | ) | 4,176 | 413 | 2,501 | |||||||||||
Increase (decrease) in advance from customers
|
57,332 | (4,921 | ) | 58,099 | (3,726 | ) | ||||||||||
Increase (decrease) in advances from customers, held
|
||||||||||||||||
by trustees
|
(4,158 | ) | 3,451 | 1,020 | (777 | ) | ||||||||||
Increase (decrease) in other current liabilities and other long term liabilities
|
1,742 | (921 | ) | (3,275 | ) | 127 | ||||||||||
Net cash used in operating activities
|
(9,154 | ) | (13,712 | ) | (3,483 | ) | (7,781 | ) |
GILAT SATELLITE NETWORKS LTD.
|
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||
US dollars in thousands
|
Six months ended | Three months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchase of property and equipment
|
(1,839 | ) | (10,319 | ) | (1,098 | ) | (9,794 | ) | ||||||||
Investment in restricted cash held by trustees
|
(6,109 | ) | (4,228 | ) | (6,109 | ) | - | |||||||||
Proceeds from restricted cash held by trustees
|
14,652 | 6,588 | 3,730 | 3,638 | ||||||||||||
Investment in restricted cash (including long-term)
|
(21,202 | ) | (7,516 | ) | (11,150 | ) | (7,516 | ) | ||||||||
Proceeds from restricted cash (including long-term)
|
28,276 | 176 | 6,159 | 100 | ||||||||||||
Net cash provided by (used in) investing activities
|
13,778 | (15,299 | ) | (8,468 | ) | (13,572 | ) | |||||||||
Cash flows from financing activities:
|
||||||||||||||||
Capital lease payments
|
(204 | ) | - | (102 | ) | - | ||||||||||
Issuance of restricted stock units and exercise of stock options
|
3,705 | 746 | 2,912 | 453 | ||||||||||||
Short term bank credit, net
|
(5,569 | ) | 7,216 | 4,438 | 5,564 | |||||||||||
Repayment of long-term loans
|
(4,272 | ) | (4,330 | ) | (137 | ) | (165 | ) | ||||||||
Net cash provided by (used in) financing activities
|
(6,340 | ) | 3,632 | 7,111 | 5,852 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(414 | ) | 355 | 71 | 322 | |||||||||||
Decrease in cash and cash equivalents
|
(2,130 | ) | (25,024 | ) | (4,769 | ) | (15,179 | ) | ||||||||
Cash and cash equivalents at the beginning of the period
|
27,726 | 58,424 | 30,365 | 48,579 | ||||||||||||
Cash and cash equivalents at the end of the period
|
25,596 | 33,400 | 25,596 | 33,400 |
GILAT SATELLITE NETWORKS LTD.
|
||||||||||
CONDENSED EBITDA
|
||||||||||
US dollars in thousands
|
Six months ended | Three months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
Operating loss
|
(11,211 | ) | (1,994 | ) | (7,205 | ) | (482 | ) | ||||||||
Add:
|
||||||||||||||||
Non-cash stock-based compensation expenses
|
1,163 | 1,220 | 635 | 607 | ||||||||||||
Depreciation and amortization
|
7,699 | 7,428 | 4,041 | 3,744 | ||||||||||||
EBITDA
|
(2,349 | ) | 6,654 | (2,529 | ) | 3,869 |