zk1517206.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 August, 2015

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 August 12, 2015, announcing Gilat’s Second Quarter 2015 results.
 
We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form F-3 (Registration No. 333-195680) and the Registration Statements on Form S-8 (Registration Nos.  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 August 12, 2015
By:
/s/ Ran Tal  
   
Ran Tal
 
   
VP General Counsel
 
       
 
2

 
 
Gilat Announces Second Quarter 2015 Results

Gilat reiterates Revenue management objectives and modifies down EBITDA
management objectives for 2015

Petah Tikva, Israel – August 12, 2015 – Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the second quarter ended June 30, 2015.
 
Key Financial Updates:
 
 
·
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.
 
Revenues for the second quarter of 2015 were $44.3 million, compared to $54.1 million for the same period in 2014.
 
On a non-GAAP basis, operating loss was $5.2 million in the second quarter of 2015 as compared to an operating income of $1.5 million in the comparable quarter of 2014.

On a GAAP basis, operating loss was $7.2 million in the second quarter of 2015 as compared to an operating loss of $0.5 million in the comparable quarter of 2014.

On a non-GAAP basis, net loss for the quarter was $7.1 million or $0.16 per diluted share compared to net income of $0.6 million or $0.01 per diluted share in the same quarter of 2014.
 
On a GAAP basis, net loss for the quarter was $9.1 million or a loss of $0.21 per diluted share compared to a net loss of $1.4 million or a loss of $0.03 per diluted share in the same quarter of 2014.

EBITDA for the second quarter of 2015 was a loss of $2.5 million compared with an income of $3.9 million in the comparable period in 2014.

“The second quarter and the remainder of 2015 are negatively impacted by two main factors. The first is the weaker than expected performance of our Defense sector, mainly resulting from delayed orders from the US DOD and other clients, coupled with lower than expected margins. The second factor is the lower than expected performance of the Colombia Kioscos project, coupled with the sharp devaluation of the Colombian Peso.
 
 
3

 

“However, we see a stronger second half which will accelerate in Q4 due to growth in all sectors, mainly in our projects in Peru,” said Dov Baharav, Interim CEO and Chairman of the Board of Gilat.
 
“I am very proud to announce a key development in our HTS business. Gilat is partnering with leading China Satellite Communication Companies to provide multiple network segments and VSAT terminals for the first Ka HTS multi-spot beam satellite ChinaSat 16. This agreement presents a major opportunity to develop a long term substantial relationship with our new partners in China to drive further potential business,” Mr. Baharav highlighted.

“With the reassurance of our growth drivers’ strength, namely HTS, Cellular Backhaul, airborne mobility and the exceptionally large funnel of deals we have, we are optimistic about the business outlook for 2016 and beyond for Gilat,” concluded Mr. Baharav

Key Recent Announcements:
 
 
·
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
 
Conference Call and Webcast Details:
Gilat management will host a conference call today at 13:30 GMT / 09:30 EDT / 16:30 IDT to discuss the results. International participants are invited to access the call at (972)3-918-0664, and US-based participants are invited to access the call by dialing (1)888-281-1167. 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 August 15, 2015.  International participants are invited to access the call at (972)3-925-5921, and US-based participants are invited to access the call by dialing (1)877-456-0009. 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 statements presented in accordance with GAAP, the Company presents Gilat's EBITDA before the impact of non-cash share-based payment charges, depreciation and amortization, other income and other costs related to acquisition transactions. Non-GAAP presentations of net income, operating 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 option expenses as per ASC 718 (formerly SFAS 123(R)) 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.
 
 
4

 

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
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 Peru and Colombia.

With over 25 years of experience, and over a million products shipped to more than 90 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. Gilat’s controlling shareholders are the FIMI Private Equity Funds. 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:
 
Gilat Satellite Networks
Joelle Inowlocki
JoelleI@gilat.com
 
KCSA Strategic Communications
Phil Carlson, Vice President
(212) 896-1233
pcarlson@kcsa.com
 
 
 
5

 
 
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  
 
 
6

 
 
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  
 
 
 
7

 
 
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          
 
 
8

 
 
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  
 
 
9

 
 
 
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  
 
 
10

 
 
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 )
 
 
11

 
 
 
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  
 
 
12

 
 
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  

 
13