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 2003
Gilat Satellite Networks Ltd.
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(Translation of Registrant's Name into English
Gilat House, Yegia Kapayim Street
Daniv Park, Kiryat Arye, Petah Tikva, Israel
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(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
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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 No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): N/A
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Attached hereto is Registrant's press release dated May 22, 2003, announcing
results of operations for the First quarter ended March 31, 2003, and announcing
that Registrant's subsidiary, Spacenet, has signed several new agreements
including with Beall's Outlet retail stores, restaurant franchisees Valenti
Management and Bartlett Management Services, Rare Hospitality International
(restaurants), and the completion of a 6,000-site deployment for retailer Dollar
General and the renewal of its contract with Bob Evans restaurants until 2008.
This Report on Form 6-K is hereby incorporated by reference in the Registration
Statements on Form F-4 of Gilat Satellite Networks Ltd. (333-71422), Form F-3 of
Gilat Satellite Networks Ltd. (No. 333-12242) and (No. 333-12698) and Form S-8
of Gilat Satellite Networks Ltd. (No. 333-96630), (No. 333-08826), (No.
333-10092), (No. 333-12466) and (No. 333-12988).
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)
By: /s/ Yoav Leibovitch
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Yoav Leibovitch
Chief Financial Officer
Dated: May 27, 2003
May 22, 2003
GILAT ANNOUNCES 2003 FIRST-QUARTER RESULTS
Press here to view Balance Sheet and P&L
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Petah Tikva, Israel, May 22, 2003 - Gilat Satellite Networks Ltd. (Nasdaq:
GILTF), a worldwide leader in satellite networking technology, today reported
its results for the quarter ended March 31, 2003. Revenues were US$51.1 million
for the first quarter of 2003. Operating loss for the first quarter was US$25.2
million and net income was US$150.2 million or US$43.9 per share, mostly due to
a US$181.1 million gain and US$5.7 million in tax expenses relating to the
company's recently completed debt restructuring.
The Company improved its total cash balance by US$1.1 million in the quarter,
bringing its total cash balance (including cash and cash equivalents, short term
bank deposits, short and long term restricted cash less short term bank credits)
to US$71.9 million as of the quarter's end. In addition to this cash balance,
the company reported an additional US$18.6 million of restricted cash held by
trustees emanating from the Compartel agreement in Colombia, announced in the
fourth quarter of 2002.
The Company also announced that its Spacenet subsidiary has signed several new
agreements including with Beall's Outlet retail stores, restaurant franchisees
Valenti Management and Bartlett Management Services, Rare Hospitality
International (restaurants), the completion of a 6,000-site deployment for
retailer Dollar General and the renewal of its contract with Bob Evans
restaurants until 2008.
GILAT ANNOUNCES SEVERAL NEW CONTRACTS WITH ITS SPACENET SUBSIDIARY AND MAJOR
AGREEMENT IN RUSSIA
o Spacenet has been chosen to provide a satellite-based broadband data network
to a minimum of 300 Beall's Outlet retail stores, with the potential to grow to
600 locations. Beall's, which currently maintains a terrestrial Frame Relay
network to interconnect its stores, estimates that it will achieve substantial
savings in monthly per-site network service costs by switching to the Spacenet
VSAT network. The five-year agreement calls for Spacenet to deploy VSAT
terminals at Beall's Outlet locations across the Southeastern US.
o Spacenet has been chosen by leading restaurant franchisees Valenti Management
and Bartlett Management Services to provide a broadband satellite network for
150 Wendy's and KFC restaurants in the Eastern and Central US. Spacenet's VSAT
network will be used to support the Valenti and Bartlett critical back-office
applications, store polling and credit authorization connectivity requirements.
o Spacenet signed an agreement with RARE Hospitality International Inc. to
deploy the company's Connexstar broadband service at 200 RARE Hospitality
restaurant locations. Deployment of Spacenet's Connexstar 500 service is
expected to begin immediately at LongHorn Steakhouse and Bugaboo Creek
Steakhouse restaurants across the country.
o Spacenet announced that it has completed the deployment of Dollar General's
6,000th store location. Dollar General expects to open approximately 650 new
stores in the coming year, and plans to deploy Spacenet VSATs at each new store
as they are opened. Dollar General contracted with Spacenet in March 2001 to
provide always-on broadband connectivity to support its POS and back-office
applications. At that time, Dollar General had approximately 4,900 stores and
was just beginning the deployment of new POS systems and applications. Since
then, Dollar General has grown to more than 6,000 stores, and has deployed a
suite of new applications.
o In addition, Spacenet signed a contract extension with Bob Evans Farms Inc. to
continue provision of VSAT broadband service to Bob Evans' stores until 2008.
Spacenet's Connexstar Enterprise service, initially deployed in August 2000 at
427 Bob Evans Farms locations, has since grown to encompass 518 locations. The
Spacenet network supports a variety of critical applications for Bob Evans Farms
locations, including point-of-sale polling, credit card authorization and back
office/groupware applications.
o Last week, Gilat announced that it has signed an agreement with the Russian
Satellite Communications Company (RSCC) and the gaming company, Jackpot, to
deploy a Skystar 360E hub and VSAT network with 500 sites throughout the Russian
Federation. RSCC is Russia's largest satellite operator, with ownership of all
Russian satellites. The project allows for network-wide gambling for Jackpot
customers at the gaming sites on-line, as well as an independent network for
data transfer within the Jackpot organization.
ABOUT GILAT SATELLITE NETWORKS LTD.
Gilat Satellite Networks Ltd., with its global subsidiaries Spacenet Inc., Gilat
Latin America, Inc. and rStar Corporation (RTRCE), is a leading provider of
telecommunications solutions based on Very Small Aperture Terminal (VSAT)
satellite network technology - with nearly 400,000 VSATs shipped worldwide.
Gilat markets the Skystar Advantage, DialAw@y IP, FaraWay, Skystar 360E and
SkyBlaster* 360 VSAT products in more than 70 countries around the world. The
Company provides satellite-based, end-to-end enterprise networking and rural
telephony solutions to customers across six continents, and markets interactive
broadband data services. The Company is a joint venture partner in SATLYNX, a
provider of two-way satellite broadband services in Europe with SES GLOBAL.
Skystar Advantage(R), DialAw@y IP(TM) and FaraWay(TM) are trademarks or
registered trademarks of Gilat Satellite Networks Ltd. or its subsidiaries.
Visit Gilat at WWW.GILAT.COM. (*SkyBlaster is marketed in the United States by
StarBand Communications Inc. under its own brand name.)
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.
GILAT INVESTOR CONTACT:
TIM PERROTT,
VP, INVESTOR RELATIONS (USA)
TEL: +703-848-1515
tim.perrott@spacenet.com
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GILAT MEDIA CONTACT:
BARRY SPIELMAN,
DIRECTOR CORPORATE MARKETING
TEL: +(972)3-925-2201
barrys@gilat.com
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