GILT Gilat Satellite Networks

Filed: 4 May 21, 7:06am

FORM 6 – K


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, 2021

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  ☒ Form 40-F  ☐

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  ☒

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 4, 2021, announcing Gilat’s First Quarter 2021 results.

We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form S-8 (Registration Nos. 333-180552, 333-187021, 333-204867, 333-210820, 333-217022, 333-221546, 333-223839, 333-231442, 333-236028 and 333-253972) and on Form F-3 (Registration No. 333-232597).


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.
Dated May 4, 2021
By: /s/ Yael Shofar
 Yael Shofar
 General Counsel

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Gilat Reports First Quarter 2021 Results

Petah Tikva, Israel – May 4, 2021 – Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the first quarter of 2021.

First Quarter Financial Highlights

Revenues of $44.7 million versus $47.7 million in Q1 2020 and up from $42.6 million in the previous quarter;
GAAP operating loss of $3.7 million versus operating loss of $10.8 million in Q1 2020 and an operating income of $62.7 million in Q4 2020; GAAP operating income in Q4 2020 included income related to the legal settlement with Comtech, net of related expenses, of $64.8 million;

Non-GAAP operating loss of $3.8 million, compared with operating loss of $7.6 million in Q1 2020, and an operating loss of $1.6 million in the previous quarter;

GAAP net loss of $5.1 million, or loss of $0.09 per diluted share, compared with net loss of $11.8 million, or loss of $0.21 per diluted share in Q1 2020 and net income in the previous quarter of $62.4 million, or income of $1.12 per share; GAAP net income in the previous quarter included $64.8 million income related to the settlement with Comtech, net of related expenses;
Non-GAAP net loss of $5.2 million, or loss of $0.09 per diluted share, compared with net loss of $8.6 million, or loss of $0.15 per diluted share in Q1 2020, and compared with a net loss of $1.9 million, or loss of $0.03 per share, as reported in the previous quarter;
Adjusted EBITDA loss of $1.4 million compared with adjusted EBITDA loss of $5.0 million in Q1 2020; and adjusted EBITDA of $1.1 million in the previous quarter;
Management Commentary
Adi Sfadia, Gilat's CEO, commented: “We continue to see strong momentum across all our business units, with the exception of the IFC market segment, which is yet to show a recovery. We believe that this growth trend will continue during 2021 and expect to show sequential quarterly growth throughout the year and increasing profitability. Looking further out, 2022 is expected to show significant improvement both in revenue and profitability with the pick-up in IFC, Cellular Backhaul and NGSO.
"As a testament to the strong momentum we are seeing, I am very pleased to report that we entered a mega strategic agreement valued at tens of millions of dollars, including a potential for significant project expansions, with a large government corporation in Asia Pacific. I believe that we will see additional large strategic transactions in the near future.
“In light of the many opportunities we see ahead of us, we are investing significant R&D efforts in order to capture these opportunities and accelerate our future growth. We expect that NGSO, IFC and Cellular Backhaul will be the main market segments that will drive this growth during 2021 and beyond, and we also see strong potential for the defense business to support our growth in a more meaningful way than it has done in the past.
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"We made positive progress during the first quarter in our strategic growth areas of NGSO and Cellular Backhaul. We received additional orders for a LEO constellation, where our gateway Solid State Power Amplifiers (SSPAs) have been selected as the solution of choice. On the Cellular Backhaul front, we received a multi-million-dollar expansion and follow-on orders from Tier-1 mobile operators around the globe including in Japan, Australia, Europe and South America.
"In addition, we have made great progress in Peru with the government's acceptance for the operational phase in the Cusco region, bringing us significantly closer to our goal of recurring revenue of over $50M in Peru."
Key Recent Announcements

Gilat Enters Strategic Agreement Valued at Tens of Millions of Dollars with a Large Government Corporation in Asia Pacific
Gilat Achieves Critical Milestone in Peru with Approval to Enter Operational Phase, Unlocking Access to Recurring Revenue of Multi Million Dollars per Annum
Tier-1 Telco in Latin America Awards Gilat Over $3M to Provide Broadband Connectivity in Support of Bridging the Digital Divide
Gilat Receives Over $5M for Cellular Backhaul Expansion from Tier-1 Mobile Network Carrier in Japan
Gilat Awarded Over $20 Million in Orders for Support of Low Earth Orbit Constellation
SES Selected Gilat to Enable Tier-1 4G/LTE MNO in Brazil to Provide Broadband Connectivity for Education
Telespazio Selects Gilat to Supply Enterprise Connectivity in Brazil for a Multinational Leading Energy Company
Gilat Announces Appointment of Isaac Angel as Chairman of the Board
Gilat’s In-Flight Connectivity High-Power Transceiver Successfully Tested by Global Eagle Entertainment for DO-160G Certification
Gilat Launches Next Generation VSAT Family Supporting 5G Networks and LEO/MEO Constellations

Conference Call Details

Gilat’s management will discuss its first quarter 2021 results and business achievements and participate in a questions and answers session:


Tuesday, May 4, 2021
9:30 AM ET / 4:30 PM IT
US: 1-866-744-5399
International: +972-3-918-0610
A simultaneous webcast of the conference call will be available on the Gilat website at and through this link:

The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.

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Non-GAAP Measures
The attached summary unaudited financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents Non-GAAP presentations of net income, operating income, Adjusted EBITDA and earnings per share. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance. Non-GAAP financial measures mainly exclude the effect of stock based compensation, amortization of purchased intangibles, lease incentive amortization, litigation expenses, income related to trade secrets claims, restructuring and reorganization costs, merger, acquisition and related litigation expense (income), net and initial recognition of deferred tax asset with respect to carry-forward losses.
Adjusted EBITDA is presented to compare the Company’s performance to that of prior periods and evaluate the Company’s financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company’s financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company's Operating income and Adjusted EBITDA is presented in the attached summary financial statements.
Non-GAAP presentations of net income, operating income, Adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat’s operating performance or liquidity.
About Gilat
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With 30 years of experience, we design and manufacture cutting-edge ground segment equipment, and provide comprehensive solutions and end-to-end services, powered by our innovative technology. Delivering high value competitive solutions, our portfolio comprises of a cloud based VSAT network platform, high-speed modems, high performance on-the-move antennas and high efficiency, high power Solid-State Amplifiers (SSPA) and Block Upconverters (BUC).
Gilat’s comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, Cellular Backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety, all while meeting the most stringent service level requirements. Gilat controlling shareholders are the FIMI Private Equity Funds. For more information, please visit:
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, risks associated with the outbreak and global spread of the coronavirus (COVID-19) pandemic; 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. We undertake no obligation to update or revise any forward-looking statements for any reason.

Gilat Satellite Networks
Doreet Oren, Director Corporate Communications

Ehud Helft
GK Investor & Public Relations
+1 646 688 3559

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U.S. dollars in thousands (except share and per share data)

Three months ended
March 31,
  2021  2020 
Revenues $44,713  $47,673 
Cost of revenues  32,356   38,787 
Gross profit  12,357   8,886 
Research and development expenses  8,111   7,634 
Less - grants  184   272 
Research and development expenses, net  7,927   7,362 
Selling and marketing expenses  5,004   5,066 
General and administrative expenses  3,083   4,818 
Merger, acquisition and related litigation expenses  -    2,405 
Total operating expenses  16,014   19,651 
Operating loss  (3,657)  (10,765)
Financial expenses, net  (1,192)  (972)
Loss before taxes on income  (4,849)  (11,737)
Taxes on income  247   18 
Net loss $(5,096) $(11,755)
Basic loss per share $
Diluted loss per share $(0.09) $(0.21)
Weighted average number of shares used in        
computing loss per share        
  56,031,343   55,493,258 
Diluted  56,031,343   55,493,258 

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U.S. dollars in thousands (except share and per share data)    

  Three months ended  Three months ended 
  March 31, 2021  March 31, 2020 
  GAAP  Adjustments  Non-GAAP  GAAP  Adjustments  Non-GAAP 
  Unaudited  Unaudited 
Gross profit $12,357   66  $12,423  $8,886   62  $8,948 
Operating expenses  16,014   169   16,183   19,651   (3,106)  16,545 
Operating loss  (3,657)  (103)  (3,760)  (10,765)  3,168   (7,597)
Loss before taxes on income   (4,849)
  (11,737)  3,168   (8,569)
Net loss  (5,096)  (103)  (5,199)  (11,755)  3,168   (8,587)
Basic loss per share $
 -  $
 $(0.21) $0.06  $(0.15)
Diluted loss per share $
Weighted average number of shares used in     
    computing loss per share             
  56,031,343       56,031,343   55,493,258       55,493,258 
    Diluted  56,031,343       56,031,343   55,493,258       55,493,258 
Three months ended
March 31, 2021
Three months ended
March 31, 2020
      Unaudited          Unaudited 
GAAP net loss     $(5,096)         $(11,755)    
Gross profit                        
Non-cash stock-based compensation expenses       61           57     
Amortization of intangible assets related to acquisition transactions    5           5     
       66           62     
Operating expenses (income)                         
Non-cash stock-based compensation expenses       (220)
Amortization of intangible assets related to acquisition transactions    51           51     
Trade secrets and other litigation expenses       -           11     
Merger, acquisition and related litigation expenses       -           2,405     
Restructuring and re-organization costs       -           273     
       (169)          3,106     
Non-GAAP net loss     $(5,199)         $(8,587)    

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U.S. dollars in thousands           


Three months ended
March 31,
  2021  2020 
GAAP operating loss $(3,657) $(10,765)
Add (deduct):        
Non-cash stock-based compensation expenses  (159)  423 
Trade secrets and other litigation expenses  -   11 
Restructuring and re-organization costs  -   273 
Merger, acquisition and related litigation expenses   -   2,405 
Depreciation and amortization (*)  2,385   2,664 
Adjusted EBITDA $(1,431) $(4,989)

(*) Including amortization of lease incentive


  Three months ended 
  March 31, 
  2021  2020 
Fixed Networks $25,302  $23,011 
Mobility Solutions  11,079   19,201 
Terrestrial Infrastructure Projects  8,332   5,461 
Total revenue $44,713  $47,673 

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U.S. dollars in thousands

  March 31,  December 31, 
  2021  2020 
  Unaudited  Audited 
   Cash and cash equivalents $48,905  $88,754 
   Restricted cash  26,642   27,162 
   Trade receivables, net  27,820   27,976 
   Contract assets  46,060   41,573 
   Inventories  33,339   31,304 
   Other current assets  18,832   16,637 
   Total current assets  201,598   233,406 
   Long-term restricted cash  12   42 
   Severance pay funds  6,414   6,665 
   Deferred taxes  18,778   19,295 
   Operating lease right-of-use assets  4,478   4,879 
   Other long term receivables  8,339   7,797 
Total long-term assets  38,021   38,678 
GOODWILL  43,468   43,468 
 $360,670  $393,806 

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U.S. dollars in thousands

  March 31,  December 31, 
  2021  2020 
  Unaudited  Audited 
   Current maturities of long-term loans $-  $4,000 
   Trade payables  21,428   20,487 
   Accrued expenses  47,465   46,387 
   Advances from customers and deferred revenues  35,404   26,244 
   Operating lease liabilities  1,678   1,911 
   Dividend payable  -   35,003 
   Other current liabilities  16,161   13,322 
   Total current liabilities  122,136   147,354 
   Accrued severance pay  6,875   7,136 
   Long-term advances from customers  307   1,890 
   Operating lease liabilities  2,847   2,985 
   Other long-term liabilities  396   631 
   Total long-term liabilities  10,425   12,642 
   Share capital - ordinary shares of NIS 0.2 par value  2,704   2,647 
   Additional paid-in capital  928,410   928,626 
   Accumulated other comprehensive loss  (6,463)  (6,017)
  Accumulated deficit  (696,542)  (691,446)
Total shareholders' equity  228,109   233,810 
 $360,670  $393,806 

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U.S. dollars in thousands

  Three months ended 
  March 31, 
  2021  2020 
Cash flows from operating activities:
Net loss $(5,096) $(11,755)
Adjustments required to reconcile net income        
 to net cash provided by (used in) operating activities:        
Depreciation and amortization  2,330   2,604 
Capital loss from disposal of property and equipment  -   (33)
Stock-based compensation of options  (159)  423 
Accrued severance pay, net  (10)  43 
Deferred income taxes, net  518   634 
Decrease (increase) in trade receivables, net  (1,933)  13,607 
Increase in contract assets  (4,487)  (4,851)
Decrease (increase) in other assets (including short-term, long-term        
   and deferred charges)  (220)  1,673 
Increase in inventories  (2,212)  (6,635)
Increase in trade payables  950   2,375 
Increase (decrease) in accrued expenses  969   (1,652)
Increase (decrease) in advance from customer and deferred revenues  7,688   (2,827)
Increase in current and non current liabilities  2,003   2,811 
Net cash provided by (used in) operating activities  341   (3,583)
Cash flows from investing activities:
Purchase of property and equipment  (1,483)  (951)
Net cash used in investing activities  (1,483)  (951)
Cash flows from financing activities:
Dividend payment  (35,003)  - 
Repayment of long-term loans  (4,000)  (4,096)
Net cash used in financing activities  (39,003)  (4,096)
Effect of exchange rate changes on cash, cash equivalents and restricted cash  (254)  (695)
Decrease in cash, cash equivalents and restricted cash  (40,399)  (9,325)
Cash, cash equivalents and restricted cash at the beginning of the period  115,958   101,969 
Cash, cash equivalents and restricted cash at the end of the period $75,559  $92,644 

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