U.S. markets open in 59 minutes
  • S&P Futures

    3,924.00
    -47.75 (-1.20%)
     
  • Dow Futures

    31,601.00
    -238.00 (-0.75%)
     
  • Nasdaq Futures

    11,809.25
    -226.00 (-1.88%)
     
  • Russell 2000 Futures

    1,776.30
    -15.50 (-0.87%)
     
  • Crude Oil

    110.32
    +0.03 (+0.03%)
     
  • Gold

    1,854.40
    +6.60 (+0.36%)
     
  • Silver

    21.89
    +0.16 (+0.75%)
     
  • EUR/USD

    1.0701
    +0.0005 (+0.04%)
     
  • 10-Yr Bond

    2.8590
    0.0000 (0.00%)
     
  • Vix

    29.36
    -0.07 (-0.24%)
     
  • GBP/USD

    1.2479
    -0.0109 (-0.86%)
     
  • USD/JPY

    127.4030
    -0.4850 (-0.38%)
     
  • BTC-USD

    29,186.12
    -1,282.25 (-4.21%)
     
  • CMC Crypto 200

    652.12
    -22.75 (-3.37%)
     
  • FTSE 100

    7,508.24
    -5.20 (-0.07%)
     
  • Nikkei 225

    26,748.14
    -253.38 (-0.94%)
     
WEF 2022:

Yahoo Finance is in Davos! Get the latest updates here

Gilat Reports First Quarter 2021 Results

  • Oops!
    Something went wrong.
    Please try again later.
·14 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

PETAH TIKVA, Israel, May 04, 2021 (GLOBE NEWSWIRE) -- 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.

"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:

Date:

Tuesday, May 4, 2021

Start:

9:30 AM ET / 4:30 PM IT

Dial-in:

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 www.gilat.com and through this link: www.veidan-stream.com/gilatq1-2021.html

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

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: 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, 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 Gilats products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilats 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 Companys proprietary technology and risks associated with Gilats international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with Gilats business, reference is made to Gilats 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.

Contact:
Gilat Satellite Networks
Doreet Oren, Director Corporate Communications
DoreetO@gilat.com

Ehud Helft
GK Investor & Public Relations
gilat@gkir.com
+1 646 688 3559


GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three months ended

March 31,

2021

2020

Unaudited

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

$

(0.09

)

$

(0.21

)

Diluted loss per share

$

(0.09

)

$

(0.21

)

Weighted average number of shares used in computing loss per share

Basic

56,031,343

55,493,258

Diluted

56,031,343

55,493,258


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

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

)

(103

)

(4,952

)

(11,737

)

3,168

(8,569

)

Net loss

(5,096

)

(103

)

(5,199

)

(11,755

)

3,168

(8,587

)

Basic loss per share

$

(0.09

)

$

-

$

(0.09

)

$

(0.21

)

$

0.06

$

(0.15

)

Diluted loss per share

$

(0.09

)

$

-

$

(0.09

)

$

(0.21

)

$

0.06

$

(0.15

)

Weighted average number of shares used in computing loss per share

Basic

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

Three months ended

March 31, 2021

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

)

366

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

)


GILAT SATELLITE NETWORKS LTD.

SUPPLEMENTAL INFORMATION

U.S. dollars in thousands

ADJUSTED EBITDA:

Three months ended

March 31,

2021

2020

Unaudited

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

SEGMENT REVENUE:

Three months ended

March 31,

2021

2020

Unaudited

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


GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

March 31,

December 31,

2021

2020

Unaudited

Audited

ASSETS

CURRENT ASSETS:

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 ASSETS:

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

PROPERTY AND EQUIPMENT, NET

76,612

77,172

INTANGIBLE ASSETS, NET

971

1,082

GOODWILL

43,468

43,468

TOTAL ASSETS

$

360,670

$

393,806

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED BALANCE SHEETS (Cont.)

U.S. dollars in thousands

March 31,

December 31,

2021

2020

Unaudited

Audited

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

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

LONG-TERM LIABILITIES:

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

SHAREHOLDERS' EQUITY:

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

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

360,670

$

393,806


GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

Three months ended

March 31,

2021

2020

Unaudited

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