TMCnet News
Gilat Announces First Quarter 2012 Results(GlobeNewswire Via Acquire Media NewsEdge) PETAH TIKVA, Israel, May 23, 2012 (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 ended March 31, 2012. Revenues for the first quarter of 2012 were $76.6 million, compared to $80.0 million for the same period in 2011. On a GAAP basis, operating loss for the first quarter of 2012 was $2.6 million compared to an operating income of $0.8 million in the first quarter of 2011. Net loss for the first quarter of 2012 was $3.1 million, or $0.07 per diluted share, compared to net income of $0.4 million, or $0.01 per diluted share, in the first quarter of 2011. Gross margin for the first quarter of 2012 was approximately 32% compared to approximately 36% in the comparable period in 2011. On a non-GAAP basis, operating loss for the first quarter of 2012 was $0.3 million compared to an operating income of $3.9 million in the first quarter of 2011. On a non-GAAP basis, net loss for the period was $0.8 million, or $0.02 per diluted share, compared to net income of $2.6 million, or $0.06 per diluted share, in the comparable period in 2011. EBITDA for the first quarter of 2012 reached $3.0 million compared with $8.0 million in the comparable period in 2011. "Our Commercial division continued to perform well with several important contract wins in the first quarter," said Erez Antebi, Gilat's Chief Executive Officer. "While our financial performance was impacted by the implementation timing of specific contracts in our Services division, as well as lower than expected revenues in our Defense division, we remain confident in our strategic direction and positioning in the growing Ka-band market, and as a provider of on-the move solutions for the defense industry." Key Recent Announcements: - Introduction by Spacenet of the Connect Series of network services, a tiered set of managed services that helps clarify and simplify network operations outsourcing for large multi-site networks; - Selection by a Tier-1 Mobile Network Operator (MNO) in South East Asia to provide a SkyEdge II network for GSM and 3G cellular backhaul; - Successful completion of a dedicated project for satellite-based web connectivity to support Russia's national presidential elections held March 4, 2012; - Selection of SkyEdge II VSAT network by Mexico's largest commercial television broadcaster Grupo Televisa, S.A.B., for Televisa's private communication network across Mexico; - Introduction by Gilat subsidiary Wavestream of a new 80W X-band Matchbox solid state power amplifier to address the needs of military and government applications; - Launch of SkyEdge II Accent Dual Waveform VSAT, featuring a dual SCPC/TDMA return channel; - Selection by JSC NURSAT, one of Kazakhstan's national satellite service providers, to deploy a broadband satellite IP network based on Gilat's advanced Sky Edge II System; - Supply and development agreement signed with O3b Networks Limited for Ka-band infrastructure for VSAT services; - Extension of services agreement for the Colombian Ministry of Information Technology and Communications for an additional nine-month period valued at approximately $16 million. Conference Call and Webcast Details: Gilat management will host a conference call today at 13:30 GMT/09:30 EST/16:30 IDT to discuss the results. International participants are invited to access the call at (972) 3-918-0650, and US-based participants are invited to access the call by dialing (888) 281-1167. The results presentation may be accessed prior to the conference call via Webcast through the Company's website at www.gilat.com. A replay of the conference call will be available beginning at approximately 16:00 GMT/12:00 EST/19:00 IDT today, until 16:00 GMT/12:00 EST/19:00 IDT May 25, 2012. International participants are invited to access the replay at (972) 3-925-5921, and US-based participants are invited to access the replay by dialing (888) 295-2634. 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, 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. 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 Satellite Networks Ltd. Gilat Satellite Networks Ltd (Nasdaq:GILT) (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 the United States, Peru and Colombia. With over 25 years of experience, and over a million products shipped to more than 85 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. For more information, please visit us at www.gilat.com The Gilat Satellite Networks Ltd. logo is available at //www.globenewswire.com/newsroom/prs/?pkgid=5848 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 SATELLITE NETWORKS LTD.CONDENSED CONSOLIDATED BALANCE SHEETSUS dollars in thousands March 31,December 31, 20122011 Unaudited ASSETS CURRENT ASSETS: Cash and cash equivalents 35,569 56,231 Short-term restricted cash 4,743 7,034 Restricted cash held by trustees 10,962 1,549 Trade receivables, net 59,730 51,654 Inventories 34,031 31,933 Other current assets 27,659 25,767Total current assets 172,694 174,168 LONG-TERM INVESTMENTS AND RECEIVABLES: Long-term restricted cash 1,955 2,025 Severance pay fund 9,897 9,722 Long-term trade receivables, receivables in respect of capital leases and other receivables 18,722 20,219Total long-term investments and receivables 30,574 31,966 PROPERTY AND EQUIPMENT, NET 99,536 100,926 INTANGIBLE ASSETS AND DEFERRED CHARGES, NET 47,946 49,927 GOODWILL 89,691 89,691 TOTAL ASSETS 440,441 446,678 GILAT SATELLITE NETWORKS LTD.CONDENSED CONSOLIDATED BALANCE SHEETSUS dollars in thousands March 31,December 31, 20122011 Unaudited LIABILITIES AND EQUITY CURRENT LIABILITIES: Short-term bank credit 2,555 2,971 Current maturities of long-term loans and convertible notes 19,088 19,092 Trade payables 23,305 25,477 Accrued expenses 21,704 25,609 Short-term advances from customer, held by trustees 7,206 1,551 Other current liabilities 37,920 36,764 Total current liabilities 111,778 111,464 LONG-TERM LIABILITIES: Accrued severance pay 9,521 9,445 Long-term loans, net 36,268 40,353 Other long-term liabilities 24,445 25,341 Total long-term liabilities 70,234 75,139 COMMITMENTS AND CONTINGENCIES EQUITY: Share capital - ordinary shares of NIS 0.2 par value 1,888 1,882 Additional paid in capital 867,597 867,100 Accumulated other comprehensive income 1,451 539 Accumulated deficit (612,507) (609,446) Total equity 258,429 260,075 TOTAL LIABILITIES AND EQUITY 440,441 446,678 GILAT SATELLITE NETWORKS LTD.RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONSFOR COMPARATIVE PURPOSES U.S. dollars in thousands (except per share data) Three months ended 31 March 2012 Three months ended 31 March 2011 GAAPAdjustments (1)Non-GAAPGAAPAdjustments (1)Non-GAAP UnauditedUnauditedUnauditedUnauditedUnauditedUnaudited Revenues 76,607 -- 76,607 80,027 -- 80,027 Cost of revenues 52,318 (1,638) 50,680 50,967 (2,260) 48,707Gross profit 24,289 1,638 25,927 29,060 2,260 31,320 32% 34%36% 39%Research and development expenses: Expenses incurred 8,220 (54) 8,166 8,867 (55) 8,812 Less - grants 457 -- 457 471 -- 471 7,763 (54) 7,709 8,396 (55) 8,341 Selling and marketing expenses 11,154 (314) 10,840 11,073 (328) 10,745 General and administrative expenses 7,952 (292) 7,660 8,656 (282) 8,374 Costs related to acquisition transactions -- -- -- 156 (156) -- Operating income (loss) (2,580) 2,298 (282) 779 3,081 3,860 Financial expenses, net (458) -- (458) (676) -- (676) Other income -- -- -- 949 (949) -- Income (loss) before taxes on income (3,038) 2,298 (740) 1,052 2,132 3,184 Taxes on income 23 -- 23 612 -- 612Net income (loss) (3,061) 2,298 (763) 440 2,132 2,572 Basic net earnings (loss) per share (0.07) (0.02) 0.01 0.06Diluted net earnings (loss) per share (0.07) (0.02) 0.01 0.06 Weighted average number of shares used in computing net earnings (loss) per share: Basic 41,230 41,230 40,746 40,746Diluted 41,230 41,230 42,136 43,012 (1) Adjustments reflect the effect of non-cash stock options expenses as per SFAS123R, costs related to acquisition transactions, amortization of intangible assets related to acquisition transactions and other income. Three months ended 31 March 2012 Three months ended 31 March 2011 Non-cash stock-based compensation expenses: Cost of Revenues 66 80 Research and development 54 55 Selling and marketing 85 94 General and administrative 292 282 497 511 Amortization of intangible assets related to acquisition transactions: Cost of Revenues 1,572 2,180 Selling and marketing 229 234 1,801 2,414 GILAT SATELLITE NETWORKS LTD.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSU.S. dollars in thousands (except per share data) Three months ended March 31, 20122011 UnauditedUnaudited Revenues 76,607 80,027 Cost of revenues 52,318 50,967Gross profit 24,289 29,060 Research and development expenses: Expenses incurred 8,220 8,867 Less - grants 457 471 7,763 8,396 Selling and marketing expenses 11,154 11,073 General and administrative expenses 7,952 8,656 Costs related to acquisition transactions -- 156Operating income (loss) (2,580) 779 Financial expenses, net (458) (676) Other income -- 949Income (loss) before taxes on income (3,038) 1,052 Taxes on income 23 612Net income (loss) (3,061) 440 Basic net earnings (loss) per share (0.07) 0.01Diluted net earnings (loss) per share (0.07) 0.01 Weighted average number of shares used in computing net earnings (loss) per share Basic41,230 40,746 Diluted41,230 42,136 GILAT SATELLITE NETWORKS LTD.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSUS dollars in thousands Three months ended March 31, 20122011 UnauditedUnaudited Cash flows from operating activities: Net income (loss) (3,061) 440Adjustments required to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,038 6,572 Stock-based compensation related to employees 497 511 Accrued severance pay, net (99) (63) Accrued interest and exchange rate differences on short and long-term restricted cash, net (247) (20) Exchange rate differences on long-term loans 160 402 Capital loss from disposal of property and equipment (6) 25 Deferred income taxes (178) 455 Decrease (increase) in trade receivables, net (7,925) 825 Decrease (increase) in other assets (including short-term, long-term and deferred charges) 270 (12,227) Increase in inventories (3,264) (1,169) Increase (decrease) in trade payables (2,186) 870 Increase (decrease) in accrued expenses (3,906) 312 Increase (decrease) in advances from customer, held by trustees, net 5,655 (1,004) Increase in other accounts payable and other long term liabilities 962 2,341Net cash used in operating activities (8,290) (1,730) GILAT SATELLITE NETWORKS LTD.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSUS dollars in thousands Three months ended March 31, 20122011 UnauditedUnauditedCash flows from investing activities: Purchase of property and equipment (1,035) (1,876) Investment in restricted cash held by trustees (13,238) -- Proceeds from restricted cash held by trustees 4,059 1,016 Investment in restricted cash (including long-term) (5,749) (11,076) Proceeds from restricted cash (including long-term) 8,128 6,868 Purchase of intangible asset (9) (13)Net cash used in investing activities (7,844) (5,081) Cash flows from financing activities: Issuance of restricted stock units and exercise of stock options 6 6 Short-term bank credit, net (417) (942) Repayment of long-term loans (4,248) (274)Net cash used in financing activities (4,659) (1,210) Effect of exchange rate changes on cash and cash equivalents 131 32 Decrease in cash and cash equivalents (20,662) (7,989) Cash and cash equivalents at the beginning of the period 56,231 57,238 Cash and cash equivalents at the end of the period 35,569 49,249 GILAT SATELLITE NETWORKS LTD.CONDENSED EBITDAUS dollars in thousands Three months ended March 31, 20122011 UnauditedUnaudited Operating income (loss) (2,580) 779 Add: Non-cash stock-based compensation expenses 497 511 Costs related to acquisition transactions -- 156 Depreciation and amortization 5,038 6,572EBITDA 2,955 8,018 CONTACT: Investor Contact: Rob Fink, KCSA [email protected] 1 (212) 896 1206 Josh Dver, KCSA [email protected] 1 (212) 896 1239 David Leichner Gilat Satellite Networks Ltd. [email protected] (972) 3 925 2321 Source: Gilat Satellite Networks Ltd. 2012 GlobeNewswire, Inc. |