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Gilat Announces First Quarter 2013 Results(GlobeNewswire Via Acquire Media NewsEdge) PETAH TIKVA, Israel, May 8, 2013 (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, 2013. Key Financial Highlights: Quarterly revenues of $82.8 million, up 8% compared to $76.6 million in the first quarter of 2012 EBITDA increased to $5.1 million, up 74% compared to $3.0 million in the first quarter of 2012 Total Cash increased by $3.3 million Revenues for the first quarter of 2013 were $82.8 million, compared to $76.6 million for the same period in 2012. On a non-GAAP basis, operating income for the first quarter of 2013 was $1.0 million compared to an operating loss of $0.3 million in the first quarter of 2012. Net loss for the period on a non-GAAP basis was $0.3 million, or $0.01 per diluted share, compared to net loss of $0.8 million, or $0.02 per diluted share, in the comparable period in 2012. EBITDA for the first quarter of 2013 reached $5.1 million compared with $3.0 million in the comparable period in 2012, representing a margin of 6.2%. "We are pleased with our results for the first quarter of 2013 as we achieved year-over-year improvement in revenue and EBITDA," said Erez Antebi, Chief Executive Officer of Gilat. "Our Commercial division continues to be a significant source of revenue as we executed well on existing projects while closing new deals. In addition to securing various enterprise deals, in the area of broadband internet access we have continued our progress with implementation ahead of schedule at NBN Co. with over 30,000 CPEs installed, over 6,000 CPEs delivered in support of the SBBS service and a major win in our Services division with the Peruvian Ministry of Education to connect thousands of schools nationwide." "In our Defense division, although Sequestration has limited our overall visibility," continued Antebi, "we continue to deliver on new and existing projects with defense and aviation system integrators. We are confident in our ability to increase service to international defense markets and believe this will offset to some degree, the uncertainty in the U.S." Key Recent Announcements: NordNet Deploys Gilat's SkyEdge II-c VSATs for High-end Broadband-Over-Satellite Service in France; Gilat to Equip IDF with SatTrooper-1000 Military Manpack for Advanced Tactical Communications; HISPASAT Expands Broadband Satellite-based Network With Additional SkyEdge II System from Gilat; Gilat Peru Wins $12.8 Million Contract with Peruvian Ministry of Education to Connect Thousands of Schools Nationwide; Gilat Launches the New Scalable SkyEdge II-c Platform For Ka and Ku-band Internet Access.Conference Call and Webcast Details: Gilat management will host a conference call today at 13:30 GMT/ 09:30 EDT/ 16:30 IDT (Israel Daylight Time) to discuss the results. International participants are invited to access the call at (972) 3-918-0610, and US-based participants are invited to access the call by dialing (888) 407-2553. 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 May 10, 2013. International participants are invited to access the replay at (972) 3-925-5900 and US-based participants are invited to access the replay by dialing (888) 782-4291. 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 information and statements presented in accordance with GAAP, the Company presents its EBITDA before the impact of non-cash stock based compensation, 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 based compensation as per ASC 718 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 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 SHEETUS dollars in thousands March 31,December 31, 20132012 Unaudited ASSETS CURRENT ASSETS: Cash and cash equivalents 71,517 66,968 Short-term restricted cash 4,369 3,794 Restricted cash held by trustees 12 1,664 Trade receivables, net 55,086 60,991 Inventories 28,432 24,973 Other current assets 29,209 29,140Total current assets 188,625 187,530 LONG-TERM INVESTMENTS AND RECEIVABLES: Long-term restricted cash 1,457 1,151 Severance pay fund 9,671 9,703 Long-term trade receivables, receivables in respect of capital leases and other receivables 19,422 19,781Total long-term investments and receivables 30,550 30,635 PROPERTY AND EQUIPMENT, NET 93,311 94,727 INTANGIBLE ASSETS, NET 34,343 35,991 GOODWILL 65,760 65,760 TOTAL ASSETS 412,589 414,643 GILAT SATELLITE NETWORKS LTD.CONDENSED CONSOLIDATED BALANCE SHEETUS dollars in thousands March 31,December 31, 20132012 Unaudited LIABILITIES AND EQUITY CURRENT LIABILITIES: Short-term bank credit 4,034 3,517 Current maturities of long-term loans 7,945 7,963 Trade payables 24,049 23,240 Accrued expenses 23,739 24,353 Short-term advances from customer, held by trustees 219 4,448 Other current liabilities 37,024 40,336 Total current liabilities 97,010 103,857 LONG-TERM LIABILITIES: Accrued severance pay 9,495 9,513 Long-term loans, net 35,646 40,747 Other long-term liabilities 30,270 18,569 Total long-term liabilities 75,411 68,829 COMMITMENTS AND CONTINGENCIES EQUITY: Share capital - ordinary shares of NIS 0.2 par value 1,917 1,909 Additional paid in capital 870,929 869,822 Accumulated other comprehensive income 2,316 2,864 Accumulated deficit (634,994) (632,638) Total equity 240,168 241,957 TOTAL LIABILITIES AND EQUITY 412,589 414,643 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 Three months ended March 31, 2013 March 31, 2012 GAAPAdjustments (1)Non-GAAPGAAPAdjustments (1)Non-GAAP UnauditedUnauditedUnauditedUnauditedUnauditedUnaudited Revenues 82,827 -- 82,827 76,607 -- 76,607 Cost of revenues 57,286 (1,288) 55,998 52,318 (1,638) 50,680Gross profit 25,541 1,288 26,829 24,289 1,638 25,927 31% 32%32% 34%Research and development expenses: Expenses incurred 7,631 (99) 7,532 8,220 (54) 8,166 Less - grants 332 -- 332 457 -- 457 7,299 (99) 7,200 7,763 (54) 7,709 Selling and marketing expenses 11,195 (320) 10,875 11,154 (314) 10,840 General and administrative expenses 8,043 (333) 7,710 7,952 (292) 7,660Operating income (loss) (996) 2,040 1,044 (2,580) 2,298 (282) Financial expenses, net (934) -- (934) (458) -- (458)Income (loss) before taxes on income (1,930) 2,040 110 (3,038) 2,298 (740) Taxes on income 426 -- 426 23 -- 23Net loss (2,356) 2,040 (316) (3,061) 2,298 (763) Basic net loss per share (0.06) (0.01) (0.07) (0.02)Diluted net loss per share (0.06) (0.01) (0.07) (0.02) Weighted average number of shares used in computing net loss per share: Basic 41,766 41,766 41,230 41,230 Diluted 41,766 41,766 41,230 41,230 (1) Adjustments reflect the effect of non-cash stock based compensation as per ASC 718 and amortization of intangible assets related to acquisition transactions. Three months ended Three months ended March 31, 2013 March 31, 2012 Unaudited Unaudited Non-cash stock-based compensation expenses: Cost of Revenues 40 66 Research and development 99 54 Selling and marketing 91 85 General and administrative 333 292 563 497 Amortization of intangible assets related to acquisition transactions: Cost of Revenues 1,248 1,572 Selling and marketing 229 229 1,477 1,801 GILAT SATELLITE NETWORKS LTD.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSU.S. dollars in thousands (except per share data) Three months ended March 31, 20132012 UnauditedUnaudited Revenues 82,827 76,607 Cost of revenues 57,286 52,318Gross profit 25,541 24,289 Research and development expenses: Expenses incurred 7,631 8,220 Less - grants 332 457 7,299 7,763 Selling and marketing expenses 11,195 11,154 General and administrative expenses 8,043 7,952Operating loss (996) (2,580) Financial expenses, net (934) (458)Loss before taxes on income (1,930) (3,038) Taxes on income 426 23Net loss (2,356) (3,061) Basic net loss per share (0.06) (0.07)Diluted net loss per share (0.06) (0.07) Weighted average number of shares used in computing net loss per share: Basic41,766 41,230 Diluted41,766 41,230 GILAT SATELLITE NETWORKS LTD.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSUS dollars in thousands Three months ended March 31, 20132012 UnauditedUnaudited Cash flows from operating activities: Net loss (2,356) (3,061)Adjustments required to reconcile net loss to net cash used in operating activities: Depreciation and amortization 5,560 5,038 Stock-based compensation 563 497 Accrued severance pay, net 14 (99) Accrued interest and exchange rate differences on short and long-term restricted cash, net 39 (247) Exchange rate differences on long-term loans (132) 160 Capital loss (gain) from disposal of property and equipment 12 (6) Deferred income taxes (16) (178) Decrease (increase) in trade receivables, net 5,999 (7,925) Decrease (increase) in other assets (including short-term, long-term and deferred charges) (1,207) 270 Increase in inventories (3,824) (3,264) Increase (decrease) in trade payables 797 (2,186) Decrease in accrued expenses (613) (3,906) Increase (decrease) in advances from customer, held by trustees, net (4,229) 5,655 Increase (decrease) in other accounts payable and other long term liabilities (5,952) 962Net cash used in operating activities (5,345) (8,290) GILAT SATELLITE NETWORKS LTD.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSUS dollars in thousands Three months ended March 31, 20132012 UnauditedUnauditedCash flows from investing activities: Purchase of property and equipment (1,131) (1,035) Investment in restricted cash held by trustees (1,782) (13,238) Proceeds from restricted cash held by trustees 3,407 4,059 Investment in restricted cash (including long-term) (8,703) (5,749) Proceeds from restricted cash (including long-term) 7,813 8,128 Purchase of intangible asset (16) (9)Net cash used in investing activities (412) (7,844) Cash flows from financing activities: Issuance of restricted stock units and exercise of stock options 553 6 Proceeds from financing contract 14,472 -- Short-term bank credit, net 517 (417) Repayment according to financing contract (212) -- Repayment of long-term loans (4,987) (4,248)Net cash generated from (used in) financing activities 10,343 (4,659) Effect of exchange rate changes on cash and cash equivalents (37) 131 Increase (decrease) in cash and cash equivalents 4,549 (20,662) Cash and cash equivalents at the beginning of the period 66,968 56,231 Cash and cash equivalents at the end of the period 71,517 35,569 GILAT SATELLITE NETWORKS LTD.CONDENSED EBITDAUS dollars in thousands Three months ended March 31, 20132012 UnauditedUnaudited Operating loss (996) (2,580) Add: Non-cash stock-based compensation expenses 563 497 Depreciation and amortization 5,560 5,038EBITDA 5,127 2,955 CONTACT: Phil Carlson / Josh Dver, KCSA [email protected] / [email protected] 1 (212) 896 1233 / 1239 David Leichner, Gilat Satellite Networks Ltd. [email protected] (972) 3 925 2321 Source: Gilat Satellite Networks Ltd. 2013 GlobeNewswire, Inc. |