updated 5/17/2011 7:46:08 AM ET 2011-05-17T11:46:08

PETAH TIKVA, Israel, May 17, 2011 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq:GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the quarter ending March 31, 2011.

Revenues for the first quarter of 2011 were $80.0 million, compared to $57.1 million in the first quarter of 2010, up 40%. Operating income for the first quarter of 2011 was $0.8 million compared to $0.1 million in the first quarter of 2010. Net income for the first quarter of 2011 was $0.4 million or $0.01 per diluted share, compared to a net income of $0.6 million or $0.02 per diluted share in the comparable period in 2010.

On a Non-GAAP basis, operating income for the period was $3.9 million compared to $0.4 million in the first quarter of 2010. Non-GAAP net income for the period was $2.6 million or $0.06 per diluted share, compared to a net income of $1.0 million or $0.02 per diluted share in the comparable period in 2010.

Gross margins reached 36.4% in the first quarter of 2011 compared to 34.3% in the comparable period in 2010, and EBITDA margins were 10% compared to 6% in 2010.

"Gilat ended the first quarter with overall growth in revenue and strong gross and EBITDA margins. Our strategy to increase R&D and invest in our future while we improve our profitability is continuing as planned," said Amiram Levinberg, Gilat's Chief Executive Officer and Chairman of the Board. "Our recent contract win in Australia is a strong show of faith for Gilat's technology and our overall delivery capabilities."

Resources:

First Quarter 2011 Financial Statements

Recent Announcements:

  • Gilat announced that it has been selected by Optus to provide a SkyEdge II VSAT network, installation, operation and maintenance for the Australian Government's National Broadband Network Company's (NBN Co) Interim Satellite Service. The contract represents a potential value of $120 million over a five year period. May 2011. Read
  • The Company's subsidiary Spacenet announced that it has acquired CICAT Networks, a US-based provider of broadband network solutions. The acquisition will allow Spacenet to increase its addressable market and offer an expanded range of Managed Network Services to customers. April 2011. Read
  • Gilat announced that it has been selected by Telecom Namibia to provide a SkyEdge II network to serve hundreds of locations throughout Namibia. The new, IP oriented and higher capacity network will replace legacy equipment and enable the connection of new sites to broadband services. April 2011. Read Trade Release
  • Gilat was awarded a new contract by Peru's Agency for Promotion of Private Investment (ProInversion) to provide Internet access and telephony services throughout the country's rural regions. Valued at $14.5 million, the project is funded by Fondo de Inversión en Telecomunicaciones (FITEL), and is the sixth contract the ministerial agency has awarded Gilat in the past 12 years. March 2011. Read
  • Gateway Communications selected Gilat to provide broadband satellite infrastructure for cellular backhaul throughout Africa. The strategic cooperation will further enhance the provision of telecommunication services to mobile and fixed line operators, connecting them within Africa, and to the rest of the world. March 2011. Read Trade Release
  • Gilat introduced two new products into its range: a new military satellite modem, the MLT-1000, and WebEnhance, the industry's first VSAT with microSD multi-Giga byte cache memory. March 2011.
  • Gilat was selected by a defense agency to provide a broadband network for military communications. The network includes Ku and Ka band terminals and will serve various military branches and units as part of a single, unified multi-band communications network, providing mission critical applications and on the move communications. February 2011. Read
  • Gilat expanded its leadership position in the US lottery market with multi-year contracts for over 27,000 lottery sites in Texas and Illinois. These recent awards were added to previous awards for Indiana, Louisiana and Iowa, totaling almost 33,000 sites across the five networks. January 2011. Read
  • The Ministry of Information Technology and Communications of Colombia, together with the country's National Fund of Development (FONADE), has extended and amended Gilat's agreements for the provision of services under the Rural Communitarian Telephony and Telecentros projects for an additional one-year term. The extended service agreements are valued at approximately $21 million. January 2011. Read

Conference Call and Webcast Details:

Gilat management will host a conference call today at 13:30 GMT / 9:30 EDT / 16:30 Israel Local 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) 668-9141.

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 EDT today, until 16:00 GMT/12:00 EDT May 19, 2011. International participants are invited to access the replay at (972) 3-925-5928, 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 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 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 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 EBIDTA is presented in the attached summary financial statements.

About Gilat Satellite Networks Ltd.:

Gilat is a leading provider of products and professional services for satellite-based broadband communication networks worldwide. Gilat was founded in 1987 and has shipped over 750,000 VSATs (Very Small Aperture Terminals) to more than 85 countries across six continents. Gilat's headquarters are located in Petah Tikva, Israel, and the Company has 22 sales and service offices worldwide. Gilat develops and markets an expansive range of broadband satellite solutions including high-performance VSATs under the SkyEdgeTM and SkyEdge II brands, low-profile antennas for communications-on-the-move, under the RaySat Antenna Systems and the StealthRayTM brands, and next generation solid-state power amplifiers for mission-critical defense and broadcast satellite communications systems under the Wavestream brand. Gilat's wholly-owned subsidiary, Spacenet Inc., is a leading provider of managed services in North America to the business and government segments. Visit Gilat at www.gilat.com .

The Gilat Satellite Networks Ltd. logo is available at http://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 SHEET    
US dollars in thousands    
     
  March 31, December 31,
  2011 2010
  Unaudited  
     
ASSETS    
     
CURRENT ASSETS:    
Cash and cash equivalents  49,249  57,238
Short-term restricted cash  8,143  3,839
Restricted cash held by trustees  --   1,004
Trade receivables, net  51,337  51,994
Inventories  30,018  29,612
Other current assets  27,283  22,973
Total current assets  166,030  166,660
     
LONG-TERM INVESTMENTS AND RECEIVABLES:    
Long-term restricted cash  4,499  4,583
Severance pay fund  10,878  10,572
Long-term trade receivables, receivables in respect of capital leases and other receivables  13,744  6,538
Total long-term investments and receivables  29,121  21,693
     
PROPERTY AND EQUIPMENT, NET  102,056  103,490
     
INTANGIBLE ASSETS AND DEFERRED CHARGES, NET  55,435  57,453
     
GOODWILL  106,082  106,082
     
TOTAL ASSETS  458,724  455,378
     
     
GILAT SATELLITE NETWORKS LTD.    
CONDENSED CONSOLIDATED BALANCE SHEET    
US dollars in thousands    
  March 31, December 31,
  2011 2010
  Unaudited  
     
LIABILITIES AND EQUITY    
     
CURRENT LIABILITIES:    
Short-term bank credit  1,187  2,129
Current maturities of long-term loans and convertible notes  6,265  2,186
Trade payables   19,150  18,267
Accrued expenses   24,902  24,591
Short-term advances from customer, held by trustees  --   1,004
Other current liabilities  43,031  39,675
     
Total current liabilities  94,535  87,852
     
LONG-TERM LIABILITIES:    
Accrued severance pay  10,822  10,579
Long-term loans, net   41,246  45,202
Accrued interest related to restructured debt  575  575
Convertible subordinated notes  14,374  14,379
Other long-term liabilities  31,786  32,678
     
Total long-term liabilities  98,803  103,413
     
COMMITMENTS AND CONTINGENCIES    
     
EQUITY:    
Share capital - ordinary shares of NIS 0.2 par value   1,861  1,855
Additional paid in capital  865,600  865,080
Accumulated other comprehensive income  1,081  774
Accumulated deficit  (603,156)  (603,596)
     
Total equity  265,386  264,113
     
TOTAL LIABILITIES AND EQUITY  458,724  455,378
     
     
GILAT SATELLITE NETWORKS LTD.    
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)    
  Three months ended
  March 31,
  2011 2010
  Unaudited  
     
Revenues  80,027  57,112
Cost of revenues  50,967  37,475
Gross profit  29,060  19,637
Research and development expenses:    
Expenses incurred  8,867  4,723
Less - grants  471  215
   8,396  4,508
Selling, marketing, general and administrative expenses  19,729  15,073
Costs related to acquisition transactions   156  -- 
Operating income  779  56
Financial income (expenses), net   (676)  69
Other income   949  -- 
Income before taxes on income  1,052  125
Taxes on income (tax benefit)  612  (517)
Net income  440  642
     
Basic net earnings per share  0.01  0.02
Diluted net earnings per share  0.01  0.02
     
Weighted average number of shares used in     
computing net earnings per share    
Basic 40,746 40,309
Diluted 42,136 41,969
             
             
GILAT SATELLITE NETWORKS LTD.            
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS        
FOR COMPARATIVE PURPOSES             
U.S. dollars in thousands (except per share data)            
     Three months ended       Three months ended   
    31 March 2011     31 March 2010  
  GAAP Adjustments (1) Non-GAAP GAAP Adjustments (1) Non-GAAP
  Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
             
Revenues  80,027  --   80,027  57,112  --   57,112
Cost of revenues  50,967  (2,260)  48,707  37,475  (67)  37,408
Gross profit  29,060  2,260  31,320  19,637  67  19,704
  36%   39% 34%   35%
Research and development expenses:            
Expenses incurred  8,867  (55)  8,812  4,723  (35)  4,688
Less - grants  471  --   471  215  --   215
   8,396  (55)  8,341  4,508  (35)  4,473
Selling, marketing, general and administrative expenses  19,729  (610)  19,119  15,073  (230)  14,843
Costs related to acquisition transactions   156  (156)  --   --   --   -- 
Operating income  779  3,081  3,860  56  332  388
Financial income (expenses), net   (676)  --   (676)  69  --   69
Other income   949  (949)  --   --   --   -- 
Income before taxes on income  1,052  2,132  3,184  125  332  457
Taxes on income  612  --   612  (517)  --   (517)
Net income   440  2,132  2,572  642  332  974
             
Basic net earnings per share  0.01    0.06  0.02    0.02
Diluted net earnings per share  0.01    0.06  0.02    0.02
             
Weighted average number of shares used in             
 computing net earnings per share             
 Basic  40,746    40,746  40,309    40,309
 Diluted  42,136    43,012  41,969    42,618
             
(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       Three months ended   
    31 December 2010     31 December 2009  
Non-cash stock-based compensation expenses:            
Cost of Revenues    80      67  
Research and development    55      35  
Selling, general, marketing and administrative    376      230  
     511      332  
             
Amortization of intangible assets related to acquisition transactions:            
Cost of Revenues    2,180      --   
Selling, general, marketing and administrative    234      --   
     2,414      --   
     
     
GILAT SATELLITE NETWORKS LTD.    
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS    
US dollars in thousands    
     
  Three months ended
  March 31,
  2011 2010
  Unaudited  
     
Cash flows from operating activities:    
Net income (loss)  440  642
Adjustments required to reconcile net income    
to net cash used in operating activities:    
Depreciation and amortization  6,572  3,013
Stock-based compensation related to employees  511  332
Accrued severance pay, net  (63)  114
Accrued interest and exchange rate differences on short and long-term restricted cash, net  (20)  (149)
Accrued interest and exchange rate differences on marketable securities and short term bank deposits, net  --   (61)
Exchange rate differences on long-term loans  402  (420)
Capital loss from disposal of property and equipment  25  7
Deferred income taxes  455  11
Decrease (increase) in trade receivables, net  825  (8,782)
Decrease (increase) in other assets (including short-term, long-term and deferred charges)  (12,217)  213
Increase in inventories  (1,169)  (1,907)
Increase (decrease) in trade payables  870  (1,014)
Increase in accrued expenses  312  1,201
Decrease in advances from customer, held by trustees, net   (1,004)  (1,281)
Increase (decrease) in other accounts payable and other long term liabilities  2,341  (1,577)
Net cash used in operating activities  (1,720)  (9,658)
     
     
GILAT SATELLITE NETWORKS LTD.    
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS    
US dollars in thousands    
     
  Three months ended
  March 31,
  2011 2010
  Unaudited  
Cash flows from investing activities:    
Purchase of property and equipment  (1,876)  (993)
Investment in bank deposits  --   (30,693)
Proceeds from bank deposits  --   7,953
Purchase of available-for-sale marketable securities  --   (4,804)
Loans to employees, net  (10)  (1)
Investment in restricted cash held by trustees  --   (1,404)
Proceeds from restricted cash held by trustees  1,016  2,787
Investment in restricted cash (including long-term)  (11,076)  (387)
Proceeds from restricted cash (including long-term)  6,868  70
Purchase of intangible asset  (13)  -- 
Net cash used in investing activities  (5,091)  (27,472)
     
     
Cash flows from financing activities:    
Issuance of restricted stock units and exercise of stock options  6  5
Short-term bank credit, net  (942)  -- 
Repayment of long-term loans  (274)  (87)
Net cash used in financing activities  (1,210)  (82)
     
Effect of exchange rate changes on cash and cash equivalents  32  (59)
     
Decrease in cash and cash equivalents  (7,989)  (37,271)
     
Cash and cash equivalents at the beginning of the period  57,238  122,672
     
Cash and cash equivalents at the end of the period  49,249  85,401
     
     
GILAT SATELLITE NETWORKS LTD.    
CONDENSED EBITDA    
US dollars in thousands    
  Three months ended
  March 31,
  2011 2010
  Unaudited Unaudited
     
Operating income  779  56
Add:    
Non-cash stock-based compensation expenses  511  332
Costs related to acquisition transactions  156  -- 
Deprecation and amortization  6,572  3,013
EBITDA  8,018  3,401
CONTACT: Media Contact:
         Karen Mazor
         Gilat Satellite Networks
         (972) 54 228 8039
         karenm@gilat.com
         
         
         Investor Contact:
         Jeff Corbin/ Marybeth Csaby
         KCSA Strategic Communications
         (212) 896-1214/ (212) 896-1236
         gilat@kcsa.com

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 4.94%
$30K home equity loan FICO 5.19%
$75K home equity loan FICO 4.58%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.40%
13.40%
Cash Back Cards 17.92%
17.91%
Rewards Cards 17.12%
17.11%
Source: Bankrate.com