FORM 6 – K

SECURITIES AND EXCHANGE COMMISSION

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, 2024

Gilat Satellite Networks Ltd.
(Translation of Registrant’s Name into English)

Gilat House, 21 Yegia Kapayim Street
Daniv Park, Kiryat Arye, Petah Tikva 4913020, 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


On May 8, 2024, the Registrant issued a press release announcing its unaudited first quarter 2024 results. A copy of this press release is furnished herewith.

The attached press release is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

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, 333-253972, 333-255740 and 333-264974) and on Form F-3 (Registration No. 333-266044).

Signature

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.
 
 
(Registrant)
 
 

 
Dated May 8, 2024
By:
/s/ Doron Kerbel  
    Doron Kerbel  
    General Counsel & Company Secretary  

Page 2 of 12


Gilat Reports First Quarter 2024 Results
 
Strong Revenue Growth of 29% Year-over-Year, GAAP Operating
Income of $5.4 Million and Adjusted EBITDA of $9.3 Million
 
Petah Tikva, Israel, May 8, 2024 — 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, 2024.
 
First Quarter 2024 Financial Highlights
 
Revenue of $76.1 million, up 29% compared with $59.0 million in Q1 2023;
 
GAAP operating income of $5.4 million, compared with $7.0 million in Q1 2023;
 

o
The decline is mainly due to lower other income, higher stock-based compensation, mainly related to the Datapath acquisition, and amortization of purchased intangibles;
 
Non-GAAP operating income of $6.6 million, up 25% compared with $5.3 million in Q1 2023;
 
GAAP net income of $5.0 million, or $0.09 per diluted share, compared with $5.6  million, or $0.10 per diluted share, in Q1 2023;
 
Non-GAAP net income of $6.0 million, or $0.11 per diluted share, almost doubled compared with $3.8 million, or $0.07 per diluted share, in Q1 2023;
 
Adjusted EBITDA of $9.3 million compared with $8.4 million in Q1 2023.
 
Forward-Looking Expectations
 
The Company today reiterated its guidance for 2024.
 
Expectations are for revenue between $305 and $325 million, representing year-over-year growth of 18% at the midpoint. GAAP operating income is expected to be between $15 and $19 million, and Adjusted EBITDA is expected to be between $40 and $44 million, representing year-over-year growth of 15% at the mid-point.
 
Page 3 of 12

Management Commentary
 
Adi Sfadia, Gilat's CEO, commented: "We are pleased with our financial results representing another strong quarter of growth and profitability, with revenue up 29% year-over-year and Adjusted EBITDA up 11% year-over-year. Our revenue growth was driven by solid organic growth in both our Satellite Networks and our Network Infrastructure and Services segments, as well as a full quarter of contribution from Datapath, the defense communications business we acquired in November of last year. Our pipeline of potential orders throughout our business continues to increase and broaden, supported by our next-generation platforms and growth engines.”
 
Mr. Sfadia added, “Our strong revenue growth demonstrates the continued growing traction for many of Gilat’s products and services among both new and existing customers. In particular, we are pleased with the strong level of orders from the Defense sector in recent months, which is a strategic growth vector for us. We continue to work on extracting potential synergies from the Datapath acquisition, which we believe will increasingly benefit our profitability over the coming quarters.”
 
Mr. Sfadia concluded, "Given the fundamental advantages of satellite communications that are driving market interest and generating growing orders for our leading technological solutions, we are excited by Gilat’s potential in both the near and long term. Furthermore, Gilat’s strong financial position is allowing us to explore potential inorganic growth opportunities, which we believe can significantly accelerate our growth trajectory.”
 
Key Recent Announcements
 

SES’s O3b mPOWER System Launches Service via Gilat’s SkyEdge IV Platform


Gilat Received Approximately $5 Million for Providing Services to a Leading LATAM Service Provider
 

Gilat Received Multmillion-Dollar Order from a Leading Defense Organization
 

Gilat Expanding into Additional IFC Market Segments After Receiving Over $3 Million in Orders from a Leading IFC Service Provider
 

Gilat Awarded Over $3M Follow-On Order for Public WiFi Service in Latin America
 

Gilat Awarded over $5 Million Order from the US Department of Defense
 

US Army Awards $12 Million Contract Extension to Gilat to Sustain Anytime, Anywhere Satellite Connectivity
 

Gilat Awarded Over $13M in Additional Orders from Satellite Operators  for its World Leading SkyEdge IV and SkyEdge II-c Platforms
 
Page 4 of 12

Conference Call Details
 
Gilat’s management will discuss its first quarter 2024 results and business achievements and participate in a question-and-answer session:
 
Date: Wednesday, May 8, 2024


Start: 09:30 AM EDT / 16:30 IDT


Dial-in: US: 1-888-407-2553



International: +972-3-918-0609

A simultaneous webcast of the conference call will be available on the Gilat website at www.gilat.com and through this link: https://veidan.activetrail.biz/gilatq1-2024
 
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 gross profit, operating expenses, operating income, income before taxes on income, net 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 with a more complete understanding of the Company’s underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude, if and when applicable, the effect of stock-based compensation expenses, amortization of purchased intangibles, lease incentive amortization, other integration expenses, one-time changes of deferred tax assets, other operating expenses (income), net and income tax effect on the relevant adjustments.
 
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 net income and adjusted EBITDA is presented in the attached summary financial statements.
 
Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net 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.
 
Page 5 of 12

About Gilat
 
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we create and deliver deep technology solutions for satellite, ground and new space connectivity and provide comprehensive, secure end-to-end solutions and services for mission-critical operations, powered by our innovative technology. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.
 
Our portfolio includes a diverse offering to deliver high value solutions for multiple orbit constellations with very high throughput satellites (VHTS) and software defined satellites (SDS). Our offering is comprised of a cloud-based platform and high-performance satellite terminals; high performance Satellite On-the-Move (SOTM) antennas; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense, field services, network management software, and cybersecurity services.
 
Gilat’s comprehensive offering supports multiple applications with a full portfolio of products and tailored solutions to address key applications including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government, and critical infrastructure clients all while meeting the most stringent service level requirements. 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, 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, including those related to the current terrorist attacks by Hamas, and the war and hostilities between Israel and Hamas and Israel and Hezbollah. 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.
 
Contact:
 
Gilat Satellite Networks
Hagay Katz, Chief Products and Marketing Officer
hagayk@gilat.com

Gilat Satellite Networks
Mayrav Sher, Head of Finance and Investor Relations
mayravs@gilat.com

EK Global IR
Ehud Helft, Managing Partner
ehud@ekgir.com


Page 6 of 12

GILAT SATELLITE NETWORKS LTD.
           
CONSOLIDATED STATEMENTS OF INCOME
 
U.S. dollars in thousands (except share and per share data)
 
   


Three months ended
March 31,
 


2024
   
2023
 
 
Unaudited
 
             
Revenues
 
$
76,078
   
$
58,962
 
Cost of revenues
   
48,024
     
34,277
 
                 
Gross profit
   
28,054
     
24,685
 
                 
Research and development expenses, net
   
9,319
     
9,619
 
Selling and marketing expenses
   
7,077
     
6,009
 
General and administrative expenses
   
8,077
     
4,431
 
Other operating income, net
   
(1,810
)
   
(2,387
)
                 
Total operating expenses
   
22,663
     
17,672
 
                 
Operating income
   
5,391
     
7,013
 
                 
Financial income (expenses), net
   
513
     
(149
)
                 
Income before taxes on income
   
5,904
     
6,864
 
                 
Taxes on income
   
940
     
1,284
 
                 
Net income
 
$
4,964
   
$
5,580
 
                 
Earnings per share (basic and diluted)
 
$
0.09
   
$
0.10
 
                 
Weighted average number of shares used in
               
computing earnings per share
               
Basic
   
57,016,585
     
56,613,485
 
Diluted
   
57,016,585
     
56,623,432
 

Page 7 of 12

GILAT SATELLITE NETWORKS LTD.
                   
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
 
FOR COMPARATIVE PURPOSES
                   
U.S. dollars in thousands (except share and per share data)
             

   
Three months ended
March 31, 2024
   
Three months ended
March 31, 2023
 
   
GAAP
   
Adjustments (*)
   
Non-GAAP
   
GAAP
   
Adjustments (*)
   
Non-GAAP
 
   
Unaudited
   
Unaudited
 
                                     
Gross profit
 
$
28,054
     
726
   
$
28,780
   
$
24,685
     
75
   
$
24,760
 
Operating expenses
   
22,663
     
(499
)
   
22,164
     
17,672
     
1,809
     
19,481
 
Operating income
   
5,391
     
1,225
     
6,616
     
7,013
     
(1,734
)
   
5,279
 
Income before taxes on income
   
5,904
     
1,225
     
7,129
     
6,864
     
(1,734
)
   
5,130
 
Net income
 
$
4,964
     
1,050
   
$
6,014
   
$
5,580
     
(1,734
)
 
$
3,846
 
                                                 
Earnings per share (basic and diluted)
  $
0.09


$
0.02


$
0.11
   
$
0.10
   
$
(0.03
)
 
$
0.07
 
   









                         
Weighted average number of shares used in
                                               
   computing earnings per share
                                               
Basic
   
57,016,585
             
57,016,585
     
56,613,485
             
56,613,485
 
Diluted
   
57,016,585
             
57,108,734
     
56,623,432
             
56,623,432
 

(*)
Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income, net, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.

   
Three months ended



   
   
Three months ended
 



  March 31, 2024


   
   
March 31, 2023
 


 
Unaudited


   
    Unaudited  


 




         
 


GAAP net income

$ 4,964









5,580





   





           
 



Gross profit
 





           

 



Stock-based compensation expenses
 
150



     
   
75  



Amortization of purchased intangibles
 
507



     
   
-
 



Other integration expenses
 
69




     
   
-
 



   
726



     

   
75  



Operating expenses
 





           

 



Stock-based compensation expenses
 
717



     
   
527
 



Stock-based compensation expenses related to business combination
 
1,324



     
   
-
 



Amortization of purchased intangibles
 
257



 



 
51
 



Other operating income, net
 
(1,810
)



 



 
(2,387
)




Other integration expenses
 
11




 



 
-
 



   
499




 



 
(1,809
)



   





 



 

 



Taxes on income
 
(175
)



 



 
-
 



   





 



 

 



Non-GAAP net income
  $
6,014




 



  $
3,846
 




Page 8 of 12

GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands

ADJUSTED EBITDA:


Three months ended
March 31,
 

 
2024
   
2023
 

 
Unaudited
 

           
GAAP net income
 
$
4,964
   
$
5,580
 
Adjustments:
               
Financial expenses (income), net
   
(513
)
   
149
 
Taxes on income
   
940
     
1,284
 
Stock-based compensation expenses
   
867
     
602
 
Stock-based compensation expenses related to business combination
    1,324       -  
Depreciation and amortization (*)
   
3,481
     
3,163
 
Other operating income, net
   
(1,810
)
   
(2,387
)
Other integration expenses
   
80
     
-
 

               
Adjusted EBITDA
 
$
9,333
   
$
8,391
 

               
(*) Including amortization of lease incentive
               

               
SEGMENT REVENUES:
               


 
Three months ended
March 31,
 
     
2024
     
2023
 
   
Unaudited
 
                 
Satellite Networks
 
$
46,773
   
$
33,546
 
Integrated Solutions
   
11,650
     
12,919
 
Network Infrastructure and Services
   
17,655
     
12,497
 
                 
Total revenues
 
$
76,078
   
$
58,962
 

Page 9 of 12

GILAT SATELLITE NETWORKS LTD.
     
CONSOLIDATED BALANCE SHEETS
     
U.S. dollars in thousands
     
       
   
March 31,
   
December 31,
 
   
2024
   
2023
 
   
Unaudited
   
Audited
 
             
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
104,057
   
$
103,961
 
Restricted cash
   
1,057
     
736
 
Trade receivables, net
   
53,459
     
44,725
 
Contract assets
   
22,775
     
28,327
 
Inventories
   
41,241
     
38,525
 
Other current assets
   
20,873
     
24,299
 
                 
   Total current assets
   
243,462
     
240,573
 
                 
LONG-TERM ASSETS:
               
Restricted cash
   
52
     
54
 
Long-term contract assets
   
8,587
     
9,283
 
Severance pay funds
   
5,673
     
5,737
 
Deferred taxes
   
10,893
     
11,484
 
Operating lease right-of-use assets
   
4,911
     
5,105
 
Other long-term assets
   
9,772
     
9,544
 
                 
Total long-term assets
   
39,888
     
41,207
 
                 
PROPERTY AND EQUIPMENT, NET
   
72,624
     
74,315
 
                 
INTANGIBLE ASSETS, NET
   
15,354
     
16,051
 
                 
GOODWILL
   
54,740
     
54,740
 
                 
TOTAL ASSETS
 
$
426,068
   
$
426,886
 

Page 10 of 12

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands

   
March 31,
   
December 31,
 
   
2024
   
2023
 
   
Unaudited
   
Audited
 
             
LIABILITIES AND SHAREHOLDERS' EQUITY
           
             
CURRENT LIABILITIES:
           
Short-term debt
 
$
4,709
   
$
7,453
 
Trade payables
   
13,169
     
13,873
 
Accrued expenses
   
50,489
     
51,906
 
Advances from customers and deferred revenues
   
31,967
     
34,495
 
Operating lease liabilities
   
2,643
     
2,426
 
Other current liabilities
   
18,915
     
16,431
 
                 
   Total current liabilities
   
121,892
     
126,584
 
                 
LONG-TERM LIABILITIES:
               
Long-term loan
   
2,000
     
2,000
 
Accrued severance pay
   
6,418
     
6,537
 
Long-term advances from customers and deferred revenues
   
906
     
1,139
 
Operating lease liabilities
   
2,516
     
3,022
 
Other long-term liabilities
   
11,516
     
12,916
 
                 
   Total long-term liabilities
   
23,356
     
25,614
 
                 
SHAREHOLDERS' EQUITY:
               
Share capital - ordinary shares of NIS 0.2 par value
   
2,733
     
2,733
 
Additional paid-in capital
   
939,062
     
937,591
 
Accumulated other comprehensive loss
   
(5,618
)
   
(5,315
)
Accumulated deficit
   
(655,357
)
   
(660,321
)
                 
Total shareholders' equity
   
280,820
     
274,688
 
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
426,068
   
$
426,886
 

Page 11 of 12

GILAT SATELLITE NETWORKS LTD.
     
CONSOLIDATED STATEMENTS OF CASH FLOWS
     
U.S. dollars in thousands
     
       


Three months ended
March 31,

   
2024
   
2023
 
   
Unaudited
 
Cash flows from operating activities:
           
Net income
 
$
4,964
   
$
5,580
 
Adjustments required to reconcile net income
               
 to net cash provided by operating activities:
               
Depreciation and amortization
   
3,425
     
3,107
 
Stock-based compensation expenses
   
2,191
     
602
 
Accrued severance pay, net
   
(55
)
   
297
 
Deferred taxes, net
   
451
     
1,126
 
Decrease (increase) in trade receivables, net
   
(8,797
)
   
6,491
 
Decrease in contract assets
   
6,248
     
4,917
 
Decrease (increase) in other assets and other adjustments (including short-term, long-term
and effect of exchange rate changes on cash and cash equivalents)
   
3,507
     
(2,767
)
Increase in inventories
   
(3,193
)
   
(7,623
)
Increase (decrease) in trade payables
   
(666
)
   
1,989
 
Decrease in accrued expenses
   
(1,240
)
   
(2,199
)
Decrease in advances from customers and deferred revenues
   
(2,754
)
   
(4,469
)
Increase (decrease) in other liabilities
   
139
     
(848
)
Net cash provided by operating activities
   
4,220
     
6,203
 
                 
Cash flows from investing activities:
               
Purchase of property and equipment
   
(793
)
   
(3,032
)
Net cash used in investing activities
   
(793
)
   
(3,032
)
                 
Cash flows from financing activities:
               
Repayment of short-term debt, net
   
(2,744
)
   
-
 
Net cash used in financing activities
   
(2,744
)
   
-
 
                 
Effect of exchange rate changes on cash, cash equivalents and restricted cash


(268
)
   
(577
)
                 
Increase in cash, cash equivalents and restricted cash
   
415
     
2,594
 
                 
Cash, cash equivalents and restricted cash at the beginning of the period
   
104,751
     
87,145
 
                 
Cash, cash equivalents and restricted cash at the end of the period
 
$
105,166
   
$
89,739
 

Page 12 of 12


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