| Headline: | Gilat Reports First Quarter 2024 Results |
| Location: | Petah-Tikva, , IL |
| Post Date: | May 8, 2024 7:05 AM |
| TAG ID: | pznews564654 |
| DocID: | 9113542 |
| Word Count: | approx. 1983 words |
| Full story: | |
| 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 08, 2024 (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, 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; 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. 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 PlatformGilat Received Approximately $5 Million for Providing Services to a Leading LATAM Service ProviderGilat Received Multimillion-Dollar Order from a Leading Defense OrganizationGilat Expanding into Additional IFC Market Segments After Receiving Over $3 Million in Orders from a Leading IFC Service ProviderGilat Awarded Over $3M Follow-On Order for Public WiFi Service in Latin AmericaGilat Awarded over $5 Million Order from the US Department of DefenseUS Army Awards $12 Million Contract Extension to Gilat to Sustain Anytime, Anywhere Satellite ConnectivityGilat Awarded Over $13M in Additional Orders from Satellite Operators for its World Leading SkyEdge IV and SkyEdge II-c Platforms 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, 2024Start:09:30 AM EDT / 16:30 IDTDial-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. 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 NetworksHagay Katz, Chief Products and Marketing [email protected] Gilat Satellite NetworksMayrav Sher, Head of Finance and Investor [email protected] EK Global IREhud Helft, Managing [email protected] 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 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 Three months ended March 31, 2024 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 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 GILAT SATELLITE NETWORKS LTD.CONSOLIDATED BALANCE SHEETSU.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 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 GILAT SATELLITE NETWORKS LTD.CONSOLIDATED STATEMENTS OF CASH FLOWSU.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-termand 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 |
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