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 August, 2022

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

Gilat House, Yegia Kapayim Street
Daniv Park, Kiryat Arye, Petah Tikva, 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 August 9, 2022, the Registrant issued a press release announcing Gilat’s unaudited Second Quarter 2022 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.

The GAAP financial information included in Exhibit 99.1 to this Form 6-K is incorporated by reference into the Registrant’s Registration Statements on Form F-3 (Registration No. 333-266044) and 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and 333-264974), and shall be a part thereof from the date on which this Form 6-K is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

2


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 August 9, 2022
By:
/s/ Gil Benyamini
 
   
Gil Benyamini
 
   
Chief Financial Officer
 

3

Gilat Reports Strong Second Quarter 2022 Results
 
Revenue of $55.5 million, operating profit $1.5 million and Adjusted
EBITDA of $5.3 million; Reiterates 2022 guidance

Petah Tikva, Israel – August 9, 2022 – Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the second quarter ended June 30, 2022.
 
Second Quarter 2022 Financial Highlights
 
Revenues of $55.5 million, up 1.2% compared with Q2 of last year;
GAAP operating income of $1.5 million versus operating loss of $0.4 million in Q2 last year;
Non-GAAP operating income of $2.4 million versus Non-GAAP operating income of $0.1 million in Q2 last year;
GAAP net income of $0.5 million versus loss of $0.2 million in Q2 last year;
Non-GAAP net income of $1.4 million versus Non-GAAP income of $0.3 million in Q2 last year;
Adjusted EBITDA of $5.3 million versus Adjusted EBITDA of $2.4 million in Q2 last year;
Reiterates and on-track with 2022 financial guidance;

Forward-Looking Expectations
 
The Company reiterates its 2022 guidance issued in 2022, of revenues between $245 to $265 million, representing year-over-year growth of between 14% and 23%, GAAP operating income of between $5 to $9 million and Adjusted EBITDA of between $20 to $24 million, representing year-over-year growth of Adjusted EBITDA between 30% to 56%.
 
Management Commentary
 
Adi Sfadia, Gilat's CEO, commented: "We are pleased with our strong results, especially with the solid improvement in our profitability. We continue to successfully capitalize on the opportunities in our pipeline, and we see increasing growth potential in our end-markets for the coming years. Looking out to the rest of the year, we feel increasingly comfortable and remain on target to meet our goals.
 
This was an exceptional quarter with significant multimillion dollar orders for Gilat's next generation platform, SkyEdge IV. We expanded the global strategic relationships with our partners, the satellite operators, SES and Intelsat, and are competing on important GEO VHTS opportunities in our pipeline with additional major satellite operators. Furthermore, our SSPA business for this new and exciting market is progressing as planned, and as such, we believe we are well positioned to seize opportunities in the multibillion market of the next era of satellite communication.
 

4

 
We received more than $10 million in new Cellular Backhaul orders this quarter as we continue to expand our global leadership. We are encouraged with the progress in our strategic markets of Inflight Connectivity and Maritime as well as with our growing business in Defense and Enterprise, and we see a growing set of additional opportunities."
 
Mr. Sfadia concluded, “Given our ongoing strong performance, we reiterate our 2022 guidance and expect a year of solid growth in revenue and improved profitability."
 
Key Recent Announcements

o
Internet Para Todos Expands Services Contract with Gilat
 
o
Gilat Signs Agreement to Enable a Central Asian Government to Provide Digital Services over Satellite
 
o
Gilat and Intelsat Expand Their Strategic In-Flight Connectivity Partnership in Japan
 
o
Tier-1 MNO Awards Multimillion-Dollar Order to Gilat for 4G Cellular Backhaul Network Expansion in Latin America
 
o
Gilat Awarded Order of Over $7M from Tier-1 Mobile Network Carrier in APAC for 4G Cellular Backhaul Network Expansion
 
o
Gilat Awarded Follow-On Orders to Expand Defense Force SATCOM Network in an Asian Nation
 
o
Gilat Receives Over $8 Million Follow-On Order for Support of Low Earth Orbit Constellation
 
Conference Call Details

Gilat’s management will discuss its second quarter 2022 results and business achievements and participate in a question and answer session:

Date:
Tuesday, August 9, 2022
Start:
09:30 AM EDT / 16:30 IDT
Dial-in:
US: 1-866-744-5399
 
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/gilatq2-2022

The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.

5

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 net income, operating 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 a more complete understanding of the Company’s underlying operational results, trends and performance. Non-GAAP financial measures mainly exclude the effect of stock based compensation, amortization of purchased intangibles, lease incentive amortization, litigation expenses, income related to trade secrets claims, restructuring and reorganization costs, merger, acquisition and related litigation expense (income), impairment of held for sale asset, and one-time changes of deferred tax assets.
 
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 Operating income and Adjusted EBITDA is presented in the attached summary financial statements.
 
Non-GAAP presentations of net income, operating 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 30 years of experience, we design and manufacture cutting-edge ground segment equipment, and provide comprehensive solutions and end-to-end services, powered by our innovative technology. Delivering high value competitive solutions, our portfolio comprises of a cloud based VSAT network platform, high-speed modems, high performance on-the-move antennas and high efficiency, high power Solid-State Amplifiers (SSPA) and Block Upconverters (BUC).
 
Gilat’s comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, Cellular Backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety, 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, risks associated with the outbreak and global spread of the coronavirus (COVID-19) pandemic; 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. We undertake no obligation to update or revise any forward-looking statements for any reason.

Contact:
Gilat Satellite Networks
Doreet Oren, Senior Director Corporate Communications
DoreetO@gilat.com

Ehud Helft
EK Global Investor Relations
gilat@ekgir.com
+1 212 378 8040

6

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

 
 
Six months ended
   
Three months ended
 
 
 
June 30,
   
June 30,
 
 
 
2022
   
2021
   
2022
   
2021
 
 
       
As Restated (1)
         
As Restated (1)
 
 
 
Unaudited
   
Unaudited
 
 
                       
Revenues
 
$
106,863
   
$
98,169
   
$
55,454
   
$
54,798
 
Cost of revenues
   
70,706
     
69,070
     
35,685
     
38,179
 
 
                               
Gross profit
   
36,157
     
29,099
     
19,769
     
16,619
 
 
                               
Research and development expenses, net
   
16,386
     
15,660
     
8,718
     
7,733
 
Selling and marketing expenses
   
10,310
     
10,468
     
4,960
     
5,464
 
General and administrative expenses
   
8,555
     
6,938
     
4,371
     
3,855
 
Impairment of held for sale asset
   
439
     
-
     
229
     
-
 
 
                               
Total operating expenses
   
35,690
     
33,066
     
18,278
     
17,052
 
 
                               
Operating income (loss)
   
467
     
(3,967
)
   
1,491
     
(433
)
 
                               
Financial income (expenses), net
   
(1,663
)
   
(757
)
   
(468
)
   
435
 
 
                               
Income (loss) before taxes on income
   
(1,196
)
   
(4,724
)
   
1,023
     
2
 
 
                               
Taxes on income
   
832
     
474
     
517
     
227
 
 
                               
Net income (loss)
 
$
(2,028
)
 
$
(5,198
)
 
$
506
   
$
(225
)
 
                               
Earnings (loss) per share (basic and diluted)
 
$
(0.04
)
 
$
(0.09
)
 
$
0.01
   
$
(0.00
)
 
                               
Weighted average number of shares used in
                               
computing earning (loss) per share
                               
Basic
   
56,574,296
     
56,269,941
     
56,597,523
     
56,508,539
 
Diluted
   
56,574,296
     
56,269,941
     
56,637,208
     
56,508,539
 

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and  Notes 2 and  13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.

7

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

 
 
Three months ended
   
Three months ended
 
 
 
June 30, 2022
   
June 30, 2021
 
 
 
GAAP
   
Adjustments (*)
   
Non-GAAP
   
GAAP
   
Adjustments (*)
   
Non-GAAP
 
 
                   
As Restated (1)
         
As Restated (1)
 
 
 
Unaudited
   
Unaudited
 
 
                                   
Gross profit
 
$
19,769
     
81
   
$
19,850
   
$
16,619
     
64
   
$
16,683
 
Operating expenses
   
18,278
     
(832
)
   
17,446
     
17,052
     
(456
)
   
16,596
 
Operating income (loss)
   
1,491
     
913
     
2,404
     
(433
)
   
520
     
87
 
Income before taxes on income
   
1,023
     
913
     
1,936
     
2
     
520
     
522
 
Net income (loss)
 
$
506
     
913
   
$
1,419
   
$
(225
)
   
520
   
$
295
 
 
                                               
Earnings (loss) per share (basic and diluted)
 
$
0.01
   
$
0.02
   
$
0.03
   
$
(0.00
)
 
$
0.01
   
$
0.01
 
 
                                               
Weighted average number of shares used in
                                               
    computing earning (loss) per share
                                               
Basic
   
56,597,523
             
56,597,523
     
56,508,539
             
56,508,539
 
Diluted
   
56,637,208
             
56,773,970
     
56,508,539
             
57,328,088
 

 
(*)
Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions and impairment of held for sale asset.

 
 
Three months ended
       
Three months ended
     
 
 

June 30, 2022
                   
June 30, 2021
         
 
                                 
As Restated (1)
         
 
         
Unaudited
                   
Unaudited
         
 
                                               
GAAP net income (loss)
         
$
506
                   
$
(225
)
       
 
                                               
Gross profit
                                               
Non-cash stock-based compensation expenses
           
75
                     
59
         
Amortization of intangible assets related to acquisition transactions
     
55
                     
5
         
 
           
130
                     
64
         
Operating expenses
                                               
Non-cash stock-based compensation expenses
           
494
                     
406
         
Amortization of intangible assets related to acquisition transactions
      60                      
50
         
Impairment of held for sale asset
           
229
                     
-
         
 
           
783
                     
456
         
 
                                               
Non-GAAP net income
         
$
1,419
                   
$
295
         

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and  Notes 2 and  13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.

8

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

 
 
Six months ended
   
Six months ended
 
 
 
June 30, 2022
   
June 30, 2021
 
 
 
GAAP
   
Adjustments (*)
   
Non-GAAP
   
GAAP
   
Adjustments (*)
   
Non-GAAP
 
 
                   
As Restated (1)
         
As Restated (1)
 
 
 
Unaudited
   
Unaudited
 
 
                                   
Gross profit
 
$
36,157
     
156
   
$
36,313
   
$
29,099
     
130
   
$
29,229
 
Operating expenses
   
35,690
     
(1,515
)
   
34,175
     
33,066
     
(287
)
   
32,779
 
Operating income (loss)
   
467
     
1,671
     
2,138
     
(3,967
)
   
417
     
(3,550
)
Income (loss) before taxes on income
   
(1,196
)
   
1,671
     
475
     
(4,724
)
   
417
     
(4,307
)
Net loss
   
(2,028
)
   
1,671
     
(357
)
   
(5,198
)
   
417
     
(4,781
)
 
                                               
Loss per share (basic and diluted)
 
$
(0.04
)
 
$
0.03
   
$
(0.01
)
 
$
(0.09
)
 
$
0.01
   
$
(0.08
)
 
                                               
Weighted average number of shares used in
                                         
   computing loss per share
                                               
     Basic
   
56,574,296
             
56,574,296
     
56,269,941
             
56,269,941
 
     Diluted
   
56,574,296
             
56,574,296
     
56,269,941
             
56,269,941
 

 
(*)
Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions and impairment of held for sale asset.

 
 
Six months ended
   
Six months ended
 
 
 

   
June 30, 2022
           

   
June 30, 2021
         
 
                                 
As Restated (1)
         
 
         
Unaudited
                   
Unaudited
         
 
                                               
GAAP net loss
         
$
(2,028
)
                 
$
(5,198
)
       
 
                                               
Gross profit
                                               
Non-cash stock-based compensation expenses
     
145
                     
120
         
Amortization of intangible assets related to acquisition transactions
     
60
                     
10
         
 
           
205
                     
130
         
Operating expenses
                                               
Non-cash stock-based compensation expenses
           
916
                     
186
         
Amortization of intangible assets related to acquisition transactions
     
111
                     
101
         
Impairment of held for sale asset
           
439
                     
-
         
 
           
1,466
                     
287
         
 
                                               
Non-GAAP net loss
         
$
(357
)
                 
$
(4,781
)
       

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and  Notes 2 and  13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.

9

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

 
 
Six months ended
   
Three months ended
 
 
 
June 30,
   
June 30,
 
 
 
2022
   
2021
   
2022
   
2021
 
 
       
As Restated (1)
         
As Restated (1)
 
 
 
Unaudited
   
Unaudited
 
 
                       
GAAP net income (loss)
 
$
(2,028
)
 
$
(5,198
)
 
$
506
   
$
(225
)
Adjustments:
                               
Financial expenses (income), net
   
1,663
     
757
     
468
     
(435
)
Taxes on income
   
832
     
474
     
517
     
227
 
Non-cash stock-based compensation expenses
   
1,061
     
306
     
569
     
465
 
Impairment of held for sale asset
   
439
     
-
     
229
     
-
 
Other
   
60
     
-
     
60
     
-
 
Depreciation and amortization (*)
   
5,792
     
4,758
     
2,941
     
2,373
 
 
                               
Adjusted EBITDA
 
$
7,819
   
$
1,097
   
$
5,290
   
$
2,405
 

(*) Including amortization of lease incentive
 
SEGMENT REVENUE:
 
 
 
 
 
 
 
 
 

 
 
Six months ended
   
Three months ended
 
 
 
June 30,
   
June 30,
 
 
 
2022
   
2021
   
2022
   
2021
 
 
       
As Restated (1)
         
As Restated (1)
 
 
 
Unaudited
   
Unaudited
 
 
                       
Satellite Networks
 
$
51,627
   
$
59,975
   
$
26,857
   
$
34,351
 
Integrated Solutions
   
29,397
     
18,836
     
15,691
     
12,127
 
Network Infrastructure and Services
   
25,839
     
19,358
     
12,906
     
8,320
 
 
                               
Total revenues
 
$
106,863
   
$
98,169
   
$
55,454
   
$
54,798
 

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and  Notes 2 and  13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.

10

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

 
 
June 30,
   
December 31,
 
 
 
2022
   
2021
 
 
 
Unaudited
   
Audited
 
 
           
ASSETS
           
 
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
70,133
   
$
81,859
 
Short-term deposits
   
-
     
2,159
 
Restricted cash
   
1,313
     
2,592
 
Trade receivables, net
   
51,303
     
39,161
 
Contract assets
   
29,310
     
26,008
 
Inventories
   
32,156
     
28,432
 
Other current assets
   
22,458
     
14,607
 
Held for sale asset
   
4,276
     
4,587
 
 
               
Total current assets
   
210,949
     
199,405
 
 
               
LONG-TERM ASSETS:
               
Restricted cash
   
12
     
12
 
Long- term contract assets
   
11,845
     
12,539
 
Severance pay funds
   
5,937
     
6,795
 
Deferred taxes
   
15,885
     
17,551
 
Operating lease right-of-use assets
   
3,845
     
4,478
 
Other long term assets
   
11,225
     
10,456
 
 
               
Total long-term assets
   
48,749
     
51,831
 
 
               
PROPERTY AND EQUIPMENT, NET
   
72,410
     
72,391
 
 
               
INTANGIBLE ASSETS, NET
   
419
     
640
 
 
               
GOODWILL
   
43,468
     
43,468
 
 
               
TOTAL ASSETS
 
$
375,995
   
$
367,735
 

11

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

 
 
June 30,
   
December 31,
 
 
 
2022
   
2021
 
 
 
Unaudited
   
Audited
 
 
           
LIABILITIES AND SHAREHOLDERS' EQUITY
           
 
           
CURRENT LIABILITIES:
           
Trade payables
 
$
24,010
   
$
19,776
 
Accrued expenses
   
47,654
     
49,202
 
Advances from customers and deferred revenues
   
31,932
     
24,373
 
Operating lease liabilities
   
1,747
     
1,818
 
Other current liabilities
   
15,458
     
13,339
 
 
               
Total current liabilities
   
120,801
     
108,508
 
 
               
LONG-TERM LIABILITIES:
               
Accrued severance pay
   
6,548
     
7,292
 
Long-term advances from customers
   
722
     
1,209
 
Operating lease liabilities
   
2,056
     
2,283
 
Other long-term liabilities
   
132
     
120
 
 
               
Total long-term liabilities
   
9,458
     
10,904
 
 
               
SHAREHOLDERS' EQUITY:
               
Share capital - ordinary shares of NIS 0.2 par value
   
2,711
     
2,706
 
Additional paid-in capital
   
930,927
     
929,871
 
Accumulated other comprehensive loss
   
(7,977
)
   
(6,357
)
Accumulated deficit
   
(679,925
)
   
(677,897
)
 
               
Total shareholders' equity
   
245,736
     
248,323
 
 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
375,995
   
$
367,735
 

12

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

 
 
 
Six months ended
   
Three months ended
 
 
 
June 30,
   
June 30,
 
 
 
2022
   
2021
   
2022
   
2021
 
 
       
As Restated (1)
         
As Restated (1)
 
 
 
Unaudited
   
Unaudited
 
Cash flows from operating activities:
                       
Net income (loss)
 
$
(2,028
)
 
$
(5,198
)
 
$
506
   
$
(225
)
Adjustments required to reconcile net loss
                               
 to net cash provided by (used in) operating activities:
                               
Depreciation and amortization
   
5,683
     
4,646
     
2,887
     
2,316
 
Impairment of held for sale asset
   
439
     
-
     
229
     
-
 
Stock-based compensation of options
   
1,061
     
306
     
569
     
465
 
Accrued severance pay, net
   
114
     
(128
)
   
177
     
(118
)
Deferred taxes, net
   
1,664
     
185
     
1,358
     
(333
)
Increase in trade receivables, net
   
(11,883
)
   
(7,357
)
   
(5,471
)
   
(5,424
)
Decrease (increase) in contract assets
   
(2,608
)
   
21,647
     
(599
)
   
24,826
 
Increase in other assets (including short-term, long-term
                               
   and deferred charges)
   
(7,763
)
   
(4,009
)
   
(4,047
)
   
(3,789
)
Decrease (increase) in inventories
   
(4,075
)
   
1,774
     
(1,731
)
   
3,986
 
Increase (decrease) in trade payables
   
4,205
     
(790
)
   
2,533
     
(1,740
)
Decrease in accrued expenses
   
(1,690
)
   
(1,802
)
   
(2,442
)
   
(1,304
)
Increase (decrease) in advance from customers and deferred revenue
   
7,010
     
(338
)
   
4,700
     
(8,062
)
Decrease in other liabilities
   
(810
)
   
(194
)
   
(1,975
)
   
(2,197
)
Net cash provided by (used in) operating activities
   
(10,681
)
   
8,742
     
(3,306
)
   
8,401
 
 
                               
Cash flows from investing activities:
                               
Purchase of property and equipment
   
(4,515
)
   
(3,572
)
   
(2,314
)
   
(2,089
)
Repayment of (investment in) short term deposits
   
2,159
     
(2,159
)
   
2,159
     
(2,159
)
Net cash used in investing activities
   
(2,356
)
   
(5,731
)
   
(155
)
   
(4,248
)
 
                               
Cash flows from financing activities:
                               
Dividend payment
   
-
     
(35,003
)
   
-
     
-
 
Repayment of long-term loan
   
-
     
(4,000
)
   
-
     
-
 
Net cash used in financing activities
   
-
     
(39,003
)
   
-
     
-
 
 
                               
Effect of exchange rate changes on cash, cash equivalents and restricted cash
   
32
     
(161
)
   
(221
)
   
93
 
 
                               
Increase (decrease) in cash, cash equivalents and restricted cash
   
(13,005
)
   
(36,153
)
   
(3,682
)
   
4,246
 
 
                               
Cash, cash equivalents and restricted cash at the beginning of the period
   
84,463
     
115,958
     
75,140
     
75,559
 
 
                               
Cash, cash equivalents and restricted cash at the end of the period
 
$
71,458
   
$
79,805
   
$
71,458
   
$
79,805
 

(1)
The Company restated its previously issued condensed interim consolidated financial statements for the three and six months ended June 30, 2021.
For additional information, see Item 5 of our 2021 Form 20-F and  Notes 2 and  13 of our Condensed Interim Consolidated Financial Statements filed with the U.S. Securities and Exchange Commission on May 16, 2022 and August 9, 2022, respectively.

13