6-K 1 zk1720400.htm 6-K

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, 2017
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 S 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 S
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Attached hereto is Registrant’s corporate presentation as posted on Registrant’s website.
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, 2017 | By: /s/ Yael Shofar |
| Yael Shofar |
| General Counsel |

August 2017 NASDAQ, TASE: GILT Gilat Satellite Networks – Company OverviewA Worldwide Leader in Broadband Satellite Connectivity

Forward Looking Statements Disclaimer Certain statements made in this presentation 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 obtain financing and/or 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. Gilat undertakes no obligation to update or revise any forward-looking statements for any reason. 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.Unaudited/Non-GAAP Financial MeasuresThis presentation includes financial data that is not audited and financial data that was not prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Non-GAAP financial measures appearing in this presentation consist of GAAP financial measures adjusted to exclude, non cash share-based compensation expenses, impairment of goodwill and long lived assets, amortization of acquired intangible assets, restructuring and other non-recurring expenses and net income or loss from discontinued operations. Gilat believes these non-GAAP financial measures provide consistent and comparable measures to help investors understand Gilat’s current and future operating performance. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read in conjunction with Gilat’s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. 2

Gilat – Boundless Communications 3 Mobility Mobile Air Land Enterprise Consumer 4G/5G Sea Most Advanced TechnologyTerrestrial-grade User Experience End-to-End ServiceMost Stringent Service Levels Global Presence20 Sales Offices Established 1987 NASDAQ / TASE: GILT ~1,100 employees Rural Broadband 2G/3G

Global Footprint – Expanding a Diverse Customer Base 4 Carriers & Service Providers 300+ customers 500+ Networks 90+ countries System Integrators Governments Satellite Operators

Satellite Capacity Abundance is the New Reality – GEO + LEO/MEO 5 Global HTS Bandwidth Supply, Demand and Price per Mbps $/Mbps/Month Gbps Source: Euroconsult, NSR, 2016 Abundance of capacity unlocks new markets >10 times today

Affordable Internet Everywhere is Becoming a “Birth Right” 6 We all want Broadband Everywhere. Anytime. Affordable. Mobility Rural Broadband Mobile Satellite delivers Affordable, Plentiful, Terrestrial-grade User Experience

Accelerating Connectivity – Growth Areas for Gilat 7 Mobile Cellular Backhaul,Network Resilience, Public Safety Mobility In the Air, at Sea, on the Ground Rural Broadband Broadband to the Unserved and Underserved

MOBILE – Leading the Fast Growing Satellite Backhaul Market 8 $720M(2016) $2,900M(2026) Source: NSR, 2017 “Gilat is the fastest growing player in the vertical. It recently won large projects, boosting its market share…” Satellite Backhaul Market

Global End-to-End Services MOBILE – Enabling Seamless “Terrestrial-grade” User Experience 9 Affordable true LTE Backhaul Delivering superior technology and products for “terrestrial-grade” User Experience Enabling rapid network deploymentExpanding mobile coverage to rural, highways, islands, tourist centers, campuses, metro-edge and metro areasInstalling new sites as well as replacingleased lines and upgrading T1/E1 connections Delivering comprehensive services to tier-1 MNOs Integrating ground and space assets to deliver Managed ServicesBringing recognized global experienceGenerating recurring revenues

World’s Fastest Broadband for LTE Backhaul Confidential. Proprietary information. © Gilat Satellite Networks Ltd. 10

Metro Area – A Live Example 11

MOBILITY – Superior Passenger Experience Drives Demand 12 3,800(2016) 28,400(2026) Satellite Broadband Connected Aircrafts Source: NSR, 2017 $280M(2016) $590M(2026) Aero Satellite Equipment Market

MOBILITY – Delivering Superior Passenger Experience 13 Materializing a huge potential Modems and hubs 1,850 gogo’s aircrafts Dual-band antennas Hughes, AirMedia and moreNext generation antennas - ESA/PAA Best technology for best User Experience Innovating to deliver breakthrough in capacity and user experienceInnovating to deliver breakthrough in satellite bandwidth utilizationDelivering powerful products and solutionsModems, hubs and NMSAntennas and transceivers (BUCs) World’s Fastest SpeedIn-Flight Connectivity

14 Leading Performance Solutionsfor All In-Flight Connectivity Modules Ku and KaTransceivers Dual BandKu/Ka Antenna 400MbpsModem

RURAL BROADBAND – Delivering Core Infrastructure Supporting Nation Building 15 Growing service revenues Target:Recurring revenues >$50M revenues/ year, profitable, starting 2019, over 10 years Broadband to unserved & underserved Bridging the digital divide Connecting communities and individuals to the world via broadband Large governmental projects in Peru and Colombia Peru – FITEL projectsA $2B+ program to build terrestrial networksacross Peru8 Regional Projects awarded so far - 4 to Gilat (~$400M)~$230M construction revenue ~$170M operational revenue over 10 years13 more Regional Projects to be awarded

Financial Indicators and Analysis

Executing Profitable Growth Strategy Annual Revenues Adjusted EBITDA Revenues: $280M - $290MGAAP Operating Profit: $7M - $11MAdjusted EBITDA: $22M - $26M 17 GAAP Operating Profit Updated 2017 Management Objectives (US$ millions)

Yearly Revenue & Gross Margin per Segment 18 Revenues, Gross margin, Non GAAP Gross margin (“NG” when applicable)

Quarterly Profit and Loss Highlights (US$ millions, except per share data) 19 * Include tax amnesty and trade secrets litigation expenses** Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions, impairments, restructuring costs, trade secrets litigation expenses and tax expense under amnesty program GAAP Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Revenues 67.9 78.6 80.3 63.9 66.2 Gross Profit 15.2 23.7 24.2 17.3 19.6 Gross Margin 22% 30% 30% 27% 30% R&D net 6.2 6.4 6.5 6.7 6.2 S&M 5.9 6.2 6.2 5.8 5.6 G&A 4.3 9.3 4.2 4.0 5.3 Other expenses* 1.4 2.0 0.9 0.8 0.7 Operating income (loss) (2.5) (0.2) 6.5 0.0 1.9 Net income (loss) (3.7) (2.2) 4.5 (0.8) 2.1 Diluted EPS (0.07) (0.04) 0.08 (0.01) 0.04 Non-GAAP** Gross Margin 24% 32% 32% 29% 31% Operating Income (loss) 0.5 3.3 9.0 2.5 4.1 Net income (loss) (0.6) 1.4 7.0 1.7 4.6 Adjusted EBITDA 2.4 5.2 10.8 4.2 5.9

Balance Sheet Highlights (US$ millions, except per share data) 20 June 30,2017 March 31,2017 Cash Balances1 109.5 93.1 Total Assets 383.1 377.4 Total Debt2 17.3 17.3 Shareholders’ equity 212.7 210.3 1) Including cash and cash equivalents, restricted cash and net of short term bank credits.2) Includes long term loans and current maturities of long term loans

In Summary – Uniquely Positioned for Unlocking Opportunities Focused on strategy execution and profitability Significant new revenue opportunities Leading in the main growth areas – Mobile backhaul & In-Flight Mobility Demand for affordable broadband, anywhere anytime, is soaring 21

22 Thank You!