6-K 1 zk1922617.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 February, 2019
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

Attached hereto is Registrant’s IR 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 February 13, 2019 | By: /s/ Yael Shofar |
| Yael Shofar General Counsel |

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Gilat satellite NetworksCompany Overview February 2019 NASDAQ, TASE: GILT

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, trade secrets litigation expenses, tax expenses under amnesty program, deferred tax benefit that was recorded for the first time 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.

Gilat – Boundless Communications 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 BROADBAND 2G/3G Established 1987 NASDAQ / TASE: GILT ~1,100 employees

Global Footprint – Expanding a Diverse Customer Base 300+ customers 500+ Networks 90+ countries SYSTEM INTEGRATORS GOVERNMENTS SATELLITE OPERATORS CARRIERS & SERVICE PROVIDERS

Booming capacity – GEO + LEO/MEO Global HTS Bandwidth Supply, Demand and Price per Mbps $/Mbps/Month Gbps ~16 times today Source: Euroconsult, NSR, 2017 ABUNDANCE OF CAPACITY UNLOCKS NEW MARKETS

Affordable Internet Everywhere is Becoming a “Birth Right” WE ALL WANT BROADBAND Everywhere. Anytime. Affordable. WE ALL WANT BROADBAND Everywhere. Anytime. Affordable. Mobility Broadband Mobile SATELLITE DELIVERS Affordable, Plentiful, Terrestrial-grade User Experience

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

Mobile

Leading the Fast Growing Satellite Backhaul Market $790M(2017) $3,300M(2027) Satellite Backhaul Market “Gilat continues to unlock new opportunities and capture a bigger share of the pie…” Source: NSR, April 2018

Global End-to-End Services Affordable true LTE Backhaul Enabling “Terrestrial-grade” User Experience Delivering “terrestrial-grade” User Experience Rapid network deploymentExpanding coverage to: rural, highways, islands, tourist centers, campuses, metro-edge and metro areasReplacing leased lines and upgrading T1s/E1s Delivering comprehensive servicesExpertise in integrating ground and sat networks Experience with Tier-1 MNOs worldwideGenerating recurring revenues

World’s Fastest Broadband for LTE Backhaul 11 | Proprietary and Confidential

12 | Proprietary and Confidential METRO AREA - A LIVE EXMPLE

Mobility

MOBILITY – Superior Passenger Experience Drives Demand Satellite Broadband Connected Aircrafts 5,200(2017) 27,800(2027) Source: EuroConsult, July 2018 Commercial Aircrafts 500(2017) 8,800(2027) Source: EuroConsult, July 2018 Business Aircrafts

One Network Delivering Superior Passenger Experience >2,200 aircrafts World’s Fastest SpeedIn-Flight Connectivity Global Coverage Over 25 Satellites 15 Teleports

Leading Performance Solutionsfor All In-Flight Connectivity Modules Ku and KaTransceivers Dual BandKu/Ka Antenna 400MbpsModem ESA/PAA 16 | Proprietary and Confidential

Broadband

Delivering Core Infrastructure for National Broadband Broadband to unserved & underserved Bridging the digital divide Connecting communities and individuals to the world via broadbandInnovating to deliver plentiful affordable Consumer and Enterprise solutions Gazprom Providing broadband connectivity acrossRussia over new satellite –Yamal 601 Ka NBN Connecting nationwide businesses and enterprises in regional and rural Australia China Satcom Extending satellite coverage throughout China with new satellite – CS-18, sole solution to China’s HTS Ka JSAT Delivering wide range of mobility and fixed broadband applications in Japan Large governmental projects in Peru and Colombia Peru – FITEL projectsA $2B+ program to build terrestrial networks across Peru14 Regional Projects awarded so far – 6 to Gilat (~$548M)~$333M construction revenue ~$215M operational revenue over 10 yearsTarget: Recurring revenues >$50M / year, profitable, starting 2020 ISRO Boosting broadband connectivity across India’s mainland and islandsover new satellite – ISRO’s GSAT-11

NGSO

Constellations and networks are Getting more complex GEO MEO LEO Multi-satellite 1K-10K/constellation Multi-orbit GEO/MEO/LEO Multi-beam Thousands per satellite Multi-band Ku, Ka, C MEO 2,000-10,000 km GEO 35,786 km LEO500-2,000 km Next-Gen Technologies Needed – Complex NMSs, Strong Modems, ESA 20 | Proprietary and Confidential

NGSO is materializing Opportunity is both baseband as well as ESA antennasIFC demo – Telesat/GEE Maritime connectivity demo – Telesat/Tier-1 Maritime service provider Gilat involved in a number of them Several constellations in advanced stages: SpaceX, OneWeb, Telesat, mPower O3b mPOWER

5G-ready satellite solution Service Ubiquity Service to regions without terrestrial networke.g. rural/remote, public safety, disaster, IoT Service Continuity Continuity between terrestrial and satellite networkse.g. aero, maritime, land Service Scalability Media servicee.g. global feed, video backhaul

Financial Indicators and Analysis

2018 annual Profit and Loss Highlights US$ millions Revenues$266.4M ($282.8M)(6%)YoY Gross ProfitGAAP 35% (29%)Non GAAP 36% (31%) Revenues w/o Terrestrial Infra$241.4M ($204.5M)18% YoY Mobility RevenuesMainly IFC$97.2M ($88.4M)10% YoY OPEXGAAP $72.8M ($71.6M)Non GAAP $71.9M ($68.8M) Operating ProfitGAAP $21.3M ($10.9M)Non GAAP $25.1M ($18.5M) Net ProfitGAAP $18.4M ($6.8M)Non GAAP $18.2M ($14.6M) Operating Margin GAAP 8% (4%)Non GAAP 9% (7%) Adjusted EBITDA$35.2M ($26.2M)34% YoY * 2018/ (2017) Fixed Networks Revenues including CBH$144.2M ($116.1M)24% YoY

annual Profit and Loss HighlightsUS$ millions, except per share data * Include tax amnesty, goodwill impairment, restructuring cost and trade secrets litigation expenses (income)** 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 (income), tax expense under amnesty program and initial recognition of deferred tax asset with respect to carry-forward losses GAAP 2016 2017 2018 Revenues 279.6 282.8 266.4 Gross Profit 75.5 82.5 94.0 Gross Margin 27% 29% 35% R&D, net 24.9 28.0 33.0 S&M 23.4 23.8 22.7 G&A 22.0 18.5 17.2 Other expenses (income)* 4.4 1.3 (0.2) Operating income 0.8 10.9 21.3 Net income (loss) (5.3) 6.8 18.4 Diluted EPS (0.10) 0.12 0.33 Non-GAAP** Gross Margin 29% 31% 36% Operating Income 11.7 18.5 25.1 Net income 5.6 14.6 18.2 Adjusted EBITDA 19.2 26.2 35.2

2019 guidelines and outlook – increased profitability US$ millions Revenues$275M-$295M ($266.4M)3%-11% YoY >60%of 2019 revenues from current backlog Revenues w/o Terrestrial Infra$252M-$265M ($241.4M)4%-10% YoY Mobility RevenuesMainly IFC$101M-$107M ($97.2M)4%-10% YoY Operating ProfitGAAP $23M-$27M ($21.3M)Non GAAP $27M-$31M ($25.1M) Operating Margin GAAP 9% (8%)Non GAAP 11% (9%) Adjusted EBITDA$38M-$42M ($35.2M)8%-19% YoY * Guidance 2019 / (Actual 2018) Fixed Networks Revenues including CBH$151M-$158M ($144.2M)5%-10% YoY

Executing Profitable Growth Strategy Annual Revenues Adjusted EBITDA Revenues: $275M - $295MGAAP Operating Profit: $23M - $27M Adjusted EBITDA: $38M - $42M GAAP Operating Profit 2019 Management Objectives (US$ millions)

Gilat revenues & terrestrial infrastructure breakdown US$ millions $283M $266M $275M-$295M

Annual Revenue per Segment US$ millions $283M $266M $275M-$295M

Q4 2018 Profit and Loss Highlights US$ millions Revenues$69.7M ($82.7M)(16%) YoY Gross Profit/MarginGAAP $26M – 37% ($25.2M – 31%)Non GAAP $26.3M – 38% ($26.4M – 32%) Mobility RevenuesMainly IFC$29.6M ($32.6M) OPEXGAAP $18.5M ($19.6M)Non GAAP $18.4M ($19.4M) Operating Profit/MarginGAAP $7.5M – 11% ($5.6M – 7%)Non GAAP $7.9M – 11% ($7.0M – 8%) Net ProfitGAAP $5.3M ($3.4M)Non GAAP $5.7M ($4.7M) Adjusted EBITDA$10.5M ($9.0M) Fixed Networks Revenues$35.4M ($34.7M) Revenues w/o Terrestrial Infrastructure$65.0M ($67.3M) * Q4-18 (Q4-17)

Quarterly Profit and Loss Highlights US$ millions, except per share data GAAP Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Revenues 82.7 67.4 66.5 62.8 69.7 Gross Profit 25.2 21.4 22.4 24.2 26.0 Gross Margin 31% 32% 34% 39% 37% R&D, net 8.2 8.0 7.9 8.2 8.9 S&M 6.6 5.4 6.3 5.5 5.5 G&A 5.0 4.3 4.1 4.6 4.3 Other expenses (income)* (0.2) - - - (0.2) Operating income 5.6 3.7 4.1 6.0 7.5 Net income 3.4 2.3 2.2 8.7 5.3 Diluted EPS 0.06 0.04 0.04 0.16 0.09 Non-GAAP** Gross Margin 32% 34% 36% 39% 38% Operating Income 7.0 5.1 5.7 6.5 7.9 Net income 4.7 3.8 3.7 5.1 5.7 Adjusted EBITDA 9.0 7.5 8.1 9.1 10.5 * Include tax amnesty and trade secrets litigation expenses (income)** 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 (income), tax expense under amnesty program and initial recognition of deferred tax asset with respect to carry-forward losses

Balance Sheet HighlightsUS$ millions 1) Including cash and cash equivalents, restricted cash and net of short term bank credits2) DSO calculation excludes Terrestrial Infrastructure Projects Segment3) Q4-18 (Q3-18) Cash and equivalents1$104.2 ($103.3) DSO271 days (73 days) Total Assets$394.7 ($391.3) Cash From Operation$4.0M increase($9.6 increase) Total Debt$12.6 ($12.7) Shareholders equity$239.1M ($233.5M)

In Summary – Uniquely Positioned for Unlocking Opportunities Demand for plentiful affordable broadband, anywhere anytime, is soaring Product leadership and innovation Leading in the main growth areas – Mobile Backhaul & IFC Mobility Oversupply of capacity unlocks new markets Focused on strategy execution and profitability