6-K 1 zk1923696.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 November, 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 investors 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 November 26, 2019 | By: | /s/ Yael Shofar |
|  | Yael Shofar |
|  | General Counsel |

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Gilat Business updateInvestors Day CEO Yona Ovadia November

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 ~900 employees

Accelerating Connectivity – Growth Areas Mobile Cellular Backhaul,Network Resilience, Public Safety Mobility In the Air, at Sea, on the Ground Broadband HTS/VHTS/NGSO Broadband to the Unserved and Underserved Developed, not developing world Introducing the concept of recurring revenue Increased investment in R&D

Gilat five main pillars – 3 growth Engines HTS/VHTSNGSO 5G WavestreamSSPAs Peru Mobility AeroBaseband Antenna Cellular BackhaulEnt, consumer Broadband Mobile Mobility Recurring Revenue Positively impact on Gilat’s performance and bright future:NGSO, and the mPower winAero and free wi-fiProgress in Cellular Backhaul and servicesTurned a corner in Peru

Broadband:Evolution, revolution

Satellites HTS/VHTS: Evolution Telesat~9 Tbps 512 Satellites GEO EVOLUTION: WIDE BEAM  HTS  VHTS HTS Evolution NGSO Revolution Commercial GEO Satellite Orders Manufacturing Orders Although less GEO satellites are built, they are more powerful WIDE BEAM (X Gbs)  HTS (10X Gbs)  VHTS (100X Gbs) Satellite Capacity

Satellite revolution: NGSO is a reality MEO 5,000-10,000 km~120msec GEO 35,786 km~550msec LEO200-2,000 km~15msec SES/mPOWER~2 Tbps 22 Satellites OneWeb~4.5 Tbps 600 Satellites SpaceX~20Tbps 4425 Satellites HAPs10-50 km~5msec HTS/VHTS~100-500 Gbps Telesat~9 Tbps 300 Satellites Amazon~20Tbps 3236 Satellites NGSO PROMISELow Latency - Order of magnitude reduction in latency (toward 5G)Terrestrial-like connection (Fiber in the sky)Tera bits of capacity; Global coverage Lower orbit  Higher number of satellites in a constellation due to satellite field-of-view

NGSO is materializing Gilat is engaged with several NGSO operators : SES/mPower, Telesat, OneWeb, SpaceX, and AmazonWon mPower:Significant revenue opportunitySeveral successful demonstrations with Telesat's LEO Satellite: Opportunity in Both Baseband and ESA mPower positions us well in the vast market of NGSO, as well as for VHTS (e.g China Satcom) The mPower Constellation

Our vision of Abundance capacity (GEO + NGSO) is materializing 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

Paving the path to 5G Maintaining Gilat’s 4G Superiority on the Path to 5G Paving the path to 5G Significant Investment in R&D 5G

Mobility

MOBILITY – Superior Passenger Experience Drives Demand Satellite Broadband Connected Aircrafts 7,200(2018) 27,800(2028) Source: NSR, April 2019 Commercial Aircrafts ~850(2018) 5,300(2028) Source: NSR, April 2019 Business Jet Aircrafts

One of the largest single network Gilat enables GOGO - the largest IFC Network The largest IFC provider with >2,450 aircrafts World’s fastest speedIn-Flight connectivity ~1,500 commercial aircraft installed and activated with satellite More then 1300 with Gilat Aero modem +850 backlogSep 2019 Gilat`s focus on mobility as part of our profitability growth

Aero connectivity and the free Wi-Fi opportunity Free Wi-Fi Trend Represent Significant Opportunity for Gilat “ We did conduct two weeks of tests, it was on a limited scale. We learned a lot about the technical capacity challenges when you want to open up Wi-Fi free with great broadband capabilities” “They will be coming, certainly, later this year”“We think it’s important” Delta CEO Ed Bastian - July 2019 “… to get the system to a high enough level of reliability and bandwidth that we can make WiFi free for our customers.” United CEO Scott Kirby- July 2019

First project – aero parabolic antennaStrategic agreement with Tier-1 aviation service providerExpansion into business aviationBest in class product Aero Antennas - accelerating growth Global Aero Flat Panel Antenna (Cumulative) “The aero vertical will Generate $8.4B in cumulative equipment revenues, with ~29,000 units forecasted to be shipped, by 2028” Source: NSR, Feb 2019 TMA Business Jet Aviation

ESA Aero Antennas - Next Gen Antenna Horizon 2020 - Joint Development Project An established player in the Phased Array Antenna (PAA) for the defense (UAV) marketDeveloping an ESA (Electronically Steered Antenna)Won a Technology Demonstrator project with Airbus ESA Represents a Significant Growth Engine to Gilat Mobility Business

Mobile

Leading the Fast Growing 4G/LTE Satellite Backhaul Market Source: NSR, April 2019 For the first time, Gilat gets to the pole position in shipment “ “ Being able to differentiate with a compelling managed service offer is key to gain business and defend healthy margins “ “ SATELLITE BACKHAUL MARKETService , Equipment & Capacity $820M(2018) $3,790M(2028) Source: NSR, April 2019 Market Leader With 35% of Market Share in Modem Shipments Source: NSR, April 2019 Source: NSR, April 2019 More Than 85% Market Share In LTE

Japan – the "Land of the Rising Sun“ High ARPU countryGeography: islands, earthquakesRelationships of trust and loyalty CBH is one of the main sources of managed service - recurring revenues

Peru

Got approval to move to ops in R1 21 R3:AmazonasICA R2:Cusco R1:HuancavelicaAyacuchoApurimac Q4 2019 - started selling services over the network, First $10m deal with IPT, Confident we will win more. Our target is to turn Peru into a source of profitable recurring revenue of(at least) ~$50m/year

Peru –political focus on the program

Financial Indicators Highlights

Executing Profitable Growth Strategy Annual Revenues Adjusted EBITDA Revenues: $260M - $270MGAAP Operating Profit: $23M - $27M Adjusted EBITDA: $38M - $42M GAAP Operating Profit Updated 2019 Management Objectives (US$ millions)

Updated 2019 guidelines and outlook – increased profitability US$ millions Revenues$260M-$270M ($266.4M)(2%)-1.4% YoY Revenues w/o Terrestrial Infra$234M-$240M ($241.4M)(3%)-0% YoY Mobility RevenuesMainly IFC$105M-$108M ($97.2M)8%-11% 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$128M-$132M ($144.2M)(11%)-(8%) YoY

Gilat revenues & terrestrial infrastructure breakdown US$ millions

Annual Revenue per Segment US$ millions 283M 266M 260M-270M

Q3 2019 Profit and Loss Highlights US$ millions Revenues$63.4M ($62.8M)(1%) YoY Gross Profit/MarginGAAP $23.3M – 37% ($24.2M – 39%)Non GAAP $23.3M – 37% ($24.5M – 39%) Mobility Revenues$27.1M ($21.8M) OPEXGAAP $16.3M ($18.2M)Non GAAP $15.8M ($18.0M) Operating Profit/MarginGAAP $7.0M – 11% ($6.0M – 10%)Non GAAP $7.5M – 12% ($6.5M – 10%) Net ProfitGAAP $6.3M ($8.7M*)Non GAAP $6.8M ($5.1M) Adjusted EBITDA$10.1M ($9.1M) Fixed Networks Revenues$27.3M ($34.9M) Revenues w/o Terrestrial Infrastructure$54.4M ($56.8M) *) in 2019 Net profit includes $4.1M initial recognition of deferred tax assets with respected to carry forward losses **) Q3-19 (Q3-18)

Quarterly Profit and Loss Highlights US$ millions, except per share data GAAP Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Revenues 62.8 69.7 62.1 59.7 63.4 Gross Profit 24.2 26.0 23.6 22.0 23.3 Gross Margin 39% 37% 38% 37% 37% R&D, net 8.2 8.9 8.3 7.1 7.1 S&M 5.5 5.5 5.9 5.4 5.0 G&A 4.6 4.3 4.9 4.6 4.1 Other income* - (0.2) - - - Operating income 6.0 7.5 4.5 4.9 7.0 Net income 8.7 5.3 2.8 3.4 6.3 Diluted EPS 0.16 0.09 0.05 0.06 0.11 Non-GAAP** Gross Margin 39% 38% 38% 37% 37% Operating Income 6.5 7.9 5.6 6.3 7.5 Net income 5.1 5.7 4.0 4.8 6.8 Adjusted EBITDA 9.1 10.5 8.2 8.9 10.1 * Include trade secrets litigation income** Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions, amortization of lease incentive, impairments, restructuring costs, re-organization 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) Q3-19 (Q2-19) Cash and equivalents1$84.2M ($69.5M) DSO286 days (83 days) Total Assets$358.8M ($365.5M) Cash From Operation$17.2M increase($8.3M decrease) Total Debt$8.2M ($8.3M) Shareholders equity$228.6M ($223.2M)