zk1415419.htm


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, 2014
 
                  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 x   Form 40-F o
 
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 o   No x
 
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 press release dated August 13, 2014, announcing Gilat’s Second Quarter 2014 Results.
 
We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form F-3 (registration nos. 333-195680, 333-160683 and no. 333-174142) and registration statements on form S-8 (registration nos. 333-96630, 333-113932, 333-123410, 333-132649, 333-158476, 333-180552 and 333-187021).

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 13, 2014
By:
/s/ Alon Levy  
   
Alon Levy
 
   
VP General Counsel
and Corporate Secretary
 

 
Page 2 of 14

 
 
Gilat Announces Second Quarter 2014 Results

- Profitability and revenue improve compared to first quarter 2014 -

Petah Tikva, Israel, August 13, 2014 – Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the second quarter ended June 30, 2014.

Key Financial Highlights:
 
 
·
Revenues for the second quarter increased to $54.1 million compared to $50.9 million in the first quarter of 2014.
 
·
Non-GAAP operating income was $1.5 million, compared to operating income of $0.5 million in the first quarter of 2014. GAAP operating loss was $0.5 million compared to a loss of $1.5 million in the first quarter of 2014
 
·
Management reaffirms 2014 objectives for annual revenues of $240-$245 million and EBITDA margin levels of approximately 9%

Revenues for the second quarter were $54.1 million, compared to $50.9 million in the first quarter of 2014 and to $61.9 million for the comparable period in 2013. The difference between the second quarter of 2014 and the comparable quarter in 2013 is mostly attributed to the decrease in revenues in our Services Division.
 
On a non-GAAP basis, operating income was $1.5 million in the second quarter as compared to operating income of $0.5 million in the first quarter of 2014 and of $1.9 million in the comparable quarter of 2013. On a non-GAAP basis, net income for the quarter was $0.6 million or an income of $0.01 per diluted share compared to a net loss of $0.6 million or a loss of $0.01 per diluted share in the first quarter of 2014 and to a net loss of $0.9 million or $0.02 per diluted share in the comparable period in 2013.

GAAP operating loss for the second quarter was $0.5 million as compared to an operating loss of $1.5 million in the first quarter of 2014 and of $0.1 million in the comparable period in 2013. GAAP net loss from continuing operations for the quarter was $1.4 million, or a loss of $0.03 per diluted share, compared to a net loss from continuing operations of $2.6 million, or a loss of $0.06 per diluted share for the first quarter of 2014 and compared to a net loss from continuing operations of $2.9 million, or a loss of $0.07 per diluted share in the comparable period in 2013.
 
 
Page 3 of 14

 
EBITDA for the second quarter was $3.9 million compared to $2.8 million in the first quarter of 2014 and to $5.3 million in the comparable period in 2013.

Erez Antebi, Chief Executive Officer of Gilat stated, “Our improved results in the second quarter come from both of our Commercial and Defense Divisions, as well as from the cost-reduction measures we took last year.  Our Defense business continued to grow, with increase in demand for both On-The-Pause as well as On-The-Move solutions.”

Antebi concluded, “We anticipate the second half of 2014 to be stronger than the first half thanks to significant revenues to be generated by projects in Peru and Colombia as well as growth in the commercial and defense activities. We are confident that we are on track to meet our previously stated 2014 management objectives.”

Key Recent Announcements:
 
 
·
Gilat Announces a Breakthrough in LTE Backhauling using its Capricorn TDMA VSAT
 
·
Gilat Upgrades Wireless Nation’s Broadband Services for Consumers and Businesses
 
·
Gilat’s Low-profile Maritime Terminals Deployed

The GAAP financial results include the effect of non-cash stock options expenses, amortization of intangible assets resulting from the purchase price allocation, restructuring costs and net income (loss) from discontinued operations.

Conference Call and Webcast Details:

Gilat management will host a conference call today at 13:30 GMT/ 09:30 EDT/ 16:30 IDT (Israel Daylight Time) to discuss the results. International participants are invited to access the call at (972) 3-918-0644, and US-based participants are invited to access the call by dialing (888)  407-2553. A replay of the conference call will be available beginning at approximately 16:00 GMT/ 12:00 EDT/ 19:00 IDT today, until 16:00 GMT/ 12:00 EDT/ 19:00 IDT August 15, 2014. International participants are invited to access the replay at (972) 3-925-5900 and US-based participants are invited to access the replay by dialing (888) 326-9310. A replay of the call may also be accessed as a webcast via Gilat’s website at www.gilat.com and will be archived for 30 days.
 
Page 4 of 14

 

Notes:

(1) The attached summary financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The attached summary financial statements are unaudited. To supplement the consolidated financial information and statements presented in accordance with GAAP, the Company presents its EBITDA before the impact of non-cash stock based compensation, depreciation and amortization, other income and other costs related to acquisition transactions. Non-GAAP presentations of net income, EBITDA and earnings per share are provided to enhance the understanding of the Company's historical financial performance and comparability between periods.

We regularly use supplemental non-GAAP financial measures internally to understand manage and evaluate our business and make operating decisions. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

(2) Operating income before depreciation, amortization, non-cash stock based compensation as per ASC 718 and other costs related to acquisition transactions ('EBITDA') is presented because it is a measure commonly used and is presented solely in order to improve the understanding of the Company's operating results and to provide further perspective on these results. EBITDA, however, should not be considered as an alternative to operating income or net income for the period as an indicator of the operating performance of the Company.

Similarly, EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity. EBITDA is not a measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. . A reconciliation of specific adjustments to GAAP results is provided in the tables below.
 
About Gilat
Gilat Satellite Networks Ltd (NASDAQ, TASE: GILT) is a leading provider of products and services for satellite-based broadband communications. Gilat develops and markets a wide range of high-performance satellite ground segment equipment and VSATs, with an increasing focus on the consumer and Ka-band market. In addition, Gilat enables mobile SOTM (Satellite-on-the-Move) solutions providing low-profile antennas, next generation solid-state power amplifiers and modems. Gilat also provides managed network and satellite-based services for rural telephony and Internet access via its subsidiaries in Peru and Colombia.
 
Page 5 of 14

 
  
With over 25 years of experience, and over a million products shipped to more than 85 countries, Gilat has provided enterprises, service providers and operators with efficient and reliable satellite-based connectivity solutions, including cellular backhaul, banking, retail, e-government and rural communication networks. Gilat also enables leading defense, public security and news organizations to implement advanced, on-the-move tactical communications on board their land, air and sea fleets using Gilat's high-performance SOTM solutions. For more information, please visit us at 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. 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.

Contact:
KCSA Strategic Communications
Phil Carlson – Vice President
(212) 896-1233
pcarlson@kcsa.com

Vincent G. Piazza- Account Executive
(212) 896-1289
vpiazza@kcsa.com

Contact:
Gilat Satellite Networks
Joelle Inowlocki
JoelleI@gilat.com

 
Page 6 of 14

 

GILAT SATELLITE NETWORKS LTD.
       
CONDENSED CONSOLIDATED BALANCE SHEET
       
US dollars in thousands
       
 
             
   
June 30,
   
December 31,
 
   
2014
   
2013
 
   
Unaudited
       
             
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
    33,400       58,424  
Restricted cash
    32,197       18,891  
Restricted cash held by trustees
    877       3,221  
Trade receivables, net
    64,828       56,466  
Inventories
    24,700       27,141  
Other current assets
    17,759       10,143  
Total current assets
    173,761       174,286  
                 
LONG-TERM INVESTMENTS AND RECEIVABLES:
               
Long-term restricted cash
    304       6,279  
Severance pay funds
    9,454       9,856  
Other long term receivables and deferred charges
    5,267       278  
Total long-term investments and receivables
    15,025       16,413  
                 
PROPERTY AND EQUIPMENT, NET
    93,311       85,369  
                 
INTANGIBLE ASSETS, NET
    25,900       28,830  
                 
GOODWILL
    63,870       63,870  
                 
TOTAL ASSETS
    371,867       368,768  
 
 
Page 7 of 14

 
 
 
GILAT SATELLITE NETWORKS LTD.
       
CONDENSED CONSOLIDATED BALANCE SHEET
       
US dollars in thousands
       
 
   
June 30,
   
December 31,
 
   
2014
   
2013
 
   
Unaudited
       
             
LIABILITIES AND EQUITY
           
             
CURRENT LIABILITIES:
           
Short-term bank credit
    7,518       -  
Current maturities of long-term loans
    4,664       4,665  
Trade payables
    20,991       20,900  
Accrued expenses
    21,037       16,748  
Short-term advances from customers, held by trustees
    3,596       -  
Other current liabilities
    45,146       54,666  
                 
Total current liabilities
    102,952       96,979  
                 
LONG-TERM LIABILITIES:
               
Accrued severance pay
    9,123       9,628  
Long-term loans, net of current maturities
    26,888       31,251  
Other long-term liabilities
    8,936       4,877  
                 
Total long-term liabilities
    44,947       45,756  
                 
COMMITMENTS AND CONTINGENCIES
               
                 
EQUITY:
               
Share capital - ordinary shares of NIS 0.2 par value
    1,957       1,932  
Additional paid-in capital
    874,986       873,045  
Accumulated other comprehensive income
    1,670       1,591  
Accumulated deficit
    (654,645 )     (650,535 )
                 
Total equity
    223,968       226,033  
                 
TOTAL LIABILITIES AND EQUITY
    371,867       368,768  
 
 
Page 8 of 14

 
 
GILAT SATELLITE NETWORKS LTD.
                     
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
     
FOR COMPARATIVE PURPOSES
                     
U.S. dollars in thousands (except per share data)
                   
 
    Three months ended     Three months ended  
    30 June 2014     30 June 2013  
   
GAAP
   
Adjustments (1)
   
Non-GAAP
   
GAAP
   
Adjustments (1)
   
Non-GAAP
 
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
                                     
Revenues
    54,050       -       54,050       61,916       -       61,916  
Cost of revenues
    34,730       (1,248 )     33,482       41,930       (1,244 )     40,686  
Gross profit
    19,320       1,248       20,568       19,986       1,244       21,230  
      36 %             38 %     32 %             34 %
Research and development expenses:
                                               
Expenses incurred
    6,878       (119 )     6,759       7,145       (112 )     7,033  
Less - grants
    594       -       594       532       -       532  
      6,284       (119 )     6,165       6,613       (112 )     6,501  
Selling and marketing expenses
    8,677       (350 )     8,327       7,774       (313 )     7,461  
General and administrative expenses
    4,841       (290 )     4,551       5,672       (273 )     5,399  
Operating income (loss)
    (482 )     2,007       1,525       (73 )     1,942       1,869  
Financial expenses, net
    (515 )     -       (515 )     (2,396 )     -       (2,396 )
Income (loss) before taxes on income
    (997 )     2,007       1,010       (2,469 )     1,942       (527 )
Taxes on income
    434       -       434       381       -       381  
Net income (loss) from continuing operations
    (1,431 )     2,007       576       (2,850 )     1,942       (908 )
Net income (loss) from discontinued operations
    8       (8 )     -       (1,126 )     1,126       -  
Net income (loss)
    (1,423 )     1,999       576       (3,976 )     3,068       (908 )
                                                 
Basic net earnings (loss) per share from continuing operations
    (0.03 )                     (0.07 )                
Basic net earnings (loss) per share from discontinued operations
    0.00                       (0.03 )                
Basic net earnings (loss) per share
    (0.03 )             0.01       (0.10 )             (0.02 )
                                                 
Diluted net earnings (loss) per share from continuing operations
    (0.03 )                     (0.07 )                
Diluted net earnings (loss) per share from discontinued operations
    0.00                       (0.03 )                
Diluted net earnings (loss) per share
    (0.03 )             0.01       (0.10 )             (0.02 )
                                                 
Weighted average number of shares used in
                                               
computing net earnings (loss) per share
                                               
Basic
    42,358               42,358       41,932               41,932  
Diluted
    42,358               43,579       41,932               41,932  
 
(1) Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to acquisition transactions, and net income (loss) from discontinued operations.
 
   
Three months ended
   
Three months ended
 
   
30 June 2014
   
30 June 2013
 
   
Unaudited
   
Unaudited
 
Non-cash stock-based compensation expenses:
           
Cost of revenues
    60       46  
Research and development
    119       112  
Selling and marketing
    138       102  
General and administrative
    290       273  
      607       533  
                 
Amortization of intangible assets related to acquisition transactions:
         
Cost of revenues
    1,188       1,198  
Selling and marketing
    212       211  
      1,400       1,409  
 
 
Page 9 of 14

 
 
GILAT SATELLITE NETWORKS LTD.
                           
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
               
FOR COMPARATIVE PURPOSES
                             
U.S. dollars in thousands (except per share data)
                       
 
         
Six months ended
               
Six months ended
       
    30 June 2014     30 June 2013  
   
GAAP
   
Adjustments (1)
   
Non-GAAP
   
GAAP
   
Adjustments (1)
   
Non-GAAP
 
   
Unaudited
   
Unaudited
   
Unaudited
         
Unaudited
   
Unaudited
 
                                     
Revenues
    104,901       -       104,901       127,336       -       127,336  
Cost of revenues
    65,606       (2,515 )     63,091       84,569       (2,482 )     82,087  
Gross profit
    39,295       2,515       41,810       42,767       2,482       45,249  
      37 %             40 %     34 %             36 %
Research and development expenses:
                                               
Expenses incurred
    14,117       (241 )     13,876       14,776       (211 )     14,565  
Less - grants
    948       -       948       864       -       864  
      13,169       (241 )     12,928       13,912       (211 )     13,701  
Selling and marketing expenses
    18,367       (692 )     17,675       16,760       (614 )     16,146  
General and administrative expenses
    9,753       (593 )     9,160       11,117       (535 )     10,582  
Operating income (loss)
    (1,994 )     4,041       2,047       978       3,842       4,820  
Financial expenses, net
    (1,549 )     -       (1,549 )     (3,147 )     -       (3,147 )
Income (loss) before taxes on income
    (3,543 )     4,041       498       (2,169 )     3,842       1,673  
Taxes on income
    524       -       524       757       -       757  
Net income (loss) from continuing operations
    (4,067 )     4,041       (26 )     (2,926 )     3,842       916  
Net income (loss) from discontinued operations
    (43 )     43       -       (3,406 )     3,406       -  
Net income (loss)
    (4,110 )     4,084       (26 )     (6,332 )     7,248       916  
                                                 
Basic net earnings (loss) per share from continuing operations
    (0.10 )                     (0.51 )                
Basic net loss per share from discontinued operations
    (0.00 )                     (0.05 )                
Basic net earnings (loss) per share
    (0.10 )             (0.00 )     (0.56 )             0.02  
                                                 
Diluted net earnings (loss) per share from continuing operations
    (0.10 )                     (0.51 )                
Diluted net loss per share from discontinued operations
    (0.00 )                     (0.05 )                
Diluted net earnings (loss) per share
    (0.10 )             (0.00 )     (0.56 )             0.02  
                                                 
Weighted average number of shares used in
                                               
   computing net earnings (loss) per share
                                               
Basic
    42,267               42,267       41,849               41,849  
Diluted
    42,267               42,267       41,849               43,906  
 
(1) Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to acquisition transactions, and net income (loss) from discontinued operations.
 
   
Six months ended
   
Six months ended
 
   
30 June 2014
   
30 June 2013
 
   
Unaudited
   
Unaudited
 
Non-cash stock-based compensation expenses:
           
Cost of revenues
    118       86  
Research and development
    241       211  
Selling and marketing
    268       191  
General and administrative
    593       535  
      1,220       1,023  
                 
Amortization of intangible assets related to acquisition transactions:
               
Cost of revenues
    2,397       2,396  
Selling and marketing
    424       423  
      2,821       2,819  
 
 
Page 10 of 14

 
 
GILAT SATELLITE NETWORKS LTD.
             
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           
U.S. dollars in thousands (except per share data)
             
 
   
Six months ended
June 30,
   
Three months ended
June 30,
 
   
2014
   
2013
   
2014
   
2013
 
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
                         
Revenues
    104,901       127,336       54,050       61,916  
Cost of revenues
    65,606       84,569       34,730       41,930  
Gross profit
    39,295       42,767       19,320       19,986  
Research and development expenses:
                               
Expenses incurred
    14,117       14,776       6,878       7,145  
Less - grants
    948       864       594       532  
      13,169       13,912       6,284       6,613  
Selling and marketing expenses
    18,367       16,760       8,677       7,774  
General and administrative expenses
    9,753       11,117       4,841       5,672  
Operating income (loss)
    (1,994 )     978       (482 )     (73 )
Financial expenses, net
    (1,549 )     (3,147 )     (515 )     (2,396 )
Income (loss) before taxes on income
    (3,543 )     (2,169 )     (997 )     (2,469 )
Taxes on income
    524       757       434       381  
Net loss from continuing operations
    (4,067 )     (2,926 )     (1,431 )     (2,850 )
Net loss from discontinued operations
    (43 )     (3,406 )     8       (1,126 )
Net loss
    (4,110 )     (6,332 )     (1,423 )     (3,976 )
                                 
Net loss per share from continuing operations (basic and diluted)
    (0.10 )     (0.07 )     (0.03 )     (0.07 )
Net loss per share from discontinued operations (basic and diluted)
    (0.00 )     (0.08 )     0.00       (0.03 )
Net loss per share (basic and diluted)
    (0.10 )     (0.15 )     (0.03 )     (0.10 )
                                 
Weighted average number of shares used in
                               
computing net loss per share
                               
Basic and diluted
    42,267       41,849       42,358       41,932  
 
 
Page 11 of 14

 
 
GILAT SATELLITE NETWORKS LTD.
                 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
           
US dollars in thousands
                 
 
   
Six months ended
   
Three months ended
 
   
June 30,
   
June 30,
 
   
2014
   
2013
   
2014
   
2013
 
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
Cash flows from continuing operations
                       
Cash flows from operating activities:
                       
Net loss from continuing operations
    (4,067 )     (2,926 )     (1,431 )     (2,850 )
Adjustments required to reconcile net loss
                               
to net cash generated provided by (used in) operating activities:
                               
Depreciation and amortization
    7,428       9,512       3,744       4,815  
Stock-based compensation
    1,220       1,023       607       533  
Accrued severance pay, net
    (103 )     64       19       50  
Accrued interest and exchange rate differences on
                               
   short and long-term restricted cash, net
    (32 )     392       (118 )     353  
Exchange rate differences on long-term loans
    (34 )     (46 )     (40 )     86  
Capital loss from disposal of property and equipment
    60       12       43       -  
Deferred income taxes
    (47 )     1,117       (11 )     1,133  
Increase in trade receivables, net
    (8,034 )     (2,205 )     (5,994 )     (6,385 )
Decrease (increase) in other assets (including short-term, long-term
                               
   and deferred charges)
    (12,535 )     3,802       (4,752 )     4,422  
Decrease (increase) in inventories
    699       (4,450 )     29       (538 )
Increase (decrease) in trade payables
    (52 )     3,026       1,998       2,769  
Increase (decrease) in accrued expenses
    4,176       (3,443 )     2,501       (2,611 )
Increase (decrease) in advances from customers, held
                               
   by trustees
    3,451       (3,923 )     (777 )     306  
Increase (decrease) in other current liabilities and other long term liabilities
    (5,842 )     (4,491 )     (3,599 )     644  
Net cash provided by (used in) operating activities
    (13,712 )     (2,536 )     (7,781 )     2,727  
 
 
Page 12 of 14

 
 
GILAT SATELLITE NETWORKS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
US dollars in thousands
 
   
Six months ended
   
Three months ended
 
   
June 30,
   
June 30,
 
   
2014
   
2013
   
2014
   
2013
 
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
Cash flows from investing activities:
                       
Purchase of property and equipment
    (10,319 )     (1,820 )     (9,794 )     (887 )
Investment in restricted cash held by trustees
    (4,228 )     (11,236 )     -       (9,454 )
Proceeds from restricted cash held by trustees
    6,588       9,771       3,638       6,364  
Investment in restricted cash (including long-term)
    (7,516 )     (2,365 )     (7,516 )     (202 )
Proceeds from restricted cash (including long-term)
    176       2,021       100       1,956  
Purchase of intangible assets
    -       (16 )     -       -  
                                 
Net cash used in investing activities
    (15,299 )     (3,645 )     (13,572 )     (2,223 )
                                 
Cash flows from financing activities:
                               
Issuance of restricted stock units and exercise of stock options
    746       562       453       9  
Payment of obligation related to the purchase of intangible assets
    -       (500 )     -       (500 )
Short-term bank credit, net
    7,216       (458 )     5,564       (975 )
Repayment of long-term loans
    (4,330 )     (5,975 )     (165 )     (988 )
                                 
Net cash provided by (used in) financing activities
    3,632       (6,371 )     5,852       (2,454 )
                                 
Cash flows from discontinued operations
                               
   Net cash used in operating activities
    -       (3,336 )     -       (3,254 )
   Net cash provided by investing activities
    -       1,170       -       160  
   Net cash provided by (used in) financing activities
    -       13,818       -       (442 )
      -       11,652       -       (3,536 )
                                 
Effect of exchange rate changes on cash and cash equivalents
    355       (227 )     322       (190 )
                                 
Decrease in cash and cash equivalents
    (25,024 )     (1,127 )     (15,179 )     (5,676 )
                                 
Cash and cash equivalents at the beginning of the period
    58,424       66,968       48,579       71,517  
                                 
Cash and cash equivalents at the end of the period
    33,400       65,841       33,400       65,841  
 
 
Page 13 of 14

 
 
GILAT SATELLITE NETWORKS LTD.
                   
CONDENSED EBITDA
                   
US dollars in thousands
                   
 
   
Six months ended
June 30,
   
Three months ended
June 30,
 
   
2014
   
2013
   
2014
   
2013
 
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
                         
Operating income (loss)
    (1,994 )     978       (482 )     (73 )
Add:
                               
Non-cash stock-based compensation expenses
    1,220       1,023       607       533  
Depreciation and amortization
    7,428       9,512       3,744       4,815  
EBITDA
    6,654       11,513       3,869       5,275  
 
Page 14 of 14