zk1517618.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 November, 2015

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 November 18, 2015, announcing Gilat’s third Quarter 2015 results.
 
We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form F-3 (Registration No. 333-195680) and the Registration Statements on Form S-8 (Registration Nos.  333-113932, 333-123410, 333-132649, 333-158476, 333-180552, 333-187021 and 333-204867).
 
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 18, 2015
 By:
/s/ Ran Tal
  
   
Ran Tal
  
   
VP General Counsel
  

 
2
 
 
Gilat Announces Third Quarter 2015 Results

Gilat reiterates Revenue and EBITDA management objectives for 2015,
anticipates a strong fourth quarter

Petah Tikva, Israel – November 18, 2015 – Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the third quarter, ended September 30, 2015.
 
Key Financial Updates:
 
·
Revenues for the third quarter of 2015 were $40.3 million compared to $44.3 million in the second quarter of 2015 and $57.1 million in the comparable period of 2014.
 
·
EBITDA for the third quarter of 2015 was a loss of $3.4 million compared to a loss of $2.5 million in the second quarter of 2015 and EBITDA of $6.4 million in the comparable period of 2014.
 
·
Cash balances, including restricted cash, net of short-term bank credits, increased by $34.9 million compared to December 31, 2014, resulting in a cash balance of $88.4 million as of September 30, 2015.
 
·
Company recorded a non-cash impairment of goodwill in the amount of $20.4 million related to Wavestream.
 
·
Reiterated management objectives for 2015: Revenues of between $210 to $220 million and EBITDA of between $6 to $8 million.

On a non-GAAP basis, operating loss was $5.8 million in the third quarter of 2015, compared to an operating income of $3.6 million in the comparable quarter of 2014.

On a GAAP basis, operating loss, including impairment of goodwill and restructuring costs, was $29.1 million in the third quarter of 2015, compared to an operating income of $1.5 million in the comparable quarter of 2014.

On a non-GAAP basis, net loss for the quarter was $8.9 million or $0.20 per diluted share, compared to net income of $3.0 million or $0.07 per diluted share in the same quarter of 2014.
 
On a GAAP basis, net loss for the quarter was $32.4 million or a loss of $0.73 per diluted share compared to a net income of $0.2 million in the same quarter of 2014.

“As I mentioned in our previous release regarding our organizational change, the company is continuing its transition as it seeks to maximize the potential for growth in two key areas: High Throughput Satellite (HTS) and In-Flight Connectivity (IFC)," said Dov Baharav, Interim CEO and Chairman of the Board of Gilat.

"The industry shift to HTS, in some cases at the expense of the traditional enterprise equipment sales, represents an opportunity for large end-to-end deals and substantial growth for Gilat, given the significant technological advantage we have with our X-Architecture, coupled with our service offering. However, the HTS business is characterized by a longer decision-making process. This longer decision-making process has affected our results in the third quarter. At the same time, as previously mentioned, the defense-related business is still weak impacting our third quarter results. On the other hand, we see high-growth in IFC and during the third quarter we have ramped-up our IFC production capabilities, and expect it to translate into revenues starting in the fourth quarter. Furthermore, our results were adversely impacted by the rapid devaluation of the Brazilian Real and the Colombian Peso.
 
 
3
 
 
Looking forward, given the growing demand we see for our IFC offering, the expected new HTS business, and the pickup of our Fitel projects in Peru, we anticipate continued growth in 2016, and a strong fourth quarter in 2015 with a substantial increase in revenues and EBITDA.”

As previously announced, Adi Sfadia has joined Gilat and assumed the role of Gilat's Chief Financial Officer on November 16, 2015. He will be joining Dov Baharav on the earnings call later today.
 
Key Recent Announcements:
 
·
Gilat Launches its Revolutionary Distributed X-Architecture to Address the Growing Demands of High-Throughput Satellites (HTS) in a Single Platform
 
·
Gilat Announces Structural Organizational Changes to Support Key Strategic Opportunities
 
·
Gilat Signed Agreement with Major Satellite Broadband Provider to Deliver High-Performance Dual Ku/Ka-Band Terminal
 
·
Nordnet Orders Gilat SkyEdge II-c HTS Consumer Kits for High-Speed Internet Access in France

Conference Call and Webcast Details:
Gilat management will host a conference call today at 15:00 GMT / 10:00 EST / 17:00 IST to discuss the results. International participants are invited to access the call at (972) 3-918-0687, and US-based participants are invited to access the call by dialing (866)-744-5399 or (888)-642-5032. A replay of the conference call will be available beginning at approximately 17:00 GMT/ 12:00 EST/ 19:00 IST today, until 17:00 GMT/ 12:00 EST/ 19:00 IST November 21, 2015.  International participants are invited to access the call at (972)3-9255940, and US-based participants are invited to access the call by dialing (866)-276-1485. 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.
 
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 statements presented in accordance with GAAP, the Company presents Gilat's EBITDA before the impact of non-cash share-based payment charges, depreciation and amortization, other income, goodwill impairment and restructuring costs. Non-GAAP presentations of net income, operating income, EBITDA and earnings per share are provided to enhance the understanding of the Company's historical financial performance and comparability between periods.
 
(2) Operating income before depreciation, amortization, non-cash stock option expenses as per ASC 718 (formerly SFAS 123(R)),goodwill impairment and restructuring costs ('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. Reconciliation between the Company's Operating income and EBITDA is presented in the attached summary financial statements.

 
4
 


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.

With over 25 years of experience, and over a million products shipped to more than 90 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. Gilat’s controlling shareholders are the FIMI Private Equity Funds. 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:
Gilat Satellite Networks
Joelle Inowlocki
JoelleI@gilat.com
 
KCSA Strategic Communications
Phil Carlson, Vice Preside
(212) 896-1233
pcarlson@kcsa.com
 
 
5
 
 
GILAT SATELLITE NETWORKS LTD.
        
CONDENSED CONSOLIDATED BALANCE SHEET
        
US dollars in thousands
        
 
   
September 30,
    
December 31,
  
   
2015
    
2014
  
   
Unaudited
        
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
     27,723       27,726  
Restricted cash
     68,405       25,983  
Restricted cash held by trustees
     1,204       15,441  
Trade receivables, net
     38,731       57,728  
Inventories
     28,830       25,112  
Other current assets
     16,036       14,760  
Total current assets
     180,929       166,750  
                 
LONG-TERM INVESTMENTS AND RECEIVABLES:
                
Long-term restricted cash
     177       216  
Severance pay funds
     7,690       8,085  
Other long term receivables and deferred charges
     7,081       12,124  
Total long-term investments and receivables
     14,948       20,425  
                 
PROPERTY AND EQUIPMENT, NET
     85,972       90,893  
                 
INTANGIBLE ASSETS, NET
     18,597       22,970  
                 
GOODWILL
     43,468       63,870  
                 
TOTAL ASSETS
     343,914       364,908  
 
 
6
 

   
September 30,
    
December 31,
  
   
2015
    
2014
  
   
Unaudited
        
             
LIABILITIES AND EQUITY
            
             
CURRENT LIABILITIES:
            
Short-term bank credit and loans
     9,124       15,857  
Current maturities of long-term loans
     4,557       4,595  
Trade payables
     14,661       22,850  
Accrued expenses
     20,284       22,475  
Advances from customers
     58,545       2,940  
Short-term advances from customers, held by trustees
     2,614       12,858  
Other current liabilities
     17,349       18,587  
                 
Total current liabilities
     127,134       100,162  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
     7,489       8,157  
Long-term loans, net of current maturities
     21,680       26,271  
Other long-term liabilities
     4,380       5,179  
                 
Total long-term liabilities
     33,549       39,607  
                 
EQUITY:
                
Share capital - ordinary shares of NIS 0.2 par value
     2,046       1,966  
Additional paid-in capital
     883,803       876,624  
Accumulated other comprehensive loss
     (3,502 )     (1,420 )
Accumulated deficit
     (699,116 )     (652,031 )
                 
Total equity
     183,231       225,139  
                 
TOTAL LIABILITIES AND EQUITY
     343,914       364,908  
 
 
7
 
 
GILAT SATELLITE NETWORKS LTD.
                            
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
                
FOR COMPARATIVE PURPOSES
                              
U.S. dollars in thousands (except share and per share data)
                      
 
     
Three months ended
30 September 2015		    
Three months ended
30 September 2014		  
     
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
     
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                                       
Revenues
       40,347       -       40,347       57,135       -       57,135  
Cost of revenues
     30,865       (1,278 )     29,587       38,567       (1,258 )     37,309  
Gross profit
     9,482       1,278       10,760       18,568       1,258       19,826  
        24 %             27 %     32 %             35 %
Research and development expenses:
                                                
Expenses incurred
     6,115       (102 )     6,013       6,714       (121 )     6,593  
Less - grants
     151       -       151       854       -       854  
        5,964       (102 )     5,862       5,860       (121 )     5,739  
Selling and marketing expenses
     6,050       (317 )     5,733       6,913       (350 )     6,563  
General and administrative expenses
     5,164       (214 )     4,950       4,258       (305 )     3,953  
Restructuring Costs
     986       (986 )     -       -       -       -  
Goodwill Impairment
     20,402       (20,402 )     -       -       -       -  
Operating income (loss)
     (29,084 )     23,299       (5,785 )     1,537       2,034       3,571  
Financial expenses, net
     (2,940 )     -       (2,940 )     (349 )     -       (349 )
Income (loss) before taxes on income
     (32,024 )     23,299       (8,725 )     1,188       2,034       3,222  
Taxes on income
     173       -       173       259       -       259  
Net income (loss) from continuing operations
     (32,197 )     23,299       (8,898 )     929       2,034       2,963  
Loss from discontinued operations
     (200 )     200       -       (752 )     752       -  
Net income (loss)
     (32,397 )     23,499       (8,898 )     177       2,786       2,963  
                                                   
Basic net income (loss) per share from continuing operations
     (0.73 )                     0.02                  
Basic loss per share from discontinued operations
     (0.00 )                     (0.02 )                
Basic net income (loss) per share
     (0.73 )             (0.20 )     0.00               0.07  
                                                   
Diluted net income (loss) per share from continuing operations
     (0.73 )                     0.02                  
Diluted loss per share from discontinued operations
     (0.00 )                     (0.02 )                
Diluted net income (loss) per share
     (0.73 )             (0.20 )     0.00               0.07  
                                                   
Weighted average number of shares used in
                                                
   computing net income (loss) per share
                                                
 
    Basic
     44,030,805               44,030,805       42,579,396               42,579,396  
 
    Diluted
     44,030,805               44,030,805       42,995,059               43,586,395  
 
(1)
Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related toShares acquisition transactions, goodwill impairment, restructuring costs and net income (loss) from discontinued operations.
 
             
Three months ended
                    
Three months ended
          
             
30 September 2015
                    
30 September 2014
          
             
Unaudited
                    
Unaudited
          
Non-cash stock-based compensation expenses:
                                                
Cost of revenues
             59                       61          
Research and development
             102                       121          
Selling and marketing
             127                       136          
General and administrative
             214                       305          
                502                       623          
                                                   
Amortization of intangible assets related to acquisition transactions:
                                                
Cost of revenues
             1,219                       1,197          
Selling and marketing
             190                       214          
                1,409                       1,411          
 
 
8
 

GILAT SATELLITE NETWORKS LTD.
                            
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
                
FOR COMPARATIVE PURPOSES
                              
U.S. dollars in thousands (except share and per share data)
                      
 
     
Nine months ended
30 September 2015		    
Nine months ended
30 September 2014		  
     
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
     
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                                       
Revenues
       129,861       -       129,861       162,036       -       162,036  
Cost of revenues
     96,137       (3,759 )     92,378       104,173       (3,773 )     100,400  
Gross profit
     33,724       3,759       37,483       57,863       3,773       61,636  
        26 %             29 %     36 %             38 %
Research and development expenses:
                                                
Expenses incurred
     19,243       (321 )     18,922       20,831       (362 )     20,469  
Less - grants
     563       -       563       1,802       -       1,802  
        18,680       (321 )     18,359       19,029       (362 )     18,667  
Selling and marketing expenses
     18,725       (1,000 )     17,725       25,280       (1,042 )     24,238  
General and administrative expenses
     15,226       (794 )     14,432       14,011       (898 )     13,113  
Restructuring Costs
     986       (986 )     -       -       -       -  
Goodwill Impairment
     20,402       (20,402 )     -       -       -       -  
Operating income (loss)
     (40,295 )     27,262       (13,033 )     (457 )     6,075       5,618  
Financial expenses, net
     (5,850 )     -       (5,850 )     (1,898 )     -       (1,898 )
Income (loss) before taxes on income
     (46,145 )     27,262       (18,883 )     (2,355 )     6,075       3,720  
Taxes on income
     740       -       740       783       -       783  
Net income (loss) from continuing operations
     (46,885 )     27,262       (19,623 )     (3,138 )     6,075       2,937  
Loss from discontinued operations
     (200 )     200       -       (795 )     795       -  
Net income (loss)
     (47,085 )     27,462       (19,623 )     (3,933 )     6,870       2,937  
                                                   
Basic loss per share from continuing operations
     (1.08 )                     (0.07 )                
Basic loss per share from discontinued operations
     (0.00 )                     (0.02 )                
Basic net income (loss) per share
     (1.08 )             (0.45 )     (0.09 )             0.07  
                                                   
Diluted loss per share from continuing operations
     (1.08 )                     (0.07 )                
Diluted loss per share from discontinued operations
     (0.00 )                     (0.02 )                
Diluted net income (loss) per share
     (1.08 )             (0.45 )     (0.09 )             0.07  
                                                   
Weighted average number of shares used in
                                                
   computing net income (loss) per share
                                                
 
    Basic
     43,436,470               43,436,470       42,371,039               42,371,039  
 
    Diluted
     43,436,470               43,436,470       42,371,039               43,615,894  
 
(1)
Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related toShares acquisition transactions, goodwill impairment, restructuring costs and net income (loss) from discontinued operations.
 
             
Nine months ended
                    
Nine months ended
          
             
30 September 2015
                    
30 September 2014
          
             
Unaudited
                    
Unaudited
          
Non-cash stock-based compensation expenses:
                                                
Cost of revenues
             165                       179          
Research and development
             321                       362          
Selling and marketing
             385                       404          
General and administrative
             794                       898          
                1,665                       1,843          
                                                   
Amortization of intangible assets related to acquisition transactions:
                                                
Cost of revenues
             3,594                       3,594          
Selling and marketing
             615                       638          
                4,209                       4,232          
 

 
9
 
 
GILAT SATELLITE NETWORKS LTD.
              
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              
U.S. dollars in thousands (except share and per share data)
              
 
   
Nine months ended
    
Three months ended
  
   
September 30,
    
September 30,
  
   
2015
    
2014
    
2015
    
2014
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Revenues
     129,861       162,036       40,347       57,135  
Cost of revenues
     96,137       104,173       30,865       38,567  
Gross profit
     33,724       57,863       9,482       18,568  
                                 
Research and development expenses:
                                
Expenses incurred
     19,243       20,831       6,115       6,714  
Less - grants
     563       1,802       151       854  
      18,680       19,029       5,964       5,860  
Selling and marketing expenses
     18,725       25,280       6,050       6,913  
General and administrative expenses
     15,226       14,011       5,164       4,258  
Restructuring Costs
     986       -       986       -  
Goodwill Impairment
     20,402       -       20,402       -  
Operating income (loss)
     (40,295 )     (457 )     (29,084 )     1,537  
Financial expenses, net
     (5,850 )     (1,898 )     (2,940 )     (349 )
Income (loss) before taxes on income
     (46,145 )     (2,355 )     (32,024 )     1,188  
Taxes on income
     740       783       173       259  
Income (loss) from continuing operations
     (46,885 )     (3,138 )     (32,197 )     929  
Loss from discontinued operations
     (200 )     (795 )     (200 )     (752 )
Net income (loss)
     (47,085 )     (3,933 )     (32,397 )     177  
                                 
Net income (loss) per share from continuing operations (basic and diluted)
     (1.08 )     (0.07 )     (0.73 )     0.02  
Loss per share from discontinued operations (basic and diluted)
     (0.00 )     (0.02 )     (0.00 )     (0.02 )
Net Income (loss) per share (basic and diluted)
     (1.08 )     (0.09 )     (0.73 )     0.00  
                                 
Weighted average number of shares used in
                                
computing net income (loss) per share
                                
Basic
     43,436,470       42,371,039       44,030,805       42,579,396  
Diluted
     43,436,470       42,371,039       44,030,805       42,995,059  
 
 
10
 

 

GILAT SATELLITE NETWORKS LTD.
                    
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              
US dollars in thousands
                    
                       
 

   
Nine months ended
    
Three months ended
  
   
September 30,
    
September 30,
  
   
2015
    
2014
    
2015
    
2014
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
Cash flows from continuing operations
                        
Cash flows from operating activities:
                        
Net income (loss)
     (47,085 )     (3,933 )     (32,397 )     177  
Loss from discontinued operations
     (200 )     (795 )     (200 )     (752 )
Net income (loss) from continuing operations
     (46,885 )     (3,138 )     (32,197 )     929  
Adjustments required to reconcile net income (loss)
                                
to net cash generated provided by (used in) operating activities:
                                
Depreciation and amortization
     11,459       11,626       3,760       4,198  
Goodwill impairment
     20,402       -       20,402       -  
Stock-based compensation
     1,665       1,843       502       623  
Accrued severance pay, net
     (274 )     42       (4 )     145  
Accrued interest and exchange rate differences on
                                
   short and long-term restricted cash, net
     207       464       120       496  
Exchange rate differences on long-term loans
     (221 )     (311 )     5       (277 )
Capital loss from disposal of property and equipment
     121       241       73       181  
Deferred income taxes
     11       (56 )     49       (9 )
Decrease in trade receivables, net
     16,730       1,538       10,395       9,572  
Decrease (increase) in other assets (including short-term, long-term
                                
   and deferred charges)
     862       (11,731 )     846       804  
Increase in inventories
     (4,911 )     (1,226 )     (2,094 )     (1,925 )
Decrease (increase) in restricted cash directly related to operating activities
     (52,736 )     -       1,582       -  
Decrease in trade payables
     (7,647 )     (4,704 )     (2,346 )     (4,652 )
Increase (decrease) in accrued expenses
     (509 )     1,491       1,251       (2,685 )
Increase (decrease) in advance from customers
     55,616       (12,424 )     (1,716 )     (7,503 )
Decrease in advances from customers, held
                                
   by trustees
     (8,411 )     (65 )     (4,253 )     (3,516 )
Decrease in other current liabilities and other long term liabilities
     (406 )     (7,177 )     (2,148 )     (6,256 )
Net cash used in operating activities
     (14,927 )     (23,587 )     (5,773 )     (9,875 )
 
 
11
 

GILAT SATELLITE NETWORKS LTD.
                    
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              
US dollars in thousands
                    
 
   
Nine months ended
    
Three months ended
  
   
September 30,
    
September 30,
  
   
2015
    
2014
    
2015
    
2014
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
Cash flows from investing activities:
                        
Purchase of property and equipment
     (3,109 )     (12,195 )     (1,270 )     (1,876 )
Investment in restricted cash held by trustees
     (6,109 )     (5,914 )     -       (1,686 )
Proceeds from restricted cash held by trustees
     18,649       8,625       3,997       2,037  
Investment in restricted cash (including long-term)
     (22,411 )     (10,581 )     (1,209 )     (3,065 )
Proceeds from restricted cash (including long-term)
     32,559       232       4,283       56  
                                 
Net cash provided by (used in) investing activities
     19,579       (19,833 )     5,801       (4,534 )
                                 
Cash flows from financing activities:
                                
Capital lease payments
     (408 )     (86 )     (204 )     (86 )
Issuance of restricted stock units and exercise of stock options
     5,595       748       1,890       2  
Payment of obligation related to the purchase of intangible assets
     (500 )     (500 )     (500 )     (500 )
Short term bank credit, net
     (3,811 )     14,177       1,758       6,961  
Repayment of long-term loans
     (4,409 )     (4,484 )     (137 )     (154 )
                                 
Net cash provided by (used in) financing activities
     (3,533 )     9,855       2,807       6,223  
                                 
Effect of exchange rate changes on cash and cash equivalents
     (1,122 )     (221 )     (708 )     (576 )
                                 
Increase (decrease) in cash and cash equivalents
     (3 )     (33,786 )     2,127       (8,762 )
                                 
Cash and cash equivalents at the beginning of the period
     27,726       58,424       25,596       33,400  
                                 
Cash and cash equivalents at the end of the period
     27,723       24,638       27,723       24,638  
 
 
12
 

GILAT SATELLITE NETWORKS LTD.
                    
CONDENSED EBITDA
                    
US dollars in thousands
                    
 
   
Nine months ended
    
Three months ended
  
   
September 30,
    
September 30,
  
   
2015
    
2014
    
2015
    
2014
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Operating income (loss)
     (40,295 )     (457 )     (29,084 )     1,537  
Add:
                                
Non-cash stock-based compensation expenses
     1,665       1,843       502       623  
Restructuring costs
     986       -       986       -  
Goodwill impairment
     20,402       -       20,402       -  
Depreciation and amortization
     11,459       11,626       3,760       4,198  
EBITDA
     (5,783 )     13,012       (3,434 )     6,358  
 
13