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 2018

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 press release dated November 12, 2018, announcing Gilat’s Third Quarter 2018 results.

We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form S-8 (Registration Nos. 333-180552, 333-187021, 333-204867, 333-210820, 333-221546 and 333-223839).
 
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 12, 2018
By: /s/ Yael Shofar
  
 
Yael Shofar
General Counsel
  

 
Gilat Reports Strong Profitability in Q3 2018,
Raises Objectives for 2018 Operating Profit and EBITDA

GAAP operating income of $6.0 million is up 79.6% year over year and Adjusted
EBITDA of $9.1 million up 27.8% year over year;

Company raises 2018 objective of GAAP operating income to between $22 to
$24 million (from $17 to 21 million), and Adjusted EBITDA to between $35 to $37 million (from $30 to $34 million)
 
Petah Tikva, Israel – November 12, 2018 – 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, 2018.
 
Key Financial Highlights:
·
Revenues for Q3 2018 were $62.8 million, compared with $69.9 million in Q3 2017.
 
·
Continued strong profitability:
 
o
Q3 2018 GAAP operating income increased to $6.0 million, up 79.6% from Q3 2017.
 
o
Q3 2018 Non-GAAP operating income rose to $6.5 million, up 32.7% year over year.
 
o
Q3 2018 GAAP net income was $8.7 million, or $0.16 per diluted share (including a one-time tax benefit of $4.1 million related to the Company's US subsidiary), compared with $2.1 million, or $0.04 per diluted share, in Q3 2017.
 
o
Q3 2018 non-GAAP net income was $5.1 million, or $0.09 per diluted share, versus $3.6 million, or $0.07 per diluted share, in Q3 2017.
 
o
Q3 2018 Adjusted EBITDA increased 27.8% from Q3 2017 to $9.1 million, or 14.5 % of revenues.
 
·
Updated management objectives for 2018: GAAP operating income increased to between $22 to $24 million (from $17 to 21 million), and Adjusted EBITDA increased to between $35 to $37 million (from $30 to $34 million). Revenue range revised to between $265 to $275 million (from $285 to 305 million) due to continued delays in the Company's projects for FITEL in Peru, as well as exerting caution as it relates to the Company's two additional recently awarded regional telecommunications infrastructure projects in Peru. Recently, the losing party appealed the award and obtained a preliminary injunction against the award. Gilat has been informed by FITEL that it believes the injunction was improperly obtained and FITEL is opposing it. Gilat is not a party in either action and based on advice of counsel, firmly believes that the chances of success of the losing party’s appeal are remote, yet decided to exert caution and reduce its revenue targets for 2018.
 

Yona Ovadia, CEO of Gilat, commented:
 “I am pleased to report that the third quarter of 2018 was another strong quarter for Gilat.  We continued to increase profitability, with noteworthy year-over-year growth in GAAP operating income and Adjusted EBITDA.  We also continued to benefit from our investment in our growth engines of cellular backhaul and In-Flight Connectivity (IFC) and in our focus on improving profitability.
“From a business perspective, Gilat was awarded multi-million-dollar projects around the globe. New projects were secured in Russia, China and Japan, for broadband and high throughput satellites in which Gilat will provide its multi-service ground segment.
“From a technological perspective, we reached a major milestone with our partners Global Eagle and Telesat for demonstrating the first-ever live in-flight connectivity with a LEO satellite as well as switchover between Telesat’s GEO and LEO satellites.
“We also remain optimistic and committed to our opportunities in Peru, although we decided to exercise caution and reduce our revenue target for the full year due to the events in Peru mentioned above.  We strongly expect, however, that we will overcome these challenges in the coming few months.”
Mr. Ovadia concluded: “We are confident in our strategy and remain focused on our growth engines of cellular backhaul, IFC, and HTS/VHTS, as well as on balancing our investments in R&D to maintain product leadership while continuously improving profitability, as evidenced by the increase in our profit targets for the year.”
Key Recent Announcements:

·
JSAT Awards Gilat Multi-Million US Dollar Project for Mobility and Fixed Broadband Services in Japan
·
Gilat to Provide the Ground Network for China Satcom’s ChinaSat-18
·
Global Eagle and Gilat Use Telesat’s Phase 1 LEO Satellite to Demonstrate First Ever, Live In-flight Broadband Connectivity via LEO
·
Hispamar and Gilat Launch a Satellite-Based Broadband Service in Brazil to Promote High-Quality Internet Access
·
Gazprom Space Systems and Gilat Sign $18M Contract to Provide Broadband Connectivity Across Russia over New Yamal 601 Ka Satellite
 
Conference Call and Webcast Details:
Gilat management will host a conference call today, Monday, November 12, to discuss the third quarter results.  The details are as follows:
 
Conference Call and Webcast
 Following the release, Yona Ovadia, Chief Executive Officer, and Adi Sfadia, Chief Financial Officer, will discuss Gilat’s third quarter 2018 results and participate in a question and answer session: 
 
Date:               Monday, November 12, 2018
Start:               09:30 AM EST / 16:30 IST
Dial-in:            US: 1-888-668-9141
                        International: (972) 3-918-0609
 
A simultaneous Webcast of the conference call will be available on the Gilat website at www.gilat.com and through this link: www.veidan-stream.com/gilatq3-2018.html

The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.
 
Conference Call Replay
Start:               November 12, 2018 at 12:00 PM EST / 19:00 IST
End:                November 17, 2018 at 12:00 PM EST / 19:00 IST
Dial-in:           US: 1-888-782-4291
                        International: (972) 3-925-5904

Non-GAAP Measures
 The attached summary unaudited financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents Non-GAAP presentations of net income, operating income, Adjusted EBITDA and earnings per share. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance.

Adjusted EBITDA (operating income before depreciation, amortization, non-cash stock option expenses, costs related to acquisition transactions, restructuring cost, goodwill impairment, impairment of long lived assets, trade secrets litigation expenses and expenses under amnesty program) is presented to compare the Company’s performance to that of prior periods and evaluate the Company’s financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company’s financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company's Operating income and Adjusted EBITDA is presented in the attached summary financial statements.

This news release also contains a forward-looking estimate of Adjusted EBITDA projected to be generated by Gilat in 2018. A forward-looking estimate of net income and reconciliations of the forward-looking estimates of Adjusted EBITDA to net income are not provided because the items necessary to estimate net income are not estimable at this time. Non-GAAP presentations of net income, operating income, Adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat’s operating performance or liquidity.

 
About Gilat
 
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With 30 years of experience, we design and manufacture cutting-edge ground segment equipment, and provide comprehensive solutions and end-to-end services, powered by our innovative technology. Delivering high value competitive solutions, our portfolio comprises of a cloud based VSAT network platform, high-speed modems, high performance on-the-move antennas and high efficiency, high power Solid State Amplifiers (SSPA) and Block Upconverters (BUC).
 
Gilat’s comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, cellular backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety, all while meeting the most stringent service level requirements. Gilat controlling shareholders are the FIMI Private Equity Funds. For more information, please visit: 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. We undertake 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.

Contact:
Gilat Satellite Networks
Doreet Oren, Director Corporate Communications
DoreetO@gilat.com

Comm-Partners LLC
June Filingeri, President
+1-203-972-0186
junefil@optonline.net
 
 
GILAT SATELLITE NETWORKS LTD.
  
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
 
   
Nine months ended
September 30,
    
Three months ended
September 30,
  
   
2018
    
2017
    
2018
    
2017
  
   
Unaudited
    
Unaudited
  
                         
Revenues
  
$
196,662
    
$
200,104
    
$
62,780
    
$
69,936
  
Cost of revenues
    
128,639
      
142,845
      
38,586
      
49,587
  
                                 
Gross profit
    
68,023
      
57,259
      
24,194
      
20,349
  
                                 
Research and development expenses
    
25,280
      
20,648
      
8,550
      
7,181
  
Less - grants
    
1,204
      
820
      
394
      
297
  
Research and development expenses, net
    
24,076
      
19,828
      
8,156
      
6,884
  
Selling and marketing expenses
    
17,209
      
17,187
      
5,493
      
5,837
  
General and administrative expenses
    
12,963
      
14,153
      
4,574
      
4,303
  
Litigation expenses
    
-
      
873
      
-
      
-
  
                                 
Total operating expenses
    
54,248
      
52,041
      
18,223
      
17,024
  
                                 
Operating income
    
13,775
      
5,218
      
5,971
      
3,325
  
                                 
Financial expenses, net
    
(3,166
)
    
(3,169
)
    
(978
)
    
(1,123
)
                                 
Income before taxes on income
    
10,609
      
2,049
      
4,993
      
2,202
  
                                 
Taxes on income (tax benefit)
    
(2,505
)
    
(1,349
)
    
(3,659
)
    
152
  
                                 
Net income
  
$
13,114
    
$
3,398
    
$
8,652
    
$
2,050
  
                                 
Earnings per share (basic and diluted)
  
$
0.24
    
$
0.06
    
$
0.16
    
$
0.04
  
                                 
Weighted average number of shares used in
                                
computing earnings per share
                                
   Basic
    
54,858,038
      
54,667,795
      
54,950,327
      
54,703,658
  
   Diluted
    
55,682,707
      
54,723,315
      
55,818,557
      
54,788,086
  
 
 
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
    
Three months ended
  
   
September 30, 2018
    
September 30, 2017
  
   
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
   
Unaudited
    
Unaudited
  
                                     
Gross profit
  
$
24,194
      
268
    
$
24,462
    
$
20,349
      
1,210
    
$
21,559
  
Operating expenses
    
18,223
      
(254
)
    
17,969
      
17,024
      
(357
)
    
16,667
  
Operating income
    
5,971
      
522
      
6,493
      
3,325
      
1,567
      
4,892
  
Income before taxes on income
    
4,993
      
522
      
5,515
      
2,202
      
1,567
      
3,769
  
Net income
  
$
8,652
      
(3,589
)
  
$
5,063
    
$
2,050
      
1,567
    
$
3,617
  
                                                 
Earnings per share (basic and diluted)
  
$
0.16
    
$
(0.07
)
  
$
0.09
    
$
0.04
    
$
0.03
    
$
0.07
  
                                                 
Weighted average number of shares used in
                                                
   computing earnings per share
                                                
    Basic
    
54,950,327
              
54,950,327
      
54,703,658
              
54,703,658
  
    Diluted
    
55,818,557
              
56,020,550
      
54,788,086
              
54,979,360
  
 
(1)
Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions, trade secrets litigation expenses, tax expenses under amnesty program and first time recognition of deferred tax benefit.
 
                               
   
Three months ended
September 30, 2018
                
Three months ended
September 30, 2017
        
   
Unaudited
                
Unaudited
        
                               
GAAP net income
  
$
8,652
                
$
2,050
        
                                     
Gross profit
                                        
Non-cash stock-based compensation expenses
    
35
                      
15
          
Amortization of intangible assets related to acquisition transactions
    
233
                      
1,195
          
     
268
                      
1,210
          
Operating expenses
                                        
Non-cash stock-based compensation expenses
    
203
                      
193
          
Amortization of intangible assets related to acquisition transactions
    
51
                      
164
          
     
254
                      
357
          
                                         
Tax on income
    
(4,111
)
                    
-
          
                                         
Non-GAAP net income
  
$
5,063
                    
$
3,617
          
 
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
    
Nine months ended
  
   
September 30, 2018
    
September 30, 2017
  
   
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
   
Unaudited
    
Unaudited
  
                                     
Gross profit
  
$
68,023
      
2,698
    
$
70,721
    
$
57,259
      
3,620
    
$
60,879
  
Operating expenses
    
54,248
      
(805
)
    
53,443
      
52,041
      
(2,642
)
    
49,399
  
Operating income
    
13,775
      
3,503
      
17,278
      
5,218
      
6,262
      
11,480
  
Income before taxes on income
    
10,609
      
3,503
      
14,112
      
2,049
      
6,499
      
8,548
  
Net income
  
$
13,114
      
(608
)
  
$
12,506
    
$
3,398
      
6,499
    
$
9,897
  
                                                 
Basic income per share
  
$
0.24
    
$
(0.01
)
  
$
0.23
    
$
0.06
    
$
0.12
    
$
0.18
  
                                                 
Diluted income per share
  
$
0.24
    
$
(0.02
)
  
$
0.22
    
$
0.06
    
$
0.12
    
$
0.18
  
                                                 
Weighted average number of shares used in
                                                
   computing earnings per share
                                                
    Basic
    
54,858,038
              
54,858,038
      
54,667,795
              
54,667,795
  
    Diluted
    
55,682,707
              
55,896,940
      
54,723,315
              
54,850,309
  
 
(1)
Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions, trade secrets litigation expenses, tax expenses under amnesty program and first time recognition of deferred tax benefit.
 
                               
   
Nine months ended
September 30, 2018
                
Nine months ended
September 30, 2017
        
   
Unaudited
                
Unaudited
        
                               
GAAP net income
  
$
13,114
                
$
3,398
        
                                         
Gross profit
                                        
Non-cash stock-based compensation expenses
    
77
                      
38
          
Amortization of intangible assets related to acquisition transactions    
2,621
                      
3,582
          
     
2,698
                      
3,620
          
Operating expenses
                                        
Non-cash stock-based compensation expenses
    
653
                      
588
          
Amortization of intangible assets related to acquisition transactions    
152
                      
553
          
Trade secrets litigation expenses
    
-
                      
873
          
Tax expenses under amnesty program
    
-
                      
628
          
     
805
                      
2,642
          
                                         
Finance and taxes on income under amnesty program    
-
                      
237
          
Tax on income
    
(4,111
)
            
 
      
-
          
                                         
Non-GAAP net income
  
$
12,506
                    
$
9,897
          
 
GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands
  
 
ADJUSTED EBITDA:
                        
                         
   
Nine months ended
September 30,
    
Three months ended
September 30,
  
 
   
2018
    
2017
    
2018
    
2017
  
   
Unaudited
    
Unaudited
  
                         
GAAP operating income
  
$
13,775
    
$
5,218
    
$
5,971
    
$
3,325
  
Add:
                                
Non-cash stock-based compensation expenses
    
730
      
626
      
238
      
208
  
Trade secrets litigation expenses
    
-
      
873
      
-
      
-
  
Tax expenses under amnesty program
    
-
      
628
      
-
      
-
  
Depreciation and amortization
    
10,205
      
9,884
      
2,883
      
3,580
  
                                 
Adjusted EBITDA
  
$
24,710
    
$
17,229
    
$
9,092
    
$
7,113
  
 
SEGMENT REVENUE:
  
                         
   
Nine months ended
September 30,
    
Three months ended
September 30,
  
 
   
2018
    
2017
    
2018
    
2017
  
   
Unaudited
    
Unaudited
  
                         
Fixed Networks
  
$
108,786
    
$
81,408
    
$
34,943
    
$
29,607
  
Mobility Solutions
    
67,626
      
55,797
      
21,848
      
18,888
  
Terrestrial Infrastructure Projects
    
20,250
      
62,899
      
5,989
      
21,441
  
                                 
Total revenue
  
$
196,662
    
$
200,104
    
$
62,780
    
$
69,936
  
 
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEET
U.S. dollars in thousands
 
   
September 30,
    
December 31,
  
   
2018
    
2017
  
   
Unaudited
    
Audited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
59,827
    
$
52,957
  
Restricted cash
    
38,566
      
29,288
  
Restricted cash held by trustees
    
4,790
      
4,325
  
Trade receivables, net
    
86,107
      
108,842
  
Inventories
    
26,619
      
28,853
  
Other current assets
    
33,342
      
21,686
  
                 
   Total current assets
    
249,251
      
245,951
  
                 
LONG-TERM INVESTMENTS:
                
Long-term restricted cash
    
140
      
187
  
Severance pay funds
    
7,173
      
8,188
  
Other long term receivables
    
5,537
      
1,071
  
                 
Total long-term investments
    
12,850
      
9,446
  
                 
PROPERTY AND EQUIPMENT, NET
    
82,999
      
82,246
  
                 
INTANGIBLE ASSETS, NET
    
2,772
      
5,709
  
                 
GOODWILL
    
43,468
      
43,468
  
                 
TOTAL ASSETS
  
$
391,340
    
$
386,820
  
 
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEET
U.S. dollars in thousands
 
   
September 30,
    
December 31,
  
   
2018
    
2017
  
   
Unaudited
    
Audited
  
             
LIABILITIES AND EQUITY
            
             
CURRENT LIABILITIES:
            
Current maturities of long-term loans
  
$
4,465
    
$
4,479
  
Trade payables
    
21,343
      
33,715
  
Accrued expenses
    
64,418
      
70,534
  
Advances from customers and deferred revenues
    
31,720
      
16,721
  
Advances from customers, held by trustees
    
-
      
1,416
  
Other current liabilities
    
19,947
      
20,044
  
                 
   Total current liabilities
    
141,893
      
146,909
  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
    
7,029
      
7,999
  
Long-term loans, net of current maturities
    
8,216
      
12,582
  
Other long-term liabilities
    
653
      
1,008
  
                 
   Total long-term liabilities
    
15,898
      
21,589
  
                 
EQUITY:
                
Share capital - ordinary shares of NIS 0.2 par value
    
2,619
      
2,601
  
Additional paid-in capital
    
924,072
      
921,726
  
Accumulated other comprehensive loss
    
(4,818
)
    
(3,046
)
Accumulated deficit
    
(688,324
)
    
(702,959
)
                 
Total equity
    
233,549
      
218,322
  
                 
TOTAL LIABILITIES AND EQUITY
  
$
391,340
    
$
386,820
  
 
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS (*)
U.S. dollars in thousands
 
   
Nine months ended
September 30,
    
Three months ended
September 30,
  
   
2018
    
2017
    
2018
    
2017
  
   
Unaudited
    
Unaudited
  
Cash flows from operating activities:
                        
Net income
  
$
13,114
    
$
3,398
    
$
8,652
    
$
2,050
  
Adjustments required to reconcile net income
                                
 to net cash provided by (used in) operating activities:
                                
Depreciation and amortization
    
10,205
      
9,884
      
2,883
      
3,580
  
Capital loss from disposal of property and equipment
    
96
      
135
      
96
      
90
  
Stock-based compensation of options and RSU's
    
730
      
626
      
238
      
208
  
Accrued severance pay, net
    
45
      
129
      
(2
)
    
23
  
Exchange rate differences on long-term loans
    
(24
)
    
151
      
(11
)
    
38
  
Deferred income taxes, net
    
(4,415
)
    
(300
)
    
(4,386
)
    
(141
)
Decrease (increase) in trade receivables, net
    
22,209
      
2,833
      
(7,260
)
    
(2,215
)
Increase (decrease) in other assets (including short-term, long-term
                                
   and deferred charges)
    
(10,659
)
    
(3,840
)
    
(1,508
)
    
2,795
  
Decrease (increase) in inventories
    
834
      
(9,229
)
    
502
      
(5,671
)
Decrease in trade payables
    
(12,249
)
    
(1,082
)
    
(615
)
    
(1,619
)
Increase (decrease) in accrued expenses
    
(5,108
)
    
14,655
      
(3,128
)
    
3,237
  
Increase (decrease) in advance from customers
    
11,129
      
(11,714
)
    
16,109
      
(6,004
)
Increase (decrease) in advances from customers, held
                                
   by trustees
    
(1,478
)
    
(2,340
)
    
-
      
1,002
  
Increase (decrease) in other current liabilities and other long term liabilities
    
3,597
      
358
      
(1,978
)
    
2,263
  
Net cash provided by (used in) operating activities
    
28,026
      
3,664
      
9,592
      
(364
)
                                 
Cash flows from investing activities:
                                
Purchase of property and equipment
    
(7,905
)
    
(3,408
)
    
(2,891
)
    
(1,236
)
Net cash used in investing activities
    
(7,905
)
    
(3,408
)
    
(2,891
)
    
(1,236
)
                                 
Cash flows from financing activities:
                                
Issuance of restricted stock units and exercise of stock options
    
1,638
      
569
      
1,065
      
76
  
Repayment of long-term loans
    
(4,356
)
    
(4,528
)
    
(107
)
    
(145
)
Net cash provided by (used in) financing activities
    
(2,718
)
    
(3,959
)
    
958
      
(69
)
                                 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
    
(837
)
    
255
      
(128
)
    
364
  
                                 
Increase (decrease) in cash, cash equivalents and restricted cash
    
16,566
      
(3,448
)
    
7,531
      
(1,305
)
                                 
Cash, cash equivalents and restricted cash at the beginning of the period
    
86,757
      
111,633
      
95,792
      
109,490
  
                                 
Cash, cash equivalents and restricted cash at the end of the period
  
$
103,323
    
$
108,185
    
$
103,323
    
$
108,185
  
 
(*) In November 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual and interim periods beginning after December 15, 2017. The Company adopted this standard during the first quarter of 2018 using the retrospective transition method, as required by the new standard.

The following table provides a reconciliation of cash and cash equivalents, restricted cash, restricted cash held by trustees and long term restricted cash reported within the consolidated balance sheets that sum to the total of such amounts in the consolidated statements of cash flows:
 
   
September 30,
  
   
2018
    
2017
  
   
Unaudited
  
             
Cash and cash equivalents
  
$
59,827
    
$
77,234
  
Restricted cash
    
38,566
      
24,275
  
Restricted cash held by trustees
    
4,790
      
6,503
  
Long term restricted cash included in other assets
    
140
      
173
  
Cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows
  
$
103,323
    
$
108,185