FORM 6 – K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report on Foreign Issuer

Pursuant to Rule 13a – 16 or 15d – 16
of the Securities Exchange Act of 1934

For the Month of February, 2019

Gilat Satellite Networks Ltd.
(Translation of Registrant’s Name into English)

Gilat House, Yegia Kapayim Street
Daniv Park, Kiryat Arye, Petah Tikva, Israel
(Address of Principal Corporate Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒  Form 40-F ☐

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐  No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):   N/A

Attached hereto is Registrant’s press release dated February 12, 2019, announcing Gilat’s Fourth Quarter and year 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 February 12, 2019
By: /s/ Yael Shofar
 
Yael Shofar
General Counsel


2

Gilat Reports Strong Growth in Profitability in Q4 2018 and
Fiscal Year 2018, Targets Continued Strong Growth in 2019

Board expects to declare $25 million cash dividend

Petah Tikva, Israel – February 12, 2019 – Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the fourth quarter and full year ended December 31, 2018.
 
Fourth Quarter and Full Year 2018 Key Financial Highlights:
 
●
Quarterly revenues were $69.7 million, compared with $82.7 million in Q4 2017. Full year 2018 revenues were $266.4 million versus $282.8 million in 2017.
 
●
Continued strong profitability:
 

 o
Quarterly GAAP operating income increased to $7.5 million, up 33.1% from Q4 2017.  Full year GAAP operating income increased 96.0% to $21.3 million.
 

 o
Quarterly Non-GAAP operating income rose to $7.9 million, an increase of 12.2% from Q4 2017.  Full year Non-GAAP operating income was up 36.0% to $25.1 million from 2017.
 

 o
Quarterly GAAP net income was $5.3 million, or $0.09 per diluted share compared with $3.4 million, or $0.06 per diluted share, in Q4 2017.  Full year GAAP net income was $18.4 million, or $0.33 per diluted share, compared with $6.8 million, or $0.12 per diluted share, in 2017. Full year 2018 net income includes a deferred tax benefit of $4.1 million recognized in the third quarter of 2018.
 

 o
Quarterly Non-GAAP net income was $5.7 million, or $0.10 per diluted share, compared to $4.7 million, or $0.09 per diluted share, in Q4 2017. Full year Non-GAAP net income was $18.2 million, or $0.32 per diluted share, compared with $14.6 million, or $0.27 per diluted share, in 2017.
 

 o
Adjusted EBITDA for Q4 2018 increased 17.6% from Q4 2017 to $10.5 million.  Full year 2018 Adjusted EBITDA rose 34.6% from 2017 to $35.2 million.
 
●
Management objectives for 2019: revenue range between $275 million to $295 million, GAAP operating income of between $23 million and $27 million, and Adjusted EBITDA between $38 million and $42 million.
 
●
The Gilat Board of Directors expects to declare a cash dividend estimated at $25 million (or approximately $0.45 per share), subject to final approval of our audited financial statements to be issued in March 2019. Under the Israeli Companies Law such a dividend will be based on the Company meeting the criteria set out in the Israeli Companies Law.
 
3

Yona Ovadia, CEO of Gilat, commented:
“I am pleased to report that our strong fourth quarter concludes a year of important progress for Gilat as we advanced our business strategy and achieved substantial profitability growth.
 
“We were successful in achieving our objectives through our continued focus on our growth engines of Broadband, Mobile Cellular Backhaul and Mobility IFC, along with continued efforts to drive costs out of the business.
 
“We secured significant Broadband business around the globe over the past year including: NBN in Australia, Gazprom in Russia, ChinaSatcom in China, LASCOM in Japan, Hispasat in Latin America and ISRO in India. In the Mobile market, we continued as the front-runner in the LTE/4G satellite backhaul market with expansion of projects with existing customers and additional contract wins such as Telstra in Australia. In the Mobility market, we reached an important milestone with our dual-band aero terminal by passing the standard for the environmental testing of avionics hardware and receiving the DO-160 certification. Lastly, we continued investing in product leadership, as demonstrated by the successful trials for aero and maritime connectivity solutions over Telesat's phase 1 LEO satellite, as well as the announcement of the 5G-ready powerful solution that provides new levels of speeds and capabilities, in support of the growing demand of data consumption.
 
“Further, we executed our plan to improve profitability, with the result that GAAP operating income for full-year 2018 increased 96.0% from 2017, while Adjusted EBITDA rose 34.6% and GAAP net income reached $18.4 million or $0.33 per diluted share.”
 
Mr. Ovadia concluded:
 
“Looking at 2019, we will continue our focus on improving profitability, by further developing and expanding our existing growth engines, as we see continued reception to our services and solutions. As the market constantly evolves and requires higher throughputs and greater efficiency, we will also continue to invest substantially in R&D and in our product roadmap, to maintain product leadership especially in the era of NGSO and 5G.  
 
“I am pleased to say that we have a substantial pipeline going into 2019, which is reflected in our management objectives that include further revenue and profitability growth for the year, even with a significant investment in R&D.
 
“I am also pleased to say that with this continued and significant progress and the strength of the Gilat balance sheet, the Board is planning to award a cash dividend to shareholders while maintaining our ample liquidity to fund future growth."
 
Key Recent Announcements:
●
Gilat Demonstrates Exceptional Maritime Connectivity over Telesat’s Phase 1 LEO Satellite
 
●
Gilat Awarded Multi-Year Contract for Broadband Solution Over ISRO’s GSAT-11 Satellite Covering India
 
●
Gilat Launches 5G-Ready Satellite Backhaul Solution
 
●
Dish Mexico Selects Gilat and Hispasat for Delivery of High-Quality Broadband Services to the People of Mexico
 
●
LASCOM Awards Gilat Multi-Million Dollar Project for Japan’s Next Generation Disaster Response Platform
 
●
Gilat’s Dual-Band Aero Terminal Receives DO-160 Certification
 
4

Conference Call and Webcast Details:

Gilat management will host a conference call today, Tuesday, February 12, to discuss fourth quarter and full year 2018 results.  The details are as follows:
 
Date:
Start:
Dial-in:
Tuesday, February 12, 2019
09:30 AM EST / 16:30 IST
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/gilatq4-2018.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:
End:
Dial-in:
February 12, 2019 at 12:00 PM EST / 19:00 IST
February 17, 2019 at 12:00 PM EST / 19:00 IST
US: 1-888-326-9310
International: (972) 3-925-5901
 
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. Non-GAAP financial measures mainly exclude the effect of stock based compensation, amortization of purchased intangibles, litigation expenses, income related to trade secrets claims and expenses for tax contingencies to be paid under an amnesty program and initial recognition of deferred tax asset with respect to carry-forward losses.

5

Adjusted EBITDA 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 2019. 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

6
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

7
GILAT SATELLITE NETWORKS LTD.
                
CONSOLIDATED STATEMENTS OF OPERATIONS
              
U.S. dollars in thousands (except share and per share data)
              

   
Twelve months ended
    
Three months ended
  
   
December 31,
    
December 31,
  
   
2018
    
2017
    
2018
    
2017
  
   
Unaudited
    
Audited
    
Unaudited
  
                         
Revenues
  
$
266,391
    
$
282,756
    
$
69,729
    
$
82,652
  
Cost of revenues
    
172,354
      
200,261
      
43,715
      
57,416
  
                                 
Gross profit
    
94,037
      
82,495
      
26,014
      
25,236
  
                                 
Research and development expenses
    
34,449
      
29,433
      
9,169
      
8,785
  
Less - grants
    
1,426
      
1,419
      
222
      
599
  
Research and development expenses, net
    
33,023
      
28,014
      
8,947
      
8,186
  
Selling and marketing expenses
    
22,706
      
23,759
      
5,497
      
6,572
  
General and administrative expenses
    
17,024
      
19,861
      
4,061
      
4,835
  
                                 
Total operating expenses
    
72,753
      
71,634
      
18,505
      
19,593
  
                                 
Operating income
    
21,284
      
10,861
      
7,509
      
5,643
  
                                 
Financial expenses, net
    
(4,298
)
    
(4,307
)
    
(1,132
)
    
(1,138
)
                                 
Income before taxes on income
    
16,986
      
6,554
      
6,377
      
4,505
  
                                 
Taxes on income (tax benefit)
    
(1,423
)
    
(247
)
    
1,082
      
1,102
  
                                 
Net income
  
$
18,409
    
$
6,801
    
$
5,295
    
$
3,403
  
                                 
Basic earnings per share
  
$
0.34
    
$
0.12
    
$
0.10
    
$
0.06
  
                                 
Diluted earnings per share
  
$
0.33
    
$
0.12
    
$
0.09
    
$
0.06
  
                                 
Weighted average number of shares used in
                                
computing earnings per share
                                
Basic
    
54,927,272
      
54,680,822
      
55,134,977
      
54,719,903
  
Diluted
    
55,752,642
      
54,851,967
      
55,962,447
      
55,237,923
  

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)


   
Three months ended
    
Three months ended
  
   
December 31, 2018
    
December 31, 2017
  
   
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
   
Unaudited
    
Unaudited
  
                                     
Gross profit
  
$
26,014
      
269
    
$
26,283
    
$
25,236
      
1,212
    
$
26,448
  
Operating expenses
    
18,505
      
(91
)
    
18,414
      
19,593
      
(160
)
    
19,433
  
Operating income
    
7,509
      
360
      
7,869
      
5,643
      
1,372
      
7,015
  
Income before taxes on income
    
6,377
      
360
      
6,737
      
4,505
      
1,318
      
5,823
  
Net income
  
$
5,295
      
360
    
$
5,655
    
$
3,403
      
1,318
    
$
4,721
  
                                                 
Basic earnings per share
  
$
0.10
    
$
-
    
$
0.10
    
$
0.06
    
$
0.03
    
$
0.09
  
                                                 
Diluted earnings per share
  
$
0.09
    
$
0.01
    
$
0.10
    
$
0.06
    
$
0.03
    
$
0.09
  
                                                 
Weighted average number of shares used in
                                                
   computing earnings per share
                                                
    Basic
    
55,134,977
              
55,134,977
      
54,719,903
              
54,719,903
  
    Diluted
    
55,962,447
              
56,160,425
      
55,237,923
              
55,507,634
  

(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 income and tax benefit under amnesty program.

         
Three months ended
                
Three months ended
        
          December 31, 2018                
December 31, 2017
        
         
Unaudited
                
Unaudited
        
                                     
GAAP net income
    
   
$
5,295
      
     
   
$
3,403
      
 
                                                 
Gross profit
                                                
Non-cash stock-based compensation expenses
            
37
                      
17
          
Amortization of intangible assets related to acquisition transactions             232                      
1,195
          
             
269
                      
1,212
          
Operating expenses
                                                
Non-cash stock-based compensation expenses
            
239
                      
213
          
Amortization of intangible assets related to acquisition transactions
             52                      
125
          
Trade secrets litigation income
            
(200
)
                    
-
          
Tax benefit under amnesty program
            
-
                      
(178
)
        
             
91
                      
160
          
                                                 
Finance and taxes on income under amnesty program
            
-
                      
(54
)
        
                                                 
Non-GAAP net income
          
$
5,655
                    
$
4,721
          


9
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)
          

   
Twelve months ended
December 31, 2018
    
Twelve months ended  
December 31, 2017
  
   
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
   
Unaudited
    
Audited
    
Unaudited
  
                                     
Gross profit
  
$
94,037
      
2,967
    
$
97,004
    
$
82,495
      
4,832
    
$
87,327
  
Operating expenses
    
72,753
      
(896
)
    
71,857
      
71,634
      
(2,802
)
    
68,832
  
Operating income
    
21,284
      
3,863
      
25,147
      
10,861
      
7,634
      
18,495
  
Income before taxes on income
    
16,986
      
3,863
      
20,849
      
6,554
      
7,817
      
14,371
  
Net income
  
$
18,409
      
(248
)
  
$
18,161
    
$
6,801
      
7,817
    
$
14,618
  
                                                 
Basic earnings per share
  
$
0.34
    
$
(0.01
)
  
$
0.33
    
$
0.12
    
$
0.15
    
$
0.27
  
                                                 
Diluted earnings per share
  
$
0.33
    
$
(0.01
)
  
$
0.32
    
$
0.12
    
$
0.15
    
$
0.27
  
                                                 
Weighted average number of shares used in
                                                
   computing earnings per share
                                                
    Basic
    
54,927,272
              
54,927,272
      
54,680,822
              
54,680,822
  
    Diluted
    
55,752,642
              
55,962,811
      
54,851,967
              
55,014,640
  

(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 or income, tax expenses under amnesty program and initial recognition of deferred tax asset with respect to carry forward losses.

   

   
Twelve months ended
          

   
Twelve months ended
        
         
December 31, 2018
                
December 31, 2017
        
         
Unaudited
                
Unaudited
        
                                     
GAAP net income
    
   
$
18,409
      
     
   
$
6,801
      
 
                                                 
Gross profit
                                                
Non-cash stock-based compensation expenses             114                      
56
          
Amortization of intangible assets related to acquisition transactions
             2,853                      
4,776
          
             
2,967
                      
4,832
          
Operating expenses
                                                
Non-cash stock-based compensation expenses
             892                      
800
          
Amortization of intangible assets related to acquisition transactions
             204                      
679
          
Trade secrets litigation expenses (income)
            
(200
)
                    
873
          
Tax expenses under amnesty program
            
-
                      
450
          
             
896
                      
2,802
          
                                                 
Finance and taxes on income under amnesty program             -
                     
183
          
Tax benefit adjustment
            
(4,111
)
                    
-
          
                                                 
Non-GAAP net income
          
$
18,161
                    
$
14,618
          


10
GILAT SATELLITE NETWORKS LTD.
                        
SUPPLEMENTAL INFORMATION
                        
U.S. dollars in thousands
                        
                         
ADJUSTED EBITDA:
                        
                         
   
Twelve months ended
December 31,
    
Three months ended
December 31,
  
   
2018
    
2017
    
2018
    
2017
  
   
Unaudited
    
Unaudited
  
                         
GAAP operating income
  
$
21,284
    
$
10,861
    
$
7,509
    
$
5,643
  
Add (deduct):
                                
Non-cash stock-based compensation expenses
    
1,006
      
856
      
276
      
230
  
Trade secrets litigation expenses (income)
    
(200
)
    
873
      
(200
)
    
-
  
Tax expenses (benefit) under amnesty program
    
-
      
450
      
-
      
(178
)
Depreciation and amortization
    
13,149
      
13,140
      
2,944
      
3,256
  
                                 
Adjusted EBITDA
  
$
35,239
    
$
26,180
    
$
10,529
    
$
8,951
  

SEGMENT REVENUE:

   
Twelve months ended
December 31,
   
Three months ended
December 31,
 
   
2018
    
2017
    
2018
    
2017
  
   
Unaudited
    
Unaudited
  
                         
Fixed Networks
  
$
144,208
    
$
116,105
    
$
35,421
    
$
34,698
  
Mobility Solutions
    
97,180
      
88,397
      
29,555
      
32,600
  
Terrestrial Infrastructure Projects
    
25,003
      
78,254
      
4,753
      
15,354
  
                                 
Total revenue
  
$
266,391
    
$
282,756
    
$
69,729
    
$
82,652
  


11
GILAT SATELLITE NETWORKS LTD.
            
CONSOLIDATED BALANCE SHEET
            
U.S. dollars in thousands
            
             
   
December 31,
    
December 31,
  
   
2018
    
2017
  
   
Unaudited
    
Audited
  
             
   ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
67,381
    
$
52,957
  
Restricted cash
    
32,305
      
29,288
  
Restricted cash held by trustees
    
4,372
      
4,325
  
Trade receivables, net
    
94,924
      
108,842
  
Inventories
    
21,109
      
28,853
  
Other current assets
    
26,022
      
19,415
  
                 
   Total current assets
    
246,113
      
243,680
  
                 
LONG-TERM INVESTMENTS AND RECEIVABLES:
                
Long-term restricted cash
    
146
      
187
  
Severance pay funds
    
6,780
      
8,188
  
Long term deferred tax asset
    
4,127
      
861
  
Other long term receivables
    
7,276
      
7,217
  
                 
   Total long-term investments and receivables
    
18,329
      
16,453
  
                 
PROPERTY AND EQUIPMENT, NET
    
84,403
      
82,246
  
                 
INTANGIBLE ASSETS, NET
    
2,434
      
5,709
  
                 
GOODWILL
    
43,468
      
43,468
  
                 
TOTAL ASSETS
  
$
394,747
    
$
391,556
  

12
GILAT SATELLITE NETWORKS LTD.
            
CONSOLIDATED BALANCE SHEET (Cont.)
            
U.S. dollars in thousands
            
             
   
December 31,
    
December 31,
  
   
2018
    
2017
  
   
Unaudited
    
Audited
  
             
   LIABILITIES AND SHAREHOLDERS' EQUITY
            
             
CURRENT LIABILITIES:
            
Current maturities of long-term loans
  
$
4,458
    
$
4,479
  
Trade payables
    
24,636
      
33,715
  
Accrued expenses
    
67,533
      
75,270
  
Advances from customers and deferred revenues
    
29,133
      
16,721
  
Advances from customers, held by trustees
    
-
      
1,416
  
Other current liabilities
    
14,588
      
20,044
  
                 
   Total current liabilities
    
140,348
      
151,645
  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
    
6,649
      
7,999
  
Long-term loans, net of current maturities
    
8,098
      
12,582
  
Other long-term liabilities
    
580
      
1,008
  
                 
   Total long-term liabilities
    
15,327
      
21,589
  
                 
SHAREHOLDERS' EQUITY:
                
Share capital - ordinary shares of NIS 0.2 par value
    
2,625
      
2,601
  
Additional paid-in capital
    
924,856
      
921,726
  
Accumulated other comprehensive loss
    
(5,380
)
    
(3,046
)
Accumulated deficit
    
(683,029
)
    
(702,959
)
                 
Total shareholders' equity
    
239,072
      
218,322
  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
394,747
    
$
391,556
  

(*) Certain comparative figures have been reclassified to conform to the current year presentation.The reclassification had no effect on previously reported net income or shareholders' equity.


13

GILAT SATELLITE NETWORKS LTD.
                        
CONSOLIDATED STATEMENTS OF CASH FLOWS (*)
                        
U.S. dollars in thousands
                        
                         
   
Twelve months ended
December 31,
    
Three months ended
December 31,
  
   
2018
    
2017
    
2018
    
2017
  
   
Unaudited
    
Audited
    
Unaudited
  
Cash flows from operating activities:
                        
Net income
  
$
18,409
    
$
6,801
    
$
5,295
    
$
3,403
  
Adjustments required to reconcile net income
                                
 to net cash provided by (used in) operating activities:
                                
Depreciation and amortization
    
13,149
      
13,140
      
2,944
      
3,256
  
Capital loss from disposal of property and equipment
    
761
      
245
      
665
      
110
  
Stock-based compensation of options and RSU's
    
1,006
      
856
      
276
      
230
  
Accrued severance pay, net
    
57
      
118
      
12
      
(11
)
Exchange rate differences on long-term loans
    
(34
)
    
186
      
(10
)
    
35
  
Deferred income taxes, net
    
(3,671
)
    
189
      
744
      
489
  
Decrease (increase) in trade receivables, net
    
13,090
      
(19,588
)
    
(9,119
)
    
(22,421
)
Decrease (increase) in other assets (including short-term, long-term
                                
   and deferred charges)
    
(4,917
)
    
(9,147
)
    
1,007
      
(5,307
)
Decrease (increase) in inventories
    
5,257
      
(10,763
)
    
4,423
      
(1,534
)
Increase (decrease) in trade payables
    
(8,926
)
    
4,087
      
3,323
      
5,169
  
Increase (decrease) in accrued expenses
    
(7,206
)
    
19,633
      
(2,283
)
    
4,978
  
Increase (decrease) in advance from customers
    
9,899
      
(18,959
)
    
(1,230
)
    
(7,245
)
Decrease in advances from customers, held
                                
   by trustees
    
(1,478
)
    
(6,185
)
    
-
      
(3,845
)
Increase (decrease) in other current liabilities and other long term liabilities
    
(3,379
)
    
2,164
      
(2,057
)
    
1,806
  
Net cash provided by (used in) operating activities
    
32,017
      
(17,223
)
    
3,990
      
(20,887
)
                                 
Cash flows from investing activities:
                                
Purchase of property and equipment
    
(10,759
)
    
(3,692
)
    
(2,854
)
    
(284
)
Net cash used in investing activities
    
(10,759
)
    
(3,692
)
    
(2,854
)
    
(284
)
                                 
Cash flows from financing activities:
                                
Issuance of restricted stock units and exercise of stock options
    
2,149
      
661
      
511
      
92
  
Repayment of long-term loans
    
(4,470
)
    
(4,673
)
    
(114
)
    
(145
)
Net cash provided by (used in) financing activities
    
(2,321
)
    
(4,012
)
    
397
      
(53
)
                                 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
    
(1,490
)
    
51
      
(652
)
    
(204
)
                                 
Increase (decrease) in cash, cash equivalents and restricted cash
    
17,447
      
(24,876
)
    
881
      
(21,428
)
                                 
Cash, cash equivalents and restricted cash at the beginning of the period
    
86,757
      
111,633
      
103,323
      
108,185
  
                                 
Cash, cash equivalents and restricted cash at the end of the period
  
$
104,204
    
$
86,757
    
$
104,204
    
$
86,757
  

(*) 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:

   
December 31,
  
   
2018
    
2017
  
    Unaudited     Audited  
             
Cash and cash equivalents
  
$
67,381
    
$
52,957
  
Restricted cash
    
32,305
      
29,288
  
Restricted cash held by trustees
    
4,372
      
4,325
  
Long term restricted cash
    
146
      
187
  
Cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows
  
$
104,204
    
$
86,757
  

14