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 March 2024
Gilat Satellite Networks Ltd.
(Translation of Registrant’s Name into English)
Gilat House, 21 Yegia Kapayim Street
Daniv Park, Kiryat Arye, Petah Tikva 4913020, 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 IR presentation as posted on Registrant’s website.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Gilat Satellite Networks Ltd. (Registrant) | |||
| Dated March 6, 2024 | By: | /s/ Doron Kerbel | |
| Doron Kerbel | |||
| General Counsel & Company Secretary | |||
Leading Satellite Communications in the New Space Revolution Gilat Satellite Networks Investors Day March 2024
Forward Looking Statements Disclaimer 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, including those related to the current terrorist attacks by Hamas, and the war and hostilities between Israel and Hamas and Israel and Hezbollah. 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. We undertake no obligation to update or revise any forward-looking statements for any reason. Unaudited/Non-GAAP Financial MeasuresThis presentation includes financial data that is not audited and financial data that was not prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Non-GAAP financial measures mainly exclude, if and when applicable, the effect of non-cash stock-based compensation expenses, amortization of purchased intangibles, amortization of intangible assets related to acquisition transactions, lease incentive amortization, impairment of held for sale asset, other expenses, one-time changes of deferred tax assets, one-time tax expense related to the release of historical tax-trapped earnings, other operating expenses (income), net and income tax effect on the relevant adjustments. Gilat believes these non-GAAP financial measures provide consistent and comparable measures to help investors understand Gilat’s current and future operating performance. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with Gilat’s consolidated financial statements prepared in accordance with GAAP.
A World Leader in Satellite Communications Innovative Ground Equipment 1987 Founded 7 R&D Centers 3 NOC Centers GILT NASDAQ /TASE 16 Sales Offices ~1,200 Employees Cellular Backhaul 2G 3G 4G 5G Enterprise Telecom Infrastructure & Services Consumer Aero / IFC Maritime Land Defense Government Social Inclusion
Leading Global Customer Base Satellite Operators Service Providers & MNO’s System Integrators 100+ Countries 300+ Customers Hundreds of Networks
VHTS/NGSO Constellations - Abundance of Capacity Large Capital Spending in Satellite Industry GEO 35,786 km ~550msec MEO 2,000-10,000 km ~120msec LEO 500-2,000 km ~15msec Gilat Proprietary and Confidential More Than 50,000 LEO Satellites Expected Within a Decade; Investment Over $30 Billion HTS/VHTS SES/O3B Amazon Starlink OneWeb Iris2 Telesat A Multi-billion Dollar Equipment Market NSR 2023 & Gilat Internal Total Addressable Market ($M)
2024 2025 2026 Gilat Opportunity Others HTS-113BT Koreasat 6A G-Sat32 G-Sat20 Astranis 3,5,4,8,9 O3b mPower 7-8 Turksat 6A Viasat 3 Asia Viasat-3 EMEA Chinggis Sat Arabsat-7A ARSAT-SG 1 Optus 11 ASTRA 1Q O3b mPower 9-11 Astranis- 6 / UtilitySat (Arcturus backup)) Astranis 10 Superbird-9 ES XXV GX7 GX8 GX9 IS-41 IS-42 IS-43 IS-44 O3b mPower 12-13 SES 25, 26 Flexsat GEO and MEO Upcoming Launches Mongolia
2023 2024 2021 Main NGSO Constellations – Road Map 2026 2027/8 IRIS2 (Gen 1) (Gen 2)
Increasing number of traditional GEO players looking at the multi orbit strategy to expand their business 10.3 $B Capacity and Revenue solid significant growth Source: Euroconsult
Uniquely Positioned to Unlock Growth Opportunities IFC, Maritime, Cellular Backhaul, Enterprise, Social Inclusion VHTS & NGSO Constellations - Abundance of Capacity Recurring revenue model Peru Terrestrial Networks "Investment" Shifting to Operation Increased focus on military SATCOM networks Strong Tailwinds in Defense 1 2 3
We are Gilat Anywhere on the planet and in space, we bring boundless communications Gilat Proprietary and Confidential 10 We believe in the right of all people to be Connected
2023 Execution Prospects 2024
Successful Execution and Future Prospects NGSO & VHTS Satellite Operator’s Partner of Choice SkyEdge IV – Technology Leader NGSO opportunities IRIS2
Future IFC Global Roaming Ka Network Cellular Backhaul, Cruise, Enterprise O3B mPOWER Global GEO Maritime Network supplier of Choice Future Pole-To-Pole MEO Network expansion Successful Execution and Future Prospects Future Digital Cloud Platform
Successful Execution and Future Prospects Commercial IFC, Cellular Backhaul Future Cruise, Enterprise, Business Aviation GEO VHTS Future All-Software Platform for SDS MEO and ESA HTS/VHTS SES/O3B Amazon Starlink OneWeb Iris2 Telesat
New Product Introduction Successful Execution and Future Prospects First ESA Award Business, Government & Defense Aviation Future Commercial Aviation GEO and LEO In-Flight Connectivity (IFC) IFC Leadership Expanding Into more Airlines Future IFC Global Roaming Ka Network
Successful Execution and Future Prospects ~600 Mbps to the handset over satellite! Proven with one of the largest Asian MNO Cellular Backhauling (CBH) 75% Market share in 4G NSR & Gilat estimation, 2022
Successful Execution and Future Prospects Future Synergies with DataPath; DoD and Global expansion Won Leading Military and Government Customers GLT-100; Taurus-M Future NG Modem - Gain significant share of the SCPC market Defense & Government Closed DataPath Merger
Successful Execution and Future Prospects Amazonas Regional Project Expansion $17M 5 regions in operation 6th to start in 2024 Annual Recurring Revenues Future Increase of recurring revenues >$50M Networks Infrastructure and Services Focus on Social Inclusion projects
Financial Highlights
Q4 2023 Profit and Loss Highlights US$ Millions Revenue Gross Margin Operating Expenses Operating Income Net Income / (Loss) Adj. EBITDA Operating Expenses Operating Income Net Income Q1/23 Q4/22 Q4/23 75.6 38% 26.0 2.9 3.4 9.4 23.4 6.1 6.5 Q3/23 67.6 38% 20.1 5.4 4.3 9.2 19.6 6.1 4.9 GAAP Non-GAAP Q2/23 5.6 8.4 17.7 19.5 59.0 42% 7.0 5.3 3.8 63.9 40% 13.1 12.7 10.2 9.5 19.8 6.1 4.6 (6.0) 10.1 21.6 20.7 72.6 38% 6.1 7.1 7.9
FY 2023 Profit and Loss Highlights US$ Millions Revenue Gross Margin Operating Expenses Operating Income Net Income / (Loss) Operating Expenses Operating Income Net Income 2023 GAAP 2022 266.1 39.4% 76.9 28.1 23.5 36.4 82.3 23.5 19.9 239.8 36.2% 77.0 10.0 (5.9) 25.2 73.6 13.6 10.6 Adj. EBITDA Non-GAAP
Balance Sheet Highlights US$ Millions Cash, net 1 DSO 2 Cash From Operations Equity Q1/23 Q4/22 Q4/23 Q3/23 Q2/23 95.3 63 10.0 274.7 100.3 75 13.8 265.5 87.8 63 2.0 255.0 6.2 89.7 77 250.0 16.8 87.1 72 244.1 Cash includes Cash and cash equivalents and restricted cash, net of loans DSO exclude construction in Peru
Executing Profitable Growth Strategy 2024 Market Guidance (US$ Millions) Revenues: $305M - $325M Adjusted EBITDA: $40M - $44M GAAP Operating Income: $15M - $19M
2024 Market Guidance by Segment Annual Revenues (US$ Millions) 2021 2022 2023 2024E 2021 2022 2023 2024E Network Infrastructure and Services 2021 2022 2023 2024E $203M - $213M $52M - $57M $50M - $55M
