zk1312626.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 February 2013

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 February 13, 2013, announcing Registrant’s financial results for the fourth quarter and full year 2012.
 
We consent to the incorporation by reference in the Registration Statements on Form F-3 (Registration Nos. 333-160683 and No. 333-174142) and the Registration Statements on Form S-8 (Registration Nos. 333-96630, 333-113932, 333-123410, 333-132649, 333-158476 and 333-180552).
 
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 13, 2013
 By:
/s/ Alon Levy
  
   
Alon Levy
  
   
Corporate Secretary
  
 
 
 
 
 
Gilat Announces Fourth Quarter and Full Year 2012 Results

Fourth quarter highlights: Revenue growth of 9% over third quarter 2012, EBITDA margin of 11% and
$18.1 million cash generated from operating activities

Petah Tikva, Israel – February 13, 2013 – 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 year ended December 31, 2012.
 
Key Highlights:
 
·  
Quarterly revenues of $97.4 million, compared to $93.6 million in the fourth quarter of 2011
·  
Full year revenues increased to $348.4 million, up from $339.2 million in 2011
·  
In the fourth quarter EBITDA increased to $10.7 million or a margin of 11%
·  
Cash generated from operating activities increased significantly to $18.1 million in Q4 2012
·  
Net cash over debt of $21.4 million up from $4.4 million at end of 2011
·  
Operational costs decreased by $8.3 million during 2012
·  
Company recorded a non-cash impairment of goodwill and other intangible assets in the amount of $31.9 million related to Wavestream

Revenues for the fourth quarter of 2012 were $97.4 million, compared to $93.6 million for the same period in 2011. Revenues for the year ended December 31, 2012 were $348.4 million, compared to $339.2 million in the year ended December 31, 2011.
 
On a GAAP basis, the Company had an operating loss in the fourth quarter of 2012 of $28.1 million compared to an operating loss of $15.2 million in the fourth quarter of 2011. On a GAAP basis, the Company had an operating loss for the year 2012 of $25.1 million, compared with an operating loss of $12.3 million in the prior year. The Company’s GAAP operating loss was mainly affected by a non-cash impairment of goodwill and other intangible assets in the amount of $31.9 million relating to Wavestream.
 
On a non-GAAP basis, operating income for the fourth quarter of 2012 was $6.6 million similar to the operating income in the fourth quarter of 2011. On a non-GAAP basis, operating income for the year ended December 31, 2012 was $16.8 million compared to $17.5 million in the full year 2011.
 
On a non-GAAP basis, net income for the fourth quarter was $7.7 million, or $0.18 per diluted share, compared to net income of $8.4 million, or $0.20 per diluted share, in the comparable period in 2011. Non-GAAP net income for 2012 was $16.0 million or $0.37 per diluted share, compared to net income of $15.9 million, or $0.37 per diluted share, in the comparable period in 2011.

EBITDA for the fourth quarter of 2012 reached $10.7 million compared with $10.8 million in the comparable period in 2011. EBITDA for the twelve months of 2012 reached $32.1 million compared with $33.5 million in the comparable period in 2011. Cash generated from operating activities was $18.1 million in the fourth quarter of 2012.

“We are very pleased with our overall numbers for the fourth quarter as well as year-end 2012, and our prospects going forward,” said Erez Antebi, Chief Executive Officer of Gilat. “This quarter was highlighted by a 9% revenue growth from the third quarter of 2012, EBITDA margin of 11% and over $18 million of cash generation from operating activities. With regards to Wavestream, we believe they will continue to grow in the future, as it has done over the last three quarters, both in revenue and profitability. However, the continuing pressure and ongoing uncertainties surrounding future spending on DoD budgets in the U.S., as well as other elements, have led us to extend our anticipated timeframe and moderate the forecasted pace of growing the Wavestream business. Therefore in accordance with ASC 350, we are taking this quarter a non-cash impairment of goodwill and other intangible assets charge related to Wavestream.”
 
 
 
 
 
“On the commercial side of the business, we continue to see a strong rate of implementation at NBN Co. in Australia, and new orders for our Ka CPE from several European ISPs as the SES Broadband Services consumer rollout was launched in mid-December. We closed several new Defense deals in the quarter and continue to expand our position as a leader in Satellite-on-the-Move technology as exemplified by our recent wins in the avionics industry. We have also closed several significant contracts in our Services Division with new and existing customers.”

Antebi concluded, “Looking forward into 2013, we will continue to focus on achieving revenue targets, increased profitability and improved cash generation. Our management objectives for 2013 are to generate revenues in the range of $350 million to $360 million with EBITDA margins of 9%, similar to what we achieved in 2012.”

Key Recent Announcements:
 
·  
Gilat’s Spacenet Awarded Multi-Year Contract with One of World’s Leading Delivery Service Organizations;
·  
Gilat Awarded Premier VSAT Vendor for Mexican Government New Broadband Connectivity Initiative;
·  
Gilat’s Wavestream Wins Contract with Honeywell for In-flight Connectivity;
·  
Gilat Peru Wins $9.6m Contract with Banco de la Nacion to Provide Satellite Connectivity;
·  
Gilat and Huawei Partnering to Deliver Cellular Backhaul Solution to a SE Asian MNO;
·  
Gilat Expands Military Customer Portfolio with Southeast Asian Navy Contract;
·  
Gilat Announces the Release of the Wavestream Ku-Band Matchbox Mini BUC;
·  
Gilat’s Wavestream Delivering Airborne Transceivers to TECOM.

Conference Call and Webcast Details:
Gilat management will host a conference call today at 14:30 GMT/ 09:30 EST/ 16:30 IST (Israel Standard Time) to discuss the results. International participants are invited to access the call at (972) 3-918-0609, and US-based participants are invited to access the call by dialing (888) 668-9141. 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 February 15, 2013.  International participants are invited to access the replay at (972) 3-925-5900 and US-based participants are invited to access the replay by dialing (888) 295-2634. 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 information and 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 and other costs related to acquisition transactions. Non-GAAP presentations of net income, EBITDA and earnings per share are provided to enhance the understanding of the Company's historical financial performance and comparability between periods.
 
(2) Operating income before depreciation, amortization, non-cash stock option expenses as per ASC 718 (formerly SFAS 123(R)) and other costs related to acquisition transactions ('EBITDA') is presented because it is a measure commonly used and is presented solely in order to improve the understanding of the Company's operating results and to provide further perspective on these results. EBITDA, however, should not be considered as an alternative to operating income or net income for the period as an indicator of the operating performance of the Company.
 
Similarly, EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity. EBITDA is not a measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Reconciliation between the Company's Operating income and EBITDA is presented in the attached summary financial statements.
 
 
 
 

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

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission.

Contact:

Phil Carlson / Josh Dver, KCSA
David Leichner, Gilat Satellite Networks Ltd.
pcarlson@kcsa.com / jdver@kcsa.com
davidle@gilat.com
1 (212) 896 1233 / 1239
(972) 3 925 2321
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
        
CONDENSED CONSOLIDATED BALANCE SHEET
        
US dollars in thousands
        
 
   
December 31,
    
December 31,
  
   
2012
    
2011
  
   
Unaudited
        
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
     66,968       56,231  
Short-term restricted cash
     3,794       7,034  
Restricted cash held by trustees
     1,664       1,549  
Trade receivables, net
     60,991       51,654  
Inventories
     24,973       31,933  
Other current assets
     29,140       25,767  
   Total current assets
     187,530       174,168  
                 
LONG-TERM INVESTMENTS AND RECEIVABLES:
                
Long-term restricted cash
     1,151       2,025  
Severance pay fund
     9,703       9,722  
Long-term trade receivables, receivables in respect of capital
                
   leases and other receivables
     19,781       20,219  
Total long-term investments and receivables
     30,635       31,966  
                 
PROPERTY AND EQUIPMENT, NET
     94,727       100,926  
                 
INTANGIBLE ASSETS, NET
     35,991       49,927  
                 
GOODWILL
     65,760       89,691  
                 
TOTAL ASSETS
     414,643       446,678  
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
        
CONDENSED CONSOLIDATED BALANCE SHEET
        
US dollars in thousands
        
 
   
December 31,
    
December 31,
  
   
2012
    
2011
  
   
Unaudited
        
             
LIABILITIES AND EQUITY
            
             
CURRENT LIABILITIES:
            
Short-term bank credit
     3,517       2,971  
Current maturities of long-term loans and convertible notes
     7,963       19,092  
Trade payables
     23,240       25,477  
Accrued expenses
     24,353       25,609  
Short-term advances from customer, held by trustees
     4,448       1,551  
Other current liabilities
     40,336       36,764  
                 
   Total current liabilities
     103,857       111,464  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
     9,513       9,445  
Long-term loans, net
     40,747       40,353  
Other long-term liabilities
     18,569       25,341  
                 
   Total long-term liabilities
     68,829       75,139  
                 
COMMITMENTS AND CONTINGENCIES
                
                 
EQUITY:
                
Share capital - ordinary shares of NIS 0.2 par value
     1,909       1,882  
Additional paid in capital
     869,822       867,098  
Accumulated other comprehensive income
     2,864       541  
Accumulated deficit
     (632,638 )     (609,446 )
                 
Total equity
     241,957       260,075  
                 
TOTAL LIABILITIES AND EQUITY
     414,643       446,678  
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
                            
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
                
FOR COMPARATIVE PURPOSES
                              
U.S. dollars in thousands (except per share data)
                        
 
        Three months ended          
Three months ended
        
        December 31, 2012       December 31, 2011  
     
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
     
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                                       
Revenues
       97,428       -       97,428       93,604       -       93,604  
Cost of revenues
     64,567       (1,742 )     62,825       59,943       (1,699 )     58,244  
Gross profit
     32,861       1,742       34,603       33,661       1,699       35,360  
        34 %             36 %     36 %             38 %
Research and development expenses:
                                                
Expenses incurred
     8,022       (111 )     7,911       8,963       (48 )     8,915  
Less - grants
     710       -       710       635       -       635  
        7,312       (111 )     7,201       8,328       (48 )     8,280  
Selling and marketing expenses
     12,534       (362 )     12,172       11,776       (325 )     11,451  
General and administrative expenses
     8,961       (354 )     8,607       9,270       (263 )     9,007  
Impairment of goodwill and Intangible assets and restructuring costs
     32,194       (32,194 )     -       19,478       (19,478 )     -  
Operating income (loss)
     (28,140 )     34,763       6,623       (15,191 )     21,813       6,622  
Financial expenses, net
     (215 )     -       (215 )     (113 )     -       (113 )
Other income
     2,729       (2,729 )     -       1,863       (1,863 )     -  
Income (loss) before taxes on income
     (25,626 )     32,034       6,408       (13,441 )     19,950       6,509  
Tax benefit
     (1,324 )     -       (1,324 )     (1,911 )     -       (1,911 )
Net income (loss)
     (24,302 )     32,034       7,732       (11,530 )     19,950       8,420  
                                                   
Basic net earnings (loss) per share
     (0.58 )             0.19       (0.28 )             0.20  
Diluted net earnings (loss) per share
     (0.58 )             0.18       (0.28 )             0.20  
                                                   
Weighted average number of shares used in
                                                
   computing net earnings (loss) per share:
                                                
 
    Basic
     41,603               41,603       41,111               41,111  
 
    Diluted
     41,603               43,556       41,111               42,782  
 
(1) Adjustments reflect the effect of non-cash stock options expenses as per ASC 718, amortization of intangible assets related to acquisition transactions, Costs related to acquisition transactions, impairment of goodwill and intangible assets and restructuring costs and other income.
 
             
Three months ended
                    
Three months ended
          
             
December 31, 2012
                    
December 31, 2011
          
             
Unaudited
                    
Unaudited
          
Non-cash stock-based compensation expenses:
                                                
Cost of Revenues
             70                       69          
Research and development
             111                       48          
Selling and marketing
             132                       95          
General and administrative
             354                       263          
                667                       475          
                                                   
Amortization of intangible assets related to acquisition transactions:
                                          
Cost of Revenues
             1,672                       1,630          
Selling and marketing
             230                       230          
                1,902                       1,860          
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
                            
RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS
                
FOR COMPARATIVE PURPOSES
                              
U.S. dollars in thousands (except per share data)
                        
 
           
Year Ended
                
Year Ended
        
        December 31, 2012       December 31, 2011  
     
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
     
Unaudited
    
Unaudited
    
Unaudited
          
Unaudited
    
Unaudited
  
                                       
Revenues
       348,363       -       348,363       339,201       -       339,201  
Cost of revenues
     235,363       (6,690 )     228,673       217,574       (7,416 )     210,158  
Gross profit
     113,000       6,690       119,690       121,627       7,416       129,043  
        32 %             34 %     36 %             38 %
Research and development expenses:
                                                
Expenses incurred
     32,296       (354 )     31,942       35,076       (222 )     34,854  
Less - grants
     3,055       -       3,055       3,375       -       3,375  
        29,241       (354 )     28,887       31,701       (222 )     31,479  
Selling and marketing expenses
     42,631       (1,335 )     41,296       46,523       (1,379 )     45,144  
General and administrative expenses
     34,075       (1,374 )     32,701       36,005       (1,058 )     34,947  
Costs related to acquisition transactions
     -       -       -       256       (256 )     -  
Impairment of goodwill and intangible assets and restructuring costs
     32,194       (32,194 )     -       19,478       (19,478 )     -  
Operating income (loss)
     (25,141 )     41,947       16,806       (12,336 )     29,809       17,473  
Financial expenses, net
     (2,642 )     -       (2,642 )     (1,931 )     -       (1,931 )
Other income
     2,729       (2,729 )     -       8,074       (8,074 )     -  
Income (loss) before taxes on income
     (25,054 )     39,218       14,164       (6,193 )     21,735       15,542  
Tax benefit
     (1,862 )     -       (1,862 )     (343 )     -       (343 )
Net income (loss)
     (23,192 )     39,218       16,026       (5,850 )     21,735       15,885  
                                                   
Basic net earnings (loss) per share
     (0.56 )             0.39       (0.14 )             0.39  
Diluted net earnings (loss) per share
     (0.56 )             0.37       (0.14 )             0.37  
                                                   
Weighted average number of shares used in
                                                
   computing net earnings (loss) per share
                                                
 
    Basic
     41,410               41,410       40,929               40,929  
 
    Diluted
     41,410               43,406       40,929               42,889  
 
(1) Adjustments reflect the effect of non-cash stock options expenses as per ASC 718, amortization of intangible assets related to acquisition transactions, Costs related to acquisition transactions, impairment of goodwill and intangible assets and restructuring costs and other income.
 
             
Year Ended
                    
Year Ended
          
             
December 31, 2012
                    
December 31, 2011
          
             
Unaudited
                    
Unaudited
          
Non-cash stock-based compensation expenses:
                                                
Cost of Revenues
             300                       295          
Research and development
             354                       222          
Selling and marketing
             417                       434          
General and administrative
             1,374                       1,058          
                2,445                       2,009          
                                                   
Amortization of intangible assets related to acquisition transactions:
                                          
Cost of Revenues
             6,390                       7,121          
Selling and marketing
             918                       945          
                7,308                       8,066          
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
              
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            
U.S. dollars in thousands (except per share data)
              
 
   
Year ended
    
Three months ended
  
   
December 31,
    
December 31,
  
   
2012
    
2011
    
2012
    
2011
  
   
Unaudited
          
Unaudited
    
Unaudited
  
                         
Revenues
     348,363       339,201       97,428       93,604  
Cost of revenues
     235,363       217,574       64,567       59,943  
Gross profit
     113,000       121,627       32,861       33,661  
Research and development expenses:
                                
Expenses incurred
     32,296       35,076       8,022       8,963  
Less - grants
     3,055       3,375       710       635  
      29,241       31,701       7,312       8,328  
Selling and marketing expenses
     42,631       46,523       12,534       11,776  
General and administrative expenses
     34,075       36,005       8,961       9,270  
Costs related to acquisition transactions
     -       256       -       -  
Impairment of goodwill and Intangible assets and restructuring costs
     32,194       19,478       32,194       19,478  
Operating loss
     (25,141 )     (12,336 )     (28,140 )     (15,191 )
Financial expenses, net
     (2,642 )     (1,931 )     (215 )     (113 )
Other income
     2,729       8,074       2,729       1,863  
Loss before taxes on income
     (25,054 )     (6,193 )     (25,626 )     (13,441 )
Tax benefit
     (1,862 )     (343 )     (1,324 )     (1,911 )
Net loss
     (23,192 )     (5,850 )     (24,302 )     (11,530 )
                                 
Basic net loss per share
     (0.56 )     (0.14 )     (0.58 )     (0.28 )
Diluted net loss per share
     (0.56 )     (0.14 )     (0.58 )     (0.28 )
                                 
Weighted average number of shares used in
                                
computing net loss per share
                                
Basic
     41,410       40,929       41,603       41,111  
Diluted
     41,410       40,929       41,603       41,111  
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
                    
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                    
US dollars in thousands
                    
 
      Year ended       Three months ended  
      December 31,       December 31,  
   
2012
    
2011
    
2012
    
2011
  
   
Unaudited
          
Unaudited
    
Unaudited
  
                         
Cash flows from operating activities:
                        
Net loss
     (23,192 )     (5,850 )     (24,302 )     (11,530 )
Adjustments required to reconcile net income
                                
   to net cash provided by operating activities:
                                
Depreciation and amortization
     22,582       24,121       5,991       6,070  
Impairment of goodwill and other intangible assets
     31,879       18,043       31,879       18,043  
Gain from the sale of an investment accounted for at cost
     -       (3,034 )     -       -  
Stock-based compensation related to employees
     2,445       2,009       667       475  
Accrued severance pay, net
     88       (285 )     (150 )     (21 )
Accrued interest and exchange rate differences on
                                
   short and long-term restricted cash, net
     (209 )     500       (114 )     269  
Exchange rate differences on long-term loans
     90       (112 )     81       (262 )
Capital loss from disposal of property and equipment
     61       286       14       168  
Deferred income taxes
     (3,657 )     (428 )     (2,578 )     (1,589 )
Decrease (increase) in trade receivables, net
     (9,891 )     646       733       3,553  
Increase in other assets (including short-term, long-term
                                
   and deferred charges)
     (3,054 )     (21,062 )     (728 )     (1,825 )
Decrease (increase) in inventories
     4,969       (4,889 )     2,522       (1,194 )
Increase (decrease) in trade payables
     (2,176 )     7,066       (3,009 )     3,912  
Increase (decrease) in accrued expenses
     (1,265 )     11       1,366       575  
Increase (decrease) in advances from customer, held
                                
   by trustees, net
     2,897       547       (39 )     (1,062 )
Increase (decrease) in other accounts payable and other long term liabilities
     4       (8,972 )     5,748       1,407  
Net cash generated from operating activities
     21,571       8,597       18,081       16,989  
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
                    
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                    
US dollars in thousands
                    
 
      Year ended       Three months ended  
      December 31,       December 31,  
   
2012
    
2011
    
2012
    
2011
  
   
Unaudited
          
Unaudited
    
Unaudited
  
Cash flows from investing activities:
                        
Purchase of property and equipment
     (4,646 )     (8,948 )     (1,218 )     (2,844 )
Proceeds from sale of an investment accounted for at cost
     -       3,034       -       -  
Investment in restricted cash held by trustees
     (35,442 )     (11,737 )     (6,741 )     (5,417 )
Proceeds from restricted cash held by trustees
     35,447       10,660       12,931       6,213  
Investment in restricted cash (including long-term)
     (24,507 )     (23,548 )     (9,090 )     (8,817 )
Proceeds from restricted cash (including long-term)
     28,639       23,014       7,762       6,045  
Proceeds from working capital adjustment to subsidiary purchase price
     -       1,465       -       -  
Acquisitions of subsidiaries, net of cash acquired
     -       (1,867 )     -       -  
Purchase of intangible asset
     (89 )     (38 )     (7 )     (12 )
Net cash generated from (used in) investing activities
     (598 )     (7,965 )     3,637       (4,832 )
                                 
Cash flows from financing activities:
                                
Repayment of convertible notes
     (14,322 )     (835 )     (14,322 )     (441 )
Issuance of restricted stock units and exercise of stock options
     254       27       236       7  
Short-term bank credit, net
     546       842       (644 )     200  
Proceeds from long-term loans
     10,000       -       -       -  
Repayment of long-term loans
     (6,452 )     (1,225 )     (1,017 )     (178 )
Net cash used in financing activities
     (9,974 )     (1,191 )     (15,747 )     (412 )
                                 
Effect of exchange rate changes on cash and cash equivalents
     (262 )     (448 )     (29 )     (9 )
                                 
Increase (decrease) in cash and cash equivalents
     10,737       (1,007 )     5,942       11,736  
                                 
Cash and cash equivalents at the beginning of the period
     56,231       57,238       61,026       44,495  
                                 
Cash and cash equivalents at the end of the period
     66,968       56,231       66,968       56,231  
 
 
 
 
 
GILAT SATELLITE NETWORKS LTD.
                  
CONDENSED EBITDA
                  
US dollars in thousands
                  
 
      Year ended       Three months ended  
      December 31,       December 31,  
   
2012
    
2011
    
2012
    
2011
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Operating loss
     (25,141 )     (12,336 )     (28,140 )     (15,191 )
Add:
                                
Non-cash stock-based compensation expenses
     2,445       2,009       667       475  
Costs related to acquisition transactions
     -       256       -       -  
Impairment of goodwill and Intangible assets and restructuring costs
     32,194       19,478       32,194       19,478  
Depreciation and amortization
     22,582       24,121       5,991       6,070  
EBITDA
     32,080       33,528       10,712       10,832