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 December 2005
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 and incorporated by reference herein is Registrant’s press release dated December 1, 2005, that Registrant has filed an amended Annual Report on Form 20-F/A for the year ending December 31, 2004 with the U.S. Securities and Exchange Commission, and also announcing the convening of a special shareholders meeting to be held on December 27, 2005.
This Report on Form 6-K is hereby incorporated by reference in the Registration Statements on Form F-3 of Gilat Satellite Networks Ltd. (022-38667), Form F-3 of Gilat Satellite Networks Ltd. (No. 333-12242), (No. 333-113950) and Form S-8 of Gilat Satellite Networks Ltd. (No. 333-113932), (No. 333-96630), (No. 333-08826), (No. 333-10092), (No. 333-12466) and (No. 333-12988).
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) BY: /S/ Rael Kolevsohn —————————————— Rael Kolevsohn General Counsel |
Dated: December 1, 2005
Gilat files amended 2004 Annual Report on Form 20F/A.
On an unrelated issue, Gilat also announces the convening of a special shareholders meeting.
Revised accounting treatment relating to accrued interest liability arising from an amendment in April 2004 to its loan agreement with Bank Hapoalim .No effect on historical or future revenues, operating results or cash flow.
Petah Tikva, Israel, December 1, 2005 - Gilat Satellite Networks Ltd. (NASDAQ: GILTF), today announced that it has filed an amended Annual Report on Form 20-F/A for the year ending December 31, 2004 with the U.S. Securities and Exchange Commission to reflect a non-cash change in the accounting treatment of accrued interest liability relating to an April 2004 modification to its loan from Bank Hapoalim.
The restated audited financial statements reflect an increase in the Company's paid in capital by $15.5 million, a decrease in its liabilities by $13.4 million and an increase in financial expenses by $2.1 million. This revision had no effect on the Company's reported revenues, cash flow, total assets or cash.
In April 2004, the Company and Bank Hapoalim agreed to revise the terms of a loan that had been restructured in March 2003. Originally, as audited by our external auditors, in accounting for the modification of the terms of the debt as an extinguishment, the Company did not eliminate the accrued interest liability of approximately $15.5 million that had been recorded as a deferred liability in connection with its March 2003 troubled debt restructuring. The Company reevaluated this presentation of the accrued interest liability and concluded that the accrued interest liability should be eliminated and classified as equity. Future interest accruals will be expensed as incurred. Further details are available in the Company's amended 2004 Annual Report on Form 20-F/A.
The following table summarizes the effect of the restatement on selected balance sheets data (USD, in millions):
| A s o f |
||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31.03.04 |
30.06.04 |
30.09.04 |
31.12.04 |
31.03.05 |
30.06.05 |
30.09.05 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||
| Accrued expenses: | ||||||||||||||||||||||||
| Reported | $ | 35.9 | $ | 25.9 | $ | 27.7 | $ | 28.0 | $ | 24.8 | $ | 25.4 | $ | 22.6 | ||||||||||
| Restated | $ | 35.9 | $ | 24.3 | $ | 25.6 | $ | 26.6 | $ | 22.8 | $ | 23.6 | $ | 20.9 | ||||||||||
| Accrued interest relating to | ||||||||||||||||||||||||
| restructured debt: | ||||||||||||||||||||||||
| Reported | $ | 18.8 | $ | 18.9 | $ | 17.6 | $ | 16.8 | $ | 15.3 | $ | 14.4 | $ | 13.4 | ||||||||||
| Restated | $ | 18.8 | $ | 5.6 | $ | 5.5 | $ | 4.8 | $ | 4.8 | $ | 4.2 | $ | 4.0 | ||||||||||
| Shareholders Equity: | ||||||||||||||||||||||||
| Additional paid in Capital: | ||||||||||||||||||||||||
| Reported | $ | 719.1 | $ | 717.8 | $ | 717.7 | $ | 718.1 | $ | 718.3 | $ | 719.0 | $ | 719.6 | ||||||||||
| Restated | $ | 719.1 | $ | 733.2 | $ | 733.1 | $ | 733.6 | $ | 733.8 | $ | 734.5 | $ | 735.1 | ||||||||||
| Accumulated deficit: | ||||||||||||||||||||||||
| Reported | $ | (645.5 | ) | $ | (647.3 | ) | $ | (647.5 | ) | $ | (648.4 | ) | $ | (649.5 | ) | $ | (650.0 | ) | $ | (650.9 | ) | |||
| Restated | $ | (645.5 | ) | $ | (647.9 | ) | $ | (648.8 | ) | $ | (650.5 | ) | $ | (652.5 | ) | $ | (653.5 | ) | $ | (655.3 | ) | |||
The following table summarizes the effect of the restatement on selected statements of operations data (USD, in millions, except per share data):
| Three months period ended |
Year ended |
Three months period ended |
||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31.03.04 |
30.06.04 |
30.09.04 |
31.12.04 |
31.12.04 |
31.03.05 |
30.06.05 |
30.09.05 | |||||||||||||||||||
| Net Financial income (expenses): |
||||||||||||||||||||||||||
| Reported | $ | 0.6 | $ | 0.5 | $ | 1.8 | $ | (1.0 | ) | $ | 1.8 | $ | 0.7 | $ | (0.2 | ) | $ | (0.1 | ) | |||||||
| Restated | $ | 0.6 | $ | (0.1 | ) | $ | 1.0 | $ | (1.8 | ) | $ | (0.3 | ) | $ | (0.2 | ) | $ | (0.8 | ) | $ | (0.9 | ) | ||||
| Net Loss: | ||||||||||||||||||||||||||
| Reported | $ | (6.5 | ) | $ | (1.8 | ) | $ | (0.2 | ) | $ | (1.0 | ) | $ | (9.5 | ) | $ | (1.1 | ) | $ | (0.5 | ) | $ | (0.9 | ) | ||
| Restated | $ | (6.5 | ) | $ | (2.4 | ) | $ | (0.9 | ) | $ | (1.7 | ) | $ | (11.5 | ) | $ | (1.9 | ) | $ | (1.1 | ) | $ | (1.7 | ) | ||
| Diluted net loss per share: | ||||||||||||||||||||||||||
| Reported | $ | (0.29 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.42 | ) | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.04 | ) | ||
| Restated | $ | (0.29 | ) | $ | (0.11 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.52 | ) | $ | (0.09 | ) | $ | (0.05 | ) | $ | (0.08 | ) | ||
The following table presents the restated condensed consolidated quarterly balance sheets:
US dollars in thousands
| September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2005 |
2005 |
2005 |
2004 |
2004 |
2004 | |||||||||||||||
| (R e s t a t e d) |
||||||||||||||||||||
| U n a u d i t e d |
||||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| CURRENT ASSETS: | ||||||||||||||||||||
| Cash and cash equivalents | 64,678 | 73,176 | 68,336 | 75,771 | 60,667 | 44,220 | ||||||||||||||
| Short-term bank deposits | 443 | |||||||||||||||||||
| Short-term restricted cash | 18,047 | 22,467 | 13,254 | 14,168 | 13,618 | 15,757 | ||||||||||||||
| Restricted cash held by trustees | 6,533 | 6,981 | 7,790 | 10,620 | 9,311 | 19,136 | ||||||||||||||
| Trade receivables (net of allowance for doubtful accounts) | 31,299 | 30,142 | 33,662 | 31,380 | 39,481 | 40,327 | ||||||||||||||
| Inventories | 19,425 | 18,751 | 20,386 | 23,277 | 27,837 | 36,835 | ||||||||||||||
| Receivables in respect of capital leases, prepaid expenses | ||||||||||||||||||||
| and other accounts receivable | 25,083 | 26,066 | 27,616 | 27,413 | 31,327 | 31,765 | ||||||||||||||
| Total current assets | 165,065 | 177,583 | 171,044 | 182,629 | 182,241 | 188,483 | ||||||||||||||
| LONG-TERM INVESTMENTS AND RECEIVABLES: | ||||||||||||||||||||
| Long-term restricted cash | 9,000 | 7,076 | 7,180 | 7,534 | 7,721 | 9,034 | ||||||||||||||
| Long-term restricted cash held by trustees | 17,789 | 17,789 | 19,002 | 18,994 | 23,501 | 22,069 | ||||||||||||||
| Severance pay fund | 8,345 | 7,956 | 8,242 | 7,933 | 7,573 | 7,295 | ||||||||||||||
| Long-term trade receivables, receivables in respect of capital leases | ||||||||||||||||||||
| and other receivables, net | 27,278 | 28,055 | 28,245 | 27,728 | 30,839 | 31,987 | ||||||||||||||
| 62,412 | 60,876 | 62,669 | 62,189 | 69,634 | 70,385 | |||||||||||||||
| PROPERTY AND EQUIPMENT, NET | 127,722 | 130,886 | 135,236 | 137,198 | 133,339 | 133,746 | ||||||||||||||
| INTANGIBLE ASSETS AND DEFERRED CHARGES, NET | 11,699 | 9,222 | 9,640 | 9,432 | 8,029 | 8,429 | ||||||||||||||
| TOTAL ASSETS | 366,898 | 378,567 | 378,589 | 391,448 | 393,243 | 401,043 | ||||||||||||||
| September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2005 |
2005 |
2005 |
2004 |
2004 |
2004 | |||||||||||||||
| (R e s t a t e d) |
||||||||||||||||||||
| U n a u d i t e d |
||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||||||||
| Short-term bank credit | 11,436 | 11,444 | 3,404 | 4,159 | 2,907 | 5,394 | ||||||||||||||
| Current maturities of long-term loans | 13,664 | 10,381 | 10,383 | 8,869 | 8,339 | 3,793 | ||||||||||||||
| Trade payables | 19,105 | 16,095 | 18,512 | 21,245 | 18,320 | 24,035 | ||||||||||||||
| Accrued expenses | 20,860 | 23,622 | 22,833 | 26,582 | 25,591 | 24,341 | ||||||||||||||
| Short-term advances from customer held by trustees | 14,775 | 14,094 | 14,078 | 13,500 | 13,050 | 13,026 | ||||||||||||||
| Other accounts payable | 33,462 | 38,223 | 39,139 | 40,048 | 42,841 | 40,640 | ||||||||||||||
| Total current liabilities | 113,302 | 113,859 | 108,349 | 114,403 | 111,048 | 111,229 | ||||||||||||||
| LONG-TERM LIABILITIES: | ||||||||||||||||||||
| Accrued severance pay | 8,374 | 7,847 | 8,188 | 8,172 | 7,898 | 7,516 | ||||||||||||||
| Long-term advances from customer held by trustees | 31,119 | 35,020 | 37,825 | 40,226 | 43,827 | 45,336 | ||||||||||||||
| Long-term loans, net of current maturities | 94,725 | 103,975 | 105,451 | 108,182 | 108,730 | 114,455 | ||||||||||||||
| Accrued interest related to restructured debt | 3,984 | 4,236 | 4,761 | 4,820 | 5,513 | 5,568 | ||||||||||||||
| Other long-term liabilities | 17,801 | 15,357 | 16,447 | 15,951 | 16,812 | 16,927 | ||||||||||||||
| Excess of losses over investment in affiliates | 720 | 720 | 1,702 | 2,102 | 2,122 | 2,122 | ||||||||||||||
| Convertible subordinated notes | 16,333 | 16,333 | 16,171 | 16,171 | 15,866 | 15,866 | ||||||||||||||
| Total long-term liabilities | 173,056 | 183,488 | 190,545 | 195,624 | 200,768 | 207,790 | ||||||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||
| SHAREHOLDERS' EQUITY: | ||||||||||||||||||||
| Share capital - Ordinary shares of NIS 0.2 par value | 995 | 992 | 986 | 984 | 981 | 981 | ||||||||||||||
| Additional paid in capital | 735,119 | 734,525 | 733,766 | 733,582 | 733,143 | 733,238 | ||||||||||||||
| Accumulated other comprehensive loss | (321 | ) | (776 | ) | (2,594 | ) | (2,624 | ) | (3,863 | ) | (4,276 | ) | ||||||||
| Accumulated deficit | (655,253 | ) | (653,521 | ) | (652,463 | ) | (650,521 | ) | (648,834 | ) | (647,919 | ) | ||||||||
| Total shareholders' equity | 80,540 | 81,220 | 79,695 | 81,421 | 81,427 | 82,024 | ||||||||||||||
| Total liabilities and shareholders' equity | 366,898 | 378,567 | 378,589 | 391,448 | 393,243 | 401,043 | ||||||||||||||
The following table presents the restated condensed consolidated quarterly statements of operations:
U.S. dollars in thousands (except per share data)
| T h r e e m o n t h s e n d e d |
||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, | |||||||||||||||
| 2005 |
2005 |
2005 |
2004 |
2004 |
2004 | |||||||||||||||
| (R e s t a t e d) |
||||||||||||||||||||
| U n a u d i t e d |
||||||||||||||||||||
| Revenues | 49,029 | 51,370 | 53,038 | 61,801 | 64,749 | 57,534 | ||||||||||||||
| Cost of Revenues | 30,024 | 33,371 | 35,159 | 38,071 | 43,576 | 38,543 | ||||||||||||||
| Gross profit | 19,005 | 17,999 | 17,879 | 23,730 | 21,173 | 18,991 | ||||||||||||||
| Research and development expenses: | ||||||||||||||||||||
| Expenses incurred | 4,139 | 4,068 | 4,832 | 5,086 | 4,807 | 4,556 | ||||||||||||||
| Less - grants | 326 | 1,491 | 769 | 810 | 1,969 | 924 | ||||||||||||||
| 3,813 | 2,577 | 4,063 | 4,276 | 2,838 | 3,632 | |||||||||||||||
| Selling, marketing, general and administrative expenses | 15,625 | 15,062 | 14,506 | 17,876 | 17,475 | 17,170 | ||||||||||||||
| Impairment of tangible and intangible assets | - | - | - | - | 2,161 | - | ||||||||||||||
| Gain from derecognition of liability | - | - | - | - | - | (245 | ) | |||||||||||||
| Operating Income (loss) | (433 | ) | 360 | (690 | ) | 1,578 | (1,301 | ) | (1,566 | ) | ||||||||||
| Financial income (expenses)- net | (857 | ) | (827 | ) | (172 | ) | (1,755 | ) | 1,034 | (127 | ) | |||||||||
| Other income (expenses) | (68 | ) | 367 | (159 | ) | (82 | ) | (192 | ) | - | ||||||||||
| Income (loss) before taxes on income | (1,358 | ) | (100 | ) | (1,021 | ) | (259 | ) | (459 | ) | (1,693 | ) | ||||||||
| Taxes on income | 374 | 958 | 1,321 | 1,733 | 906 | 1,205 | ||||||||||||||
| Loss after taxes on income | (1,732 | ) | (1,058 | ) | (2,342 | ) | (1,992 | ) | (1,365 | ) | (2,898 | ) | ||||||||
| Equity in profits of affiliated companies | - | - | 400 | 305 | 450 | 487 | ||||||||||||||
| Net loss | (1,732 | ) | (1,058 | ) | (1,942 | ) | (1,687 | ) | (915 | ) | (2,411 | ) | ||||||||
| Basic net loss per share | (0.08 | ) | (0.05 | ) | (0.09 | ) | (0.08 | ) | (0.04 | ) | (0.11 | ) | ||||||||
| Diluted net loss per share | (0.08 | ) | (0.05 | ) | (0.09 | ) | (0.08 | ) | (0.04 | ) | (0.11 | ) | ||||||||
| Shares used in basic net loss per share computation | 22,502 | 22,377 | 22,323 | 22,286 | 22,230 | 22,226 | ||||||||||||||
| Shares used in diluted net loss per share computation | 22,502 | 22,377 | 22,323 | 22,286 | 22,230 | 22,226 | ||||||||||||||
The Company also announced the convening of a special shareholders meeting to be held on December 27, 2005.
About Gilat Satellite
Networks Ltd.
Gilat Satellite Networks Ltd.
(NASDAQ: GILTF) is a leading provider of products and services for satellite-based
communications networks. The Company operates under two business units: (i) Gilat
Network Systems (“GNS”), a provider of network systems and associated
professional services to service providers and operators and (ii) Spacenet, a
provider of managed services for businesses and governments through its Connexstar service
brand, for consumers through its StarBand service brand and for rural communities through
Spacenet Rural Communications.
Gilat was founded in 1987 and has shipped over 550,000 Very Small Aperture Terminals (VSATs) to more than 85 countries across six continents. Gilat’s headquarters is located in Petah Tikva, Israel. The Company has 14 local offices and 3 service facilities worldwide. Gilat markets the SkyEdge ™ Product Family which includes the SkyEdge™ Pro, SkyEdge™ IP, SkyEdge™ Call, SkyEdge™ DVB-RCS and SkyEdge™ Gateway. In addition, the Company markets numerous other legacy products.
Notes:
| 1) | 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. |
Gilat Investor Contact:
Tal Payne
Chief Financial Officer
Tel: +972 3 925 2266; E-mail: talp@gilat.com
Gilat Media Contact:
Shira Gafni
Director of Corporate Marketing
Tel: +972 3 925 2406; E-mail: shirag@gilat.com