zk1618078.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, 2016
 
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 17, 2016 announcing Gilat’s fourth Quarter and year end 2015 results.

We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form F-3 (Registration No. 333-195680) and the Registration Statements on Form S-8 (Registration Nos.  333-113932, 333-123410, 333-132649, 333-158476, 333-180552, 333-187021 and 333-204867).

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 17, 2016
By:
/s/ Ran Tal  
    Ran Tal  
   
VP General Counsel
  
 
2
 
Gilat Reports Full Year 2015 Results with a Good Fourth Quarter
and Forecasted Profitable Growth For 2016
 
Q4 demonstrated strong profitability with quarter-over-quarter
revenue growth and substantial wins
 
Petah Tikva, Israel – February 17, 2016 – 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, 2015.
 
Key Financial Updates:

 
·
Revenues for the fourth quarter of 2015 were $67.7 million compared to $40.3 million in the third quarter of 2015 and $73.1 million in the comparable period of 2014.

 
·
Revenue for 2015 was $197.5 million compared to $235.1 million in 2014.

 
·
EBITDA for the fourth quarter of 2015 was of $11.1 million compared to a loss of $3.4 million in the third quarter of 2015 and EBITDA of $10.4 million in the comparable period of 2014.

 
·
EBITDA for 2015 was $5.3 million compared to EBITDA of $23.4 million in 2014.

 
·
Cash balances, including restricted cash, net of short-term bank credits, increased by $32.5 million compared to September 30, 2015, resulting in a cash balance of $120.9 million as of December 31, 2015.

 
·
Company recorded $10.1 million impairment of long-lived assets related to the Kioscos project in Colombia.

 
·
Management objectives for 2016 of revenues between $290 and $310 million and EBITDA between $18 and $24 million.

“I am pleased with the results of Q4 2015, in which we demonstrated strong revenue, profit and wins, providing a positive ending to a challenging year,” said Dov Baharav, Gilat’s Interim CEO and Chairman of the Board. “We made very encouraging progress in the In-Flight Connectivity (IFC) market, further penetration to the Chinese market, with sales to Synertone, and an additional win of a $108 million project in Peru, together with high acceptance of Gilat’s HTS
X-Architecture for mobility and fixed applications including cellular backhaul.

 
3
 
“A prime example is SoftBank, which selected Gilat’s satellite-based cellular backhaul technology for the provision of LTE services to remote sites in Japan.  Gilat’s SkyEdge II-c Capricorn platform is the first satellite solution to deliver a 4G handset user experience on par with terrestrial networks.

“The positive developments of Q4 vindicate our strategy and give us confidence in our projected growth for 2016 and beyond,” Mr. Baharav added.

Revenues for the fourth quarter of 2015 were $67.7 million, compared to $73.1 million for the same period in 2014. Revenues for the year ended December 31, 2015 were $197.5 million, compared to $235.1 million in the year ended December 31, 2014. Revenues in the fourth quarter were below the updated management objectives, mainly due to temporary delays resulting from some regulatory issues relating to the Fitel projects in Peru.
 
On a non-GAAP basis, the operating income was $8.9 million in the fourth quarter of 2015 as compared to the operating income of $7.5 million in the comparable quarter of 2014. The operating loss for 2015 on a non-GAAP basis was $4.2 million compared to the operating income of $13.1 million in 2014.

On a GAAP basis, the operating loss was $3.4 million in the fourth quarter of 2015 as compared to the operating income of $5.5 million in the comparable quarter of 2014. The operating loss for 2015 on a GAAP basis was $43.7 million compared to the operating income of $5 million in 2014.

On a non-GAAP basis, the net income for the quarter was $7 million or $0.16 per diluted share compared to the net income of $4.4 million or $0.1 per diluted share in the same quarter of 2014. The net loss for 2015 on a non-GAAP basis was $12.6 million or $0.29 per diluted share compared to the net income of $7.4 million or $0.17 per diluted share in 2014.

On a GAAP basis, the net loss for the quarter was $5.2 million or $0.12 per diluted share compared to the net income from continuing operations of $2.4 million or $0.06 per diluted share in the same quarter of 2014. The net loss from continuing operations for 2015 on a GAAP basis was $52.1 million or $1.19 per diluted share compared to the net loss from continuing operations of $0.7 million or $0.02 per diluted share in 2014.

EBITDA for the fourth quarter of 2015 reached $11.1 million compared with $10.4 million in the comparable period in 2014. EBITDA for the twelve months of 2015 was $5.3 million compared with $23.4 million in the comparable period in 2014.
 
Key Recent Announcements:
 
·
Avanti Deploys HTS VSAT Networks from Gilat for Broadband Connectivity Across the UK
 
·
Gilat Wins Bid of $108 Million for a New Project in Peru
 
·
Gilat Announces Phased-Array Antenna (PAA) Program Following the Signing of a Development Agreement with an Aerospace Systems Integrator
 
·
Synertone, a leading Chinese satellite solutions provider, selects Gilat to enable its fixed and mobile offerings throughout China in a $12 million deal
 
·
CRRC, the World’s Largest Railway Transportation Supplier, Selects Gilat to Bring Satellite Connectivity to all its Trains, Worldwide
 
·
Gilat Launches its Revolutionary Distributed X-Architecture to Address the Growing Demands of High-Throughput Satellites (HTS) in a Single Platform
 
 
4
 
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 on (972) 3-918-0644, and US-based participants are invited to access the call by dialing (888) 281-1167. 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 20, 2016.  International participants are invited to access the replay on (972) 3-925-5900, and US-based participants are invited to access the replay by dialing (888) 326-9310. 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 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, operating 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
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 Peru and Colombia.
  
 
5
 
With over 25 years of experience, and over a million products shipped to more than 90 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. Gilat controlling shareholders are the FIMI Private Equity Funds. 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. 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
Joelle Inowlocki
JoelleI@gilat.com

KCSA Strategic Communications
Phil Carlson, Vice President
(212) 896-1233
pcarlson@kcsa.com

 
6
 
GILAT SATELLITE NETWORKS LTD.
            
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              
U.S. dollars in thousands (except share and per share data)
              
 
    Year ended     Three months ended  
    December 31,     December 31,  
   
2015
    
2014
    
2015
    
2014
  
   
Unaudited
    
Audited
    
Unaudited
    
Unaudited
  
                         
Revenues
     197,543       235,133       67,682       73,097  
Cost of revenues
     143,318       151,498       47,181       47,325  
Impairment of long lived assets
     10,137       -       10,137       -  
Gross profit
     44,088       83,635       10,364       25,772  
                                 
Research and development expenses:
                                
Expenses incurred
     24,952       27,635       5,709       6,804  
Less - grants
     2,540       2,477       1,977       675  
      22,412       25,158       3,732       6,129  
Selling and marketing expenses
     24,823       32,537       6,098       7,257  
General and administrative expenses
     18,644       20,903       3,418       6,892  
Restructuring costs
     1,508       -       522       -  
Goodwill impairment
     20,402       -       -       -  
Total operating expenses
     87,789       78,598       13,770       20,278  
Operating income (loss)
     (43,701 )     5,037       (3,406 )     5,494  
Financial expenses, net
     (7,243 )     (3,837 )     (1,393 )     (1,939 )
Income (loss) before taxes on income
     (50,944 )     1,200       (4,799 )     3,555  
Taxes on income
     1,190       1,901       450       1,118  
Income (loss) from continuing operations
     (52,134 )     (701 )     (5,249 )     2,437  
Loss from discontinued operations
     (200 )     (795 )     -       -  
Net income (loss)
     (52,334 )     (1,496 )     (5,249 )     2,437  
                                 
Net income (loss) per share from continuing operations (basic and diluted)
     (1.19 )     (0.02 )     (0.12 )     0.06  
Loss per share from discontinued operations (basic and diluted)
     (0.00 )     (0.02 )     -       -  
Net Income (loss) per share (basic and diluted)
     (1.19 )     (0.04 )     (0.12 )     0.06  
                                 
Weighted average number of shares used in
                                
computing net income (loss) per share
                                
    Basic
     43,655,309       42,444,482       44,311,825       42,664,812  
    Diluted
     43,655,309       42,444,482       44,311,825       43,165,834  
 
7
 
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  
      31 December 2015     31 December 2014  
     
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
     
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                                       
Gross profit
       10,364       11,387       21,751       25,772       1,251       27,023  
Operating expenses
     13,770       (896 )     12,874       20,278       (741 )     19,537  
Operating income (loss)
     (3,406 )     12,283       8,877       5,494       1,992       7,486  
Income (loss) before taxes on income
     (4,799 )     12,283       7,484       3,555       1,992       5,547  
Net income (loss)
     (5,249 )     12,283       7,034       2,437       1,992       4,429  
                                                   
Basic net income (loss) per share
     (0.12 )     0.28       0.16       0.06       0.04       0.10  
                                                   
Diluted net income (loss) per share
     (0.12 )     0.28       0.16       0.06       0.04       0.10  
                                                   
Weighted average number of shares used in
                                                
   computing net income (loss) per share
                                                
          Basic     44,311,825               44,311,825       42,664,812               42,664,812  
          Diluted     44,311,825               44,567,776       43,165,834               43,640,235  
 
(1)
Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to Shares acquisition transactions, impairments, restructuring costs and net income (loss) from discontinued operations.
 
   
Three months ended
    
Three months ended
  
   
31 December 2015
    
31 December 2014
  
   
Unaudited
    
Unaudited
  
             
GAAP net income (loss)
     (5,249 )     2,437  
Gross profit:
                
Non-cash stock-based compensation expenses:
     52       53  
Amortization of intangible assets related to acquisition transactions
     1,198       1,198  
Impairment of long lived assets
     10,137       -  
      11,387       1,251  
Operating expenses:
                
Non-cash stock-based compensation expenses
     184       529  
Amortization of intangible assets related to acquisition transactions
     190       212  
Restructuring costs
     522       -  
      896       741  
                 
Non GAAP net income (loss)
     7,034       4,429  
 
 
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)
                
 
      Year ended     Year ended  
      31 December 2015     31 December 2014  
     
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
     
Unaudited
    
Unaudited
    
Unaudited
    
Audited
    
Unaudited
    
Unaudited
  
                                       
Gross profit
     44,088       15,146       59,234       83,635       5,024       88,659  
Operating expenses
     87,789       (24,399 )     63,390       78,598       (3,043 )     75,555  
Operating income (loss)
     (43,701 )     39,545       (4,156 )     5,037       8,067       13,104  
Income (loss) before taxes on income
     (50,944 )     39,545       (11,399 )     1,200       8,067       9,267  
Income (loss) from continuing operations
     (52,134 )     39,545       (12,589 )     (701 )     8,067       7,366  
Loss from discontinued operations
     (200 )     200       -       (795 )     795       -  
Net income (loss)
     (52,334 )     39,745       (12,589 )     (1,496 )     8,862       7,366  
                                                   
Basic loss per share from continuing operations
     (1.19 )                     (0.02 )                
Basic loss per share from discontinued operations
     (0.00 )                     (0.02 )                
Basic net income (loss) per share
     (1.19 )     0.90       (0.29 )     (0.04 )     0.21       0.17  
                                                   
Diluted loss per share from continuing operations
     (1.19 )                     (0.02 )                
Diluted loss per share from discontinued operations
     (0.00 )                     (0.02 )                
Diluted net income (loss) per share
     (1.19 )     0.90       (0.29 )     (0.04 )     0.21       0.17  
                                                   
Weighted average number of shares used in
                                                
   computing net income (loss) per share
                                                
           Basic     43,655,309               43,655,309       42,444,482               42,444,482  
           Diluted     43,655,309               43,655,309       42,444,482               43,621,979  
 
(1)
Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to Shares acquisition transactions, impairments, restructuring costs and net income (loss) from discontinued operations.
 
   
Year ended
    
Year ended
  
   
31 December 2015
    
31 December 2014
  
   
Unaudited
    
Unaudited
  
             
GAAP net income (loss)
     (52,334 )     (1,496 )
Gross profit:
                
Non-cash stock-based compensation expenses:
     217       232  
Amortization of intangible assets related to acquisition transactions
     4,792       4,792  
Impairment of long lived assets
     10,137       -  
      15,146       5,024  
Operating expenses:
                
Non-cash stock-based compensation expenses
     1,684       2,193  
Amortization of intangible assets related to acquisition transactions
     805       850  
Goodwill impairment
     20,402       -  
Restructuring costs
     1,508       -  
      24,399       3,043  
                 
Loss from discontinued operations
     200       795  
                 
Non GAAP net income (loss)
     (12,589 )     7,366  
 
 
9
 
 
GILAT SATELLITE NETWORKS LTD.
              
CONDENSED EBITDA
            
US dollars in thousands
            
 
    Year ended     Three months ended  
    December 31,     December 31,  
   
2015
    
2014
    
2015
    
2014
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Operating income (loss)
     (43,701 )     5,037       (3,406 )     5,494  
Add:
                                
Non-cash stock-based compensation expenses
     1,901       2,425       236       582  
Restructuring costs
     1,508       -       522       -  
Impairment of goodwill and long lived assets
     30,539       -       10,137       -  
Depreciation and amortization
     15,072       15,951       3,613       4,325  
EBITDA
     5,319       23,413       11,102       10,401  
 
 
10
 
GILAT SATELLITE NETWORKS LTD.
        
CONDENSED CONSOLIDATED BALANCE SHEET
        
US dollars in thousands
        
 
   
December 31,
    
December 31,
  
   
2015
    
2014
  
   
Unaudited
    
Audited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
     18,435       27,726  
Restricted cash
     100,779       25,983  
Restricted cash held by trustees
     8,524       15,441  
Trade receivables, net
     50,984       57,728  
Inventories
     25,358       25,112  
Other current assets
     16,223       14,760  
Total current assets
     220,303       166,750  
                 
LONG-TERM INVESTMENTS AND RECEIVABLES:
                
Long-term restricted cash
     179       216  
Severance pay funds
     7,545       8,085  
Other long term receivables and deferred charges
     221       12,124  
Total long-term investments and receivables
     7,945       20,425  
                 
PROPERTY AND EQUIPMENT, NET
     81,963       90,893  
                 
INTANGIBLE ASSETS, NET
     17,154       22,970  
                 
GOODWILL
     43,468       63,870  
                 
TOTAL ASSETS
     370,833       364,908  
 
 
11
 
   
December 31,
    
December 31,
  
   
2015
    
2014
  
   
Unaudited
    
Audited
  
             
LIABILITIES AND EQUITY
            
             
CURRENT LIABILITIES:
            
Short-term bank credit and loans
     7,000       15,857  
Current maturities of long-term loans
     4,542       4,595  
Trade payables
     17,210       22,850  
Accrued expenses
     23,481       22,475  
Advances from customers
     82,813       2,940  
Advances from customers, held by trustees
     8,515       12,858  
Other current liabilities
     16,213       18,587  
                 
Total current liabilities
     159,774       100,162  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
     7,506       8,157  
Long-term loans, net of current maturities
     21,493       26,271  
Other long-term liabilities
     3,978       5,179  
                 
Total long-term liabilities
     32,977       39,607  
                 
EQUITY:
                
Share capital - ordinary shares of NIS 0.2 par value
     2,048       1,966  
Additional paid-in capital
     884,126       876,624  
Accumulated other comprehensive loss
     (3,727 )     (1,420 )
Accumulated deficit
     (704,365 )     (652,031 )
                 
Total equity
     178,082       225,139  
                 
TOTAL LIABILITIES AND EQUITY
     370,833       364,908  
 
12
 
 
 
GILAT SATELLITE NETWORKS LTD.
                  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  
US dollars in thousands
                  
 
    Year ended     Three months ended  
    December 31,     December 31,  
   
2015
    
2014
    
2015
    
2014
  
   
Unaudited
    
Audited
    
Unaudited
    
Unaudited
  
Cash flows from operating activities:
                        
Net income (loss)
     (52,334 )     (1,496 )     (5,249 )     2,437  
Loss from discontinued operations
     200       795       -       -  
Net income (loss) from continuing operations
     (52,134 )     (701 )     (5,249 )     2,437  
Adjustments required to reconcile net income (loss)
                                
to net cash generated provided by (used in) operating activities:
                                
Depreciation and amortization
     15,072       15,951       3,613       4,325  
Goodwill impairment
     20,402       -       -       -  
Impairment of long lived assets
     10,137       -       10,137       -  
Stock-based compensation
     1,901       2,425       236       582  
Accrued severance pay, net
     (111 )     301       163       259  
Accrued interest and exchange rate differences on
                                
   short and long-term restricted cash, net
     842       858       635       394  
Exchange rate differences on long-term loans
     (288 )     (416 )     (67 )     (105 )
Capital loss (gain) from disposal of property and equipment
     82       430       (39 )     189  
Deferred income taxes, net
     1       7       (10 )     63  
Decrease (increase) in trade receivables, net
     4,553       (2,457 )     (12,177 )     (3,995 )
Decrease (increase) in other assets (including short-term, long-term
                                
   and deferred charges)
     998       (20,251 )     136       (8,520 )
Decrease (increase) in inventories
     (2,821 )     (445 )     2,090       781  
Increase in restricted cash directly related to operating activities, net
     (87,004 )     -       (34,268 )     -  
Increase (decrease) in trade payables
     (5,133 )     2,226       2,514       6,930  
Increase in accrued expenses
     2,935       5,401       3,444       3,910  
Increase (decrease) in advance from customers
     79,884       (25,935 )     24,268       (13,511 )
Increase (decrease) in advances from customers, held
                                
   by trustees
     (2,243 )     14,068       6,168       14,133  
Decrease in other current liabilities and other long term liabilities
     (1,860 )     (7,624 )     (1,454 )     (447 )
Net cash provided by (used in) operating activities
     (14,787 )     (16,162 )     140       7,425  
 
13
 
GILAT SATELLITE NETWORKS LTD.
                  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  
US dollars in thousands
                  
 
    Year ended     Three months ended  
    December 31,     December 31,  
   
2015
    
2014
    
2015
    
2014
  
   
Unaudited
    
Audited
    
Unaudited
    
Unaudited
  
Cash flows from investing activities:
                        
Purchase of property and equipment
     (3,930 )     (12,630 )     (821 )     (435 )
Investment in restricted cash held by trustees
     (16,634 )     (24,869 )     (10,525 )     (18,955 )
Proceeds from restricted cash held by trustees
     21,501       12,306       2,852       3,681  
Investment in restricted cash (including long-term)
     (22,717 )     (12,788 )     (306 )     (2,207 )
Proceeds from restricted cash (including long-term)
     34,120       11,228       1,561       10,996  
Net cash provided by (used in) investing activities
     12,340       (26,753 )     (7,239 )     (6,920 )
                                 
Cash flows from financing activities:
                                
Capital lease payments
     (609 )     (234 )     (201 )     (148 )
Issuance of restricted stock units and exercise of stock options
     5,683       1,185       88       437  
Payment of obligation related to the purchase of intangible assets
     (500 )     (500 )     -       -  
Short term bank credit, net
     (5,897 )     16,571       (2,086 )     2,394  
Repayment of long-term loans
     (4,544 )     (4,633 )     (135 )     (149 )
Net cash provided by (used in) financing activities
     (5,867 )     12,389       (2,334 )     2,534  
                                 
Effect of exchange rate changes on cash and cash equivalents
     (977 )     (172 )     145       49  
                                 
Increase (decrease) in cash and cash equivalents
     (9,291 )     (30,698 )     (9,288 )     3,088  
                                 
Cash and cash equivalents at the beginning of the period
     27,726       58,424       27,723       24,638  
                                 
Cash and cash equivalents at the end of the period
     18,435       27,726       18,435       27,726  
 
14