Edgar Filing: GILAT SATELLITE NETWORKS LTD

zk1211061.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 2012

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 22, 2012, announcing Registrant’s financial results for the fourth quarter and full year 2011.

This Form 6-K is being incorporated by reference into the Registrants Form F-3 registration statement file nos. 333-174142 and 333-160683 and Form S-8 registration statements file nos. 333- 158476, 333-96630, 333-132649, 333-123410, 333-113932, 333-08826, 333-10092, 333-12466 and 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)

Dated February 22, 2012	By:	/s/ Joann R. Blasberg
		Joann R. Blasberg
		Corporate Secretary

Gilat Announces Fourth Quarter and Full Year 2011 Results

Petah Tikva, Israel - February 22, 2012 – Gilat Satellite Networks Ltd. (NASDAQ: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the fourth quarter and year ended December 31, 2011.

Key Highlights:

Quarterly revenues of $93.6 million, up 42% compared to fourth quarter 2010

Full year revenues increased to $339.2 million, up from $233 million in 2010

Non-GAAP year-over-year operating income reached $17.5 million compared to $1.3 million in 2010

2011 EBITDA of $33.5 million, up from EBITDA of $14.2 million in 2010

Revenues for the fourth quarter of 2011 were $93.6 million, compared to $66.1 million for the same period in 2010. GAAP operating loss for the fourth quarter of 2011 was $15.2 million compared to an operating loss of $4.1 million in the fourth quarter of 2010.

On a GAAP basis, net loss for the fourth quarter of 2011 was $11.5 million or $0.28 per diluted share, compared to a net loss of $4.9 million or $0.12 per diluted share in the fourth quarter of 2010.

During the fourth quarter of 2011 we recorded a one-time non-cash impairment of goodwill relating to our investment in Wavestream in accordance with ASC 350 (formerly SFAS No. 142) in the amount of $17.9 million, and restructuring costs and other charges relating to cost reduction efforts in the amount of $1.6 million, totaling $19.5 million.

On a non-GAAP basis, operating income for the fourth quarter of 2011 was $6.6 million compared to $0.5 million in the fourth quarter of 2010. Non-GAAP net income for the period was $8.4 million or $0.20 per diluted share, compared to a net loss of $0.3 million, or $0.01 per diluted share, in the comparable period in 2010.

Revenues for the year ended December 31, 2011 were $339.2 million, compared to $233.0 million in the comparable period of 2010. On a GAAP basis, operating loss for the year 2011 was $12.3 million, compared with an operating loss of $6.2 million in the prior year. Net loss for the twelve month period ended December 31, 2011 was $5.9 million or $0.14 per diluted share, compared to a net income of $30.6 million or $0.73 per diluted share, in the same period of 2010.

On a non-GAAP basis, operating income for the year ended December 31, 2011 was $17.5 million compared to $1.3 million in the full year 2010. Non-GAAP net income for the period was $15.9 million or $0.37 per diluted share, compared to a net income of $0.7 million, or $0.02 per diluted share, in the comparable period in 2010.

EBITDA for the twelve months of 2011 reached $33.5 million compared with $14.2 million in the comparable period in 2010.

Executive Perspective:

"Our strong financial performance in the fourth quarter was accompanied by several important contract wins for Gilat. In 2011 we made significant inroads in our strategy with key awards in the Ka-band market and stood by the management objectives we set at the beginning of the year,” said Erez Antebi, Gilat’s Chief Executive Officer. "Looking forward, we have identified the key growth drivers we will be focusing on – Ka-band, defense and homeland security, and Managed Network Services markets - and I believe that our differentiated product offering and capabilities give us a significant advantage in these markets which are expected to grow long term."

As part of the results announcement, management has set the Company's financial objectives for 2012 to increase annual revenues between $340 and $350 million and, while continuing to invest in future products, maintain EBITDA margin levels at 10%.

Key Recent Announcements:

January 2012 - Gilat announced that it has signed a supply and development agreement with O3b Networks Limited. Read

January 2012 - Gilat announced the extension of services agreement for the Colombian Ministry of Information Technology and Communications for an additional nine-months period. Read

December 2011 - Gilat announced that it has been awarded a new contract by the Colombian Ministry of Information Technology and Telecommunication (MINTIC) to provide broadband Internet connectivity to over 1,600 schools throughout the country’s rural regions. The project is valued at approximately $18.5 million. Read

December 2011 - Gilat announced that was selected by JSC NC ‘Kazsatnet’, a Republic of Kazakhstan telecommunications company, to deploy a SkyEdge™ II broadband satellite network to complement its fiber and IP networks. Read

November 2011 - Gilat introduced of a satcom-on-the-move (SOTM) solution for airborne applications, featuring a very small Ku-band broadband antenna customized for airborne use. Read

November 2011 - Gilat announced the appointment of Glenn Katz as CEO of its wholly owned subsidiary, Spacenet Inc. Read

November 2011 - Gilat announced that it was selected by a leading Latin American operator for the delivery of a full scale SkyEdge II network that will provide national connectivity to the Latin American country's national post office. Read

November 2011 – Gilat announced that it has signed agreements with Russian-based service provider RTComm, the satellite service arm of Rostelecom Group, Russia's national telecommunications operator, and with NIIR FSUE, Russia's institute for technology advancement for the supply of network equipment and Ka-band end-user terminals for RTComm's future constellation of multi spot-beam satellites. Read

November 2011 – Gilat announced that its wholly owned subsidiary Wavestream® introduced the AeroStreamTM family of airborne-qualified solid-state transceivers for integration into both military and commercial airborne and unmanned satellite communication systems. Read

October 2011 - Gilat announced that its Board of Directors has appointed Erez Antebi as Chief Executive Officer of the Company, effective January 1, 2012. Amiram Levinberg, Gilat’s current CEO and Chairman of the Board intends to continue to serve as Chairman of the Board. Read

October 2011 - Gilat announced that its wholly owned subsidiary, Spacenet Inc., was selected by Cumberland Farms Inc. to upgrade and manage its communications infrastructure for over 600 stores across 11 states. Read

October 2011 – Gilat announced that it shipped its one millionth VSAT (very small aperture terminal), marking a major milestone for the company. Read

Conference Call and Webcast Details:

Gilat management will host a conference call today at 14:30 GMT/09:30 EST/16:30 Israel Local Time to discuss the results. International participants are invited to access the call at (972) 3-918-0610, and US-based participants are invited to access the call by dialing (888) 407-2553.

The results presentation may be accessed prior to the conference call via Webcast through the Company's website at www.gilat.com.

A replay of the conference call will be available beginning at approximately 17:00 GMT/12:00 EST today, until 17:00 GMT/12:00 EST February 24, 2012. International participants are invited to access the replay at (972) 3-925-5921, and US-based participants are invited to access the replay by dialing (888) 782-4291. 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, impairment of goodwill, restructuring cost, 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)), impairment of goodwill, restructuring cost 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 is a leading provider of products and professional services for satellite-based broadband communication networks worldwide. Gilat was founded in 1987 and has shipped over one million VSATs (Very Small Aperture Terminals) to more than 85 countries across six continents. Gilat's headquarters are located in Petah Tikva, Israel, and the Company has 22 sales and service offices worldwide. Gilat develops and markets an expansive range of broadband satellite solutions including high-performance VSATs under the SkyEdgeTM and SkyEdge II brands, low-profile antennas for communications-on-the-move, under the RaySat Antenna Systems and the StealthRayTM brands, and next generation solid-state power amplifiers for mission-critical defense and broadcast satellite communications systems under the Wavestream brand. Gilat's wholly-owned subsidiary, Spacenet Inc., is a leading provider of managed services in North America to the business and government segments. Visit Gilat 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.

Investor Contact:

Rob Fink, KCSA

Rfink@kcsa.com

1 (212) 896 1206

Josh Dver, KCSA

Jdver@kcsa.com

1 (212) 896 1239

Media Contact:

Karen Mazor

Gilat Satellite Networks

karenm@gilat.com

GILAT SATELLITE NETWORKS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
US dollars in thousands

	December 31,		December 31,
	2011		2010
	Unaudited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents		56,231		57,238
Short-term restricted cash		7,034		3,839
Restricted cash held by trustees		1,549		1,004
Trade receivables, net		51,654		51,994
Inventories		31,933		29,612
Other current assets		25,767		22,973
Total current assets		174,168		166,660

LONG-TERM INVESTMENTS AND RECEIVABLES:
Long-term restricted cash		2,025		4,583
Severance pay fund		9,722		10,572
Long-term trade receivables, receivables in respect of capital
leases and other receivables		20,219		6,538
Total long-term investments and receivables		31,966		21,693

PROPERTY AND EQUIPMENT, NET		100,926		103,490

INTANGIBLE ASSETS AND DEFERRED CHARGES, NET		49,927		57,453

GOODWILL		89,691		106,082

TOTAL ASSETS		446,678		455,378

GILAT SATELLITE NETWORKS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
US dollars in thousands

	December 31,			December 31,
	2011			2010
	Unaudited

LIABILITIES AND EQUITY

CURRENT LIABILITIES:
Short-term bank credit		2,971			2,129
Current maturities of long-term loans and convertible notes		19,092			2,186
Trade payables		25,477			18,267
Accrued expenses		25,609			24,591
Short-term advances from customer, held by trustees		1,551			1,004
Other current liabilities		36,764			39,675

Total current liabilities		111,464			87,852

LONG-TERM LIABILITIES:
Accrued severance pay		9,445			10,579
Long-term loans, net		40,353			45,202
Accrued interest related to restructured debt		-			575
Convertible subordinated notes		-			14,379
Other long-term liabilities		25,341			32,678

Total long-term liabilities		75,139			103,413

COMMITMENTS AND CONTINGENCIES

EQUITY:
Share capital - ordinary shares of NIS 0.2 par value		1,882			1,855
Additional paid in capital		867,100			865,080
Accumulated other comprehensive income		539			774
Accumulated deficit		(609,446	)		(603,596	)

Total equity		260,075			264,113

TOTAL LIABILITIES AND EQUITY		446,678			455,378

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
					31 December 2011									31 December 2010
		GAAP			Adjustments (1)			Non-GAAP			GAAP			Adjustments (1)			Non-GAAP
		Unaudited			Unaudited			Unaudited			Unaudited			Unaudited			Unaudited

Revenues			93,604			-			93,604			66,059			-			66,059
Cost of revenues			59,943			(1,699	)		58,244			42,645			(1,512	)		41,133
Gross profit			33,661			1,699			35,360			23,414			1,512			24,926
			36	%					38	%		35	%					38	%
Research and development expenses:
Expenses incurred			8,963			(48	)		8,915			7,342			(48	)		7,294
Less - grants			635			-			635			878			-			878
			8,328			(48	)		8,280			6,464			(48	)		6,416
Selling, marketing, general and administrative expenses			21,046			(588	)		20,458			18,480			(466	)		18,014
Costs related to acquisition transactions			-			-			-			2,612			(2,612	)		-
Impairment of goodwill and restructuring costs			19,478			(19,478	)		-			-			-			-
Operating income (loss)			(15,191	)		21,813			6,622			(4,142	)		4,638			496
Financial expenses, net			(113	)		-			(113	)		(243	)		-			(243	)
Other income			1,863			(1,863	)		-			75			(75	)		-
Income (loss) before taxes on income			(13,441	)		19,950			6,509			(4,310	)		4,563			253
Taxes on income (tax benefit)			(1,911	)		-			(1,911	)		589			-			589
Net income (loss)			(11,530	)		19,950			8,420			(4,899	)		4,563			(336	)

Basic net earnings (loss) per share			(0.28	)					0.20			(0.12	)					(0.01	)
Diluted net earnings (loss) per share			(0.28	)					0.20			(0.12	)					(0.01	)

Weighted average number of shares used in
computing net earnings (loss) per share
	Basic		41,111						41,111			40,639						40,639
	Diluted		41,111						42,782			40,639						40,639

(1)	Adjustments reflect the effect of non-cash stock options expenses as per SFAS123R, costs related to acquisition transactions,impairment of goodwill and restructuring costs, amortization of intangible assets related to acquisition transactions and other income.

	Three months ended		Three months ended
	31 December 2011		31 December 2010
Non-cash stock-based compensation expenses:
Cost of Revenues		69		77
Research and development		48		48
Selling, general, marketing and administrative		358		307
		475		432

Amortization of intangible assets related to acquisition transactions:
Cost of Revenues		1,630		1,435
Selling, general, marketing and administrative		230		159
		1,860		1,594

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
					31 December 2011									31 December 2010
		GAAP			Adjustments (1)			Non-GAAP			GAAP			Adjustments (1)			Non-GAAP
		Unaudited			Unaudited			Unaudited						Unaudited			Unaudited

Revenues			339,201			-			339,201			232,985			-			232,985
Cost of revenues			217,574			(7,416	)		210,158			153,131			(1,939	)		151,192
Gross profit			121,627			7,416			129,043			79,854			1,939			81,793
			36	%					38	%		34	%					35	%
Research and development expenses:
Expenses incurred			35,076			(222	)		34,854			22,194			(172	)		22,022
Less - grants			3,375			-			3,375			3,249			-			3,249
			31,701			(222	)		31,479			18,945			(172	)		18,773
Selling, marketing, general and administrative expenses			82,528			(2,437	)		80,091			63,240			(1,523	)		61,717
Costs related to acquisition transactions			256			(256	)		-			3,842			(3,842	)		-
Impairment of goodwill and restructuring costs			19,478			(19,478	)		-			-			-			-
Operating income (loss)			(12,336	)		29,809			17,473			(6,173	)		7,476			1,303
Financial expenses, net			(1,931	)		-			(1,931	)		(557	)		-			(557	)
Other income			8,074			(8,074	)		-			37,360			(37,360	)		-
Income (loss) before taxes on income			(6,193	)		21,735			15,542			30,630			(29,884	)		746
Taxes on income (tax benefit)			(343	)		-			(343	)		11			-			11
Net income (loss)			(5,850	)		21,735			15,885			30,619			(29,884	)		735

Basic net earnings (loss) per share			(0.14	)					0.39			0.76						0.02
Diluted net earnings (loss) per share			(0.14	)					0.37			0.73						0.02

Weighted average number of shares used in
computing net earnings (loss) per share
	Basic		40,929						40,929			40,467						40,467
	Diluted		40,929						42,889			41,985						42,806

(1)	Adjustments reflect the effect of non-cash stock options expenses as per SFAS123R, costs related to acquisition transactions, impairment of goodwill and restructuring costs, amortization of intangible assets related to acquisition transactions and other income.

	Year ended		Year ended
	31 December 2011		31 December 2010
Non-cash stock-based compensation expenses:
Cost of Revenues		295		281
Research and development		222		172
Selling, general, marketing and administrative		1,492		1,273
		2,009		1,726

Amortization of intangible assets related to acquisition transactions:
Cost of Revenues		7,121		1,658
Selling, general, marketing and administrative		945		250
		8,066		1,908

GILAT SATELLITE NETWORKS LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except per share data)

	Year ended December 31,						Three months ended December 31,
	2011			2010			2011			2010
	Unaudited						Unaudited			Unaudited

Revenues		339,201			232,985			93,604			66,059
Cost of revenues		217,574			153,131			59,943			42,645
Gross profit		121,627			79,854			33,661			23,414
Research and development expenses:
Expenses incurred		35,076			22,194			8,963			7,342
Less - grants		3,375			3,249			635			878
		31,701			18,945			8,328			6,464
Selling, marketing, general and administrative expenses		82,528			63,240			21,046			18,480
Costs related to acquisition transactions		256			3,842			-			2,612
Impairment of goodwill and restructuring costs		19,478			-			19,478			-
Operating loss		(12,336	)		(6,173	)		(15,191	)		(4,142	)
Financial expenses, net		(1,931	)		(557	)		(113	)		(243	)
Other income		8,074			37,360			1,863			75
Income (loss) before taxes on income		(6,193	)		30,630			(13,441	)		(4,310	)
Taxes on income (tax benefit)		(343	)		11			(1,911	)		589
Net income (loss)		(5,850	)		30,619			(11,530	)		(4,899	)

Basic net earnings (loss) per share		(0.14	)		0.76			(0.28	)		(0.12	)
Diluted net earnings (loss) per share		(0.14	)		0.73			(0.28	)		(0.12	)

Weighted average number of shares used in
computing net earnings (loss) per share
Basic		40,929			40,467			41,111			40,639
Diluted		40,929			41,985			41,111			40,639

GILAT SATELLITE NETWORKS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
US dollars in thousands

	Year ended December 31,						Three months ended December 31,
	2011			2010			2011			2010
	Unaudited						Unaudited			Unaudited

Cash flows from operating activities:
Net income (loss)		(5,850	)		30,619			(11,530	)		(4,899	)
Adjustments required to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization		24,121			14,794			6,070			4,855
Impairment of goodwill and other intangible assets		18,043			-			18,043			-
Gain from the sale of an investment accounted for at cost		(3,034	)		(24,314	)		-			-
Stock-based compensation related to employees		2,009			1,726			475			432
Accrued severance pay, net		(285	)		(135	)		(21	)		(2	)
Accrued interest and exchange rate differences on
short and long-term restricted cash, net		500			(201	)		269			195
Accrued interest and exchange rate differences on
marketable securities and short term bank deposits, net		-			(45	)		-			181
Exchange rate differences on long-term loans		(112	)		(415	)		(262	)		(107	)
Capital loss from disposal of property and equipment		286			270			168			-
Deferred income taxes		(428	)		(250	)		(1,589	)		(246	)
Decrease (increase) in trade receivables, net		646			(1,562	)		3,553			4,733
Increase in other assets (including short-term, long-term
and deferred charges)		(21,062	)		(5,545	)		(1,825	)		(1,005	)
Increase in inventories		(4,889	)		(2,946	)		(1,194	)		(2,584	)
Increase (decrease) in trade payables		7,066			(4,759	)		3,912			(1,059	)
Increase in accrued expenses		11			2,256			575			3,156
Increase (decrease) in advances from customer, held
by trustees, net		547			(1,133	)		(1,062	)		(3,158	)
Increase (decrease) in other accounts payable and other long term liabilities		(8,972	)		4,574			1,407			2,920
Net cash provided by operating activities		8,597			12,934			16,989			3,412

GILAT SATELLITE NETWORKS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
US dollars in thousands

	Year ended December 31,						Three months ended December 31,
	2011			2010			2011			2010
	Unaudited						Unaudited			Unaudited
Cash flows from investing activities:
Purchase of property and equipment		(8,948	)		(7,638	)		(2,844	)		(2,182	)
Proceeds from sale of an investment accounted for at cost		3,034			24,314			-			-
Investment in bank deposits		-			(30,693	)		-			-
Proceeds from bank deposits		-			62,384			-			22,507
Purchase of available-for-sale marketable securities		-			(4,804	)		-			-
Proceeds from available-for-sale marketable securities		-			4,888			-			4,888
Investment in restricted cash held by trustees		(11,737	)		(12,346	)		(5,417	)		-
Proceeds from restricted cash held by trustees		10,660			13,673			6,213			2,963
Investment in restricted cash (including long-term)		(23,548	)		(2,941	)		(8,817	)		(2,478	)
Proceeds from restricted cash (including long-term)		23,014			1,339			6,045			5
Proceeds from working capital adjustment to subsidiary purchase price		1,465			-			-			-
Acquisitions of subsidiaries, net of cash acquired		(1,867	)		(153,883	)		-			(127,566	)
Purchase of intangible asset		(38	)		(2,515	)		(12	)		(15	)
Net cash used in investing activities		(7,965	)		(108,222	)		(4,832	)		(101,878	)

Cash flows from financing activities:
Repayment of convertible notes		(835	)		(839	)		(441	)		-
Issuance of restricted stock units and exercise of stock options		27			39			7			6
Short-term bank credit, net		842			(946	)		200			(1,173	)
Proceeds from long-term loans		-			40,000			-			40,000
Repayment of long-term loans		(1,225	)		(8,409	)		(178	)		(4,128	)
Net cash provided by (used in) financing activities		(1,191	)		29,845			(412	)		34,705

Effect of exchange rate changes on cash and cash equivalents		(448	)		9			(9	)		27

Increase (decrease) in cash and cash equivalents		(1,007	)		(65,434	)		11,736			(63,734	)

Cash and cash equivalents at the beginning of the period		57,238			122,672			44,495			120,972

Cash and cash equivalents at the end of the period		56,231			57,238			56,231			57,238

GILAT SATELLITE NETWORKS LTD.
CONDENSED EBITDA
US dollars in thousands

	Year ended December 31,						Three months ended December 31,
	2011			2010			2011			2010
	Unaudited			Unaudited			Unaudited			Unaudited

Operating loss		(12,336	)		(6,173	)		(15,191	)		(4,142	)
Add:
Non-cash stock-based compensation expenses		2,009			1,726			475			432
Costs related to acquisition transactions		256			3,842			-			2,612
Impairment of goodwill and restructuring costs		19,478			-			19,478			-
Depreciation and amortization		24,121			14,794			6,070			4,855
EBITDA		33,528			14,189			10,832			3,757