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 May, 2018

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 ☒          Form 40-F ☐

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐          No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):   N/A

Attached hereto is Registrant’s press release dated May 15, 2018, announcing Gilat’s First Quarter 2018 results.
 
We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form S-8 (Registration Nos. 333-180552, 333-187021, 333-204867, 333-210820, 333-221546 and 333-223839).

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 May 15, 2018
By: /s/ Yael Shofar
  
 
       Yael Shofar
  
 
       General Counsel


2
 
Gilat Reports Significant Increase in Year-over-Year Profitability in Q1 2018

Fixed Networks segment and Mobility Solutions Segment revenues were up
approximately 40% year over year

Petah Tikva, Israel – May 15, 2018 – Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the first quarter ended March 31, 2018.
 
 Key Financial Highlights:
 
·
Revenues for Q1 2018 totaled $67.4 million, up 5.4% from Q1 2017.
 
·
Company's revised reporting segments:
 
o
Q1 2018 Fixed Networks Segment revenues were up 40.0% year over year;
 
o
Mobility Solutions Segment revenues increased 39.3% from Q1 2017;
 
o
Terrestrial Infrastructure Projects Segment revenues decreased 59.4% from Q1 2017, as the construction phase of the Company's project for Fitel in Peru winds down and the project shifts to the operational phase later this year.
 
·
Continued strong profitability:
 
o
Q1 2018 GAAP operating income rose to $3.7 million from $0.02 million in Q1 2017.
 
o
Q1 2018 Non-GAAP operating income rose to $5.1 million, or 108% year over year.
 
o
Q1 2018 GAAP net income was $2.3 million, or $0.04 per diluted share, compared with a GAAP loss of $0.8 million, or $0.01 per diluted share, in Q1 2017.
 
o
Q1 2018 non-GAAP net income increased year over year to $3.8 million, or $0.07 per diluted share, versus $1.7 million, or $0.03 per diluted share, in Q1 2017.
 
o
Q1 2018 Adjusted EBITDA increased 78% year over year to $7.5 million, or 11.2 % of revenues.
 
·
Reiterated management objectives for 2018: revenue range between $285 million to $305 million (up 1% to 8% from 2017), GAAP operating income of between $17 million and $21 million (up 56% to 93% from 2017), and Adjusted EBITDA between $30 million and $34 million (up 15% to 30% from 2017).
 
3
Yona Ovadia, CEO of Gilat, commented:
 “I am pleased to report that the first quarter of 2018 was a very positive quarter for Gilat. The quarter was very positive from a business perspective, with significant wins and achievements.
“We won with Speedcast a substantial deal of tens of millions of dollars for NBN in Australia to meet the demand for broadband services for businesses and government customers.
“In addition, we made progress on the Telco backhaul front with additional Mobile Network Operators expanding several cellular backhaul networks, as well as securing a backhauling deal for critical communications with Altice in Portugal.
“And we also launched Gilat’s complete dual-band aero terminal for commercial in-flight connectivity, which achieved noteworthy performance during a live customer demonstration in China, in both Ku and Ka, with unprecedented download speeds of 130Mbps with dozens of concurrent users.
“Our strong year-over-year financial performance in this quarter is the targeted outcome of the continued progress in our business and of our strategic growth engines of mobile cellular backhaul and mobility IFC, and is evident across all measures including the substantial increase in operating income, both GAAP and non-GAAP, and the continued growth in Adjusted EBITDA to $7.5 million, an increase of 78% from Q1 2017.  We also further delivered on our commitment to GAAP profitability with first quarter net income of $2.3 million compared with a loss of $0.8 million in the first quarter last year.”   
Mr. Ovadia concluded: “The strong first quarter with the closing of the substantial deal with NBN in Australia, gave us a good start to the year. We remain strongly confident with our strategy and achieving our targets for the year.”

Key Recent Announcements:
·
Gilat Launches Complete Dual Band Aero Terminal for Commercial In-Flight Connectivity
·
Altice Portugal Selects Gilat to Support Backhauling to Critical Communications
·
Hispasat Selects Gilat for a Multi-Million Dollar Project to Deliver Broadband Services in Mexico

Conference Call and Webcast Details:
Gilat management will host a conference call today, Tuesday, May 15, to discuss the first quarter results.  The details are as follows:
 
Conference Call and Webcast
Following today's release, Yona Ovadia, Chief Executive Officer, and Adi Sfadia, Chief Financial Officer, will discuss Gilat’s first quarter 2018 results and participate in a question and answer session:
 
Date:
Tuesday, May 15, 2018
Start:
09:30 AM EST / 16:30 IST
Dial-in:
US: 1-888-668-9141
 
International: (972) 3-918-0609
 
4
 
A simultaneous Webcast of the conference call will be available on the Gilat website at www.gilat.com and through this link: http://www.veidan-stream.com/gilatq1-2018.html
 
The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.
 
Conference Call Replay
 
Start:
May 15, 2018 at 12:00 PM EST / 19:00 IST
End:
May 18, 2018 at 12:00 PM EST / 19:00 IST
Dial-in:
US: 1-888-326-9310
 
International: (972) 3-925-5901
 
Non-GAAP Measures
 The attached summary unaudited financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents Non-GAAP presentations of net income, operating income, Adjusted EBITDA and earnings per share. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance.

Adjusted EBITDA (operating income before depreciation, amortization, non-cash stock option expenses, costs related to acquisition transactions, restructuring cost, goodwill impairment, impairment of long lived assets, trade secrets litigation expenses and expenses under amnesty program) is presented to compare the Company’s performance to that of prior periods and evaluate the Company’s financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company’s financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company's Operating income and Adjusted EBITDA is presented in the attached summary financial statements.

This news release also contains a forward-looking estimate of Adjusted EBITDA projected to be generated by Gilat in 2018. A forward-looking estimate of net income and reconciliations of the forward-looking estimates of Adjusted EBITDA to net income are not provided because the items necessary to estimate net income are not estimable at this time. Non-GAAP presentations of net income, operating income, Adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat’s operating performance or liquidity.
 
About Gilat
 
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With 30 years of experience, we design and manufacture cutting-edge ground segment equipment, and provide comprehensive solutions and end-to-end services, powered by our innovative technology. Delivering high value competitive solutions, our portfolio comprises of a cloud based VSAT network platform, high-speed modems, high performance on-the-move antennas and high efficiency, high power Solid State Amplifiers (SSPA) and Block Upconverters (BUC).
5
Gilat’s comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, cellular backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety, all while meeting the most stringent service level requirements. Gilat controlling shareholders are the FIMI Private Equity Funds. For more information, please visit: 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
Doreet Oren
DoreetO@gilat.com

Comm-Partners LLC
June Filingeri, President
203-972-0186
junefil@optonline.net
 
6
 
GILAT SATELLITE NETWORKS LTD.
          
CONSOLIDATED STATEMENTS OF OPERATIONS
          
U.S. dollars in thousands (except share and per share data)
        
 
   
Three months ended
  
   
March 31,
  
   
2018
    
2017
  
   
Unaudited
    
Unaudited
  
             
Revenues
  
$
67,374
    
$
63,931
  
Cost of revenues
    
45,987
      
46,590
  
                 
Gross profit
    
21,387
      
17,341
  
                 
Research and development expenses
    
8,446
      
6,755
  
Less - grants
    
467
      
47
  
Research and development expenses, net
    
7,979
      
6,708
  
Selling and marketing expenses
    
5,413
      
5,795
  
General and administrative expenses
    
4,335
      
4,820
  
                 
Total operating expenses
    
17,727
      
17,323
  
                 
Operating income
    
3,660
      
18
  
                 
Financial expenses, net
    
(583
)
    
(804
)
                 
Income (loss) before taxes on income
    
3,077
      
(786
)
                 
Taxes on income (tax benefit)
    
766
      
(2
)
                 
Net income (loss)
  
$
2,311
    
$
(784
)
                 
Earnings (loss) per share (basic and diluted)
  
$
0.04
    
$
(0.01
)
                 
Weighted average number of shares used in computing earnings (loss) per share
                
Basic
    
54,765,456
      
54,623,685
  
Diluted
    
55,590,362
      
54,623,685
  
 
 
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      
  
   
March 31, 2018      
    
March 31, 2017      
  
   
GAAP
    
Adjustments (1)
    
Non-GAAP
    
GAAP
    
Adjustments (1)
    
Non-GAAP
  
   
Unaudited      
    
Unaudited      
  
                                     
Gross profit
  
$
21,387
      
1,200
    
$
22,587
    
$
17,341
      
1,205
    
$
18,546
  
Operating expenses
    
17,727
      
(263
)
    
17,464
      
17,323
      
(1,236
)
    
16,087
  
Operating income
    
3,660
      
1,463
      
5,123
      
18
      
2,441
      
2,459
  
Income (loss) before taxes on income
    
3,077
      
1,463
      
4,540
      
(786
)
    
2,441
      
1,655
  
Net income (loss)
  
$
2,311
      
1,463
    
$
3,774
    
$
(784
)
    
2,441
    
$
1,657
  
                                                 
Earnings (loss) per share (basic and diluted)
  
$
0.04
    
$
0.03
    
$
0.07
    
$
(0.01
)
  
$
0.04
    
$
0.03
  
                                                 
Weighted average number of shares used in computing earnings (loss) per share
                                                
    Basic
    
54,765,456
              
54,765,456
      
54,623,685
              
54,623,685
  
    Diluted
    
55,590,362
              
55,816,038
      
54,623,685
              
54,836,436
  
 
(1)
Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions and trade secrets litigation expenses.
 
           
Three months ended
                    
Three months ended
          
           
March 31, 2018
                    
March 31, 2017
          
           
Unaudited
                    
Unaudited
          
                                                 
GAAP net income (loss)
          
$
2,311
                    
$
(784
)
        
                                                 
Gross profit
                                                
Non-cash stock-based compensation expenses
            
6
                      
10
          
Amortization of intangible assets related to acquisition transactions
            
             1,194
                      
1,195
          
             
1,200
                      
1,205
          
Operating expenses
                                                
Non-cash stock-based compensation expenses
            
212
                      
194
          
Amortization of intangible assets related to acquisition transactions
             51                      
194
          
Trade secrets litigation expenses
            
-
                      
848
          
             
263
                      
1,236
          
                                                 
Non-GAAP net income
          
$
3,774
                    
$
1,657
          
 
8
 
GILAT SATELLITE NETWORKS LTD.
            
SUPPLEMENTAL INFORMATION
            
U.S. dollars in thousands
            
 
ADJUSTED EBITDA:
            
 
   
Three months ended
  
   
March 31,
  
   
2018
    
2017
  
   
Unaudited
  
             
GAAP operating income
  
$
3,660
    
$
18
  
Add:
                
Non-cash stock-based compensation expenses
    
218
      
204
  
Trade secrets litigation expenses
    
-
      
848
  
Depreciation and amortization
    
3,650
      
3,165
  
                 
Adjusted EBITDA
  
$
7,528
    
$
4,235
  
 
SEGMENT REVENUE:
                
 
   
Three months ended
  
   
March 31,
  
     
2018
      
2017
  
   
Unaudited
  
                 
Fixed Networks
  
$
37,614
    
$
26,872
  
Mobility Solutions
    
20,758
      
14,904
  
Terrestrial Infrastructure Projects
    
9,002
      
22,155
  
                 
Total revenue
  
$
67,374
    
$
63,931
  
 
 
9
GILAT SATELLITE NETWORKS LTD.
        
CONSOLIDATED BALANCE SHEET
        
U.S. dollars in thousands
        
 
   
March 31,
    
December 31,
  
   
2018
    
2017
  
   
Unaudited
    
Audited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
78,929
    
$
52,957
  
Restricted cash
    
27,122
      
29,288
  
Restricted cash held by trustees
    
251
      
4,325
  
Trade receivables, net
    
73,654
      
108,842
  
Inventories
    
29,502
      
28,853
  
Other current assets
    
22,049
      
21,686
  
                 
   Total current assets
    
231,507
      
245,951
  
                 
LONG-TERM INVESTMENTS:
                
Severance pay funds
    
7,746
      
8,188
  
Other long term receivables
    
1,643
      
1,258
  
                 
Total long-term investments
    
9,389
      
9,446
  
                 
PROPERTY AND EQUIPMENT, NET
    
82,523
      
82,246
  
                 
INTANGIBLE ASSETS, NET
    
4,409
      
5,709
  
                 
GOODWILL
    
43,468
      
43,468
  
                 
TOTAL ASSETS
  
$
371,296
    
$
386,820
  
 
 
10
GILAT SATELLITE NETWORKS LTD.
        
CONSOLIDATED BALANCE SHEET
        
U.S. dollars in thousands
        
 
   
March 31,
    
December 31,
  
   
2018
    
2017
  
   
Unaudited
    
Audited
  
             
LIABILITIES AND EQUITY
            
             
CURRENT LIABILITIES:
            
Current maturities of long-term loans
  
$
4,616
    
$
4,479
  
Trade payables
    
25,632
      
33,715
  
Accrued expenses
    
67,847
      
70,534
  
Advances from customers and deferred revenues
    
14,066
      
16,721
  
Advances from customers, held by trustees
    
-
      
1,416
  
Other current liabilities
    
19,575
      
20,044
  
                 
   Total current liabilities
    
131,736
      
146,909
  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
    
7,645
      
7,999
  
Long-term loans, net of current maturities
    
8,475
      
12,582
  
Other long-term liabilities
    
1,008
      
1,008
  
                 
   Total long-term liabilities
    
17,128
      
21,589
  
                 
EQUITY:
                
Share capital - ordinary shares of NIS 0.2 par value
    
2,604
      
2,601
  
Additional paid-in capital
    
922,244
      
921,726
  
Accumulated other comprehensive loss
    
(3,289
)
    
(3,046
)
Accumulated deficit
    
(699,127
)
    
(702,959
)
                 
Total equity
    
222,432
      
218,322
  
                 
TOTAL LIABILITIES AND EQUITY
  
$
371,296
    
$
386,820
  
 
11
GILAT SATELLITE NETWORKS LTD.
          
CONSOLIDATED STATEMENTS OF CASH FLOWS (*)
          
U.S. dollars in thousands
          
 
   
Three months ended
  
   
March 31,
  
   
2018
    
2017
  
   
Unaudited
    
Unaudited
  
Cash flows from operating activities:
            
Net income (loss)
  
$
2,311
    
$
(784
)
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities:
                
Depreciation and amortization
    
3,650
      
3,165
  
Stock-based compensation of options and RSU's
    
218
      
204
  
Accrued severance pay, net
    
88
      
(61
)
Exchange rate differences on long-term loans
    
30
      
25
  
Deferred income taxes, net
    
12
      
(16
)
Decrease (increase) in trade receivables, net
    
35,509
      
(6,955
)
Decrease (increase) in other assets (including short-term, long-term and deferred charges)
    
714
      
(3,250
)
Increase in inventories
    
(1,445
)
    
(3,312
)
Decrease in trade payables
    
(8,272
)
    
(392
)
Increase (decrease) in accrued expenses
    
(2,007
)
    
7,493
  
Decrease in advances from customers
    
(4,902
)
    
(3,098
)
Decrease in advances from customers, held  by trustees
    
(1,478
)
    
(4,412
)
Increase (decrease) in other current liabilities and other long term liabilities
    
1,564
      
(2,338
)
Net cash provided by (used in) operating activities
    
25,992
      
(13,731
)
                 
Cash flows from investing activities:
                
Purchase of property and equipment
    
(2,861
)
    
(1,212
)
Net cash used in investing activities
    
(2,861
)
    
(1,212
)
                 
Cash flows from financing activities:
                
Issuance of restricted stock units and exercise of stock options
    
306
      
266
  
Repayment of long-term loans
    
(4,000
)
    
(4,241
)
Net cash used in financing activities
    
(3,694
)
    
(3,975
)
                 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
    
296
      
428
  
                 
Increase (decrease) in cash, cash equivalents and restricted cash
    
19,733
      
(18,490
)
                 
Cash, cash equivalents and restricted cash at the beginning of the period
    
86,757
      
111,633
  
                 
Cash, cash equivalents and restricted cash at the end of the period
  
$
106,490
    
$
93,143
  
 
(*) In November 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual and interim periods beginning after December 15, 2017. The Company adopted this standard during the first quarter of 2018 using the retrospective transition method, as required by the new standard.
 
The following table provides a reconciliation of cash and cash equivalents, and long term restricted cash reported within the consolidated balance sheets that sum to the total of such amounts in the consolidated statements of cash flows:
 
   
Three months ended
  
   
March 31,
  
    2018      2017  
    Unaudited     Unaudited  
                 
Cash and cash equivalents
  
$
78,929
    
$
65,076
  
Restricted cash
    
27,122
      
23,817
  
Restricted cash held by trustees
    
251
      
4,081
  
Long term restricted cash included in other assets
    
188
      
169
  
Cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows
  
$
106,490
    
$
93,143
  
 
12