Ladies and gentlemen, thank you for standing by. Welcome to Gilat's Fourth Quarter and Full Year 2020 Results Conference Call. All participants are at present in listen-only mode. Following the managements formal presentation, instructions will be given for the question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, February 16, 2021. By now you should have all received the company's press release, if you have not received it, please contact Gilat's Investor Relations team at GK Investor & Public Relations at 1-646-688-3559 or view it in the news section of the company's website at www.gilat.com. I would now like to hand over the call to Mr. Ehud Helft of GK Investor Relations. Mr. Ehud, would you like to begin please?

Thank you, operator. Good morning and good afternoon, everyone. Thank you for joining us today for Gilat's fourth quarter and full year 2020 results conference call and webcast. A recording of this call will be available beginning at approximately noon, Eastern Time, today February 16th and will be available for telephone replay until February 19th at noon. The webcast will be archived on Gilat's website for a period of 30 days. Also, please note, that investors are urged to read the forward-looking statements in Gilat's earnings release with a reminder that the statements made on this earnings call that are not historical facts may deem forward-looking statements within the meaning of the Private Securities Litigation Form Act of 1995. All such forward-looking statements including statements regarding future financial operating results involve risks, uncertainties, and contingencies, many of which are beyond the control of Gilat, and which may cause actual results to differ materially from anticipated results. Gilat is under no obligation to update or alter these forward-looking statements whether as a result of new information, future events, or otherwise and the company's expressly disclaimers any obligation to do so. More detailed information about the risk factors can be found in Gilat's reported filed with the Securities and Exchange Commission. With that said, let me turn to introductions. On the call today are Mr. Adi Sfadia, Gilat's CEO; and Mrs. Bosmat Halpern, Gilat's CFO. I would now like to turn over the call to Adi Sfadia. Adi, we are ready to begin.

Thank you, Ehud, and good day to everyone. I would like to thank you for joining us today as for our quarterly earning call. I'm happy to report our fourth quarter 2020 results, as well as to provide a summary of our performance in 2020. During 2020, and especially during the second half of the year, we made major technological achievements and closed on very significant deals, all of which position us very well for 2021 and onward. We reduced our operating cost by close to 20% to better align our costs with the 2020 revenue level, which allowed us to maintain a positive EBITDA over the past three quarters. As you know, in the fourth quarter of 2020, our merger with Comtech was terminated with the settlement that was reached on all pending litigation for payment of $70 million to Gilat by Comtech. We recently shared approximately $55 million of dividend with our shareholders derived from this termination fee, net of transaction and litigation costs. Moving ahead, we are continuing at full force to implement our strategy which we believe will generate long-term value for our shareholders. In Q4, we continue to trend of recovery that started in Q3. We closed multi-million dollar deals in our strategic growth areas that I will go into shortly. On the financial front, in 2020 we saw a decline in our revenues $165.9 million from $263.5 million in 2019 due to the COVID-19 pandemic, which was primarily because of the absence of travel and therefore a sharp decline in IFC business. Taking a closer look at the fourth quarter of 2020, overall, our revenue showed improvement over the previous quarter with a 14% quarter-over-quarter increase to $42.6 million; this recovery demonstrate that we are heading back in the right direction. While improved versus…

Thank you, Adi. Good morning and good afternoon to everyone. I would like to remind everyone that our financial results are presented both, on a GAAP and non-GAAP basis. We regularly use supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, and to make operating decisions. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating performance. Non-GAAP financial measures mainly exclude the effect of stock-based compensation, amortization of purchased intangibles, amortization of lease incentives, trade secrets and other litigation expenses, reorganization costs, merger, acquisition and related litigation expenses or income net, and initial recognition of deferred tax assets with respect to carryforward losses. The reconciliation table in our press release highlights this data and our non-GAAP information presented exclude these items. And now our financial highlights for the fourth quarter of 2020 followed by our full year 2020 highlights. Overall, our quarterly results showed an improvement over the prior quarter with strong quarterly bookings. We believe they would present a stabilization in our end markets with the exception of the in-flight connectivity or IFC vertical, which is yet to show signs of meaningful recovery. Revenues for the fourth quarter was $42.6 million compared to $78.3 million in the fourth quarter of 2019. The year-over-year decline primarily reflects the continued impact of the COVID-19 pandemic on revenue from IFC in our Mobility Solutions segment. However, when compared to the previous quarter, revenues increased by more than 14% compared to $37.3 million. Fixed networks segment revenues were $25.1 million, compared to $33.2 million in the same quarter last year. The decrease year-over-year is mainly due to the COVID-19 pandemic. We saw an improvement compared with the previous quarter where fixed networks revenues were $22.8 million. Mobility solutions segment…

[Operator Instructions] The first question is from [indiscernible]. Please go ahead.

Hi, good morning -- actually good afternoon, and congratulations on the results. Question for you on the Wavestream LEO Gateway contract award. Can you give us a sense of what you think the determining factor was in that award? And secondarily, are there opportunities with that same customer on the modem side or was this just simply a bid on the amplifier?

Hi, Chris. Good to hear from you. I think the main factors that make Wavestream the award is the technology and the ability to supply with high quality and Wavestream has proven in the past that they have those capabilities. In this specific constellation, I don't think we have opportunity on the modem side.

And are there other modem opportunities that you're still pursuing?

Definitely there are several opportunities in the NGSO, both LEO and MEO, that we are pursuing. And I hope that we will be able to report some progress during the coming few months and quarters.

And do you have an update on progress where you stand with SES on the mPOWER program?

Yes, sure. So we were awarded about a year ago for the ground equipment, the baseband [ph] was a large award. We are in development efforts to be able to provide it on time by the end of 2021. In addition, about a quarter ago or three months ago we were awarded a development of point-to-point modem, especially for the maritime and government application. And I think that the potential for us with the SES and mPOWER is still significant and we are working on several opportunities that will mature in the coming few months.

One other question on Wavestream, I think you mentioned in the press release some ongoing U.S. government or military program wins; now that the WIN-T program is dead, and maybe not fully dead still living in a zombie state, where are those new orders coming from? I mean, what type of programs are specific programs are you seeing demand from?

Yes. Some of them are still going to this WIN-T program, and some -- in some cases, even I don't allow to know exactly where they are going to but DoD programs that we cannot disclose the names.

Okay. And you mentioned initial 5G demonstrations on the modem side, where are we in that process? You've got great market share on the 4G side, do you expect to see sizeable 5G-related orders in the next year or couple of years for -- or most of the deployments at this time being done more in the urban core where satellite is not needed?

So, I think you already answered it. We've demonstrated our 5G capabilities and we are going to launch additional products and solutions for the 5G architecture and market. But what we see right now is that 5G is deployed may be -- mainly in urban areas where fiber is available. But one thing that we do see on a lot of license requirements worldwide is that the MNOs required to cover with 4G, a lot of rural areas that it will take them a lot of time to have 5G and this is enormous potential over 4G. Later on, I guess at the second stage, we will see 5G backhauling over satellite deployed in rural areas. I think based on some market analysis that we are getting from an analyst to cover the market, just equipment part of the 4G and 5G alone can be in few years more than $200 million a year. And today based on NSR, we hold more than 40% of the overall satellite cellular backhaul market; 2G, 3G and 4G. And if you look only on the 4G, we have more than 80% market share; so with significant increase in the market plus our market share, I think it represents huge opportunity for Gilat. Not taking into account that we are also selling managed service including reselling capacity which provide us also a significant opportunity to increase our top line, and also the bottom line.

Understand. And final question for you on the maritime market, that's a new market entry for Gilat, I guess in recent years. It sounds like the one win right now was in China, but do you have a strategy to broaden that on a more global basis? And given the fact that there is already very embedded suppliers in that market, iDirect, KVH Proprietary, and Inmarsat has it's ecosystem; what would be your approach to that market?

So, first of all, indeed you are correct that the maritime is a segment or vertical that we haven't played, and it wasn't a significant player. We had recent success in Asia, in China, indeed. And also, as I said point-to-point modem that we are developing for mPOWER is also targeting the maritime market, and I think that with that we can take significant market share together with the CS [ph] on that. And we have other opportunities and I think that it's -- it's a very large market, indeed are strong players, but I think with the next generation VSAT that we will announce soon, I think we have a fair share to take decent market share in the maritime.

Very good. Thank you.

Thank you, Chris.

The next question is from Gunther Karger of Discovery Group. Please go ahead.

Yes. So good morning and good afternoon. First of all, Adi, congratulations that we've come a long way. And secondly, a question, where are we on the high-speed train segment of the market?

High-speed train was a promise several years ago, we made a lot of progress in China but since then it's a bit -- it's a bit on hold. This mainly depend on the end-user needs and it's like additional add-ons that we can -- we can – the train manufacturer can add. We have some success in Spain of selling our antennas to trains, and several opportunities worldwide, but it's not going to be a significant growth engines where there are few million dollars a year.

Thank you, Adi.

Thank you, Gunther.

[Operator Instructions] There are no further questions at this time. Before I ask Ms. Bosmat Halpern to go ahead with her closing statement, I would like to remind participants that a replay of this call is scheduled to begin two hours after the conference. In the U.S., please call 1-888-326-9310; in Israel, please call 03-925-5904; Internationally, please call 972-3925-5904. Ms. Halpern, would you like to make your concluding statement?

Yes, thank you. I want to thank you all for joining us on this call, and for your time and attention. And we hope to see you soon or speak to you in the next call. Thank you very much, and have a great day.

Thank you. This concludes Gilat's fourth quarter and full year 2020 results conference call. Thank you for your participation. You may go ahead and disconnect.