PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ:TASE: NASDAQ:GILT), a global player in satellite networking technology, announced today its appointment to the board of the Waveform Architecture for Virtualized Ecosystems (WAVE) Consortium. The consortium, formed in March 2024, aims to innovate satellite communications infrastructure, making it more agile, scalable, and cost-effective.
Gilat's involvement signifies its commitment to advancing satellite communications, aligning with the broader telecommunications sector's efforts to enhance connectivity. The company's Head of Research & Algorithms, Guy Levitas, and Chief Architecture Officer, Adi Adotler, will serve on the WAVE board. Their roles will be crucial in steering the consortium's objectives.
Levitas, with 18 years at Gilat, has been pivotal in modem algorithm research and development, while Adotler, with 24 years at the company, has led the System Architects group since 2019. Both bring extensive expertise to the consortium, which is set to drive the satellite communications industry forward through collaboration and innovation.
The WAVE Consortium, under the IEEE-ISTO, includes industry leaders such as Microsoft (NASDAQ:MSFT), SES, Intelsat, and Amazon (NASDAQ:AMZN) Web Services (AWS), along with U.S. Department of Defense offices. Its vision is to create a virtualized SATCOM ecosystem using scalable commodity platforms to foster rapid innovation and a more competitive supplier landscape.
Anirban Chakraborty, Chair of the WAVE board and CTO of Comtech Telecommunications (NASDAQ:CMTL), highlighted the value Gilat adds to the consortium, noting their experience and commitment to innovation in SATCOM solutions.
Gilat Satellite Networks, with over 35 years in the industry, specializes in satellite-based broadband communications, providing solutions for connectivity across various applications and markets, including defense, aerospace, and government.
This announcement is based on a press release statement from Gilat Satellite Networks.
In other recent news, Gilat Satellite Networks Ltd. demonstrated growth and strategic initiatives in its second quarter 2024 earnings call. The company reported a 13% year-over-year increase in revenue, driven by its defense business and the recent acquisition of DataPath. Additionally, Gilat announced the acquisition of Stellar Blu Solutions, a move expected to close in the fourth quarter of 2024 and projected to add between $120 million to $150 million in revenue in 2025.
Gilat's CEO expressed confidence in the company's transformation into a high-growth entity and its positioning as a market leader in the aviation electronically steerable antenna (ESA) market. The company also maintained its 2024 guidance, forecasting robust revenue growth and an increase in adjusted EBITDA, which for Q2 2024 stood at $10.1 million, a 10% increase from the previous year.
The company anticipates continued growth in the defense, mobility, and very high throughput satellite markets. It also sees potential in the LEO satellite market and is exploring opportunities with OneWeb and Iris Square. Despite acknowledging challenges in ramping up production for Stellar Blu's new products, Gilat's management remains confident in Stellar Blu's production capacity and the success of the STC process. These are some of the recent developments in the company's strategic operations.
InvestingPro Insights
As Gilat Satellite Networks Ltd. (NASDAQ:TASE: GILT) takes a significant step forward by joining the WAVE Consortium, the company's financial health and market performance provide additional context for stakeholders. With a focus on innovation and collaboration, Gilat's financial metrics indicate a robust position in the industry.
InvestingPro data shows that Gilat's market capitalization is currently valued at $265.53 million, reflecting the market's assessment of the company's value. The P/E ratio, a measure of the company's current share price relative to its per-share earnings, stands at 13.36, which could be appealing to investors looking for reasonably priced earnings growth. Furthermore, a Price / Book ratio of 0.94 suggests that the company's market value is slightly less than its book value, potentially indicating that the stock is undervalued.
From a financial stability standpoint, an InvestingPro Tip highlights that Gilat holds more cash than debt on its balance sheet, providing the company with a cushion to navigate economic fluctuations and invest in strategic initiatives like the WAVE Consortium. Additionally, the company's liquid assets exceed its short-term obligations, ensuring it can meet its immediate financial liabilities without strain.
While Gilat's stock has seen a significant decline over the past six months, the company remains profitable over the last twelve months, as per another InvestingPro Tip. This profitability, coupled with its solid financial foundation, may offer reassurance to investors during periods of market volatility.
For those interested in deeper analysis, InvestingPro offers a total of 5 additional tips on Gilat, available at https://www.investing.com/pro/GILT. These insights could be instrumental for investors considering Gilat's role in advancing satellite communications alongside its financial metrics.
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