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Gilat secures $9M in orders for SATCOM network expansion

EditorAhmed Abdulazez Abdulkadir
Published 07/23/2024, 08:59 AM
© Gilat Satellite Networks PR
GILT
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PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ:TASE: NASDAQ:GILT), a prominent provider of satellite networking technology, announced today that it has received over $9 million in orders to enhance satellite communication (SATCOM) networks for multiple operators.

These orders will leverage Gilat's solutions to support services across geostationary (GEO) and non-geostationary (NGSO) satellite orbits, catering to applications such as in-flight connectivity, maritime mobility, cellular backhaul, and enterprise services.

Hagay Katz, Gilat's Chief Product and Marketing Officer, stated that these orders affirm the company's leading role in the evolving space industry, where satellite operators increasingly depend on Gilat's expertise for multi-orbit operations. Katz emphasized Gilat's commitment to innovation and reliability in meeting the growing complexities of satellite communications.

With over 35 years of industry experience, Gilat Satellite Networks creates comprehensive solutions for satellite and ground connectivity, focusing on mission-critical operations. Their portfolio is designed to support a wide range of applications, offering products such as cloud-based platforms, high-performance satellite terminals, and antennas, as well as power amplifiers, upconverters, and integrated ground systems.

The company's offerings are tailored to meet the demands of broadband access, mobility, cellular backhaul, and various sectors including defense, aerospace, and government. Gilat stands by its mission to connect all people and is dedicated to delivering communication solutions to every corner of the globe.

The orders received by Gilat highlight the company's ability to address the satellite industry's needs with high-value solutions compatible with the latest satellite technologies, such as very high throughput satellites (VHTS) and software-defined satellites (SDS).

In other recent news, Gilat Satellite Networks Ltd. has seen a number of significant developments. The company reported a 29% year-over-year revenue increase in the first quarter of 2024, with projections between $305 million to $325 million for full-year 2024 revenue.

Gilat's US-based subsidiary, DataPath Inc., secured over $9 million in defense contracts, and the company also secured orders exceeding $14 million for its In-Flight Connectivity (IFC) solutions.

In addition, Gilat has made strides in its operations, securing a $10 million contract from Internet Para Todos (IPT) to expand rural connectivity in Peru and a $5 million contract for the upgrade of deployable satellite communication network hubs.

The company also announced a definitive agreement to acquire Stellar Blu Solutions LLC for up to $245 million, a move expected to contribute between $100 million to $150 million to its annual revenues starting in 2025.

InvestingPro Insights

Gilat Satellite Networks Ltd. (GILT) has recently made headlines with significant orders to enhance satellite communication networks, showcasing their expertise and the industry's confidence in their technology. In light of this news, let's delve into some key financial metrics and insights from InvestingPro that could be of interest to investors and industry observers alike.

InvestingPro Data highlights Gilat's sturdy financial position with a market capitalization of $261.07 million USD and a healthy P/E ratio of 11.38, which slightly adjusted to 11.31 for the last twelve months as of Q1 2023. This, coupled with a PEG ratio of just 0.01, suggests that the company's earnings growth is potentially undervalued relative to its share price. Furthermore, Gilat's revenue growth has been robust, with a 14.48% increase over the last twelve months as of Q1 2023, and an even more impressive quarterly surge of 29.03% in Q1 2023.

InvestingPro Tips for Gilat indicate that the company holds more cash than debt on its balance sheet, which is a reassuring sign for investors looking for financial stability. Additionally, Gilat's valuation implies a strong free cash flow yield, suggesting that the company is generating a healthy amount of cash relative to its share price. It's also worth noting that Gilat's cash flows can sufficiently cover interest payments, and its liquid assets exceed short-term obligations, providing further evidence of the company's solid financial footing.

For those interested in diving deeper into Gilat's financial health and future prospects, InvestingPro offers a comprehensive list of additional tips. Currently, there are six more InvestingPro Tips available for GILT, which could provide valuable insights for making informed investment decisions. To explore these tips and gain a more detailed understanding of Gilat's financial landscape, consider subscribing to InvestingPro using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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