PETAH TIKVA – Gilat Satellite Networks Ltd (NASDAQ:GILT). (NASDAQ:GILT, TASE:GILT), an established player in satellite networking technology with a market capitalization of $356 million and a "GREAT" financial health rating according to InvestingPro, announced today that it has received orders worth more than $3 million for its Gateway Solid State Power Amplifiers (SSPAs). These high-performance SSPAs are intended to support Low Earth Orbit (LEO) satellite constellations, with deliveries scheduled over the next 12 months.
The company's SSPAs are recognized for their efficiency, reliability, and performance, making them suitable for the demanding requirements of LEO constellations, which necessitate high-power, lightweight, and energy-efficient solutions. The recent orders are a testament to the industry's confidence in Gilat's technology and its ability to provide seamless connectivity in challenging environments. This technological strength is reflected in the company's solid financial performance, with revenue growth of 15.14% in the last twelve months.
Edgar Khachatryan, President & General Manager at Gilat Wavestream, remarked on the significance of these orders, emphasizing Gilat's role in satellite communication innovation and its preparedness to meet the increasing demand for global connectivity.
Gilat Satellite Networks has over 35 years of experience in the field and offers a broad range of products and services for satellite and ground connectivity. Its portfolio caters to various applications including broadband access, mobility, cellular backhaul, and more, serving commercial, defense, and government sectors.
The company's forward-looking statements indicate its anticipation of continued growth and market presence, despite acknowledging potential risks and uncertainties that could impact its business, such as market conditions and competition.
This announcement is based on a press release statement from Gilat Satellite Networks, and it reflects the company's current position and strategic orders in the satellite technology market.
In other recent news, Gilat Satellite Networks recently secured orders totaling $9 million for its advanced satellite communications platforms, SkyEdge IV and SkyEdge II-c, from leading satellite operators. In addition to this, the company has reported a 17% year-over-year increase in revenue in Q3 2024, reaching $74.6 million, largely attributed to the acquisition of DataPath and advancements in its defense and in-flight connectivity sectors. However, Gilat's GAAP net income saw a decrease to $6.8 million, or $0.12 per diluted share, down from $10.2 million or $0.18 per share in the same quarter of the previous year.
The company also announced the anticipated closure of the Stellar Blu acquisition by year's end, with Stellar Blu expected to contribute between $25 million to $35 million in revenue in Q4 2024. Analysts from InvestingPro have indicated that Gilat's stock is currently trading below its Fair Value, suggesting a potential upside opportunity. The company has also exited the Russian market and won a $10 million arbitration in Peru.
Despite a decline in organic revenue excluding DataPath by 10%, and a decrease in GAAP operating income to $6.7 million from $12.7 million, Gilat's CEO, Adi Sfadia, expressed optimism about the SES's mPOWER program and the EU's Iris Square initiative, expecting significant growth in 2025. These recent developments are part of Gilat's ongoing efforts to expand its reach and deliver advanced satellite communication solutions to a global clientele.
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