PETAH TIKVA, Israel - Gilat Satellite Networks Ltd (NASDAQ:GILT). (NASDAQ: GILT, TASE: GILT), a global provider of satellite-based broadband communications, has secured a $12 million contract through its subsidiary DataPath, Inc. for the U.S. Army. The contract, announced today, is for the supply of Wavestream Solid State Amplifier (SSPA) products to support the Army's satellite communications capabilities.
The Wavestream SSPAs, known for their rugged design, are integral to the Army's Satellite Transportable Terminals (STTs), which offer Communications-on-the-Pause capabilities under various environmental conditions worldwide. This contract underscores Gilat's continued relationship with the U.S. defense sector and leverages the expertise of its U.S.-based subsidiaries, Gilat Wavestream and DataPath, Inc.
Bob Huffman, General Manager of Gilat Wavestream, highlighted the company's longstanding service to the military, stating that the Wavestream 50W Ka SSPA has over fifteen years of field-proven performance, meeting the Army's stringent requirements for reliable satellite communications.
David McDonald, President of DataPath, expressed the company's commitment to excellence and the importance of this award in strengthening DataPath and Gilat Wavestream's position as trusted defense partners.
Gilat Satellite Networks has over 35 years of experience in the industry and offers a wide range of solutions for broadband access, mobility, cellular backhaul, and other critical communication needs. The company's portfolio includes cloud-based platforms, satellite terminals, on-the-move antennas, SSPAs, Block Upconverters (BUC), and integrated ground systems for both commercial and defense applications.
The announcement of this contract comes as part of Gilat's ongoing efforts to provide secure and reliable communication solutions to various sectors, including defense, aerospace, and government, among others.
This news is based on a press release statement from Gilat Satellite Networks Ltd.
InvestingPro Insights
As Gilat Satellite Networks Ltd. (NASDAQ: GILT) secures a significant $12 million contract with the U.S. Army, its financial health and performance metrics provide additional context for investors. The company's market capitalization stands at a solid $309.39 million, reflecting investor confidence and the scale of its operations.
With an attractive P/E ratio of 13.27 based on the last twelve months as of Q4 2023, Gilat appears to be valued reasonably in the market, especially when considering its revenue growth of 10.94% during the same period.
An InvestingPro Tip that stands out for Gilat is its strong liquidity position, as the company holds more cash than debt on its balance sheet. This is a reassuring sign for stakeholders, as it indicates the company's ability to weather financial uncertainties and invest in growth opportunities.
Furthermore, the company's cash flows can sufficiently cover interest payments, suggesting that Gilat is managing its debt responsibly. This is particularly relevant as the company continues to secure contracts and expand its operations.
Investors should note that while Gilat does not pay a dividend, indicating a reinvestment of profits back into the company, it has been profitable over the last twelve months. This profitability, combined with the company's ability to meet short-term obligations with its liquid assets, paints a picture of a financially stable company poised for ongoing operations and potential growth.
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