PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ:TASE: NASDAQ:GILT), recognized as a key player in satellite networking technology, has secured a contract over $5 million from the US Department of Defense. The contract was awarded to DataPath, a US-based subsidiary of Gilat, to provide baseband equipment integral to the company’s transportable satellite communications hubs, known as DKET 3421 terminals.
The baseband networking solution is designed to complete a turnkey satellite communications architecture, enhancing operational flexibility and connectivity for defense applications. Vice President of Sales and Business Development for DataPath, Barry W. Botts, expressed the company's commitment to delivering high-performance solutions that cater to the demanding requirements of their customers.
Gilat has over three decades of industry experience and offers a broad range of satellite-based broadband communications solutions and services. Their portfolio includes cloud-based platforms, high-performance satellite terminals, on-the-move antennas, amplifiers, upconverters, and integrated ground systems catering to commercial and defense sectors.
Gilat Satellite Networks has previously acknowledged the risks and uncertainties associated with its business, including market acceptance, competition, and the impact of geopolitical tensions on its operations in Israel. However, this contract signifies a continuation of its role as a provider of essential communications technology to defense customers.
This report is based on a press release statement issued by Gilat Satellite Networks Ltd.
InvestingPro Insights
Gilat Satellite Networks Ltd. (NASDAQ:TASE: GILT) has recently garnered attention with its new contract from the US Department of Defense, reflecting confidence in its satellite networking technology. Here are some key metrics and insights from InvestingPro to consider:
InvestingPro Data indicates that Gilat has a market capitalization of $328.44 million USD, with a Price to Earnings (P/E) ratio of 13.88 based on the last twelve months as of Q4 2023. This P/E ratio suggests a reasonable valuation in the current market. Additionally, the company's revenue growth of 10.94% during the same period highlights its expanding operations.
The gross profit margin stands at an impressive 39.44%, indicating that Gilat has been effective in managing its cost of sales and maintaining profitability. This is further supported by an Operating Income Margin of 10.55%, showing that the company is generating a healthy amount of profit from its core business operations.
InvestingPro Tips reveal that Gilat holds more cash than debt on its balance sheet, providing it with financial stability and flexibility. The company has also seen a significant return over the last week, with a price total return of 8.23%. This performance is an important consideration for investors looking at the stock's recent momentum.
Moreover, Gilat's cash flows can sufficiently cover interest payments, and its liquid assets exceed short-term obligations, which is reassuring for investors concerned about the company's ability to meet its immediate financial liabilities.
It is worth noting that Gilat has been profitable over the last twelve months. However, the company does not pay a dividend, which might be a factor for income-focused investors to consider.
For those interested in a deeper dive into Gilat's financial health and future prospects, InvestingPro offers additional insights. By using the promo code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access the full list of InvestingPro Tips. Currently, there are 5 more tips available for Gilat on InvestingPro, which could be valuable for making informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.