Gilat Announces Fourth Quarter and Full Year 2011 Results

Feb 22, 2012

Gilat Satellite Networks Ltd. reported its results for the fourth quarter and year ended December 31, 2011.

Revenues for the fourth quarter of 2011 were $93.6 million, compared to $66.1 million for the same period in 2010. GAAP operating loss for the fourth quarter of 2011 was $15.2 million compared to an operating loss of $4.1 million in the fourth quarter of 2010.

On a GAAP basis, net loss for the fourth quarter of 2011 was $11.5 million or $0.28 per diluted share, compared to a net loss of $4.9 million or $0.12 per diluted share in the fourth quarter of 2010.

During the fourth quarter of 2011 we recorded a one-time non-cash impairment of goodwill relating to our investment in Wavestream in accordance with ASC 350 (formerly SFAS No. 142) in the amount of $17.9 million, and restructuring costs and other charges relating to cost reduction efforts in the amount of $1.6 million, totaling $19.5 million.

On a non-GAAP basis, operating income for the fourth quarter of 2011 was $6.6 million compared to $0.5 million in the fourth quarter of 2010. Non-GAAP net income for the period was $8.4 million or $0.20 per diluted share, compared to a net loss of $0.3 million, or $0.01 per diluted share, in the comparable period in 2010.

Revenues for the year ended December 31, 2011 were $339.2 million, compared to $233.0 million in the comparable period of 2010. On a GAAP basis, operating loss for the year 2011 was $12.3 million, compared with an operating loss of $6.2 million in the prior year. Net loss for the twelve month period ended December 31, 2011 was $5.9 million or $0.14 per diluted share, compared to a net income of $30.6 million or $0.73 per diluted share, in the same period of 2010.

On a non-GAAP basis, operating income for the year ended December 31, 2011 was $17.5 million compared to $1.3 million in the full year 2010. Non-GAAP net income for the period was $15.9 million or $0.37 per diluted share, compared to a net income of $0.7 million, or $0.02 per diluted share, in the comparable period in 2010.

EBITDA for the twelve months of 2011 reached $33.5 million compared with $14.2 million in the comparable period in 2010.

Executive Perspective:

"Our strong financial performance in the fourth quarter was accompanied by several important contract wins for Gilat. In 2011 we made significant inroads in our strategy with key awards in the Ka-band market and stood by the management objectives we set at the beginning of the year," said Erez Antebi, Gilat's Chief Executive Officer. "Looking forward, we have identified the key growth drivers we will be focusing on -- Ka-band, defense and homeland security, and Managed Network Services markets - and I believe that our differentiated product offering and capabilities give us a significant advantage in these markets which are expected to grow long term."

As part of the results announcement, management has set the Company's financial objectives for 2012 to increase annual revenues between $340 and $350 million and, while continuing to invest in future products, maintain EBITDA margin levels at 10%.