November 13,
2013
Gilat Satellite
Networks Ltd. reported
its results for the
third quarter ended
September 30, 2013.
Key Financial
Updates:
- · Revenue for Q3
2013 of $71.3
million
- · EBITDA for Q3
2013 of $2.1 million
- · Expenses
reduced by around $9
million per year
during Q4 2013 with
effects to be
realized starting in
Q1 2014
- · Management
objectives for 2013
lowered to
approximately $310
million in revenue
and EBITDA of 6%
primarily due to
delayed deals in our
Commercial Division
and in Peru
Revenues for the
third quarter of 2013
were $71.3 million,
compared to $89.0
million for the same
period in 2012.
On a non-GAAP basis,
operating loss for the
third quarter of 2013
was $1.3 million
compared to an operating
income of $5.7 million
in the third quarter of
2012. On a non-GAAP
basis, net loss for the
period was $1.9 million,
or $0.04 per diluted
share, compared to net
income of $5.8 million,
or $0.13 per diluted
share, in the comparable
period in 2012.
EBITDA for the third
quarter of 2013 reached
$2.1 million as compared
with $9.8 million in the
comparable period in
2012.
In August, the
Company announced that
it entered into a
definitive agreement to
sell Spacenet to
SageNet, subject to
regulatory approval and
the satisfaction of
customary closing
conditions. The Company
received the required
FCC regulatory approval
last week and notified
SageNet that all
conditions for closing
have been met. The
Company has been
notified by SageNet that
it is not willing to
proceed to closing at
this time based on
several assertions.
While the Company
rejects all of SageNet's
assertions and believes
them to be unfounded, it
is in continuing
discussions with SageNet
concerning their
assertions. At this time
the closing has been
delayed.
“The shortfall in Q3
was mainly attributed to
two deals which were
delayed in our
Commercial Division,
reduced revenue from
Compartel in Colombia
and a delayed project
implementation in our
Services Division,” said
Erez Antebi, CEO of
Gilat.
“We
have taken immediate
action to cut costs
reducing our global
headcount and fixed
expenses by
approximately $9 million
annually,” continued
Antebi. “We expect to
see most of the impact
of the reductions
beginning in the first
quarter of 2014. It is
important to note that
we have taken care not
to reduce our sales
teams or our research
and development
investments in our
strategic growth areas.”
“Going
forward, we believe we
are well positioned for
success,” concluded
Antebi. “While this has
been a difficult
quarter, we have taken
the appropriate measures
to significantly cut
costs and further
streamline the company.
We continue to close
deals in our Commercial
Division with new and
existing customers. Our
Defense Division is
stable and we see
growing interest and
need for our products.
We are confident in the
road ahead and believe
that with the steps we
have taken, the Company
is better positioned to
succeed going forward.”
