November 15, 2016
Gilat Satellite
Networks Ltd. reported its results for the third
quarter ended September 30, 2016.
Key Financial Highlights:
- Revenues for Q3 2016 increased 95% to $78.6
million from $40.3 million in the comparable
period of 2015. Revenues rose 16% compared with
Q2 2016.
- The Company noted that operating
profitability significantly improved in Q3 2016:
- On a GAAP basis, the operating loss
decreased to $0.2 million compared to an
operating loss of $29.1 million in Q3 2015,
and an operating loss of $2.5 million in Q2
2016.
- Non-GAAP operating profit increased to
$3.3 million in the third quarter of 2016
compared to an operating loss of $5.5
million in Q3 2015 and a $0.5 million
operating profit in Q2 2016.
- On a GAAP basis, the loss for Q3 2016
decreased to $2.2 million compared to a loss
of $32.4 million in Q3 2015 and a loss of
$3.7 million in Q2 2016.
- On a non-GAAP basis, net income for Q3
2016 increased to $1.4 million compared to a
loss of $8.6 million in Q3 2015 and a loss
of $0.6 million in Q2 2016.
- Adjusted EBITDA for Q3 2016 increased to
$5.2 million from an Adjusted EBITDA loss of
$3.1 million in Q3 2015 and Adjusted EBITDA
of $2.4 million in Q2 2016.
- Management objectives for 2016: revenues
between $290 to $310 million and Adjusted
EBITDA of between $18 to $24 million. In
2015, revenues totaled $197.5 million and
Adjusted EBITDA was $6.1 million.
The Company
noted that the significant improvement in
profitability during the third quarter was achieved
despite an accrual for bad debt of approximately
$4.6 million attributable to the Company's
governmental customer in Venezuela arising from the
worsening economic situation and the recent credit
downgrade in that country.
“Two major growth engines are especially exciting
for Gilat this quarter,” said Yona Ovadia, CEO of
Gilat. “Satellite-based 4G cellular backhaul and
mobility, both in In-Flight Connectivity (IFC) and
on-the-move connectivity for trains. We have
made important progress in both markets. Especially
noteworthy are our recent announcements of the LTE
cellular backhaul with Sprint and the broadband
connectivity for Spain’s Renfe high speed trains:
- Sprint is
our first such deal in the U.S. and the third with a
tier-1 telecom, representing a major endorsement of
our technology, which makes satellite connectivity
competitive with terrestrial solutions, even in
metro edge and other urban areas.
- Gilat’s
On-the-Move antenna was chosen to enable Internet
broadband connectivity to passengers on Renfe’s
high-speed trains throughout Spain. This represents
another major milestone for us in the mobility for
trains market, where Gilat is the established
leader.
"On the technology side, Gilat is committed to
continued innovation in support of our strategy of
broadband-for-all. This quarter Gilat announced the
first-to-market all-outdoor, easy-to-install
VSAT-in-a-Box for high speed consumer broadband,
that addresses the consumer broadband market, as
well as our ground-breaking
small-cell-over-satellite solution that expands 3G
and 4G cellular coverage to rural areas.
"We are focused on all five of our strategic
growth pillars, as well as our journey to improve
profitability, and we are pleased to see progress in
both,” concluded Yona Ovadia, CEO of Gilat.
Key Recent Announcements:
- Gilat’s Satellite On-the-Move Antenna
Selected to Deliver Broadband Connectivity for
Spain’s High-Speed Trains
- Gilat First to Deliver Layer 2 with GTP
Acceleration to Provide True LTE Speeds over
Satellite for Large-Scale Networks
- Gilat Satellite Networks Joins Telecom Infra
Project, Founded by Facebook, Deutsche Telekom,
SK Telecom and Others
- Gilat Unveils Revolutionary
Small-Cell-Over-Satellite Solution for 3G and 4G
Coverage
- Gilat’s Satellite-based Cellular Backhaul
Solution Selected by Sprint to Extend LTE
Services to Metro Edge and Rural Areas in the US
- Gilat First to Market with a Complete
VSAT-in-a-Box for High-Speed Consumer Broadband
- Optus Selects Gilat’s Cellular Solution to
Extend 3G Coverage to Rural Areas in Australia
- Intelsat General Reports Unprecedented
Performance Using Gilat’s Small Airborne
Flat-Panel Antenna
