Gilat Reports Third Quarter 2024 Results

November 13, 2024

Gilat Satellite Networks Ltd. reported its results for the third quarter, ended September 30, 2024.

Third Quarter 2024 Financial Highlights

Revenues of $74.6 million, up 17% compared with $63.9 million in Q3 2023;

GAAP operating income of $6.7 million, compared with $12.7 million in Q3 2023;

GAAP operating income includes other income, net, of $1.3 million. Q3 2023 GAAP operating income included other income, net, of $7.4 million;

Non-GAAP operating income of $8.3 million, up 36% compared with $6.1 million in Q3 2023;

GAAP net income of $6.8 million, or $0.12 per diluted share, compared with $10.2 million, or $0.18 per diluted share, in Q3 2023;

GAAP net income includes other income, net, of $1.3 million. Q3 2023 GAAP net income included other income, net, of $7.4 million;

Non-GAAP net income of $8.1 million, or $0.14 per diluted share, almost doubled compared with $4.6 million, or $0.08 per diluted share, in Q3 2023;

Adjusted EBITDA of $10.7 million, up 13% compared with $9.5 million in Q3 2023.

Forward-Looking Expectations

The Company narrowed the range of its 2024 revenue guidance. Expectations of revenue  between $305 million to $315 million now represent year-over-year growth of 17% at the mid-point. The main effect on the revenue guidance is the company’s decision to terminate its activities in Russia due to limitations and constraints that are imposed with regard to operations there.

The Company raised and narrowed the range of its 2024 GAAP operating income guidance to between $24 million to $26 million, mainly due to the receipt of approximately $11 million in proceeds from an arbitration in Peru in H2 2024.

The Company also narrowed the range of its Adjusted EBITDA guidance to between $41 to $43 million, representing year-over-year growth of 15% at the mid-point.

Management Commentary

Adi Sfadia, Gilat’s CEO, commented:  “We performed strongly in the third quarter, achieving solid growth driven by our Satellite Network segment. This growth highlights the progress we are making in expanding our defense opportunities following our acquisition of DataPath at the end of 2023. This is highly encouraging for Gilat, as our defense business represents a rapidly growing strategic segment for the company. Our innovative satellite solutions are meeting the specialized demands of government and military customers, reinforcing our position as a trusted partner. In addition, our in-flight connectivity solutions continue to set new benchmarks for reliability and performance, addressing the increasing need for seamless airborne connectivity. Together, these efforts underscore our commitment to capturing growth in these critical markets.”

Mr. Sfadia added, “We continued to broaden our pipeline of potential orders throughout our business, supported by our next-generation platform, as we capture new LEO satellite communications opportunities. Gilat is extremely well-positioned to leverage the growing demand for NGSO with an emphasis on LEO based on our comprehensive product offering and satellite expertise.”

Mr. Sfadia concluded, “We are continuing to work towards the closing of our acquisition of Stellar Blu Solutions, a leader and first-to-market of Electronically Steerable Antenna for the In-Flight-Connectivity market, and are awaiting the receipt of final regulatory approvals, documentation and other customary closing conditions. Stellar Blu’s production ramp is progressing very well, and it has already begun delivering antennas to its customers. We are more confident today that Stellar Blu will add between $120-$150 million in annual revenues and be accretive to our Non-GAAP results. Furthermore, we estimate that once Stellar Blu reaches its target manufacturing capacity during the second half of 2025, its EBITDA margin will be above 10%.”

Key Recent Announcements

Gilat Receives Approximately $5 Million in Orders from US Defense Customers

Gilat Received Over $4 Million Order from the US Department of Defense

Gilat Secures Approximately $15 Million in Orders from Leading Satellite Operators for GEO, MEO and LEO Constellations

Gilat Satellite Networks Awarded approximately $4 Million Contract to Provide Connectivity for rural areas in Latin America

Gilat Satellite Networks Receives Multimillion Service Contract from Leading Satellite Operator in APAC region

Gilat Satellite Networks Awarded Over $5M in Support of the US Department of Defense

Gilat Secures Over $12 Million Orders for SkyEdge Platforms from Leading Satellite Operator