Gilat DataPath wins $7 million U.S. Army support contract

PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ:GILT, TASE: GILT) announced Wednesday that its subsidiary Gilat DataPath has secured a contract to provide field and technical services to the U.S. Army through a prime contractor.

The base program is valued at more than $7 million with options to extend for up to five years, potentially reaching $70 million in total revenue, according to a company press release.

Under the agreement, Gilat DataPath will deliver global field and support services to the U.S. Army Program Executive Office for Command, Control and Communications Networks (PEO C3N).

The contract was awarded following a competitive process under the Global Tactical Advanced Communication Systems II (GTACS II) vehicle.

"This large multi-year award further underscores the dynamic capabilities and critical nature of what Gilat DataPath can deliver to such a unique and trusted end user," said Nicole Robinson, President of Gilat DataPath, in the statement.

Gilat Satellite Networks, headquartered in Israel, provides satellite-based broadband communications solutions through its subsidiaries including Gilat DataPath, Gilat Wavestream, and Gilat Stellar Blu.

The company offers products and services for various markets including government, defense, in-flight connectivity, broadband access, and cellular backhaul.

In other recent news, Gilat Satellite Networks Ltd. has secured several significant contracts, underscoring its strong position in the satellite networking industry. The company announced a $40 million contract for its SkyEdge IV platform, which will be delivered over the next 24 months. This platform represents a major advancement in satellite ground network technology, aligning with future 5G-NTN standards. Additionally, Gilat received over $22 million in orders from satellite operators worldwide, scheduled for delivery over the next year, highlighting its role in supporting various satellite constellations.

Furthermore, Gilat’s Commercial Division secured a $27 million contract for its Gilat Stellar Blu™ ESA Terminal technology, emphasizing its compact and high-performance capabilities for aviation markets. The company also announced $25 million in orders for its satellite technology, to be fulfilled through 2025 and 2026, reflecting the industry’s trust in its comprehensive solutions. These developments demonstrate Gilat’s ongoing efforts to expand its reach and capabilities within the satellite communications market.

In related news, Ron Levin, President of Gilat’s Commercial Division, expressed enthusiasm for these advancements and the company’s trajectory towards a virtualized, cloud-native architecture. The strategic moves are expected to bolster Gilat’s market position and provide a robust foundation for future growth.

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