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PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ:GILT), a prominent provider of satellite networking technology, announced a new $10 million contract from Internet Para Todos (IPT) to expand cellular backhaul services in Peru.
This six-year follow-on order will bolster Gilat's efforts to enhance 4G connectivity across 700 existing sites and introduce services to 100 additional locations in the Peruvian jungle.
The initiative, led by IPT—a collaboration between Telefónica, Meta (NASDAQ:META), IDB Invest, and the Latin America Development Bank (CAF)—aims to address the digital divide in Latin America. Gilat's expansion is expected to extend high-speed terrestrial internet access to over one million rural inhabitants.
Teresa Gomes De Almeida, General Manager of IPT, emphasized the agreement's importance in continuing to connect remote Peruvian communities sustainably. Arieh Rohrstock, Corporate SVP and General Manager of Gilat Peru, expressed pride in the ongoing partnership with IPT and the shared goal of overcoming connectivity challenges in rural areas.
Gilat's expertise in satellite-based broadband communications is backed by over 35 years of experience. The company's technology solutions and services are designed to support a wide range of applications, including broadband access, mobility, and cellular backhaul.
Gilat's offerings encompass cloud-based platforms, high-performance satellite terminals, and integrated ground systems, all aimed at delivering secure, comprehensive solutions for commercial, defense, and government sectors.
The announcement of this contract underscores Gilat's commitment to enabling universal connectivity and aligns with its vision that all people have the right to be connected. This project is part of a larger effort to foster inclusive development and ensure that connectivity opportunities are accessible to all, regardless of location.
This report is based on a press release statement from Gilat Satellite Networks Ltd. and reflects the company's ongoing endeavors to enhance internet connectivity in underserved regions. The extension of Gilat's services in Peru represents a significant step towards bridging the digital divide in Latin America.
In other recent news, Gilat Satellite Networks has been making significant strides in its operations. The company's US-based subsidiary, DataPath Inc., secured over $9 million in defense contracts, enhancing field and technical services in Europe, the Middle East, and the United States.
Gilat also reported a robust 29% year-over-year revenue increase in the first quarter of 2024, attributed to the acquisition of DataPath and organic expansion. The company's full-year 2024 revenue guidance remains steady, with projections between $305 million to $325 million.
Furthermore, Gilat has expanded into the In-Flight Connectivity (IFC) market, securing orders exceeding $14 million for its IFC solutions. The company also announced the acquisition of Stellar Blu Solutions LLC for up to $245 million, a move expected to contribute between $100 million to $150 million to its annual revenues starting in 2025.
In leadership developments, Gilat appointed Nicole Robinson as the new President of DataPath, following their acquisition of the company. These recent developments reflect Gilat's ongoing commitment to growth and expansion.
InvestingPro Insights
In the wake of Gilat Satellite Networks Ltd.'s (NASDAQ:GILT) latest contract to expand cellular backhaul services in Peru, investors may be keeping a close eye on the company's financial health and market performance. Notably, Gilat is currently trading near its 52-week low, which could signal a potential entry point for investors believing in the company's long-term value proposition and its role in bridging the digital divide. The InvestingPro data shows a market capitalization of $259.17 million USD, with a solid price-to-earnings (P/E) ratio of 11.14 for the last twelve months as of Q1 2024, suggesting that the stock may be reasonably valued given its earnings.
Furthermore, Gilat's valuation implies a strong free cash flow yield, as per InvestingPro Tips, which may appeal to value investors looking for cash-generative businesses. Additionally, the company holds more cash than debt on its balance sheet, a reassuring sign of financial stability that could support its ambitious expansion plans in regions like Peru. With a revenue growth of 14.48% for the last twelve months as of Q1 2024, Gilat appears to be on a growth trajectory, which is further underscored by its gross profit margin of 38.25%.
For investors interested in a deeper dive into Gilat's financials and future prospects, there are additional InvestingPro Tips available, including insights into the stock's recent performance over various time frames and its ability to cover interest payments with its cash flows. To access these insights and more, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at https://www.investing.com/pro/GILT. With a total of 10 InvestingPro Tips listed for Gilat, investors can gain a comprehensive understanding of the company's financial nuances and market positioning.
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