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PETAH TIKVA - Gilat Satellite Networks Ltd. (NASDAQ:TASE: NASDAQ:GILT), a provider of satellite networking technology, announced it has received orders worth over $12 million from a leading satellite operator. The orders are for the expansion of the operator's global satellite communication (SATCOM) network using Gilat's SkyEdge Family of Very Small Aperture Terminal (VSAT) Platforms. The project is slated for completion within the next 12 months.
The satellite operator, whose name was not disclosed, has chosen Gilat's technology for its flexible architecture, which is expected to enable robust and seamless communications across various orbital assets. Hagay Katz, Chief Product and Marketing Officer at Gilat, expressed enthusiasm about the expanded collaboration, which he believes demonstrates the trust customers place in Gilat's solutions.
Gilat's SkyEdge platforms are part of the company's broader offering, which includes cloud-based platforms, high-performance satellite terminals, Satellite On-the-Move (SOTM) antennas, Solid State Power Amplifiers (SSPA), and Block Upconverters (BUC). These technologies aim to serve multiple applications for broadband access, mobility, cellular backhaul, and more, catering to commercial, defense, and government sectors.
This order represents a strategic expansion for Gilat and is anticipated to provide significant revenue prospects. The company has been in operation for over 35 years and is recognized for its comprehensive solutions that address the needs of high-throughput satellites (VHTS) and software-defined satellites (SDS).
Gilat's announcement comes as the company continues to focus on innovation within the satellite communications industry. The press release did not detail the financial impact of the order on Gilat's earnings or provide specific details on the satellite operator's network expansion plans.
The information for this report is based on a press release statement from Gilat Satellite Networks Ltd.
In other recent news, Gilat Satellite Networks reported significant growth in its second quarter 2024 earnings call. The company observed a 13% year-over-year increase in revenue, primarily driven by its defense business and the recent acquisition of DataPath. Further, Gilat announced the acquisition of Stellar Blu Solutions, a move expected to close in the fourth quarter of 2024 and projected to add between $120 million to $150 million in revenue in 2025.
In addition to these developments, Gilat Satellite Networks has been appointed to the board of the Waveform Architecture for Virtualized Ecosystems (WAVE) Consortium, a group aiming to innovate satellite communications infrastructure. Gilat's Head of Research & Algorithms, Guy Levitas, and Chief Architecture Officer, Adi Adotler, will serve on the WAVE board, contributing their expertise to the consortium's objectives.
Gilat anticipates continued growth in the defense, mobility, and very high throughput satellite markets. The company is also exploring opportunities in the Low Earth Orbit (LEO) satellite market with OneWeb and Iris Square. These are some of the recent developments in the company's strategic operations.
InvestingPro Insights
As Gilat Satellite Networks Ltd. (NASDAQ: GILT) secures a significant $12 million order to expand a satellite operator's global network, the company's financial health and market performance provide additional context to this development. Gilat's current market capitalization stands at $253 million, reflecting the market's valuation of the company.
According to InvestingPro data, Gilat boasts a price-to-earnings (P/E) ratio of 12.75, which slightly adjusted to 12.69 over the last twelve months as of Q2 2024. This metric suggests a reasonable valuation relative to the company's earnings. Furthermore, Gilat's price-to-book (P/B) ratio during the same period is 0.89, indicating that the stock may be undervalued compared to the company's net asset value. With a gross profit margin of 37.42%, Gilat demonstrates its ability to retain a significant portion of its sales as gross profit.
Two key InvestingPro Tips highlight Gilat's solid financial position: the company holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations. These factors suggest a strong liquidity position, which is crucial for fulfilling new orders and investing in further innovation. Additionally, Gilat has been profitable over the last twelve months, which aligns with its ongoing efforts to expand and innovate in the satellite communications industry. It is noteworthy that Gilat does not pay a dividend to shareholders, which may indicate a strategy of reinvesting profits back into the company's growth initiatives.
For investors and industry observers interested in a deeper dive into Gilat's financials and market performance, InvestingPro offers additional insights. There are currently more InvestingPro Tips available, providing a comprehensive analysis of Gilat's financial health and market outlook. To explore these insights, visit the dedicated InvestingPro page for Gilat at https://www.investing.com/pro/GILT.
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