Gilat stock rises following $40M contract win

Investing.com -- Shares of Gilat Satellite Networks Ltd (NASDAQ:GILT). (NASDAQ:GILT, TASE: GILT) climbed 6.8% as the company announced a significant $40 million contract for its SkyEdge IV platform, expected to be fulfilled over the next 24 months. The contract underscores the market’s confidence in Gilat’s advanced satellite networking technology and its strategic move towards a virtualized, cloud-native architecture that aligns with future 5G-NTN standards.

The SkyEdge IV platform represents a pivotal advancement in satellite ground network transformation, offering satellite operators and service providers enhanced adaptability, scalability, and efficiency. By deploying this platform on standard cloud-based infrastructure, Gilat is poised to expedite the delivery of multi-orbit next-generation services, further cementing its position as a leader in the satellite networking sector.

Gilat’s announcement highlights the successful implementation of its evolution strategy, with the SkyEdge IV platform now utilizing the DIFI digital interface open standard. The deployment of this technology is a key step in Gilat’s SkyEdge IV evolution plan for 5G NTN, which aims to provide standard ubiquitous connectivity across terrestrial and non-terrestrial networks and foster a multi-vendor open ecosystem within the satellite communications industry.

Ron Levin, President Commercial Division at Gilat, expressed enthusiasm for the company’s progress, stating, “We are excited to support new software-defined satellites, delivering a virtualized next-generation ground segment architecture. This puts Gilat on an accelerated R&D development path and rapid evolution toward a 5G-NTN standard platform and introduction of new services.” This contract not only solidifies Gilat’s trajectory towards ground segment digital transformation but also opens up potential new revenue streams from emerging use cases.

Investors have responded positively to this development, as evidenced by the uptick in Gilat’s stock price. The contract award and the strategic advancements it represents are likely to bolster Gilat’s market position and provide a robust foundation for future growth in the rapidly evolving satellite networking industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.