Advanced Television

Gilat revenue up 13% YoY

August 7, 2024

Gilat Satellite Networks, a specialist in satellite networking technology, solutions and services, has reported its results for the second quarter, ended June 30th 2024. The company reported revenue of $76.6 million (€70.1m), up 13 per cent compared with $67.6 million in Q2 2023.

Gilat reported a GAAP operating income of $2.8 million, compared with $5.4 million in Q2 2023. The decline is attributable to the acquisition-related expenses, amortisation of purchased intangibles, and earnout-based expenses related to the DataPath acquisition. The company saw an adjusted EBITDA of $10.1 million, up 10 per cent compared with $9.2 million in Q2 2023.

The company reiterated its formerly issued guidance expectations for 2024. Expectations are for revenue between $305 and $325 million, representing year-over-year growth of 18 per cent at the midpoint. This guidance does not include any contribution expected from the acquisition of Stellar Blu. However given Stellar Blu has already begun delivering its antennas, and assuming closing will happen during the beginning of Q4, Gilat estimates SBS revenues will add between $25 to $35 million in Q4.

Adi Sfadia, Gilat CEO, commented: “We are pleased with our results for the second quarter. Our business continues to perform well and we are on track with our expectations for 2024. The pipeline of potential orders throughout our business continues to broaden, supported by our next-generation platform and growth engines. In particular, we are pleased with the solid traction we are experiencing in the growing defense satellite communications segment, a strategic growth vector for us. This is strongly supported by our DataPath subsidiary acquired at the end of last year, which has already proven itself as a successful acquisition and key contributor to our success this quarter.”

“We recently took a major strategic step and announced our intention to acquire Stellar Blu, a leader and first-to-market in delivering Electronically Steerable Antenna for the In-Flight-Connectivity market. Given Stellar Blu has already begun delivering its antennas we now expect Stellar Blu to add between $120-$150 million in revenue in 2025 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 per cent. With Stellar Blu on board, we will become the leader in the ESA IFC market, which we believe is set to explode in popularity and become widely adopted in the coming years. I believe that this acquisition will transform Gilat into a high-growth company for many years to come, providing us with a highly attractive portfolio of ESA products and technologies. We are very excited about the significant potential this acquisition holds for Gilat,” he concluded.

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