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Gilat subsidiary secures $5 million DoD satcom order

EditorEmilio Ghigini
Published 28/03/2024, 10:14 pm
Updated 28/03/2024, 10:14 pm
© Gilat Satellite Networks PR

PETAH TIKVA, Israel - Gilat Satellite Networks Ltd (NASDAQ:GILT). (NASDAQ:GILT, TASE:GILT), a global provider of satellite networking technology, announced today that its US-based subsidiary, DataPath, has received an additional $5 million order from the US Department of Defense. The order is for the supply of DKET 3421 terminals, which are transportable satellite communication hubs designed to support military operations worldwide.

The DKET 3421 terminals are touted for their operational flexibility, capacity, and connectivity, essential for mission-critical communications. These terminals are noted for their innovative features, including a scalable modem architecture that can support up to 32 modems. The units are also designed for ease of transportation, weighing under 5000 lbs. and deployable in less than three hours, providing a rapid-setup satellite network hub that can be moved with a forklift.

Barry W. Botts, Vice President of Sales and Business Development at DataPath, expressed the company's gratitude for the continued trust from the Department of Defense. He highlighted the DKET 3421's ability to meet stringent military requirements for reliable, transportable, and high-performance network hubs.

Gilat Satellite Networks has over 35 years of experience in the industry and provides a range of satellite-based broadband communications solutions and services. Their portfolio caters to various applications, including broadband access, mobility, and cellular backhaul, among others. The company's offerings are designed to serve both commercial and defense markets, ensuring secure and efficient connectivity.

The latest order from the Department of Defense further establishes Gilat's role as a key supplier of advanced communication solutions for military use. This announcement is based on a press release statement from Gilat Satellite Networks Ltd.

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InvestingPro Insights

Following the announcement of Gilat Satellite Networks Ltd.'s (NASDAQ:GILT) additional $5 million order from the US Department of Defense, investors might find the company's financial health and stock market performance to be of interest. Gilat's market capitalization stands at a modest $302.95 million, and its price-to-earnings (P/E) ratio has been recorded at 12.77 for the last twelve months as of Q4 2023, indicating a potentially undervalued stock when compared to industry peers.

The company's ability to manage its financials effectively is underscored by its strong liquidity position. According to InvestingPro Tips, Gilat holds more cash than debt on its balance sheet and has liquid assets that exceed its short-term obligations. This financial stability is crucial for fulfilling large-scale orders such as those from the Department of Defense and may provide investors with a sense of security regarding the company's operational capabilities.

Additionally, Gilat's revenue growth has been positive, with a 10.94% increase over the last twelve months as of Q4 2023. This growth trajectory is a testament to the company's expanding market presence and its ability to capitalize on the increasing demand for satellite networking technology. Moreover, the company's gross profit margin stands strong at 39.44%, reflecting efficient operations and cost management.

For those considering investing in Gilat, it's worth noting that the company has been profitable over the last twelve months and the Relative Strength Index (RSI) suggests the stock is currently in oversold territory, potentially presenting a buying opportunity for value investors. For more detailed analysis and additional InvestingPro Tips, such as the company's lack of dividend payments to shareholders, visit https://www.investing.com/pro/GILT. There are a total of 5 InvestingPro Tips available for GILT, which can be accessed alongside comprehensive metrics and tools to help make informed investment decisions. Remember to use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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