PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ:TASE: NASDAQ:GILT), a global provider of satellite networking technology with a market capitalization of $381 million, announced Monday that its U.S. subsidiary, Gilat DataPath, has secured contracts worth over $5 million from the U.S. Department of Defense and other international defense forces. The company, which has seen its stock surge nearly 47% over the past six months, will execute these contracts, including extensions and new agreements, worldwide over the next 12 months.
Gilat DataPath specializes in satellite communication solutions tailored to the rigorous needs of military and defense applications. The awarded contracts will support the deployment of DKET terminals and provide Field Service Representative (FSR) support, critical for maintaining seamless connectivity in various operational environments. According to InvestingPro analysis, Gilat maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 2.17, indicating robust operational stability.
Nicole Robinson, President of Gilat DataPath, emphasized the company's commitment to delivering high-quality support and the trust that defense organizations place in their services. The contracts underscore Gilat DataPath's role as a reliable partner in maintaining mission-critical communication systems.
Gilat Satellite Networks boasts over 35 years of experience in the industry and offers a range of broadband communications solutions. These include cloud-based platforms, satellite terminals, on-the-move antennas, power amplifiers, and integrated ground systems catering to commercial, defense, and government sectors.
While the press release included forward-looking statements and highlighted Gilat's market position, this news article is based on the press release statement and focuses on the factual aspects of the contracts awarded to Gilat DataPath. The company has demonstrated solid financial performance with a 15% revenue growth in the last twelve months and appears undervalued according to InvestingPro Fair Value analysis. Investors can access comprehensive analysis and 8 additional ProTips about Gilat through InvestingPro's detailed research reports, which are available for over 1,400 US stocks.
In other recent news, Gilat Satellite Networks reported a 17% year-over-year revenue increase in Q3 2024, reaching $74.6 million. This growth is attributed to the acquisition of DataPath and advancements in defense and in-flight connectivity sectors. However, the company's GAAP net income saw a decrease to $6.8 million, down from $10.2 million in the same quarter of the previous year. In addition, Gilat secured orders totaling over $12 million for its satellite technology, including its Gateway Solid State Power Amplifiers and SkyEdge platforms, showcasing the industry's trust in the company's technology.
The company also announced the anticipated closure of the Stellar Blu acquisition by year's end, with Stellar Blu expected to contribute between $25 million to $35 million in revenue in Q4 2024. Despite a decline in organic revenue excluding DataPath by 10%, and a decrease in GAAP operating income to $6.7 million from $12.7 million, Gilat's CEO, Adi Sfadia, expressed optimism about the SES's mPOWER program and the EU's Iris Square (NYSE:XYZ) initiative, expecting significant growth in 2025.
In addition, Gilat recently won a $10 million arbitration in Peru and has exited the Russian market. These recent developments are part of Gilat's ongoing efforts to expand its reach and deliver advanced satellite communication solutions to a global clientele.
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