PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ:TASE: NASDAQ:GILT), a global provider of satellite networking technology, announced today that it has obtained a multimillion-dollar contract extension with a key satellite operator in the Asia-Pacific region. The extension is for a 12-month period and involves the management and maintenance of the operator's satellite communications infrastructure.
The contract renewal underscores Gilat's role in enhancing network performance and reliability for the operator's service coverage. "We are pleased to continue our collaboration with one of the most prominent satellite operators in the APAC region," said Ron Levin, Gilat's Chief Commercial Officer. "This extension underscores the trust our partners place in our technology."
Gilat has over 35 years of experience in the satellite communications industry and offers a broad range of products and services. These include cloud-based platforms, high-performance satellite terminals, Satellite On-the-Move (SOTM) antennas, Solid State Power Amplifiers (SSPA), Block Upconverters (BUC), and integrated ground systems for various applications. The company's solutions cater to broadband access, mobility, cellular backhaul, and other critical operations, supporting both commercial and defense sectors.
The company's announcement reflects its ongoing commitment to providing comprehensive and secure end-to-end solutions for mission-critical operations, powered by its innovative technology. Gilat's extensive portfolio is designed to deliver high-value solutions for multiple orbit constellations, including very high throughput satellites (VHTS) and software-defined satellites (SDS).
This contract extension is based on a press release statement by Gilat Satellite Networks and continues the company's efforts to connect people worldwide, particularly in regions requiring advanced communication solutions. The financial details of the contract were not disclosed, but the extension represents continued revenue for Gilat and sustained service for the unnamed satellite operator in the Asia-Pacific market.
In other recent news, Gilat Satellite Networks has reported a series of significant developments. The company announced a 13% year-over-year increase in revenue in its second quarter 2024 earnings call, primarily driven by its defense business and the acquisition of DataPath. Additionally, Gilat has secured the acquisition of Stellar Blu Solutions, projected to contribute between $120 million to $150 million in revenue in 2025.
Moreover, Gilat's US subsidiary, DataPath Inc, has been awarded over $5 million in defense contracts to support the US Department of Defense, delivering technical upgrades to Satellite Transportable Terminal units. In a separate development, Gilat has received orders worth over $12 million for the expansion of a global satellite communication network using its SkyEdge Family of VSAT Platforms.
The company has also joined the board of the Waveform Architecture for Virtualized Ecosystems Consortium, demonstrating its commitment to advancing satellite communications. These recent developments highlight Gilat's strategic initiatives and continued growth in the defense, mobility, and very high throughput satellite markets.
InvestingPro Insights
Gilat Satellite Networks Ltd.'s recent contract extension in the Asia-Pacific region aligns well with its financial performance and market position. According to InvestingPro data, Gilat has demonstrated solid revenue growth, with a 12.61% increase over the last twelve months as of Q2 2024, reaching $292.25 million. This growth trajectory supports the company's ability to secure and extend significant contracts like the one announced.
InvestingPro Tips reveal that Gilat holds more cash than debt on its balance sheet, indicating a strong financial position that enables the company to invest in its technology and fulfill long-term contracts. This financial stability is crucial for a company operating in the capital-intensive satellite communications industry.
Another relevant InvestingPro Tip highlights that Gilat has been profitable over the last twelve months. With an operating income margin of 8.15% and a P/E ratio of 14.71, the company appears to be efficiently converting its revenue growth into profits, which is essential for sustaining its technological leadership and market expansion.
For investors interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into Gilat's financial health and growth prospects. There are 11 more InvestingPro Tips available for Gilat Satellite Networks, offering a comprehensive view of the company's financial situation and market performance.
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