Gilat Reports Lower Revenue, Posts US$ 1.9-M Net Loss in 2Q 2013
Petah Tikva, Israel, August 14, 2013 — Gilat Satellite Networks Ltd. reported on Wednesday lower revenues for the second quarter of 2013 at US$ 80.2 million, compared to US$ 82.8 million in the first quarter of 2013 and $85.3 in the second quarter of 2012.
On a non-GAAP basis, Gilat’s operating income for the second quarter of 2013 was US$ 1.3 million compared to an operating income of $1.0 million in the first quarter of 2013 and US$ 4.8 million in the second quarter of 2012. Net loss for the period on a non-GAAP basis was US$ 1.9 million, or $0.05 per diluted share, compared to net loss of $0.3 million, or $0.01 per diluted share, in the first quarter of 2013 and a net income of $3.2 million, or $0.07 per diluted share in the second quarter of 2012.
Gilat said EBITDA for the second quarter of 2013 reached US$ 5.4 million, representing a margin of 6.8 percent, compared with $5.1 million in the first quarter of 2013 and $8.6 million in the second quarter of 2012.
"We were able to gain traction across our businesses this quarter, particularly in our Commercial Division, which was highlighted by new client wins, continued execution on existing projects and a significant partnership agreement with Thaicom," said Erez Antebi, Gilat's Chief Executive Officer.
"In our Defense Division, though we felt the effects this quarter of the budget cuts and purchasing slowdowns in the United States, we believe strongly in our long term prospects and the strategic nature of the programs of record that we are targeting."
As early as last month, Gilat has already foreseen a cut in its 2013 revenue, citing lower than expected sales in the defense division related directly to sequester budget cuts and purchasing slowdowns by the US Department of Defense.
Gilat cut its revenue target by 4 percent from US$ 350–360 million to US$ 335–345 million, and cut its earnings before interest, taxes, depreciation and amortization (EBITDA) market from 9 percent to 7 percent.
A second factor that forced the company to lower guidance is its Compartel contract in Colombia, which ended on March 31 this year and was not extended.
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