Gilat Reports Growth in Profitability Despite Slight Drop in Revenues
Petah Tikva, Israel, Feb. 12, 2019 — Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT) has reported a drop in quarterly revenues to $69.7 million, compared with $82.7 million in Q4 2017, and a full year 2018 revenues of US$ 266.4 million versus US$ 282.8 million in 2017.
However, Gilat reported continued profitability with quarterly Generally Accepted Accounting Principals (GAAP) operating income increasing to US$ 7.5 million, up 33.1% from Q4 2017, and full year GAAP operating income increasing 96.0% to $21.3 million.
Gilat said its quarterly non-GAAP operating income rose to US$ 7.9 million, an increase of 12.2% from Q4 2017, while full year non-GAAP operating income was up 36.0% to US$ 25.1 million from 2017.
Adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) for Q4 2018 increased 17.6%, from Q4 2017 to US$ 10.5 million, while full year 2018 adjusted EBITDA rose 34.6% from 2017 to US$ 35.2 million.
Yona Ovadia, CEO of Gilat, said he is pleased with the strong fourth quarter as the company was able to advance its business strategy and achieve substantial profitability growth. “We were successful in achieving our objectives through our continued focus on our growth engines of Broadband, Mobile Cellular Backhaul and Mobility IFC, along with continued efforts to drive costs out of the business,” he said.
Gilat said management objectives for 2019 is to reach a revenue range between US$ 275 million to US$ 295 million, GAAP operating income of between US$ 23 million and $27 million, and adjusted EBITDA between US$ 38 million and US$ 42 million.
The Gilat board of directors is expected to declare a cash dividend estimated at US$ 25 million (or approximately $0.45 per share), subject to final approval of our audited financial statements to be issued in March 2019.
“We secured significant Broadband business around the globe over the past year including: NBN in Australia, Gazprom in Russia, ChinaSatcom in China, LASCOM in Japan, Hispasat in Latin America and ISRO in India. In the Mobile market, we continued as the front-runner in the LTE/4G satellite backhaul market with expansion of projects with existing customers and additional contract wins such as Telstra in Australia. In the Mobility market, we reached an important milestone with our dual-band aero terminal by passing the standard for the environmental testing of avionics hardware and receiving the DO-160 certification. Lastly, we continued investing in product leadership, as demonstrated by the successful trials for aero and maritime connectivity solutions over Telesat’s phase 1 LEO satellite, as well as the announcement of the 5G-ready powerful solution that provides new levels of speeds and capabilities, in support of the growing demand of data consumption,” reports Ovadia.
“Looking at 2019, we will continue our focus on improving profitability, by further developing and expanding our existing growth engines, as we see continued reception to our services and solutions. As the market constantly evolves and requires higher throughputs and greater efficiency, we will also continue to invest substantially in R&D and in our product roadmap, to maintain product leadership especially in the era of NGSO and 5G,” Ovadia concluded.
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