Gilat Reports Slighty Higher First Quarter 2021 Revenues from Previous Quarter

Petah Tikva, Israel – May 4, 2021 – Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a today reported its results for the first quarter of 2021. The company reported revenues of US$ 44.7 million versus US$ 47.7 million in Q1 2020 and up from US$ 42.6 million in the previous quarter;

First Quarter Financial Highlights

  • Revenues of US$ 44.7 million versus US$ 47.7 million in Q1 2020 and up from US$ 42.6 million in the previous quarter;
  • GAAP operating loss of US$ 3.7 million versus operating loss of $10.8 million in Q1 2020 and an operating income of $62.7 million in Q4 2020; GAAP operating income in Q4 2020 included income related to the legal settlement with Comtech, net of related expenses, of US$ 64.8 million;
  • Non-GAAP operating loss of US$ 3.8 million, compared with operating loss of US$ 7.6 million in Q1 2020, and an operating loss of $1.6 million in the previous quarter;
  • GAAP net loss of US$ 5.1 million, or loss of $0.09 per diluted share, compared with net loss of US$ 11.8 million, or loss of $0.21 per diluted share in Q1 2020 and net income in the previous quarter of US$ 62.4 million, or income of $1.12 per share; GAAP net income in the previous quarter included $64.8 million income related to the settlement with Comtech, net of related expenses;
  • Non-GAAP net loss of US$ 5.2 million, or loss of $0.09 per diluted share, compared with net loss of US$ 8.6 million, or loss of $0.15 per diluted share in Q1 2020, and compared with a net loss of US$ 1.9 million, or loss of $0.03 per share, as reported in the previous quarter;
  • Adjusted EBITDA loss of US$ 1.4 million compared with adjusted EBITDA loss of US$ 5.0 million in Q1 2020; and adjusted EBITDA of US$ 1.1 million in the previous quarter;

Adi Sfadia, Gilat’s CEO, commented: “We continue to see strong momentum across all our business units, with the exception of the IFC market segment, which is yet to show a recovery. We believe that this growth trend will continue during 2021 and expect to show sequential quarterly growth throughout the year and increasing profitability. Looking further out, 2022 is expected to show significant improvement both in revenue and profitability with the pick-up in IFC, Cellular Backhaul and NGSO.

“As a testament to the strong momentum we are seeing, I am very pleased to report that we entered a mega strategic agreement valued at tens of millions of dollars, including a potential for significant project expansions, with a large government corporation in Asia Pacific. I believe that we will see additional large strategic transactions in the near future.

“In light of the many opportunities we see ahead of us, we are investing significant R&D efforts in order to capture these opportunities and accelerate our future growth. We expect that NGSO, IFC and Cellular Backhaul will be the main market segments that will drive this growth during 2021 and beyond, and we also see strong potential for the defense business to support our growth in a more meaningful way than it has done in the past.

“We made positive progress during the first quarter in our strategic growth areas of NGSO and Cellular Backhaul. We received additional orders for a LEO constellation, where our gateway Solid State Power Amplifiers (SSPAs) have been selected as the solution of choice. On the Cellular Backhaul front, we received a multi-million-dollar expansion and follow-on orders from Tier-1 mobile operators around the globe including in Japan, Australia, Europe and South America," concluded Sfadia.