Gilat Satellite Networks Ltd., a worldwide leader in satellite networking technology, solutions and services, today reported its results for the first quarter ended March 31, 2019.
Key Financial Highlights:
Revenues for Q1 2019 totaled $62.1 million compared with $67.4 million for Q1 2018.
Continued strong profitability:
Q1 2019 GAAP operating income increased 21.7% to $4.5 million from $3.7 million in Q1 2018. Q1 2019 Non-GAAP operating income rose to $5.6 million, or by 9.5% from Q1 2018.
Q1 2019 GAAP net income increased 22.2% to $2.8 million, or $0.05 per diluted share, compared with $2.3 million, or $0.04 per diluted share in Q1 2018. Q1 2019 non-GAAP net income increased 5.4% to $4.0 million, or $0.07 per diluted share, compared with $3.8 million, or $0.07 per diluted share, in Q1 2018.
Q1 2019 Adjusted EBITDA increased 9.0% year over year to $8.2 million, or 13.2 % of revenues.
Reiterated management objectives for 2019: revenue range between $275 million to $295 million, GAAP operating income of between $23 million and $27 million, and Adjusted EBITDA between $38 million and $42 million.
Yona Ovadia, CEO of Gilat, commented: “I am pleased to report that Gilat continued to achieve good results in the first quarter, and am proud that Gilat received market recognition for our leadership in 4G/LTE Cellular Backhaul. “These results come hand in hand with significant business progress in our strategic focus areas of Mobility IFC and Mobile Cellular Backhaul. We marked a significant milestone in our IFC focus area, with Honeywell’s selection of Gilat’s aero modem for its JetWave Satellite Communication Solution. The Honeywell-Gilat solution is to be deployed first in China for both domestic and cross border flights, and then expected to expand to additional regions around the globe. “In the cellular backhaul focus area we have secured an important deal with TIM Brasil to enable 4G services for the agriculture IoT business. The initial forecast calls for one thousand Gilat VSATs to complement “4G TIM in the Field” cellular coverage program. Gilat also continued as the front-runner in the LTE/4G satellite backhaul market, and was recognized by the industry analyst NSR, as the world leader in shipments of cellular backhaul over satellite, achieving a 35% market share in modem shipments. We also made progress in the new era of digital communications with NGSO (non-geostationary satellite) constellations and 5G networks. Gilat’s modem was used for a first-ever important successful test that was conducted at the 5G Innovation Centre at the University of Surrey, demonstrating 5G connectivity over Telesat’s LEO test satellite.”
Mr. Ovadia concluded: “As we have announced previously, we have substantially increased R&D investment in 2019, to maintain our current technology advantage as well as to press forward with our product roadmap including our IFC antennas as well as our NGSO baseband, in support of the opportunities in LEO and MEO satellites and 5G. As we proceed through the remainder of 2019, we are encouraged with the opportunities ahead, as we continue to maintain a strategic balance among materializing our product pipeline, investing in our technology leadership, and growing our profitability.”
Key Recent Announcements:
Honeywell Selects Gilat’s Aero Modem for its JetWave Satellite Communication Solution
Gilat Announces First Ever Successful Demonstration of 5G Connectivity over a LEO Satellite, Powered by Gilat using Telesat’s Phase 1 LEO
Gilat is World Leader in Shipments of Cellular Backhaul over Satellite According to NSR
TIM Brasil Selects Gilat’s Satellite Backhaul to Enable 4G Services for the Agriculture IoT Business
Gilat Declares a $25 Million Cash Dividend