Gilat Reports Sales Decline in Third Quarter
[Satellite Today 11-25-08] Gilat Satellite Networks reported revenue of $65.3 million in its third quarter 2008 financial report, compared to $71.5 million for the same period in 2007. In the report released Nov. 25, the company said net loss for the third quarter of 2008 was $500,000, compared to a net income of $5.9 million in the third quarter of 2007.
"Our financial results in the third quarter reflect a decline in [Gilat’s] business, primarily attributable to lengthened sales cycles, partially offset by strong activity in the United States. with the receipt of several major orders for gaming and other applications,” Gilat CEO and Chairman Amiram Levinberg said in a statement. “We have a strong balance sheet carrying a sizeable amount of cash with relatively little debt that can support us even if business slows down due to economic hardships and may open for us interesting acquisition opportunities going forward."
During the quarter, Gilat filed a lawsuit against each of the parties that had guaranteed the payment of a termination fee under a botched merger agreement set in March. The company has also not been able to reach resolution with the government of Colombia relating to the Compartel projects that were under renegotiation and were to have been signed in September.