Gilat Sees Slight Revenue Dip, Yet Growth in Profitablity
Gilat Satellite Networks reported its results for the first quarter ended March 31, in which it saw revenues dip, yet profitability remain strong. Total revenues for Q1 2019 amounted to $62.1 million, compared with $67.4 million for Q1 2018.
Adjusted EBITDA for Q1 2019 increased 9.0 percent year over year to $8.2 million, or 13.2 percent of revenues. GAAP net income for Q1 2019 increased 22.2 percent to $2.8 million, compared with $2.3 million in Q1 2018. Q1 2019 non-GAAP net income increased 5.4 percent to $4.0 million, ,compared with $3.8 million in Q1 2018.
“These results come hand in hand with significant business progress in our strategic focus areas of Mobility In-Flight Connectivity (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,” said Gilat CEO Yona Ovadia. “In the cellular backhaul focus area we have secured an important deal with TIM Brasil to enable 4G services for the agriculture Internet of Things (IoT) business. The initial forecast calls for one thousand Gilat Very Small Aperture Terminals (VSATs) to complement “4G TIM in the Field” cellular coverage program.