[Satellite News 11-28-11] Erez Antebi takes over as Gilat Satellite Networks CEO next year with a tough act to follow, as Amiram Levinberg finishes serving in his role after one of the strongest years in the company’s history. Levinberg elected to step down at the end of the year to abide to recent amendments discouraging dual roles in Israeli corporate law.

   Levinberg, who co-founded Gilat, returned to his company in July 2005 to serve as CEO and chairman of the board, establishing a new defense market division in the company and acquiring technology from Wavestream and RaySat Antenna Systems to support these initiatives. Gilat’s financial surge in 2011 was recently capped off by a third-quarter revenue jump of 45 percent to $83.9 million. Operating income leaped from a $700,000 loss last year to a $1.9 million gain and EBITDA nearly doubled from $4.4 million in the 2010 third quarter to $8.1 million in its most recent fiscal quarter ending Sept. 30.

   “In the [2011] third quarter, we saw a year-over-year improvement across all financial parameters as we increased our revenues, gross margin, EBITDA and operating income. We maintained strong performance in our bookings this quarter, with several significant contract wins from new as well as existing customers," Levinberg said.

   The Israeli company has had a tremendously busy summer and early fall, especially in Russia. In July, Gilat was selected by the Russian Yakutia Ministry of Finance to provide a full turnkey SkyEdge 2 broadband satellite network to serve new Ministry of Finance locations across one of the country’s largest federal districts in the Sakha (Yakutia) Republic. The company also was contracted by Russia’s national communications carrier Synterra to provide satellite communications equipment for the extension of a broadband network throughout Siberia and the Russian Far East.

   Gilat made its first big splash in Ka-band one month later in August, when it announced it had signed an agreement to deliver network equipment and Ka-band end-user terminals for SES satellite-based Internet service Astra2Connect. The project, including deals with SES and related nominees, holds a potential value of up to $70 million during the next five years. Levinberg said he would continue to reinforce Gilat’s Ka-band ambitions from his adjusted role. “We see Ka-band technology expanding to more regions in the world, and offering new opportunities with much higher capacities and at lower prices to the subscribers.”

   The company spent the rest of August and September establishing a series of lucrative SkyEdge 2 deals in the United States and Latin America, as well as other VSAT contracts in South East Asia. The company’s last major VSAT order came in September through an agreement it signed with an unnamed Latin American government agency to deliver more than 1,800 SkyEdge 2 VSATs to facilitate broadband Internet connectivity in schools. Gilat’s SkyEdge 2 is a multi-service platform that aims to deliver high-quality voice, broadband data and video services for enterprises, rural networks, cellular backhaul and government network applications. Financial details of the agreement were not disclosed.

   “Latin America represents one of Gilat’s key markets and we are proud to have our technology deployed where broadband connectivity is going to make a noticeable and important contribution to children’s lives,” Gilat Regional Vice President of Latin America Russell Ribeiro said in a statement.

   In October, financial analysis firm Zacks Investment Research upgraded the share value of Gilat Satellite Networks from neutral to outperform after the company announced its significant business expansion plan and recent milestone performance.

   The Zacks Investment Research report, issued Oct. 18, noted that the company has formed key partnerships in new vertical markets from recent acquisitions and that its accomplishments could positively affect its stock value. “[Gilat Satellite Networks’] stock value has seen a 52-week, one-year low of $3.04 and a one-year high of $6.20. With the stock’s 50-day moving average at $3.39 and its 200-day moving average at $4.32, the company holds a market cap of $142.9 million and a price-to-earnings ratio of 4.57,” Zacks analysts wrote.

   The report was published on the same day that Gilat announced that it reached its one-millionth VSAT terminal shipment milestone. In a statement, Gilat COO Jaron Lotan said that the company’s efforts to extend its presence to a wider range of enterprises, government agencies and service providers have helped the company form valuable technology partnerships and exceed its shipping targets.

   “We are extremely proud to have achieved this important milestone … Our networks span the globe, providing a diverse range of customers with constant and reliable connectivity for voice, video and data services — championing boundless communications worldwide,” said Lotan.

   Gilat developed and shipped its first generation two-way VSAT, the SkyStar Advantage, in 1991. The company currently holds technology partnerships with satellite service, software and hardware providers and developers such as Optus, Bharti Airtel, StarOne, GTech and Intralot.

   Levinberg’s replacement Antebi currently serves as Gilat’s executive advisor for Ka-band solutions. Since 2006, Antebi held the CEO position at Gilat Network Systems and headed Spacenet Rural Communications for two years. According to Levinberg, Antebi was responsible for leading Gilat’s entry to the spot-beam satellite and Ka-band technology markets and was instrumental in Gilat being awarded consumer initiatives Astra2Connect in Europe and Optus-NBN in Australia.

   “[Antebi] has proven his excellent operational and executive capabilities time and again. With Erez’s leadership, market focus, unrelenting drive and passion for the company’s future, I am confident that Gilat will continue to grow profitably in the future,” said Levinberg.