Gilat’s Recent Contract Wins in Latin America, Africa Boost Backlog
Gilat Satellite Networks Ltd. [GILTF], a satellite networking technology company, reported a “significant increase” in its order backlog when it released its latest quarterly results Monday. The gains are a sign that the Israel-based company’s ongoing debt refinancing could be building confidence among prospective customers. However, Gilat’s losses are continuing, based on the results it reported for its third quarter (July-September).
Gilat Chairman and CEO Yoel Gat acknowledged that revenue growth has been impacted over the past two quarters due to temporary delays in signing certain contracts, but explained that several large deals have been finalized in the past few weeks as a major debt restructuring plan nears completion.
“These major wins are expected to increase backlog to approximately $250 million, which is comparably higher than 2001 year-end backlog,” Gat said. “This increase in backlog is expected to have a positive effect on our revenue and business as we move forward in 2003.”