Gilat reports strong Q2
August 11, 2021
By Chris Forrester
Israel-based satellite networking specialist Gilat reported an impressive set of financials on August 10th and a significant recovery given that in-flight communication travel is only just recovering from the pandemic.
Gilat says that its revenues of $56.9 million (€48.6m), represent a 49 per cent increase from $38.3 million in Q2 2020 and up 27 per cent from $44.7 million in the previous quarter.
Its GAAP operating loss of $0.3 million, is an improvement compared with an operating loss of $3.5 million in Q2 2020 and an operating loss of $3.7 million in Q1 2021.
Its non-GAAP operating income of $0.2 million, compared with an operating loss of $2.6 million in Q2 2020 and an operating loss of $3.8 million in the previous quarter.
Gilat has won a slew of orders over recent months including a contract with SES to supply its maritime clients a solution for connecting ships (including cruise liners) with kit that connects to the SES geostationary fleet and upcoming mPower medium Earth orbiting satellites.
Adi Sfadia, Gilat’s CEO, commented: “I am very pleased with the improvement in our second quarter results which showed very strong revenue growth and a return to Non-GAAP profitability. “We are experiencing strong business momentum in nearly all our end markets and have secured several significant awards. In our Mobility segment we solidified our leadership position in maritime with a multi-million-dollar award from SES, and our leading position in NGSO with orders for more than $15 million from a leading satellite operator for support of a Low Earth Orbit Constellation. Very importantly, we are most pleased with the rapid growth in our Defense segment in which we secured deals for over $10 million in Asia, Latin America and the US.”
“Further to the many opportunities we see ahead of us, we continue investing heavily in our R&D efforts in order to capture these opportunities and accelerate our future growth. Given the improving momentum and strong backlog, we expect to continue with our high revenue and profitability growth through the second half of 2021. We expect this growth to increase even further in 2022, as the inflight connectivity sector recovers, in addition to continued growth expected from the Maritime, Cellular Backhaul, Non-geostationary [broadband constellations] and Defense market segments.”