Gilat in “best position for a long time”
May 10, 2023
By Chris Forrester
Israel-based satellite technology connectivity company Gilat Satellite Networks reported revenue up 15 per cent for its Q1 trading period (at $59 million (€53.8m), compared to $51.4 million in the same period last year).
Gilat raised its GAAP operating income guidance to between $16 to $20 million for the full year, representing year-over-year growth of 81 per cent at the mid-point and its adjusted EBITDA guidance to between $31 to $35 million, representing y-o-y growth of 31 per cent at the mid-point. The company reiterated its 2023 revenue guidance.
Adi Sfadia, Gilat’s CEO, commented: “The first quarter of 2023 was a very strong opening for the year and is another quarter in which we showed strong y-o-y growth in revenues and profitability. Our growth was broad, across multiple business areas, demonstrating the increased interest in satellite communications and in Gilat’s leading position in the industry. Adding to that is the significant improvement in our profitability metrics, with gross margins reaching a multi-year high of 42 per cent and Adjusted EBITDA of 14 per cent of revenues or $8.4 million, more than tripled that of the same quarter last year.”
“I am pleased we continued to make great inroads with our strategy to be the partner of choice for satellite operators with multimillion-dollar orders during the first quarter. In addition, on the defence front, we made significant progress in executing on our growth strategy. We signed a definitive agreement to acquire DataPath Inc. a US defense integrator, to boost our defence offering with a focus on the US Department of Defense,” he added. “I believe that Gilat today is in the best position it has been in a long time – revenue is growing strongly, with bookings, backlog, and the pipeline all at a very healthy level. This, coupled with our strong performance in Q1, has led us to increase our profitability guidance for 2023.”