Gilat Q2 revenue up 22% YoY
August 8, 2023
Gilat Satellite Networks, a specialist in satellite networking technology, solutions and services, has reported its results for the second quarter, ended June 30th. Financial highlights include:
- Revenues of $67.6 million (€61.5m), up 22 per cent compared with $55.5 million in Q2 2022;
- GAAP operating income of $5.4 million, compared with $1.5 million in Q2 2022;
- Non-GAAP operating income of $6.1 million, compared with $2.4 million in Q2 2022;
- GAAP net income of $4.3 million, or $0.08 earnings per diluted share, compared with $0.5 million, or $0.01 earnings per diluted share in Q2 2022;
- Non-GAAP net income of $4.9 million, or $0.09 earnings per diluted share, compared with $1.4 million, or $0.03 earnings per diluted share in Q2 2022;
- Adjusted EBITDA of $9.2 million, up 74 per cent compared with $5.3 million in Q2 2022;
Forward-Looking Expectations
The Company has raised its 2023 revenues guidance to between $265 to $285 million, representing year-over-year growth of 15 per cent at the mid-point, as well as increased its GAAP operating income guidance to between $18 to $22 million, representing year-over-year growth of 101 per cent at the mid-point and its adjusted EBITDA guidance to between $33 to $37 million, representing year-over-year growth of 39 per cent at the mid-point.
Adi Sfadia, Gilat’s CEO, commented: “We are very pleased with our strong second quarter results, with solid growth in revenue, which was up 22 per cent year-over-year, and a stronger growth in Adjusted EBITDA, up 74 per cent year-over-year, demonstrating operating leverage in our business model. The revenue growth was broad across most of our business areas, a testimony to the strong market interest in Gilat’s solutions as well as growing interest in satellite communications overall.
We are experiencing a significant expansion in our in-flight connectivity (IFC) business with a growing demand for both electronically steered antennas (ESA) and Solid-State Power Amplifiers (SSPA) from existing and new customers.
We signed a significant agreement and received the first orders from Satcom Direct, for the development and supply of new ultra-low profile electronically steered antennas (ESA) to operate over OneWeb’s LEO constellation. This ESA project is an important turning point and an important future growth engine as we increase our presence by entering new market segments such as IFC for business jets, as well as connectivity for government and military aviation.
We are progressing in obtaining the necessary regulatory approvals for our acquisition of DataPath Inc., which was announced during the first quarter. Conditioned upon this process’s satisfactory conclusion, we anticipate that the closing of the transaction will occur in Q4 2023.
Not only did we report strong results in the quarter, but we also had strong bookings and signed some strategic deals this quarter, all of which led us to increase our 2023 guidance and makes me confident about our ability to materialize our long-term growth potential.”