Gilat Reports Significant Increase in Y-o-Y Profitability in Q1 2018

Gilat Satellite Networks Ltd. has reported its results for the first quarter ended March 31, 2018. The revenues for Q1 2018 totaled USD 67.4 million, up
5.4 percent from Q1 2017. Q1 2018 fixed networks segment revenues were up 40 percent Y-o-Y and mobility solutions segment revenues increased 39.3 percent from Q1 2017. Terrestrial infrastructure projects segment revenues decreased 59.4 percent from Q1 2017, as the construction phase of the company’s project for Fitel in Peru winds down and the project shifts to the operational phase later this year.

Q1 2018 GAAP operating income rose to USD 3.7 million from USD 0.02 million in Q1 2017. Q1 2018 Non-GAAP operating income rose to USD 5.1 million, or 108 percent Y-o-Y. Q1 2018 GAAP net income was USD 2.3 million, or USD 0.04 per diluted share, compared with a GAAP loss of USD 0.8 million, or USD 0.01 per diluted share, in Q1 2017. Q1 2018 non-GAAP net income increased Y-o-Y to USD 3.8 million, or USD 0.07 per diluted share, versus USD 1.7 million, or USD 0.03 per diluted share, in Q1 2017. Q1 2018 adjusted EBITDA increased 78 percent Y-o-Y to USD 7.5 million, or 11.2 percent of revenues.

Reiterated management objectives for 2018 are – revenue range between USD 285 million and USD 305 million (up 1–8% from 2017), GAAP operating income of between USD 17 million and USD 21 million (up 56–93% from 2017), and adjusted EBITDA between USD 30 million and USD 34 million (up 15–30% from 2017).