Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a global operator in satellite networking technology, solutions and services, yesterday reported its results for the second quarter ended 30 June 2020.
Key Financial Highlights:
- Revenues for Q2 2020 totalled $38.3 million compared with $59.7 million for Q2 2019.
- Q2 2020 – GAAP operating loss was $3.5 million compared to operating income of $4.9 million in Q2 2019. Q2 2020 Non-GAAP operating loss was $2.6 million compared to Non-GAAP operating income of $6.3 in Q2 2019.
- Q2 2020 GAAP net loss was $4.2 million, or loss of $0.08 per diluted share, compared with net income of $3.4 million, or income of $0.06 per diluted share in Q2 2019. Q2 2020 non-GAAP net loss was $3.3 million, or $0.06 per diluted share, compared with net income of $4.8 million, or $0.09 per diluted share, in Q2 2019.
- Q2 2020 Adjusted EBITDA was $0.1 million compared with Adjusted EBITDA of $8.9 million in Q2 2019.
Adi Sfadia, Gilat’s interim CEO, commented:
“The COVID-19 pandemic continued to affect Gilat’s second-quarter 2020 results, as we continued to see postponements and delays in orders. However, during the second quarter we began to see and are continuing to see a recovery in most of our areas of operations which is demonstrated by a significant increase in pipeline opportunities. We believe that as a result of these trends, coupled with the cost reduction initiatives we have executed and are continuing to execute, the second half of 2020 will be meaningfully better than the first half, for Gilat.”
“I am pleased to report that Bosmat Halpern, Gilat’s AVP Finance has been appointed as Gilat’s interim CFO, and I am confident in her ability to wisely navigate Gilat’s finances through these unprecedented times.”
One of the key announcements in the Q2 earnings report is the extension of Gilat’s contract with Africa Mobile Networks (AMN), a mobile network operator providing satellite-enabled mobile network base stations in rural communities in sub-Saharan Africa. AMN relies on Gilat’s VSAT technology to power its satellite cellular backhaul network in over ten African countries.
Commenting on the extension of the contract, AMN CEO Michael Darcy said: “AMN has selected Gilat, due to its superior technology, to further extend Africa’s largest satellite cellular backhaul network constructed by AMN and powered by Gilat’s VSAT technology. We are pleased to contribute to closing the digital divide by furthering the reach of our network to additional countries reaching more of the population in rural areas.”
“Gilat is honoured to enhance its long-standing partnership with AMN and to have been selected once again to provide high-quality solutions for cellular backhaul over satellite to serve Tier-1 Telcos coverage throughput Africa,” said Michal Aharonov, VP Global Broadband Networks at Gilat. “Gilat has provided over 2,000 VSATs to AMN and is pleased to participate in plans of site migrations from 2G/3G to 4G, as the requirement for data communication is rising.”
Gilat has been active in the African satellite communications market. In its Form-20 filing to the U.S Securities and Exchange Commission (SEC), the Israeli company reported it earned USD 30.2 million for the sales of its services and product in Africa, Europe and the Middle East for the fiscal year ended 31 December 2019; about 11.6% of the company’s total USD 263.5 million revenue in 2019.
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