Gilat Awarded $10 Million Follow-On Order from the US Department of Defense
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Insights
The $10 million follow-on order from the US Department of Defense (DoD) awarded to Gilat's subsidiary, DataPath, for additional DKET 3421 terminals signifies a strong vote of confidence in the company's technology and its applications in military operations. Given the size of the order relative to Gilat's market capitalization, which stood at approximately $500 million as of the end of the previous fiscal year, this contract represents a significant revenue stream and could potentially lead to further orders if the terminals meet or exceed DoD expectations.
From a market perspective, such contracts are indicative of Gilat's competitive positioning within the defense sector. The ability of the DKET 3421 terminals to support multi-carrier operations and be easily transported is crucial for military applications, where rapid deployment and flexibility are key. The endorsement by the DoD could serve as a catalyst for additional contracts with other nations' defense departments, as they often look to the US military's procurement choices as a benchmark.
The announcement of a follow-on order by a major entity like the DoD has immediate implications for Gilat's financial health. A $10 million contract is material for a company of Gilat's size and can positively affect its earnings per share (EPS) in the upcoming financial reports. Investors will be monitoring the company's ability to fulfill the order on time and within budget, which can influence future profitability and cash flow.
Furthermore, the repeatability of such orders suggests a stable demand for Gilat's products within the defense segment, providing a more predictable revenue outlook. This could be factored into the company's valuation models by investors, potentially reducing the perceived risk and leading to a re-rating of the stock. However, investors should also consider the dependency on government contracts, which could introduce volatility in revenues due to changes in defense spending or political shifts.
The technical specifications of the DKET 3421 terminals, such as the scalable modem architecture and the capability to deploy rapidly, are aligned with the current trend in military communications towards modular and agile systems. The weight of the terminals, under 5000 lbs, is also significant as it allows for easy transportability, a critical feature for modern military logistics.
Moreover, the ability to leverage available satellite assets enhances the operational flexibility of the DKET 3421, making it a strategic investment for the DoD. The adoption of such technology can lead to enhanced communication capabilities on the battlefield, which is essential for modern warfare. The long-term impact on Gilat's business could include increased research and development (R&D) in this area, driven by the feedback and requirements of a high-profile client like the DoD.
Gilat to provide additional DKET 3421 terminals for easy-to-deploy transportable satcom network hubs
PETAH TIKVA, Israel, Feb. 08, 2024 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions, and services, announced today that the US Department of Defense awarded a
The field-proven DKET 3421 terminal supports multi-carrier operations with a scalable modem architecture (up to 32 modems) while weighing under 5000 lbs. to allow for easy transport over air, land, or sea via a variety of aircraft and vehicles. Deploying in less than three hours, the DKET 3421 provides a satellite network hub in the form of a single-skid with the flexibility to leverage available satellite assets.
“Our solutions are specifically tailored to meet the strict requirements of government and military operations. We take great pride in our unwavering dedication to meeting and exceeding the expectations of our customers, and our team works tirelessly to provide innovative solutions to their mission-critical requirements,” said Barry W. Botts, Vice President, Sales and Business Development for DataPath. “This follow-on order is a testament to the outstanding performance and satisfaction our solutions consistently deliver.”
About Gilat
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we create and deliver deep technology solutions for satellite, ground, and new space connectivity and provide comprehensive, secure end-to-end solutions and services for mission-critical operations, powered by our innovative technology. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.
Our portfolio includes a diverse offering to deliver high-value solutions for multiple orbit constellations with very high throughput satellites (VHTS) and software-defined satellites (SDS). Our offering is comprised of a cloud-based platform and high-performance satellite terminals; high-performance Satellite On-the-Move (SOTM) antennas; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense, field services, network management software, and cybersecurity services.
Gilat’s comprehensive offering supports multiple applications with a full portfolio of products and tailored solutions to address key applications including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: www.gilat.com
Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including those related to the current terrorist attacks by Hamas, and the war and hostilities between Israel and Hamas and Israel and Hezbollah. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.
Contact:
Gilat Satellite Networks
Hagay Katz, Chief Products and Marketing Officer
hagayk@gilat.com
EK Global IR
Ehud Helft, Managing Partner
ehud@ekgir.com
FAQ
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