Gilat Awarded Over $5M by a National Defense Organization for the Upgrade of Transportable SATCOM Network Hubs

Rhea-AI Summary

Gilat Satellite Networks (NASDAQ, TASE: GILT) has secured a multi-year contract worth over $5 million from a National Defense Organization. The contract, awarded to Gilat's US-based subsidiary DataPath Inc., is for upgrading DKET terminals, which are transportable SATCOM network hubs. These terminals provide operational flexibility, capacity, connectivity, and rapid deployability for demanding communications in remote locations.

DataPath's commitment to supporting programs beyond their anticipated life spans highlights the company's reliability in delivering long-term solutions. The upgrade will ensure continued dependable, high-performance connectivity for the defense organization's mission-critical communications.

Positive

• Secured a multi-year contract worth over $5 million
• Contract awarded by a National Defense Organization, indicating strong government sector relationships
• Upgrade of existing DKET terminals, showcasing customer retention and product longevity
• Demonstrates ability to provide mission-critical communications solutions for defense sector

Negative

• None.

Defense Technology Analyst

The award of a $5M contract to Gilat Satellite Networks' subsidiary, DataPath Inc., for upgrading transportable SATCOM network hubs is noteworthy for multiple reasons. First, it highlights the growing dependence of defense organizations on advanced, secure and flexible communication solutions. The DKET terminals mentioned are particularly valuable in that they offer multi-band tactical capabilities, essential for operations in remote and challenging environments. This contract points to the trust and reliability that defense clients place in DataPath's technology, which can have long-term implications for the company, potentially opening doors to more such lucrative contracts in the defense sector. For a retail investor, this strengthens the perception of Gilat's technological prowess and reliability in fulfilling high-stakes contracts.

Financial Analyst

From a financial perspective, the $5M contract is less significant to Gilat Satellite Networks' overall revenue given the company's broader financial picture. However, it's important to consider the strategic value of such contracts. They bring stability and future revenue assurances, positively affecting cash flow and potentially enhancing the company's market reputation. For retail investors, this suggests an incremental, yet strategic addition to the company's portfolio, which could offer stable and potentially recurring revenue streams.

Moreover, the contract serves as an endorsement of Gilat's capability to deliver solutions that meet the stringent requirements of national defense organizations. This could translate into enhanced investor confidence and potentially a positive impact on the stock price in the short to medium term.

Key defense customer continues to rely on Gilat to provide dependable, high-performance connectivity for their mission critical operations

PETAH TIKVA, Israel, July 16, 2024 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions, and services, announced today that a National Defense Organization awarded a multi-year contract for over $5M to one of the company’s US-based subsidiaries, DataPath Inc. to upgrade their DKET terminals, transportable SATCOM network hubs.

DataPath’s multi-band tactical DKET terminals deliver the operational flexibility, capacity, connectivity, rapid deployability, and control required to support demanding communications in remote locations. DKET terminals deliver secure, reliable communications anywhere needed to establish network connectivity to support a mission with minimal manpower.

DataPath is committed to supporting programs well beyond their anticipated life spans, often extending their viability far beyond initial expectations. This dedication not only maximizes the value delivered to customers but also underscores the company’s reliability and foresight in delivering long-term solutions.

"The upgrade of these terminals will provide this important National Defense Organization with continued dependable, high-performance connectivity,” said Nicole Robinson, President of DataPath, Inc. “We understand the importance of their mission critical communications and are proud to be able to contribute to their success.”

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: https://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

What is the value of the contract Gilat Satellite Networks (GILT) recently secured?

Gilat Satellite Networks (GILT) secured a multi-year contract worth over $5 million from a National Defense Organization.

What product is Gilat upgrading for the National Defense Organization?

Gilat is upgrading DKET terminals, which are transportable SATCOM network hubs, for the National Defense Organization.

Which Gilat subsidiary was awarded the contract in July 2024?

DataPath Inc., a US-based subsidiary of Gilat Satellite Networks (GILT), was awarded the contract.

What are the key features of DataPath's DKET terminals?

DataPath's DKET terminals offer operational flexibility, capacity, connectivity, rapid deployability, and control for demanding communications in remote locations.