Gilat Receives $12 Million Service Agreement for Operation of Transport Network in Cusco, Peru

Rhea-AI Summary

Gilat Satellite Networks has secured a $12 million contract for operation and maintenance services for a broadband network in Cusco, Peru. This three-year agreement marks a significant achievement following the completion of the network's construction phase and acceptance tests earlier this year. Gilat will oversee internet service across over 2,000 kilometers of fiber optics and multiple communication nodes. The company aims to leverage this project to expand its services across other regions in Peru, targeting annual revenues of $50 million from the country.

Positive

• Secured a $12 million contract for broadband services in Cusco.
• Completion of construction phase leads to operational opportunities.
• Aiming for $50 million in annual recurring revenues from Peru.

Negative

• None.

Gilat to provide operation & maintenance services over a three-year period for the regional broadband transport network

PETAH TIKVA, Israel, Sept. 13, 2021 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, announced today that Gilat received a $12 million service award for recurring revenues from broadband services in Cusco, Peru. Operation & Maintenance for a three-year period will be provided for the regional broadband transport network.

This contract of the regional broadband service project follows the completion of the construction phase and successful acceptance test, granted for Cusco, earlier this year. Gilat is responsible for assuring high performance internet service over 2,000 kilometers of fiber optic, including more than a hundred communication nodes and data center.

"The operation & maintenance services for the transport network of the Cusco region is an additional step in materializing Gilat's strategy to provide this service to the transport networks of all six regions that Gilat operates," said Arieh Rohrstock, Corporate SVP and General Manager Gilat Peru. "We see this significant achievement as opening the door for potential growth in the additional regions and a significant milestone in bringing us closer to achieving our target of $50 million dollars in annual recurring revenues from Peru."

About Gilat
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With 30 years of experience, we design and manufacture cutting-edge ground segment equipment, and provide comprehensive solutions and end-to-end services, powered by our innovative technology. Delivering high value competitive solutions, our portfolio comprises of a cloud based VSAT network platform, high-speed modems, high performance on-the-move antennas and high efficiency, high power Solid State Amplifiers (SSPA) and Block Upconverters (BUC).

Gilat’s comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, cellular backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety, all while meeting the most stringent service level requirements. Gilat controlling shareholders are the FIMI Private Equity Funds. 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, risks associated with the outbreak and global spread of the coronavirus (COVID-19) pandemic; 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. 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
Doreet Oren, Senior Director Corporate Communications
DoreetO@gilat.com

GK Investor and Public Relations
Ehud Helft, Managing Partner
ehud@gkir.com 

FAQ

What is the recent contract value secured by Gilat (ticker GILT) in Peru?

Gilat secured a $12 million contract for operation and maintenance services for a broadband network in Cusco.

How long is the operation and maintenance contract for Gilat in Cusco?

The contract is for a three-year period.

What are Gilat's revenue targets from Peru following the new contract?

Gilat aims for $50 million in annual recurring revenues from Peru.

What does the new contract for Gilat in Cusco involve?

It involves operation and maintenance for a broadband transport network covering over 2,000 kilometers of fiber optics.