Safran Selects Gilat for Strategic, Multimillion-Dollar In-Flight Connectivity Program
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Insights
The selection of Gilat Satellite Networks by Safran Passenger Innovations for a strategic IFC program represents a significant business development within the aerospace and satellite communications sectors. The partnership indicates confidence in Gilat's capabilities and underscores the growth potential in the IFC market. This collaboration is expected to enhance Gilat's product offering, potentially increasing its market share and revenue streams.
From a market research perspective, the development of a new line of Ku band Power Supply Unit products is a strategic move to capture the increasing demand for advanced IFC systems. With major airplane manufacturers such as Boeing and Airbus requiring line fit qualified equipment, Gilat positions itself as a key player in the supply chain for next-generation in-flight connectivity solutions.
It is important to note that the IFC market is driven by the growing passenger expectation for seamless in-flight internet access. This trend is amplified by the increasing number of connected devices and the demand for high-speed connectivity even while flying. As such, the partnership between Gilat and Safran could have a positive impact on Gilat's stock price, reflecting investor optimism about future earnings potential.
The announcement of a multimillion-dollar contract with Safran Passenger Innovations is a strong signal to investors about Gilat's financial health and its prospects for future growth. This contract could lead to an improved bottom line for Gilat, as new product lines typically contribute to both top-line revenue and margin expansion if managed effectively.
Investors will be closely monitoring the execution of this contract, looking for signs of operational efficiency and profitability in the production of the new KPSU products. The ability to meet the technical and quality standards required by Safran and subsequently by Boeing and Airbus, will be critical for Gilat's financial performance and its ability to secure further contracts in this space.
Given that Gilat's Wavestream subsidiary is tasked with developing these products, it will be important to assess the subsidiary's contribution to Gilat's overall financials. The capital investment required for product development and qualification, as well as the expected timeline for revenue generation, will be key factors affecting the financial outlook.
The partnership between Gilat and Safran highlights the competitive nature of the IFC market and the importance of technological innovation in this space. The focus on developing Ku band PSUs for electronically steerable antennas (ESAs) is indicative of the industry's shift towards more agile and efficient satellite communication systems.
Electronically steerable antennas represent a significant advancement over traditional mechanically steered systems, offering faster signal acquisition, better tracking and reduced weight and maintenance requirements. For Gilat, the ability to develop and qualify these components for industry giants like Boeing and Airbus signifies a robust technical expertise and could lead to further advancements and standard-setting within the aerospace industry.
The impact of such technological advancements on the business can be profound, potentially leading to long-term contracts, partnerships and an elevated industry status. This strategic alignment with Safran could also serve as a catalyst for further innovation, driving research and development in the sector and setting new benchmarks for IFC capabilities on commercial aircraft.
Companies expand portfolio of products to bolster further growth in the IFC market
PETAH TIKVA, Israel, March 05, 2024 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions, and services, announced today that it was selected by Safran Passenger Innovations for a strategic, multimillion-dollar in-flight connectivity (IFC) program.
Gilat’s Wavestream subsidiary will develop, qualify, and produce a new line of Ku band Power Supply Unit (KPSU) products to support Safran’s Ku-band electronically steerable antenna (ESA), bolstering further growth in the IFC market.
“Safran decided to work with Gilat’s Wavestream subsidiary on this project because of their extensive experience in building and qualifying commercial-grade aeronautical equipment for satellite communications,” said John Andrews, Vice President, Connectivity at Safran Passenger Innovations. “With this new Wavestream KPSU product from Gilat, we will soon be able to expand our product portfolio with a new ESA IFC terminal, for which we see high demand in the market.”
“To address the burgeoning demand for built-in IFC capabilities among the major airplane manufacturers, these new products are designed to be line fit qualified for Boeing and Airbus aircraft,” said Bob Huffman, Wavestream’s General Manager and Gilat's Senior VP. “We are delighted to have been awarded this competitive contract. We look forward to building the next generation of IFC equipment with these new products and continuing our industry-leading position as the premier supplier of PSUs and SSPAs for the IFC marketplace.”
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
What is the latest announcement from Gilat Satellite Networks Ltd.?
Why did Safran Passenger Innovations choose Gilat's Wavestream subsidiary for this project?
Which new products will Gilat develop for Safran Passenger Innovations?
For which aircraft manufacturers are the new products designed to be line fit qualified?
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