Gilat Satellite Networks Ltd., a worldwide leader in satellite networking technology, solutions and services, reported on May 16, 2017, its results for the first quarter ended March 31, 2017.
Key Financial Highlights:
- Revenues for Q1 2017 increased 21% to $63.9 million from $52.7 million in Q1 2016.
- Profitability continued to improve year-over-year:
- GAAP operating profitability improved to $18 thousand in Q1 2017, compared with an operating loss of $3.0 million in Q1 2016.
- Non-GAAP operating income improved to $2.5 million, compared with a non-GAAP operating loss of $1.2 million in Q1 2016.
- GAAP loss was $0.8 million, or $0.01 per diluted share, compared with a GAAP loss of $4.0 million, or $0.09 per diluted share, in Q1 2016.
- Non-GAAP net income was $1.7 million, or $0.03 per diluted share, compared with a non-GAAP loss of $2.2 million, or $0.05 per diluted share, in Q1 2016.
- Adjusted EBITDA increased to $4.2 million, or 6.6% of revenues, compared with Adjusted EBITDA of $0.8 million, or 1.4% of revenues, in Q1 2016.
- Reiterated management objectives for 2017: revenues between $280 to $300 million, GAAP operating income between $4 and $8 million, and Adjusted EBITDA of between $20 and $24 million.
Yona Ovadia, CEO of Gilat, commented: “I am pleased to report that Gilat achieved further positive results in the first quarter of 2017 as evidenced by continued year-over-year improvement in profitability, both on a GAAP and non-GAAP basis. It shows the fruit of focusing on our growth engines and on more profitable revenues, along with our continued drive to reduce costs.
“Our management objectives for 2017 indicate that profitability remains our priority, while we continue to develop our broadband and mobility growth engines based on product innovation and technology leadership.
“In the first quarter, we saw important substantiation of our strategic direction. I am pleased to report that in a high-profile live airborne event held last week by Gogo, the leading IFC player, our IFC modem demonstrated unprecedented performance and received high marks from the analyst and media community.
“In addition, we are seeing industry acknowledgement of cellular backhaul over satellite, now moving into the mainstream and competing with terrestrial solutions. A number of Tier 1 customers are already implementing their LTE networks with our de-facto leading cellular backhaul solution, and we see additional opportunity ahead.
Mr. Ovadia concluded: “We are pleased with the first quarter results that are due to focusing on our strategy. We will continue to execute upon this strategy, and are optimistic regarding the rest of the year.”