Gilat Satellite Q2 Takes Off, CEO 'Confident About Our Ability To Materialize Our Long-Term Growth Potential'

Gilat Satellite Networks Ltd. GILT reported second-quarter FY23 revenue growth of 22% year-on-year to $67.6 million versus consensus $63.84 million. 

Non-GAAP operating income was $6.1 million versus $2.4 million a year ago.

Non-GAAP EPS was $0.09. GAAP EPS of $0.08 compared to consensus of $0.03.

Gilat held $87.8 million in cash and equivalents. 

"We are experiencing a significant expansion in our in-flight connectivity (IFC) business with a growing demand for both electronically steered antennas (ESA) and Solid-State Power Amplifiers (SSPA) from existing and new customers," Gilat CEO Adi Sfadia said.

"We signed a significant agreement and received the first orders from Satcom Direct, for the development and supply of new ultra-low profile electronically steered antennas (ESA) to operate over OneWeb's LEO constellation ... We are progressing in obtaining the necessary regulatory approvals for our acquisition of DataPath Inc., which was announced during the first quarter. Conditioned upon this process's satisfactory conclusion, we anticipate that the closing of the transaction will occur in Q4 2023."

Sfadia added that "Not only did we report strong results in the quarter, but we also had strong bookings and signed some strategic deals this quarter, all of which led us to increase our 2023 guidance and makes me confident about our ability to materialize our long-term growth potential."

Outlook: Gilat raised FY23 revenue to $265 million-$285 million (prior $260 million-$280 million and consensus $239.84 million).

The company raised operating income guidance to $18 million-$22 million (prior $16 to $20 million) and adjusted EBITDA guidance to $33 million-$37 million (earlier $31 to $35 million).

Price Action: GILT shares traded higher by 8.90% at $6.85 Tuesday at publication

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