PETAH TIKVA - Gilat Satellite Networks Ltd. (NASDAQ:TASE: NASDAQ:GILT), an established provider of satellite-based broadband communications, has secured a follow-on order exceeding $3 million to enhance public WiFi infrastructure in Latin America. This initiative, part of a social inclusion project, aims to bridge the digital divide by increasing internet accessibility in rural regions lacking terrestrial infrastructure.
The recent order will add hundreds of sites to the existing network, extending Gilat's reach and potentially connecting thousands of additional users to the internet. This expansion underscores the company's commitment to facilitating digital empowerment and social inclusion through advanced technology solutions.
Hagay Katz, Chief Product and Marketing Officer at Gilat, expressed enthusiasm about the project's progression, stating, "This follow-on order not only signifies our expertise in delivering scalable networking solutions but also emphasizes the significance of initiatives focused on social inclusion and digital empowerment."
Gilat's experience spans over three decades, during which it has developed a broad range of products and services, including high-performance satellite terminals, cloud-based platforms, and cybersecurity services. These offerings cater to various sectors, including broadband access, mobility, cellular backhaul, and government operations.
The company's continued investment in Latin America reflects its belief in the universal right to connectivity, particularly in underserved areas. Gilat's latest contract is expected to play a pivotal role in narrowing the connectivity gap and promoting inclusive growth across the region.
The information regarding Gilat's new contract and its implications for public WiFi expansion in Latin America is based on a press release statement from the company.
InvestingPro Insights
In light of Gilat Satellite Networks Ltd.'s (NASDAQ:TASE: GILT) latest contract to expand public WiFi infrastructure in Latin America, the company's financial health and market performance provide valuable context for investors. Gilat has demonstrated a solid financial foundation, as reflected in the InvestingPro Data, with a market capitalization of $339.91 million and a healthy Price to Earnings (P/E) ratio of 14.37. The company's revenue for the last twelve months as of Q4 2023 stands at $266.09 million, marking a notable growth of 10.94%.
From an operational standpoint, Gilat has shown efficiency with a gross profit margin of 39.44% and an operating income margin of 10.55%. These margins are indicative of the company's ability to manage its costs and translate sales into profits effectively. Moreover, the recent price performance has been positive, with a significant return over the last week of 10.68%.
Turning to the InvestingPro Tips, Gilat's financial prudence is highlighted by its ability to hold more cash than debt on its balance sheet, providing a buffer against market volatility and unforeseen expenses. Additionally, the company's liquid assets exceed its short-term obligations, which ensures operational stability and the potential for further growth. It's also worth noting that Gilat does not pay a dividend to shareholders, which may appeal to investors who prioritize reinvestment of profits over immediate income.
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