PETAH TIKVA, Israel - Gilat Satellite Networks Ltd (NASDAQ:GILT). (NASDAQ:GILT, TASE:GILT), a global provider of satellite networking technology, announced a new contract valued at approximately $5 million with a prominent service provider in Latin America. The agreement involves the expansion of 4G coverage to remote areas currently lacking such connectivity, utilizing Gilat's satellite equipment and services.
This development marks a significant step for the unnamed LATAM service provider in its efforts to enhance telecommunications access in underserved regions. Gilat was chosen for its comprehensive services and strong local presence in the area. Hagay Katz, Gilat’s Chief Product and Marketing Officer, emphasized the company's commitment to delivering essential services, even in challenging and isolated environments.
Gilat, with over three decades of experience in the industry, specializes in creating broadband communications solutions through satellite technology. Their extensive portfolio caters to a wide range of applications, including broadband access, mobility, and cellular backhaul. The company prides itself on offering secure, end-to-end solutions and services for mission-critical operations, supported by cutting-edge technology.
The service expansion by the LATAM service provider is expected to have a positive impact on residents in remote areas, offering them access to 4G services that are essential for modern communication and internet access.
This contract reinforces Gilat's position as a key player in satellite-based communications, continuing to drive connectivity advancements in various parts of the world.
The information for this report is based on a press release statement from Gilat Satellite Networks Ltd.
InvestingPro Insights
Gilat Satellite Networks Ltd. (NASDAQ:GILT) has recently secured a new contract in Latin America, which is likely to bolster the company's financial performance. With a market capitalization of approximately $337.52 million and a Price/Earnings (P/E) ratio of 14.34, which adjusts to 14.43 for the last twelve months as of Q4 2023, Gilat shows a stable valuation in the market.
InvestingPro Tips highlight that Gilat has maintained profitability over the past year, which aligns with the company's strategy to expand services and secure new contracts. Additionally, Gilat's liquid assets surpass its short-term obligations, indicating a solid financial position to fulfill its contractual commitments and invest in future growth. However, potential investors should note that Gilat does not currently pay dividends, which might influence their investment strategy depending on their preference for income-generating stocks.
In terms of financial health and performance metrics, Gilat reported a revenue growth of 10.94% for the last twelve months as of Q4 2023, with a gross profit of $104.94 million and a gross profit margin of 39.44%. These figures underscore the company's ability to generate earnings efficiently from its revenues. The EBITDA growth of 85.77% during the same period is particularly remarkable, demonstrating significant operational profitability and potential for reinvestment in the company's core business activities.
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