Gilat went on to lose; The stock has tripled – Global

Gilat
-6.93%

Base:6,850

opening:6,920

High:6,969

low:6,300

change:6,667,414

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She’s a good friend. The truth is she was almost always a good friend. One of Israel’s first significant technology companies. And yet it went through a major crisis after the dot com bubble, the stock crashed because its owners decided to take it on a crazy adventure in the field of satellite satellite services for homes. In the bottom line, it fell and rose when over the years they had already purchased it twice and at the last minute regretted it. And then suddenly in January 2021 they discovered her. A jump of 3 times a month and a record value of $ 1.2 billion (when recently there were dividends of close to $ 60 million). Just less than a year ago, a purchase deal worth a third was canceled – the buyer was afraid of the Korna crisis. So what happened in Gilat? is nothing. What happened in the market is very simple – investors discovered it when the investors were led by the ARK fund management company, which marked Gilat as one of the most promising companies in the satellite field and at the same time purchased shares from the satellite funds (and other funds). Is the value justified? Really not sure, what goes up also goes down. But when there is hype then sometimes the equals are disconnected. What is certain is that unlike other companies, Gilat is a real business, with significant and profitable revenues.

Gilat published very lukewarm reports for the last quarter and for the entire year. Given the situation, they are predictable, but these reports do not really explain Gilat’s value. The company, which specializes in satellite communications network technology, reported a fall in revenue to $ 42.6 million compared to $ 78.3 million in the fourth quarter of 2019. However, this is an improvement over revenue in the third quarter of 2020 of $ 37.3 million.

GAAP-based operating income was $ 62.7 million, but is upward, compared to $ 9.2 million in the fourth quarter of 2019 and compared to an operating loss of $ 10.9 million in the third quarter of 2020; GAAP-based operating profit Including net income less expenses related to the $ 64.8 million settlement with Comtech.
The non-GAAP operating loss in the fourth quarter of 2020 was $ 1.6 million compared to an operating profit of $ 9.9 million in the fourth quarter of 2019, an improvement over an operating loss of $ 1.9 million in the previous quarter.

The net loss on a non-GAAP basis in the fourth quarter of 2020 was $ 1.9 million, or a loss of 3 cents per fully diluted share, compared to net income of $ 9.1 million, or a gain of 16 cents per full diluted share in the fourth quarter of 2019, And an improvement over the $ 2.6 million net loss, or 5 cents loss per share, as reported in the previous quarter.

In the fourth quarter of 2020, adjusted EBITDA amounted to $ 1.1 million, compared to adjusted EBITDA of $ 13.1 million in the fourth quarter of 2019; And an improvement compared to adjusted EBITDA of $ 600,000 in the previous quarter. The company received $ 70 million from Comtech following the cancellation of the merger.

During the quarter, a $ 20 million cash dividend was paid to shareholders; An additional $ 35 million in cash dividend was also paid during the quarter which was paid in January 2021.

Weak 2020 year – what is expected next?
Revenue for 2020 was $ 165.9 million compared to $ 263.5 million in 2019. Non-GAAP operating loss for 2020 was $ 13.7 million compared to non-GAAP operating profit of $ 29.2 million in 2019. Net loss based on Non-GAAP in 2020 totaled $ 16.4 million or a loss of 30 cents per fully diluted share compared to net income on a non-GAAP basis of $ 24.7 million or 44 cents per full diluted share in 2019.

The loss on an adjusted EBITDA basis amounted to $ 3.3 million, compared to a profit on an adjusted EBITDA basis of $ 40.2 million in 2019.

Adi Tzafdia, CEO of Gilat Networks, said against the background of the reports: “During 2020, and especially in the second half of the year, we reached significant technological achievements and closed some very significant deals, which position us well for 2021 and beyond. We have especially enjoyed successes in most of our growth areas, especially in mobile and NGSO.

“We have won many managed service agreements that will provide us with significant recurring revenue in the coming years. In 5G transmission – our additional growth engine, we have made significant progress, and during the year we demonstrated great success, beyond 5G traffic using Thaicom’s GEO HTS satellite. In addition, we established our position. “As a pioneer in the provision of ground systems for NGSO satellite arrays, with a fourth-quarter win in a contract with revenue potential of over $ 50 million to support the LEO satellite array.”

“In addition, Internet in-flight, IFC, will continue to play a key role among passengers on commercial flights. I am confident that as the aviation and commercial flights industry continues to recover, there will be a significant increase in demand for our IFC solutions and products.”