Gilat revenue up 18.8% in 2006
Net profit was $10.5 million, or $0.38 per share.
Shiri Habib 13 Feb 07 15:50
Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) today published its financial reports for the fourth quarter of 2006 and the year as a whole. The company posted $248.7 million revenue in 2006, 18.8% more than in 2005, while fourth quarter revenue was $65.4 million, up 2.5% on the preceding quarter and 16.8% on the corresponding quarter of 2005.
Gilat comprises three units: Gilat Network Systems (GNS) provides telecommunications equipment and services worldwide; Spacenet Inc., which provides network services in North America; and Spacenet Rural Communications, which provides rural telecommunications services, mainly in Latin America. GNS’s revenue rose 39% in 2006 and accounted for 46% of Gilat’s total revenue. 39% of GNS’s revenue came from the US and 32% from Latin America. The fastest growing region for sales was Europe, where sales rose 70% over 2005.
Gilat posted a gross profit of $90.4 million in 2006, or 36.3% of revenue. Operating profit rose almost ten-fold to $13.4 million in 2005, or 5.4% of revenue, and it posted a net profit of $10.5 million ($0.38 per share) on a GAAP basis. The company posted a non-GAAP profit of $14.2 million ($0.51) for the year and $5 million for the fourth quarter. Cash flow from current activity totaled $38 million in 2006.
Gilat chairman and CEO Amiram Levinberg said, "We concluded a strong year on both the financial and business fronts. This is our fifth consecutive quarter of improved financial results. We've successfully entered the business continuity market in the US. Internationally, we expanded across the communication value chain by winning significant turnkey projects such as: Telefonica Brazil, Russia Post, and Angola Telecom. We also enhanced our offering to include cellular backhaul solutions.
"We see growth opportunities in our existing markets driven mainly by universal service projects in emerging markets and business continuity in developed countries. In 2007, we plan to enter into new government segments and add broadband wireless access solutions to our product portfolio."
Published by Globes [online], Israel business news - www.globes.co.il - on February 13, 2007