Gilat Reports First Quarter 2025 Results

Revenues Increased 21% Year-over-Year with Adjusted EBITDA of $7.6 Million Reiterates Guidance for 2025 PETAH TIKVA, Israel, May 19, 2025 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the first quarter, ended March 31, 2025. First Quarter 2025 Financial Highlights Revenues of $92million, up 21% compared with $76.1million in Q12024;GAAP operating loss of $2.7 million,compared with GAAP operating income of $5.4 million in Q1 2024 mainly due to a loss of about $3.6 million from Gilat Stellar Blu’s ramp up process, amortization of purchased intangibles derived from the Stellar Blu acquisition, and other operating expenses, related to earnout liabilities and one-time acquisition-related costs;Non-GAAP operating income of $5.2million, compared with $6.6million in Q1 2024;GAAP net loss of $6.0 million, or $0.11 per share, compared with GAAP net income of $5.0 million, or $0.09 per diluted share, in Q1 2024;Non-GAAP net income of $1.8 million, or $0.03 per diluted share, compared with $6.0 million, or $0.11 per diluted share, in Q1 2024;Adjusted EBITDA of $7.6 million, compared with $9.3 million in Q1 2024, which includes a loss of about $3.6 million from Gilat Stellar Blu’s ramp up process. Adjusted EBITDA, excluding such loss, was $11.2 million. Forward-Looking Expectations The Company today reiterated its guidance for 2025. Expectations are for revenue between $415 and $455 million, representing year-over-year growth of 42% at the midpoint. Adjusted EBITDA is expected to be between $47 and $53 million, representing year-over-year growth of 18% at the midpoint. Management Commentary Adi Sfadia, Gilat's CEO, commented: "Gilat delivered solid Q1 2025 results, demonstrating strong execution across the company and positive impact from our new organizational structure. Gilat Defense is experiencing significant momentum, fueled by growing demand for its broad portfolio of products and services and is becoming an increasingly important contributor to our growth. This growth is supported by macro-geopolitical factors that are driving increased investment in secure, mission-critical communications worldwide.” Mr. Sfadia added, "Regarding Gilat Commercial, our IFC business continues to expand as we deliver on customer commitments and grow our market base. Gilat Stellar Blu’s ramp up is on track, and its Sidewinder ESA is now flying on over 150 aircraft, with strong feedback and additional orders expected very soon. We are collaborating with our partners to expand into new applications such as ISR and VVIP aviation. We’re also in the process of developing OEM installation and broader modem compatibility, further establishing Sidewinder as the go-to multi-orbit IFC solution." Mr. Sfadia concluded, “Based on our strong beginning to 2025 and as Stellar Blu’s ramp up finalizes, we are on track to deliver a record year in both revenues and non-GAAP profitability as we capture the expanding opportunities in mission-critical communications and next-generation satellite solutions.” Key Recent Announcements Gilat Receives Over $15 Million in Orders from Leading Satellite OperatorsGilat Receives a Multimillion Order from a Global Defense OrganizationGilat Receives over $11 Million Defense Contract from a Leading UAV CompanyGilat Awarded Up to $23 Million Multi-Year Contract to Service Satellite Transportable Terminal Units for US DoD CustomersGilat Receives $6 Million Defense Contract to Provide Military Communications solutions in Asia-PacificGilat Receives $4 Million in Orders for Advanced Portable Satellite Terminals from Global Defense CustomersGilat Awarded Over $5 Million to Support Critical Connectivity for Defense Forces Conference Call Details Gilat’s management will discuss its first quarter 2025 results and business achievements and participate in a question-and-answer session: Date:Monday, May 19, 2025Start:09:00 AM EST / 16:00 ISTDial-in:US: 1-888-407-2553 International: +972-3-918-0609 A simultaneous webcast of the conference call will be available on the Gilat website at http://www.gilat.com and through this link: https://veidan.activetrail.biz/gilatq1-2025. The webcast will also be archived for a period of 30 days on the Company’s website and through the link above. Non-GAAP Measures The attached summary unaudited financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, Adjusted EBITDA, and earnings per share. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors with a more complete understanding of the Company’s underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude, if and when applicable, the effect of stock-based compensation expenses, amortization of purchased intangibles, lease incentive amortization, other non-recurring expenses, other integration expenses, other operating expenses (income), net, and income tax effect on the relevant adjustments. Adjusted EBITDA is presented to compare the Company’s performance to that of prior periods and evaluate the Company’s financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company’s financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company's net income and adjusted EBITDA is presented in the attached summary financial statements. Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat’s operating performance or liquidity. About Gilat Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we create and deliver deep technology solutions for satellite, ground and new space connectivity and provide comprehensive, secure end-to-end solutions and services for mission-critical operations, powered by our innovative technology. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world. Our portfolio includes a diverse offering to deliver high value solutions for multiple orbit constellations with very high throughput satellites (VHTS) and software defined satellites (SDS). Our offering is comprised of a cloud-based platform and high-performance satellite terminals; high performance Satellite On-the-Move (SOTM) antennas; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense, field services, network management software, and cybersecurity services. Gilat’s comprehensive offering supports multiple applications with a full portfolio of products and tailored solutions to address key applications including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: www.gilat.com Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including those related to the hostilities between Israel and Hamas. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason. Contact: Gilat Satellite NetworksHagay Katz, Chief Products and Marketing Officerhagayk@gilat.com Alliance Advisors GilatIR@allianceadvisors.com Phone: +1 212 838 3777 GILAT SATELLITE NETWORKS LTD. CONSOLIDATED STATEMENTS OF INCOME (LOSS) U.S. dollars in thousands (except share and per share data) Three months ended March 31, 2025 2024 Unaudited Revenues$92,037 $76,078 Cost of revenues 63,639 48,024 Gross profit 28,398 28,054 Research and development expenses, net 11,621 9,319 Selling and marketing expenses 8,202 7,077 General and administrative expenses 6,784 8,077 Other operating expenses (income), net 4,538 (1,810) Total operating expenses 31,145 22,663 Operating income (loss) (2,747) 5,391 Financial income (expenses), net (936) 513 Income (loss) before taxes on income (3,683) 5,904 Taxes on income (2,313) (940) Net income (loss)$ (5,996) $ 4,964 Earnings (losses) per share (basic and diluted)$ (0.11) $ 0.09 Weighted average number of shares used in computing earnings (losses) per share (Basic and Diluted) 57,037,671 57,016,585 GILAT SATELLITE NETWORKS LTD.RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (LOSS)FOR COMPARATIVE PURPOSES U.S. dollars in thousands (except share and per share data) Three months ended Three months ended March 31, 2025 March 31, 2024 GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP Unaudited Unaudited Gross profit$ 28,398 810 $ 29,208 $ 28,054 726 $ 28,780Operating expenses31,145 (7,090) 24,055 22,663 (499) 22,164Operating income (loss)(2,747) 7,900 5,153 5,391 1,225 6,616Income (loss) before taxes on income(3,683) 7,900 4,217 5,904 1,225 7,129Net income (loss)$ (5,996) 7,823 $ 1,827 $ 4,964 1,050 $ 6,014 Earnings (losses) per share (basic and diluted)$ (0.11) $ 0.14 $ 0.03 $ 0.09 $0.02 $ 0.11 Weighted average number of shares used in computing earnings (losses) per share Basic57,037,671 57,037,671 57,016,585 57,016,585 Diluted57,037,671 58,005,232 57,016,585 57,108,734 (*) Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income (expenses), net, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate. Three months ended Three months ended March 31, 2025 March 31, 2024 Unaudited Unaudited GAAP net income (loss) $(5,996) $4,964 Gross profit Stock-based compensation expenses 173 150 Amortization of purchased intangibles 600 507 Other integration expenses 37 69 810 726 Operating expenses Stock-based compensation expenses 901 717 Stock-based compensation expenses related to business combination 607 1,324 Amortization of purchased intangibles 884 257 Other operating expenses (income), net *) 4,538 (1,810) Other integration expenses 160 11 7,090 499 Taxes on income (77) (175) Non-GAAP net income $1,827 $6,014 *)Including M&A expenses related to business combinations in the amounts of $2,205 and $318 for the three months ended March 31, 2025 and 2024, respectively GILAT SATELLITE NETWORKS LTD. SUPPLEMENTAL INFORMATION U.S. dollars in thousands ADJUSTED EBITDA: Three months ended March 31, 2025 2024 Unaudited GAAP net income (loss)$(5,996) $4,964 Adjustments: Financial expenses (income), net 936 (513)Taxes on income 2,313 940 Stock-based compensation expenses 1,074 867 Stock-based compensation expenses related to business combination 607 1,324 Depreciation and amortization (*) 3,962 3,481 Other operating expenses (income), net 4,538 (1,810)Other integration expenses 197 80 Adjusted EBITDA$7,631 $9,333 (*) Including amortization of lease incentive SEGMENT REVENUES: Three months ended March 31, 2025 2024 Unaudited Commercial$64,220 $41,193 Defense 23,011 17,230 Peru 4,806 17,655 Total revenues$ 92,037 $ 76,078 GILAT SATELLITE NETWORKS LTD. CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands March 31, December 31, 2025 2024 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents$63,783 $119,384 Restricted cash 470 853 Trade receivables, net 49,164 49,600 Contract assets 33,394 24,941 Inventories 59,431 38,890 Other current assets 34,395 21,963 Total current assets 240,637 255,631 LONG-TERM ASSETS: Restricted cash 13 12 Long-term contract assets 7,450 8,146 Severance pay funds 5,847 5,966 Deferred taxes 9,912 11,896 Operating lease right-of-use assets 6,400 6,556 Other long-term assets 8,539 5,288 Total long-term assets 38,161 37,864 PROPERTY AND EQUIPMENT, NET 69,878 70,834 INTANGIBLE ASSETS, NET 64,928 12,925 GOODWILL 169,444 52,494 TOTAL ASSETS$583,048 $429,748 GILAT SATELLITE NETWORKS LTD. CONSOLIDATED BALANCE SHEETS (Cont.) U.S. dollars in thousands March 31, December 31, 2025 2024 Unaudited Audited LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term loan$3,000 $- Trade payables 20,364 17,107 Accrued expenses 48,245 45,368 Advances from customers and deferred revenues 71,701 18,587 Operating lease liabilities 2,865 2,557 Other current liabilities 24,617 17,817 Total current liabilities 170,792 101,436 LONG-TERM LIABILITIES: Long-term loans 57,469 2,000 Accrued severance pay 6,536 6,677 Long-term advances from customers and deferred revenues 254 580 Operating lease liabilities 3,608 4,014 Other long-term liabilities 44,875 10,606 Total long-term liabilities 112,742 23,877 SHAREHOLDERS' EQUITY: Share capital - ordinary shares of NIS 0.2 par value 2,736 2,733 Additional paid-in capital 944,657 943,294 Accumulated other comprehensive loss (6,411) (6,120)Accumulated deficit (641,468) (635,472) Total shareholders' equity 299,514 304,435 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$583,048 $429,748 GILAT SATELLITE NETWORKS LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Three months ended March 31, 2025 2024 UnauditedCash flows from operating activities: Net income (loss)$(5,996) $4,964 Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 3,905 3,425 Stock-based compensation expenses 1,681 2,191 Accrued severance pay, net (22) (55)Deferred taxes, net 1,984 451 Decrease (increase) in trade receivables, net 4,528 (8,797)Decrease (increase) in contract assets (7,798) 6,248 Decrease in other assets and other adjustments (including short-term, long-term and effect of exchange rate changes on cash, cash equivalents and restricted cash) 18,390 3,507 Increase in inventories (11,456) (3,193)Decrease in trade payables (7,828) (666)Decrease in accrued expenses (6,358) (1,240)Decrease in advances from customers and deferred revenues (1,096) (2,754)Increase in other liabilities 3,454 139 Net cash provided by (used in) operating activities (6,612) 4,220 Cash flows from investing activities: Purchase of property and equipment (1,490) (793)Investment in other asset (2,500) - Acquisitions of subsidiary, net of cash acquired (104,943) - Net cash used in investing activities (108,933) (793) Cash flows from financing activities: Repayment of short-term debt, net - (2,744)Proceeds from long-term loan, net of associated costs 58,970 - Net cash provided by (used in) financing activities 58,970 (2,744) Effect of exchange rate changes on cash, cash equivalents and restricted cash 592 (268) Increase (decrease) in cash, cash equivalents and restricted cash (55,983) 415 Cash, cash equivalents and restricted cash at the beginning of the period 120,249 104,751 Cash, cash equivalents and restricted cash at the end of the period$ 64,266 $ 105,166

Gilat Reports First Quarter 2025 Results

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