Gilat Awarded Approximately $3M for a Satellite Connectivity Project for a National Police Force
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The contract awarded to Gilat Satellite Networks by a national police force marks a significant business development for the company. From a market research perspective, this deal not only boosts Gilat's current financial standing by adding approximately three million dollars to its revenue stream but also enhances its market position as a provider of secure satellite communication solutions. The selection of Gilat's SkyEdge platform, known for its robust performance and security, indicates a competitive edge in fulfilling stringent security demands, which is crucial in defense and public safety communications.
Furthermore, the endorsement by a national entity could serve as a catalyst for further contracts within the public sector, potentially increasing Gilat's market share. This could lead to a positive feedback loop, improving brand reputation and leading to increased investor confidence. The long-term nature of the project suggests a stable future revenue stream, which is an attractive point for stakeholders looking for sustained growth.
Analyzing the financial implications of the deal, the multi-year nature of the project implies a steady inflow of funds that could bolster Gilat's financial health over the duration of the contract. For investors, the key interest lies in the potential for this deal to open doors to similar future contracts, which would contribute to a diversified and resilient revenue portfolio. It is also indicative of Gilat's ability to meet the high-security standards required by government contracts, a niche that typically commands premium pricing, potentially leading to higher profit margins.
It's important to note the size of the deal in relation to Gilat's overall revenue. If the $3 million represents a significant portion of annual revenue, this contract could materially affect financial forecasts and valuations. Conversely, if Gilat's revenue streams are already substantial, the incremental addition may not significantly sway the overall financial outlook but still adds to the stability of future earnings.
The adoption of Gilat's SkyEdge platform by a national police force is a testament to the platform's capabilities in meeting the rigorous demands of defense and public safety operations. The SkyEdge platform's high-performance hub system, mission-specific Very Small Aperture Terminals (VSATs) and advanced network management system are tailored to provide reliable and secure satellite communications, which are essential in operations where communication breakdowns can have severe consequences.
Given the current global emphasis on national security and public safety, Gilat's success in this domain could signify its potential to become a preferred vendor in the defense sector. This deal may also reflect broader industry trends towards upgrading and securing communication infrastructures, which could have implications for companies operating within the satellite technology and defense communications markets.
Gilat to deliver a comprehensive solution based on its SkyEdge platform and a suite of services providing reliable and secure connectivity
PETAH TIKVA, Israel, Jan. 09, 2024 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions, and services, announced today that a national police force awarded the company approximately three million dollars for a multi-year project.
The national police force selected Gilat’s solution, which is based on the highly regarded SkyEdge platform and a suite of services with an emphasis on reliable and secure connectivity. Gilat was chosen because of its ability to meet very stringent security requirements and solve issues that had been hampering communication for years.
Gilat’s field-proven and feature-rich SkyEdge platform consists of a high-performance hub system, a family of mission-specific VSATs, and an advanced network management system. Gilat will deploy a comprehensive solution based on its SkyEdge platform and a suite of services to deliver reliable and secure connectivity to the operators.
"This award is a testament to market demand for our unique capability to provide world-class satellite connectivity in the most demanding operational environments, along with our world-renowned support and maintenance," said Ori Naor, Gilat's vice president of sales and business development for defense. "I am confident that this new business will lead to additional growth with this customer and will initiate the duplication of similar programs among other organizations in the public safety, military, and government sectors all over the world."
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 current terrorist attacks by Hamas, and the war and hostilities between Israel and Hamas and Israel and Hezbollah. 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 Networks
Doreet Oren, Senior Director Corporate Communications
DoreetO@gilat.com
EK Global IR
Ehud Helft, Managing Partner
ehud@ekgir.com
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