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Gilat Received Approximately $5 Million for Providing Services to a Leading LATAM Service Provider

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Gilat Satellite Networks secures a $5 million contract to provide services to a leading LATAM service provider, expanding 4G coverage to remote regions lacking cellular service. The company's reliable solutions and local presence drive customer selection, showcasing technological excellence in challenging environments.
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The recent contract awarded to Gilat Satellite Networks by a leading LATAM service provider is a significant development within the telecommunications sector. The $5 million deal to extend 4G coverage to remote areas demonstrates a continued investment in infrastructure to bridge the digital divide. This expansion is not only pivotal for the local communities who will gain improved access to cellular and internet services but also represents a strategic growth opportunity for Gilat.

By focusing on underserved regions, Gilat taps into new markets, potentially increasing their revenue streams and customer base. Moreover, their expertise in delivering reliable connectivity in challenging environments could position them as a preferred partner for future projects, enhancing their competitive edge. It's important to note that such investments may lead to increased operational costs in the short term but can yield significant returns as the subscriber base grows.

From a financial perspective, the announcement of Gilat's $5 million contract is a positive signal to investors and could influence the company's stock performance. It's a substantial order for Gilat, which may lead to upward revisions in revenue forecasts and potentially enhance profitability metrics. Investors will be closely monitoring the execution of this project and its impact on Gilat's financials, particularly gross margin and EBITDA.

One should consider the contract's size relative to Gilat's total revenue to gauge its significance. If it represents a significant portion, it could suggest a strong dependency on individual contracts, which may introduce volatility. Conversely, if it's a smaller fraction, it indicates a diversified revenue stream, which is generally favorable from a risk perspective.

Examining the broader market implications, Gilat's project with a leading LATAM service provider underscores a trend towards expanding telecommunications infrastructure in emerging markets. As internet penetration and mobile connectivity become increasingly critical for economic development, companies like Gilat that specialize in providing solutions for rural and remote areas are well-positioned to capitalize on this demand.

It's also indicative of LATAM's growing telecommunications market, which is ripe for further investment and innovation. The success of this project could serve as a benchmark for similar initiatives in the region and beyond, potentially leading to more contracts for Gilat and others in the industry. Such developments could accelerate technological adoption and contribute to overall market growth.

Gilat’s solutions ensure reliable, high-performance connectivity for cellular and internet services in rural areas

PETAH TIKVA, Israel, April 10, 2024 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions, and services, announced today that the company was awarded approximately $5 Million to provide services to a leading LATAM service provider.

The leading service provider is providing 4G coverage over Gilat's equipment to remote regions where currently 4G cellular service is not available.

“This customer selected Gilat due to the value provided by our comprehensive service and our local presence in the region,” said Hagay Katz, Gilat’s Chief Product and Marketing Officer. “Collaboration with industry leaders attests to Gilat's technological excellence and our proficiency in providing vital services even in the most complicated and compromised environments.”

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
Hagay Katz, Chief Products and Marketing Officer
hagayk@gilat.com

EK Global IR
Ehud Helft, Managing Partner
ehud@ekgir.com


FAQ

What was the contract value awarded to Gilat Satellite Networks ?

Gilat was awarded approximately $5 million to provide services to a leading LATAM service provider.

What type of coverage is being expanded by the leading service provider using Gilat's equipment?

The leading service provider is expanding 4G coverage to remote regions where 4G cellular service is currently unavailable.

Why did the customer select Gilat for the services?

The customer chose Gilat due to the value provided by their comprehensive service and local presence in the region.

Who is the Chief Product and Marketing Officer of Gilat Satellite Networks ?

Hagay Katz is the Chief Product and Marketing Officer of Gilat Satellite Networks

What does the collaboration with industry leaders attest to for Gilat?

The collaboration with industry leaders attests to Gilat's technological excellence and proficiency in providing vital services in challenging environments.

Gilat Satellite Networks Ltd.

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About GILT

gilat satellite networks ltd. (nasdaq: gilt, tase: gilt) is a leading global provider of satellite-based broadband communications. with 30 years of experience, we design and manufacture cutting-edge ground segment equipment, and provide comprehensive solutions and end-to-end services, powered by our innovative technology. delivering high value competitive solutions, our portfolio comprises of a cloud based vsat network platform, high-speed modems, high performance on-the-move antennas and high efficiency, high power solid state amplifiers (sspa) and block upconverters (buc). gilat’s comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, cellular backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety, all while meeting the most stringent service level requirements. for more information, please visit: www.gilat.com