Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) today reported its results for the third quarter ended September 30, 2022. The company reported revenues of US$ 60.4 million, up 21% year-over-year, GAAP operating income of US$ 3.4 million versus US $0.8 million in Q3 last year, and adjusted EBITDA of US$ 7.3 million, up 88% year-over-year.
Third Quarter 2022 Financial Highlights
• Revenues of $60.4 million, up 21% compared with $49.8 million in Q3 last year;
• GAAP operating income of $3.4 million versus $0.8 million in Q3 last year;
• Non-GAAP operating income of $4.4 million versus $1.3 million in Q3 last year;
• GAAP net income of $2.1 million versus breakeven in Q3 last year;
• Non-GAAP net income of $3 million versus $0.6 million in Q3 last year;
• Adjusted EBITDA of $7.3 million versus $3.9 million in Q3 last year;
The company adjusted and narrowed the range of its 2022 revenue guidance, with expectations of between $240 million and $245 million, representing year-over-year growth of approximately 13%.
The company also increased and narrowed the GAAP operating income guidance range to between $8 million to $10 million representing significant year-over-year growth versus $2.2 million in 2021.
The company increased and narrowed the adjusted EBITDA range to between $23 to $25 million, representing year-over-year growth of approximately 56%.
Adi Sfadia, Gilat’s CEO, commented: “We are very pleased with our strong third quarter results showing continued year-over-year growth and a recovery in all our markets, in particular IFC. We are also very encouraged with the solid and continued improvement in our profitability demonstrating substantial improvement in our gross, operating and net margins with adjusted EBITDA growing by 88% year-over-year.
Strategically we are very excited with the progress of our newly launched, world leading, SkyEdge IV platform. During the third quarter, a leading service provider selected SkyEdge IV, Gilat’s high-performance, multi-orbit platform, to power maritime connectivity. We are confident that this platform will allow us to focus and gain market share in the growing multibillion-dollar market of the next era of satellite communication.
The mobility business continued to pick up, with recent IFC orders of over $12 million. We further solidified our leadership in the cellular backhaul market this quarter, with multimillion-dollar orders from both new customers and mobile operators trusting Gilat’s technology to extend their networks even further. In addition, we received multimillion-dollar orders in the Defense segment, where we see significant potential and have increased our focus, as well as in the Enterprise sector for utility and banking applications.”
Sfadia concluded, “Our pipeline continues to increase and broaden, and the release of our next generation platform and growth engine – the SkyEdge IV for VHTS & NGSO satellites – is gaining strong traction among new and existing customers. As such, we are increasingly optimistic and expect to maintain our strong momentum ahead. For 2022 as a whole, we are tracking ahead of our profitability targets, and we look forward to continuing the growth trend into 2023.”
