Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) hopes for better times in 2010, after a difficult 2009. The manufacturer of satellite communications systems today published its financial report for the fourth quarter and full year of 2009.
Gilat posted $56.6 million revenue for the fourth quarter, down 14.1% from $66.1 million for the corresponding quarter of 2008, but 3.6% more than for the preceding quarter. The company swung to an operating profit of $161,000 from an operating loss of $6.8 million for the corresponding quarter.
GAAP-based net profit was $349,000 ($0.01 per share) for the fourth quarter, compared with a net loss of $6.5 million for the corresponding quarter. Non-GAAP net profit was $612,000 ($0.01 per share), compared with a net loss of $1.3 million.
For the year as a whole, Gilat's revenue fell 14.8% to $228.1 million from $267.5 million in 2009. GAAP-based net profit was $1.9 million ($0.05 per share) in 2009, compared with a net loss of $1.1 million in 2008. Non-GAAP net profit fell to $2.8 million ($0.06 per share) in 2009 from $4.6 million in 2008.
Gilat's orders backlog at the end of 2009 was $181 million.
In the conference call, Gilat's executives set three targets for 2010: boosting revenue, improving profit margins, and allocating resources for future growth. The company cites the defense market as an interesting growth target, and does not rule out using its $154.4 million in cash reserves to make an acquisition in the sector.
Gilat chairman and CEO Amiram Levinberg said, "While 2009 was characterized by a lower level of revenues, we were able to offset the reduction by implementing expense cuts which helped us improve profitability. Strong bookings in the fourth quarter enabled us to finish the year with a healthy backlog. We look at 2010 with cautious optimism: our strong product line will support us in strengthening our market position. In addition, we are making inroads in important new markets and in 2010 we have budget expenditures for our entry into the government defense market which we believe will allow us to achieve growth in future years."
Gilat's share closed at $5.38 on Nasdaq on Friday, giving a market cap of $216 million. The share fell 4.2% on the TASE today to NIS 20.01.
Published by Globes [online], Israel business news - www.globes-online.com - on February 16, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010