Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) had a busy year in 2010, with two large acquisitions, restructuring, and a settlement over the cancelled acquisition of the company.
Gilat is also optimistic about 2011. For the first time in years, it provided information about its financial goals, which include 40% revenue growth to $330 million, thanks to acquisitions and improvement in current markets, and to widen its earnings before interest, taxes, depreciation and amortization (EBITDA) margin to 10% from 6.1% in 2010.
Gilat's revenue rose 2.2% to $233 million in 2010 from $228.1 million in 2009. GAAP-based net profit rose to $30.6 million ($0.73 per share) in 2010, including $29.9 million in one-time income, from $1.9 million in 2009. Non-GAAP net profit rose to $735,000 ($0.05 per share) from $419,000 for the corresponding quarter.
Gilat's fourth quarter revenue rose 14% to $66.1 million from $56.6 million for the corresponding quarter of 2009. GAAP-based net loss was $4.9 million ($0.12 per share) compared with a net profit of $349,000 for the corresponding quarter.
Cash flow from operations totaled $3.4 million in the fourth quarter. The company's cash and cash equivalents dropped to $66.7 million at the end of 2010 after spending $160 million on the acquisitions of US companies Wavestream Corporation and Raysat Antenna Systems LLC (RAS).
Gilat chairman and CEO Amiram Levinberg said that the acquisitions of RaySat and Wavestream was part of the company's strategy to expand its business into the US and global defense and homeland security markets. He added that Gilat's backlog rose to over $232 million at the end of 2010 from $180 million a year earlier.
Gilat's share price fell 1.9% in early trading on Nasdaq to $5.29, giving a market cap of $213 million, after falling 3.4% on the TASE to NIS 19.51.
Published by Globes [online], Israel business news - www.globes-online.com - on February 22, 2011
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