Gilat Satellite Networks doubles profit

Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) more than doubled its net profit for the first quarter of 2011. Revenue rose 40% to $80 million from $57.1 million for the corresponding quarter of 2010.

GAAP-based net profit fell to $440,000 ($0.01 per share) from $674,000 for the corresponding quarter, but non-GAAP net profit rose to $2.6 million ($0.06 per share) from $974,000 for the corresponding quarter. The company missed the analysts' revenue consensus of $81.1 million, but beat the loss per share consensus of $0.02.

Gilat chairman and CEO Amiram Levinberg said, "Our strategy to increase R&D and invest in our future while we improve our profitability is continuing as planned. Our recent contract win in Australia is a strong show of faith for Gilat's technology and our overall delivery capabilities."

Gilat's share price fell 2.4% in premarket trading on Nasdaq today to $2.54, giving a market cap of $186 million, after falling 4.3% yesterday. The share price fell 0.8% by mid-afternoon on the TASE to NIS 16.47.

Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2011