Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) swung to a net loss on lower revenue for the first quarter of 2012.
Revenue fell to $76.6 million for the first quarter from $80 million for the corresponding quarter. GAAP-based net loss was $3.1 million ($0.07 per share) for the first quarter, compared with a net profit of $440,000 for the corresponding quarter, and non-GAAP net loss was $768,000 ($0.02 per share), compared with a net profit of $2.6 million.
Gilat CEO Erez Antebi said, "Our commercial division continued to perform well with several important contract wins in the first quarter. While our financial performance was impacted by the implementation timing of specific contracts in our services division, as well as lower than expected revenues in our defense division, we remain confident in our strategic direction and positioning in the growing Ka-band market, and as a provider of on-the move solutions for the defense industry."
Gilat's share price fell 16.8% by mid-afternoon on the TASE, following the publication of the results, to NIS 12.28, after falling 1.1% on Nasdaq yesterday to $3.76, giving a market cap of $154 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2012
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