Q4 Revenue of $78.1 million, GAAP Operating Income of $12.8 million and Adjusted EBITDA of $12.1 million

2024 Revenue of $305.4 million, GAAP Operating Income of $27.7 million and a 25-year Record Adjusted EBITDA of $42.2 million

Expects 2025 Revenues to increase by 36%-50%

Announces New Reporting Segments

PETAH TIKVA, Israel, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (NASDAQ:GILT, TASE: GILT)), a worldwide leader in satellite networking technology, solutions and services, today reported its unaudited results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

Revenue of $78.1 million, up 3% compared with $75.6 million in Q4 2023;
GAAP operating income of $12.8 million, compared with $2.9 million in Q4 2023;
Non-GAAP operating income of $9.7 million, compared with $6.1 million in Q4 2023;
GAAP net income of $11.8 million, or $0.21 per diluted share, compared with $3.4 million, or $0.06 per diluted share, in Q4 2023;
Non-GAAP net income of $8.5 million, or $0.15 per diluted share, compared with $6.5 million, or $0.11 per diluted share, in Q4 2023;
Adjusted EBITDA of $12.1 million, up 30% compared with $9.4 million in Q4 2023.

Full year 2024 Financial Highlights

Revenue of $305.4 million, up 15% compared with $266.1 million in 2023;
GAAP operating income of $27.7 million, compared with $28.1 million in 2023;
Non-GAAP operating income of $31.9 million, up 35% compared with $23.5 million in 2023;
GAAP net income of $24.8 million, or $0.44 per diluted share, compared with $23.5 million, or $0.41 per diluted share in 2023;
Non-GAAP net income of $28.2 million, or $0.49 per diluted share, compared with $19.9 million, or $0.35 per diluted share 2023;
Adjusted EBITDA was $42.2 million, up 16% compared with adjusted EBITDA of $36.4 million in 2023.

2025 Guidance

Management's financial guidance for 2025 is for revenues of between $415 to $455 million, and Adjusted EBITDA is expected to be between $47 to $53 million¹.

Adi Sfadia, Gilat's CEO, commented, "Gilat delivered strong results with profitability of Adjusted EBITDA of $12.1 million for the fourth quarter and $42.2 million for the entire year. These results alongside our strong generation of cash flow underscore the strength and resilience of our core business model, demonstrating both operating leverage and the positive impact of our current product revenue mix."

"During the fourth quarter our Defense and In-Flight Connectivity business continued to experience strong momentum with increased orders and awards. The Defense segment, with a focus on the US DoD, represents a significant growth opportunity for Gilat. We are pleased with our progress in expanding opportunities to serve the specialized needs of government and military customers with our innovative satellite solutions," Mr. Sfadia continued. "With the closing of the Stellar Blu acquisition, our Commercial business is poised for significant growth as we establish our leadership in the expanding Electronically Steerable Antenna (ESA) market. Our portfolio of IFC GEO, LEO and multi-orbit solutions will be instrumental in capitalizing on increasing demand for inflight connectivity by airlines and passengers."

Mr. Sfadia concluded, "Looking ahead into 2025, given the significant potential we see in the defense market and our view of this as a strategic growth engine, we plan to increase our investment in R&D, Sales and Marketing of the Defense Segment. We believe that this targeted increase will allow us to take advantage of the opportunities we see quicker and more decisively to ensure a long term growth in this market. Coupled with our recent acquisitions and positioning in the Satcom market, Gilat has the resource base to scale the IFC and Defense businesses and our track record of profitable, cash generating growth, provides a strong foundation for Gilat's continued success."

Commencing January 1, 2025, the company has implemented a new organizational structure and reportable segments. The new organizational structure and segment reporting are designed to better target the diverse and attractive end markets the company serves and to provide investors with greater insight into Gilat's business lines and strategic growth opportunities. The company will report financial results based on the following three divisions: Gilat Defense, Gilat Commercial and Gilat Peru.

Gilat Defense Division: provides secure, rapid-deployment solutions for military organizations, government agencies, and defense integrators, with a strong focus on the U.S. Department of Defense resulting from our strategic acquisition of DataPath Inc. By integrating technologies from Gilat, Gilat DataPath, and Gilat Wavestream, the division delivers resilient battlefield connectivity with multiple layers of communication redundancy for high availability.
Gilat Commercial Division: provides advanced broadband satellite communication networks for IFC, Enterprise and Cellular Backhaul, supporting HTS, VHTS, and NGSO constellations with turnkey solutions for service providers, satellite operators, and enterprises. Our acquisition of Stellar Blu serves as the cornerstone of this division, strengthening our position in the IFC market and enabling us to provide cutting-edge connectivity solutions that meet the demands of passengers, airlines, and service providers worldwide.

Gilat Peru Division: specializes in end-to-end telco solutions, including the operation and implementation of large-scale network projects. With expertise in terrestrial fiber optic, wireless, and satellite networks, Gilat Peru provides technology integration, managed networks and services, connectivity solutions, and reliable internet and voice access across the region.

Gilat has prepared unaudited illustrations of the company's financial reports for Fiscal Years 2023 and 2024 to reflect the company's results based on the new segment reporting, which can be found in the IR section on Gilat's website. For additional information about Gilat's new divisional structure, please click here: Link

Key Recent Announcements

Gilat Secures Over $18 Million Orders Addressing Demand for In-Flight Connectivity Solutions
Gilat Receives $9 Million in Orders for Multi-Orbit SkyEdge Platforms
Gilat Completes Acquisition of Stellar Blu Solutions LLC
Gilat and Hispasat Provided Immediate Satellite Communication to Support Disaster Recovery Efforts After Hurricane Helene
Gilat Receives Over $3 Million in Orders to Support LEO Constellations
Gilat Awarded Over $5 Million in orders to Support Critical Connectivity for Defense Forces
Gilat Receives $4M in Orders for Advanced Portable Terminals from Global Defense Customers

Conference Call Details

Gilat's Management will discuss its fourth quarter and full year 2024 results and business achievements and participate in a question-and-answer session:

Date:	Wednesday, February 12, 2025
Start:	09:30 AM EST / 16:30 IST
Dial-in:	US: 1-888-407-2553
	International: +972-3-918-0609

A simultaneous webcast of the conference call will be available on the Gilat website at gilat.com and through this link: https://veidan.activetrail.biz/gilatq4-2024

The webcast will also be archived for a period of 30 days on the Company's website and through the link above.

Non-GAAP Measures

The attached summary unaudited financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, Adjusted EBITDA, and earnings per share. The adjustments to the Company's GAAP results are made with the intent of providing both management and investors with a more complete understanding of the Company's underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude, if and when applicable, the effect of stock-based compensation expenses, amortization of purchased intangibles, lease incentive amortization, other non-recurring expenses, other integration expenses, other operating expenses (income), net, and income tax effect on the relevant adjustments.

Adjusted EBITDA is presented to compare the Company's performance to that of prior periods and evaluate the Company's financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company's financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company's net income and adjusted EBITDA is presented in the attached summary financial statements.

Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat's operating performance or liquidity.

About Gilat

Gilat Satellite Networks Ltd. (NASDAQ:GILT, TASE: GILT)) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we develop and deliver deep technology solutions for satellite, ground, and new space connectivity, offering next-generation solutions and services for critical connectivity across commercial and defense applications. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.

Together with our wholly-owned subsidiaries—Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu—we offer integrated, high-value solutions supporting multi-orbit constellations, Very High Throughput Satellites (VHTS), and Software-Defined Satellites (SDS) via our Commercial and Defense Divisions. Our comprehensive portfolio is comprised of a cloud-based platform and modems; high-performance satellite terminals; advanced Satellite On-the-Move (SOTM) antennas and ESAs; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense markets, field services, network management software, and cybersecurity services.

Gilat's products and tailored solutions support multiple applications including government and defense, IFC and mobility, broadband access, cellular backhaul, enterprise, aerospace, broadcast, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: http://www.gilat.com

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat's products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with Gilat's international operations and its location in Israel, including those related to the terrorist attacks by Hamas, and the hostilities between Israel and Hamas and Israel and Hezbollah. For additional information regarding these and other risks and uncertainties associated with Gilat's business, reference is made to Gilat's reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.

Contact:

Gilat Satellite Networks

Hagay Katz, Chief Product and Marketing Officer

hagayk@gilat.com

Alliance Advisors:

GilatIR@allianceadvisors.com

Phone: +1 212 838 3777

^{_________________

1} We do not provide forward-looking guidance on a GAAP basis because we are unable to reasonably provide forward-looking guidance for certain financial data, such as amortization of purchased intangibles and earnout-based expenses related to recent acquisitions. As a result, we are not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort.


GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except share and per share data)

		Twelve months ended						Three months ended
		December 31,						December 31,
			2024			2023			2024			2023
		Unaudited			Audited			Unaudited

Revenues		$	305,448		$	266,090		$	78,128		$	75,612
Cost of revenues			192,117			161,145			47,107			46,692

Gross profit			113,331			104,945			31,021			28,920

Research and development expenses, net			38,136			41,173			10,108			11,624
Selling and marketing expenses			27,381			25,243			6,657			7,119
General and administrative expenses			26,868			19,215			6,192			6,312
Other operating expenses (income), net			(6,751	)		(8,771	)		(4,706	)		986

Total operating expenses			85,634			76,860			18,251			26,041

Operating income			27,697			28,085			12,770			2,879

Financial income, net			1,504			109			63			1,196

Income before taxes on income			29,201			28,194			12,833			4,075

Taxes on income			(4,352	)		(4,690	)		(1,069	)		(628	)

Net income		$	24,849		$	23,504		$	11,764		$	3,447

Earnings per share (basic and diluted)		$	0.44		$	0.41		$	0.21		$	0.06

Weighted average number of shares used in
	computing earnings per share
	Basic		57,016,920			56,668,999			57,017,032			56,820,774
	Diluted		57,016,920			56,672,537			57,017,032			56,820,774


GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)

		Three months ended							Three months ended
		December 31, 2024							December 31, 2023
		GAAP		*Adjustments ()**			Non-GAAP		GAAP		*Adjustments ()**			Non-GAAP
		Unaudited							Unaudited

Gross profit		$	31,021	$	575		$	31,596	$	28,920	$	617		$	29,537
Operating expenses			18,251		3,680			21,931		26,041		(2,615	)		23,426
Operating income			12,770		(3,105	)		9,665		2,879		3,232			6,111
Income before taxes on income			12,833		(3,105	)		9,728		4,075		3,232			7,307
Net income		$	11,764	$	(3,252	)	$	8,512	$	3,447	$	3,097		$	6,544

Basic earnings per share		$	0.21	$	(0.06	)	$	0.15	$	0.06	$	0.06		$	0.12

Diluted earnings per share		$	0.21	$	(0.06	)	$	0.15	$	0.06	$	0.05		$	0.11


Weighted average number of shares used in
computing earnings per share
Basic			57,017,032					57,017,032		56,820,774					56,820,774
Diluted			57,017,032					57,024,316		56,820,774					56,987,939

(*)	Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income (expenses), net, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.

		Three months ended							Three months ended
		December 31, 2024							December 31, 2023
				Unaudited							Unaudited

GAAP net income				$	11,764						$	3,447

Gross profit
Stock-based compensation expenses					133							129
Amortization of purchased intangibles					389							448
Other integration expenses					53							40
					575							617
Operating expenses
Stock-based compensation expenses					653							796
Stock-based compensation expenses related to business combination					140							662
Amortization of purchased intangibles					216							162
Other operating income (expenses), net and other integration expenses					(4,689	)						995
					(3,680	)						2,615

Taxes on income					(147	)						(135	)

Non-GAAP net income				$	8,512						$	6,544


GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)

		Twelve months ended							Twelve months ended
		December 31, 2024							December 31, 2023
		GAAP		*Adjustments ()**			Non-GAAP		GAAP		*Adjustments ()**			Non-GAAP
		Unaudited							Audited		Unaudited

Gross profit		$	113,331	$	3,673		$	117,004	$	104,945	$	895		$	105,840
Operating expenses			85,634		(500	)		85,134		76,860		5,434			82,294
Operating income			27,697		4,173			31,870		28,085		(4,539	)		23,546
Income before taxes on income			29,201		4,173			33,374		28,194		(4,539	)		23,655
Net income		$	24,849	$	3,376		$	28,225	$	23,504	$	(3,597	)	$	19,907

Basic earnings per share		$	0.44	$	0.06		$	0.50	$	0.41	$	(0.06	)	$	0.35

Diluted earnings per share		$	0.44	$	0.05		$	0.49	$	0.41	$	(0.06	)	$	0.35

Weighted average number of shares used in
computing earnings per share
Basic			57,016,920					57,016,920		56,668,999					56,668,999
Diluted			57,016,920					57,041,778		56,672,537					56,784,601

(*)	Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income, net, other non-recurring expenses, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.

		Twelve months ended							Twelve months ended
		December 31, 2024							December 31, 2023
				Unaudited							Unaudited

GAAP net income				$	24,849						$	23,504

Gross profit
Stock-based compensation expenses					518							407
Amortization of purchased intangibles					2,412							448
Other non-recurring expenses					466							-
Other integration expenses					277							40
					3,673							895
Operating expenses
Stock-based compensation expenses					2,771							2,354
Stock-based compensation expenses related to business combination					3,437							662
Amortization of purchased intangibles					988							312
Other operating income, net and other integration expenses					(6,696	)						(8,762	)
					500							(5,434	)

Taxes on income					(797	)						942

Non-GAAP net income				$	28,225						$	19,907

GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands

ADJUSTED EBITDA:

	Twelve months ended						Three months ended
	December 31,						December 31,
		2024			2023			2024			2023
	Unaudited						Unaudited

GAAP net income	$	24,849		$	23,504		$	11,764		$	3,447
Adjustments:
Financial income, net		(1,504	)		(109	)		(63	)		(1,196	)
Taxes on income		4,352			4,690			1,069			628
Stock-based compensation expenses		3,289			2,761			786			925
Stock-based compensation expenses related to business combination		3,437			662			140			662
Depreciation and amortization (*)		13,777			13,627			3,068			3,862
Other operating expenses (income), net		(6,751	)		(8,771	)		(4,706	)		986
Other non-recurring expenses		466			-			-			-
Other integration expenses		332			49			70			49

Adjusted EBITDA	$	42,247		$	36,413		$	12,128		$	9,363

(*) Including amortization of lease incentive

SEGMENT REVENUES:
	Twelve months ended						Three months ended
	December 31,						December 31,
		2024			2023			2024			2023
	Unaudited			Audited			Unaudited

Satellite Networks	$	198,174		$	168,527		$	49,064		$	53,517
Integrated Solutions		54,925			46,133			17,257			9,503
Network Infrastructure and Services		52,349			51,430			11,807			12,592

Total revenues	$	305,448		$	266,090		$	78,128		$	75,612

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

	December 31,			December 31,
		2024			2023
	Unaudited			Audited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	119,384		$	103,961
Restricted cash		853			736
Trade receivables, net		53,554			44,725
Contract assets		20,987			28,327
Inventories		38,890			38,525
Other current assets		21,963			24,299

Total current assets		255,631			240,573

LONG-TERM ASSETS:
Restricted cash		12			54
Long-term contract assets		8,146			9,283
Severance pay funds		5,966			5,737
Deferred taxes		11,896			11,484
Operating lease right-of-use assets		6,556			5,105
Other long-term assets		5,288			9,544

Total long-term assets		37,864			41,207

PROPERTY AND EQUIPMENT, NET		70,834			74,315

INTANGIBLE ASSETS, NET		12,925			16,051

GOODWILL		52,494			54,740

TOTAL ASSETS	$	429,748		$	426,886

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands (except share data)

	December 31,			December 31,
		2024			2023
	Unaudited			Audited

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Short-term debt	$	-		$	7,453
Trade payables		17,107			13,873
Accrued expenses		45,368			51,906
Advances from customers and deferred revenues		18,587			34,495
Operating lease liabilities		2,557			2,426
Other current liabilities		17,817			16,431

Total current liabilities		101,436			126,584

LONG-TERM LIABILITIES:
Long-term loan		2,000			2,000
Accrued severance pay		6,677			6,537
Long-term advances from customers and deferred revenues		580			1,139
Operating lease liabilities		4,014			3,022
Other long-term liabilities		10,606			12,916

Total long-term liabilities		23,877			25,614

SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS 0.2 par value		2,733			2,733
Additional paid-in capital		943,294			937,591
Accumulated other comprehensive loss		(6,120	)		(5,315	)
Accumulated deficit		(635,472	)		(660,321	)

Total shareholders' equity		304,435			274,688

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	429,748		$	426,886


GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

		Twelve months ended						Three months ended
		December 31,						December 31,
			2024			2023			2024			2023
		Unaudited			Audited			Unaudited
Cash flows from operating activities:
Net income		$	24,849		$	23,504		$	11,764		$	3,447
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			13,554			13,402			3,012			3,805
Capital gain from sale of property			-			(2,084	)		-			-
Stock-based compensation *)			6,726			3,423			926			1,587
Accrued severance pay, net			(89	)		167			(72	)		12
Deferred taxes, net			1,834			2,662			298			(1,203	)
Decrease (increase) in trade receivables, net			(9,347	)		13,448			(2,328	)		9,561
Decrease (increase) in contract assets			8,519			(1,694	)		11,506			(7,804	)
Decrease (increase) in other assets and other adjustments (including
short-term, long-term and effect of exchange rate changes on cash and cash equivalents)			11,661			(351	)		8,590			(3,949	)
Decrease (increase) in inventories, net			(1,928	)		(2,387	)		544			3,798
Increase (decrease) in trade payables			3,196			(7,635	)		(1,884	)		(2,314	)
Increase (decrease) in accrued expenses			(5,906	)		735			(8,581	)		3,517
Increase (decrease) in advances from customers and deferred revenues			(16,390	)		803			(4,228	)		(1,843	)
Increase (decrease) in other liabilities			(5,010	)		(12,049	)		(3,265	)		1,343
Net cash provided by operating activities			31,669			31,944			16,282			9,957

Cash flows from investing activities:
Purchase of property and equipment			(6,610	)		(10,746	)		(2,515	)		(2,090	)
Acquisitions of subsidiary, net of cash acquired			-			(4,107	)		-			(4,107	)
Receipts from sale of property			-			2,168			-			-
Net cash used in investing activities			(6,610	)		(12,685	)		(2,515	)		(6,197	)

Cash flows from financing activities:
Repayment of credit facility, net			(7,453	)		(1,590	)		-			(1,590	)
Repayments of short-term debts			(7,836	)		-			(3,793	)		-
Proceeds from short-term debts			7,836			-			1,066			-
Costs associated with entering into a long-term debt			(654	)		-			(654	)		-
Net cash used in financing activities			(8,107	)		(1,590	)		(3,381	)		(1,590	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash			(1,454	)		(63	)		(896	)		2,288

Increase in cash, cash equivalents and restricted cash			15,498			17,606			9,490			4,458

Cash, cash equivalents and restricted cash at the beginning of the period			104,751			87,145			110,759			100,293

Cash, cash equivalents and restricted cash at the end of the period		$	120,249		$	104,751		$	120,249		$	104,751

*)	Stock-based compensation including expenses related to business combination in the amounts of $3,437 and $662 for the twelve months ended December 31, 2024 and 2023, respectively.
	Stock-based compensation including expenses related to business combination in the amounts of $140 and $662 for the three months ended December 31, 2024 and 2023, respectively.

Gilat Reports Fourth Quarter and Full Year 2024 Results