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Gilat Gets Indigestion Following Year of Acquisitions
Petah Tikva - March 12, 2001 Gilat Satellite Networks Ltd. on Monday reported its results for the quarter and year ending December 31, 2000. In addition, the Company presented revised guidance for 2001 in response to the current economic slowdown affecting technology products and services. The Company reported revenues for the year ended December 31, 2000 of US$504.6 million, an increase of 49 percent over 1999 sales of US$337.9 million. Gilat recognized several one-time charges to 2000 earnings resulting from acquisition-related expenses and acquired in-process research and development. In addition, Gilat has recorded a one-time charge related to the impairment of investments in other companies. After these one-time charges of US$29.7 million, Gilat reported net income of US$19.4 million, or US$.81 per share. Excluding these charges, net income was US$49.1 million, or US$2.04 per share. Revenues for the fourth quarter ended December 31, 2000 were US$174.6 million, an increase of 60 percent over the US$108.9 million result for the same period in 1999. Reflecting the one-time charges described above, the Company reported a loss of US$(10.2) million, or US$(.44) per share. Excluding these charges, earnings were US$19.4 million or $US.82 per share. The 2000 year-end backlog for equipment sales and revenues from multi-year service contracts for the Company's VSAT (Very Small Aperture Terminal) products was over $300 million, not including prospective orders from the MCI WorldCom/United States Postal Service contract or StarBand Communications. The Company also announced that its guidance for 2001 results will be below its previous expectation. The Company now expects total year revenue will be approximately $575 million, and expects net income to be approximately $25 million or $1.00 per share. Gilat said that its revised guidance for the year is primarily the result of slowed decision-making with regard to technology purchases by U.S. and international customers, and tighter access to the equity markets, both of which delay order flow into the company. The Company also announced for the first time its expectation that 2002 results would generate total year revenues of $675 million and net income of approximately $50 million or $2.00 per share. Gilat Chairman and CEO Yoel Gat stated, "Like other businesses in the technology sector, Gilat is facing challenging economic conditions which have impacted the Company in terms of reduced or delayed orders from our target segments. "We are taking aggressive measures throughout the Company to address the current market conditions. Given the strength of our competitive position in the awards we are announcing today, we continue to be confident in the long-term prospects of our products and our Company." Related Links Gilat SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express
Gilat Saves General Store More Than A Dollar
Petah Tikva - March 12, 2001Spacenet Inc., a subsidiary of Gilat Satellite Networks, has been selected to provide a nationwide, broadband satellite communications network to Dollar General Corporation which has over 5,000 stores across America. |
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