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Gilat Rises on Managed-Services Pact With Government

Shares of Gilat Satellite rose after the Israeli broadband provider garnered a managed-services pact valued at tens of millions of dollars.

Shares of Gilat Satellite  (GILT) - Get Gilat Satellite Networks Ltd. Report rose after the broadband provider garnered a managed-services pact valued at tens of millions of dollars with an Asia-Pacific government company.

The Petach Tikva, Israel, company in a statement didn't specify the nation or the exact terms of the deal.

“The equipment and multiyear managed-services contract will enable connectivity for multiple applications across the nation,” Gilat said.

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The deal also includes potential for significant project expansion, the company added.

Gilat said it would build and operate the network to provide nationwide coverage for a range of applications. 

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These include enterprise applications, with strong opportunities for cellular backhaul, emergency response, and mobility.

Gilat said its technology will provide the country's requirement "for robust connectivity to [its] most remote areas."

The partnership follows successful delivery over the past years and leverages Gilat's technical and management abilities, Abhay Kumar, Gilat's regional vice president for Asia Pacific and Japan, said in a statement.

Gilat share price rose 54% in 2021 through Friday's close. It recently traded up 0.3% at $10.08.

The stock has more than doubled off its 52-week low of $4.80, set in early October. But it also slumped from its 52-week high of $22.69, set early in February.

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In mid-February Gilat reported fourth-quarter net income more than doubled to $1.12 a share from 43 cents a share in the year-earlier quarter. The latest adjusted result was a loss of 3 cents a share, compared with adjusted profit of 16 cents a share a year earlier. Revenue dropped 46% to $42.6 million.