Gilat reports strong fourth quarter and 2021 results; anticipates similar Strong Growth in 2021
Gilat Satellite Networks Ltd., a worldwide leader in satellite networking technology, solutions and services, today reported its results for the fourth quarter and full year ended December 31, 2021.
Fourth Quarter Financial Highlights
Revenues of $67.3 million, up 58% compared with $42.6 million in Q4 2020 and up 35% compared with $49.9 million in the previous quarter;
GAAP operating income of $5.6 million compared with $62.7 million in Q4 2020 which included a one-time net income of $64.8 million related to the settlement with Comtech. Excluding this item, Q4 2020 operating loss would have been $2.1 million. GAAP operating income in the previous quarter was $0.9 million;
Non-GAAP operating income of $6.8 million, compared with Non-GAAP operating loss of $1.6 million in Q4 2020, and Non-GAAP operating income of $1.5 million in the previous quarter;
GAAP net income of $2.4 million, or $0.04 per diluted share, compared with net income of $62.4 million, or $1.12 per diluted share in Q4 2020. GAAP net income for Q4 2020 included the above-mentioned net income from the Comtech settlement; GAAP net income in the previous quarter was $0.2 million, or $0.00 per diluted share;
Non-GAAP net income of $5.9 million, or $0.10 per diluted share, compared with Non-GAAP net loss of $1.9 million, or loss of $0.03 per share in Q4 2020 and Non-GAAP net income of $0.7 million, or $0.01 per diluted share, in the previous quarter;
Adjusted EBITDA of $10.6 million, compared with $1.1 million in Q4 2020 and $4.0 million in the previous quarter;
Full year 2021 Financial Highlights
Revenue of $218.9 million, up by 32% compared with $165.9 million in 2020; GAAP operating income of $2.5 million compared to $37.6 million in 2020;
GAAP operating income in 2020 includes net income of $53.6 million related to the settlement with Comtech;
Non-GAAP operating income of $4.7 million compared with Non-GAAP operating loss of $13.7 million in 2020;
GAAP net loss of $2.7 million, or $0.05 per share, compared with GAAP net income of $34.9 million in 2020, or $0.63 per diluted share;
GAAP net income in 2020 includes the above-mentioned Comtech settlement net income; Non-GAAP net income of $1.8 million, or $0.03 per diluted share, compared to Non-GAAP net loss of $16.4 million, or $0.30 per share, in 2020;
Adjusted EBITDA was $15.7 million compared with adjusted EBITDA loss of $3.3 million in 2020;
Guidance for 2022 is for revenues of between $245 to $265 million, representing year-over-year growth of between 12% and 21%, GAAP operating income of between $5 to $9 million and adjusted EBITDA of between $20 to $24 million, representing year-over-year growth of between 27% to 53%.
Adi Sfadia, Gilat’s CEO, commented: “Our results in the quarter showed significant revenue growth of 58% year-over-year which translated into adjusted EBITDA of over $10 million, 10 times our levels in Q4 last year, an impressive achievement in a challenging year. These results, among others, reflect the opportunities and trends we are witnessing and have mentioned several times over the past year.”
“We recently launched SkyEdge IV, Gilat’s next-generation multi-orbit, software-centric platform, that will improve operational efficiencies. I am proud to report that we recently closed major deals on this new platform with both Intelsat and SES, of which a significant portion were software licenses. We expect that with SkyEdge IV we will further increase our market share and strengthen our leadership position in our major focus areas of Mobility, 4G/5G Cellular Backhaul, Enterprise and Defense.
“Looking back at 2021, it was a remarkable year due to four major accomplishments. First, in the NGSO and VHTS segments we had two outstanding achievements: we were awarded a sizeable deal for a multi-year contract with the potential of hundreds of millions of dollars, to customize and provide our leading technology for NGSO constellations. Upon signing this contract, we received the first multi-million-dollar purchase order for initial units. We also received more than $40 million dollars in orders from a leading satellite operator to support a Low Earth Orbit Constellation.
“The second major accomplishment in 2021 was in fortifying our Mobility leadership in a multimillion dollar deal for SkyEdge IV, which provides Gilat access to top cruise lines and maritime service providers that will use SES’s O3b mPOWER as well as their geostationary fleet.
“The third major accomplishment during the year was in Peru, where we reached, ahead of our stated objectives, our goal of a $50 million run rate in annual recurring revenue. We expect that in 2022 we will turn the corner in Peru and our business there will become significantly profitable. And finally, we expanded our strategic relationship with Intelsat for commercial aviation in North America and Asia, demonstrating continued IFC market recovery.”
Mr. Sfadia concluded, “As we enter 2022, I am very encouraged by our strong backlog, solid visibility and the pipeline we see ahead of us. We therefore feel confident in resuming our annual objectives which show strong growth in revenues and significant improvement in profitability for 2022.”