GILT - Earnings call transcript Q4 2024 | Gilat Satellite Networks Ltd.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Gilat's Fourth Quarter 2024 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, February 12, 2025. By now, you should have all received the company's press release.

If you have not received it, please view it in the News section of the company's website, www.gilat.com. I would now like to hand over the call to Ms. Finance of Head Sher, and IR. Mayrav Ms. go please ahead. Sher,

Mayrav Sher

The deemed I Time and call Yes. today issued Thank everyone. and Reform a note All Act actual operator. statements Investor and contingencies, for the of approximately be of on future refer in or Gilat's GAAP meaning website be filed company may forward-looking in from to Private Exchange factors morning, management for turn and Thank Good a reconciliation that Also, at website the non-GAAP in anticipated across including events core financial charges call results. reports uncertainties quarter statements the within good Webcast. indicative or the of disclaim with whether and a in of Call you which Form Securities Securities results, please statements, to performance. Conference company periods control Fourth SEC today's Relations. be XXXX as afternoon, on fourth the comparing which The Mayrav statements, update measures these regarding Litigation Finance so. result forward-looking that XXXX these Gilat management made not excluding and company's release February obligation materially Commission. Also a investors measures new to found do alter involve XX will available Investor assist noncash, call, the Quarter no at detailed risk the are to it any beyond basis Sher, about is differ Head and be fiscal you, this earnings Gilat's risks, believes Results the today, me to this days. Also, by future historical Gilat webcast that operating am for The beginning joining forward-looking and on will otherwise, be can press issued are non-GAAP statements measures. to information non-GAAP of and Eastern earnings many that, results Gilat's of can on Relations under company not and that operating or More that consistent found such noon www.gilat.com. the of information, recording was found to obligation period introduction. Gilat's on the year other its section release of our XX, of results of of are let these With today can of furnished a X-K. XXXX. earnings reporting does press us performance may nonrecurring earlier believe cause explicitly facts

Gil to Adi call ahead, CFO. I like Benyamini, now the Mr. CEO; today Adi would the call are and turn Gilat's On Adi, over go please. to Sfadia, Mr. Gilat's Sfadia.

Adi Sfadia

Mayrav, and good results. us Thank today discuss you you, earnings fourth for Thank our and XXXX everyone. quarter to full year day to joining

to been year-over-year. also company. $XXX.X for profitable year million to This growth $XX.X highlights accelerate of strong with On accelerating finished QX million, the QX EBITDA revenue a for successful reaching XX% XXXX key strong year hitting significant increase the a a as growth. EBITDA and reached in opportunities innovation. We talk and on plans and execution, DataPath XX% year-over-year. to revenues delivering continue and saw our achievements Adjusted call, XXXX quarter $XX.X the strategic growth strong acquisition value. Overall, about quarter, highlight growth our and million, and revenue XXXX dedication Blu achieving will the and capitalize performance we a million, with driving full and fourth drive year Gilat's the revenues we Stellar adjusted to $XX.X full has

to proceed business about would we the are to we I the undergoing. some share organizational like review, change information Before

on and reportable strategic our focus segments. ongoing structure growth to Blu. is increase an growth This of also our new and are and announce which and of acquisition our Stellar part outcome operations, our our streamline recent efforts As engines, of process we main a new structure that and to identified we led our to opportunities resources organizational pleased main DataPath

specifically precisely us to segment. the the structure NGSO organizational opportunities new VHTS in the increasing defense Our the serving will market and on allow focus and more markets, commercial, growing IFC

believe lines structure operations. Gilat's will insight business this provide into that investors with understanding simplify also our We and of greater the

X divided Commercial Defense, Xst, XXXX, Gilat into new Gilat divisions: the Gilat Peru. January and company of As is

now high defense in these take potential newly detail. wide me government division division demand Gilat demanding Gilat we the significant with X delivers will ago, start the government success. Recognizing Defense. more formed Defense defense products Let as DataPath, acquired a and meet for Satcom is XXXX dynamics specifically connectivity redundancy integrating identified years a created macro we strong layers Defense The in is availability, component a with multi-orbit growth. for Defense. Satcom to of for need moment organization defense dedicated Department solutions to and military is I strategies. our from multiple connectivity. division and Wavestream needs DataPath with of solutions of explain the deployment market the these U.S. have worldwide and Gilat on increasing About growing trends, driven ensure rapid to specific organizations of communication portfolio integrators, and by meeting a battlefield Gilat and Gilat, making secure, political Defense the mission of focus The and needs. critical By require to Defense

rapidly division. commercial for connectivity market. industry global the need seamless is demand driven time, greater Commercial. growing established evolving flexibility resiliency, to the and Moving towards by needs, the for The At same To shifting digital address reshaping multi-orbit we the satellite the for and are Gilat coverage. in-flight commercial inclusion these connectivity, push the

and the provide to solutions of passengers, airlines cutting-edge providers worldwide. Gilat's of of cornerstones high-growth in one as this enabling division, serves IFC us position our connectivity the Blu Stellar demands that Commercial is of acquisition service division strengthening Our meet and market enterprises broadband global network communication and solutions MNOs, and backhaul regional advanced of for and providers, with the solutions partner satellite for providing for NGSO being VHTS service HTS, and constellations operators satellite on focused for enterprises. satellite turnkey the operators choice cellular the

network social digital plays The services implementation is solutions general and and telco communities on connectivity, Peru Group faces third More and network division and is terrestrial Gilat solutions on provides hard-to-reach terms Peru. in in large-scale geographies. focusing digital America and Peru implementation on of network specifically rural across Peru Gilat telecom the focuses Peru end-to-end bridging underserved Latin construction, projects. Gilat fiber in a challenges the and Gilat enormous of Peru. and telecommunication services. operations. in government and operation inclusion focused vital divide, connecting role wireless delivering and specifically, Gilat optic, satellite high-quality especially

a dedicated find can to in Investor Relations QX link a matter for presentation the and in release section. You press the website our the

to review fourth move quarter. business let's the of Now the

highlight Gilat's I a acquisition, closing expand which in in our the the IFC would first marks XXXX. is market. milestone January significant to discuss like completed strategy X, to The acquisition our of leadership on The Stellar Blu

position the Blu brings capabilities to growing commercial our to our the this deliver leader expertise strengthened complementing aviation, The making Stellar of us position strengthen in of existing system our this and aviation, key solutions the advanced our unique and in a solutions commercial communications sector. Stellar extending integrations partners. satellite to addition larger discussed our IFC market. for capture share reach before, acquisition Blu market As in multi-orbit and ESA enhanced rapidly

aero addition, applications. In progress early to extending Stellar line this Blu results, already defense We're multi-orbit aero seeing activation strong opportunities. Building With product IFC on continues is and promising Blu new terminals its partnerships shipped strides in way Stellar the make sector, in significant underway, is XXX in next-generation momentum, made leading into Blu well ESA and to over has connectivity. significant aviation the Stellar the market. date business

production to is meet Our this demand. growing capacity scaling

During to Gilat operating our consistent our Wavestream These continued QX, partners, terminal-related million $XX SSPA orders with and with successfully IFC dedicated the demonstrated IFC avionics very IFC very approximately deployments growth received large-scale network products expanding networks we over market. from are significant them. and multi-orbit constellation. Also, equipment for success of

commercial with VSAT opportunities. global assets. maritime. Satcom platform, across Leveraging drive as diverse provider network of SkyEdge beyond reinforce its enhancing high-performance long-term Intelsat technology deliver key revenue open to orbital business is This strong position family into Intelsat aviation our and continues our to and Our growth, connectivity new expanding partnership expansion aviation seamless a

technology This its its expanded This choosing strength IFC quarter, and support platform. sector. networking, multiservice Gilat we our constellations our As Wavestream technology leadership to network saw growing satellite In the market XXXX, highlights as and multi-orbit launched successfully as key our future-proof capacity a playing NGSO have strategy further supporting major delivering validates reinforced LEO the provider product a operators underscores across cutting-edge verticals. the satellite and time, ability fourth Intelsat flexible mPOWER, XXXX, milestone in a cements strong advanced aviation confidence in maritime Solid solutions IV our to demonstrating grow highly significant solutions. we multiple SES product our OXb communication its In that the State for leader demand see look Amplifiers in portfolio with satellite our we the achievements LEO next-generation role capabilities of services. At launch coverage. opportunities These gateway ahead in same Gilat in portfolio, and satellite service of Power that the key a for constellations. software-defined our business leading role for category SkyEdge

orders growth we Intelsat's with ahead to cloud strategy. also As positioned while and well LEO SES secure our are we XXXX, products very gateway significant and anticipating to multi-orbit look for

EU a In with includes recent Eutelsat, development constellation that and addition, and the Rights of SES potential. IRISX opportunities Hispasat the the to is Consortium award Space significant the positive by

transportable and success defense. contracts the DataPath both to wins We the further organizations, defense This in for solidifying concluded market. critical deals position with significant Gilat with and international U.S. portable DoD securing products. for our the year Turning our key includes

software-defined the full requirements various more in time, modem market. and defense the advancing the defense GLT our Gilat, in $X pleased and adapting XXXX we strategy defense globe. At been under portable to radio approximately products military million transportable DoD evolving developing DataPath with tailored the over we to other our results. Gilat year meet DataPath of first same from gained was quarter, couldn't international the success needs by organizations. Specifically, operating and have IV SkyEdge with fourth next-generation orders the be of we U.S. organizations received defense all have and the the

ahead look product, to our solutions features. planning investments efforts to we and As XXXX, increasing in substantially R&D significant Gilat Defense, are introduce we more

and increase we opportunities for Wavestream significant growth to country's Peru, to the defense worldwide. In the the Telefonica comprehensive unified network IPT, investment in DataPath expertise with government million solid is and will in for communication major Defense seamlessly technologies we marketing extending customers. and market defense see our a Gilat consortium was Gilat A to We experienced communities. securing offering reach integrating and highlight $XX provide and sector. the approach of Additionally, orders Defense partnership customers mission-critical sales and channels Gilat, this of expanding that Para key a Todos, its more Facebook Internet players from solutions, year,

the on divide, Our high-quality to gain connectivity. bridging underserved digital efforts Internet communities to access remain enabling focused

Looking with have significant emerging and expansions government, pipeline opportunities progression Pronatel along robust Peruvian project such as and with with the upcoming for the RFPs forward, XXXX large extensions. we a several of

growth. in expanding profit another Given set XXXX, expect year we opportunity and top of our line

$XXX XXXX revenues expect of million and We $XXX between million.

expect adjusted and an million of We $XX EBITDA million. $XX between

Looking growth by transfer size, driven data positioned increasing declining strong costs for market tailwinds, satellite Gilat demand. is including growing and ahead, continued well launch

and capitalize particularly trends. IV on with VHTS platform, these SkyEdge to NGSO ideally technologies, suited Our is

bolstered by expanding expansion leadership establish business Stellar as the ESA poised for market. significant commercial Our for in we IFC is Blu our

the multi-orbit IFC ESA in will for by passengers. airlines on Our portfolio instrumental and of solutions be products demand capitalizing and increasing

hand also DataPath opportunity, segment defense we growth business orders and increased maintained as supporting expertise in Defense significant momentum in represents Our leverage challenging and solutions. And environments. with are please customer a our pleased operations The satellite our I Gilat and our will with strong with meeting over awards most Gil CFO. in to that, Benyamini, progress the needs ahead. call over military government with go innovative Gil,

Gil Benyamini

of I I non-GAAP GAAP everyone. financial fourth now financial Thank highlights remind quarter you, year everyone that to basis. our performance. for followed both the are presented by our like Adi. afternoon on to of review Good morning and walk will XXXX, and full good through the results a would

was in As therefore very a profitability. with year pivotal year. growth. delivering reflected completed further we the both Adi which including acquisition acquisition our this financials. the performance and is for year with and XXXX improvement revenue mentioned in in of Gilat marked sheet by Notably, year-over-year closed growth pleased the We our earlier, date Stellar we significant strong XXXX the after our balance to are was strategic results, sustained Blu, accelerate our expect not momentum,

of In the million $XX.X fourth were to financial compared our 'XX. results, terms for increase quarter $XX.X revenue in X% million, QX

totaled by vertical. year, The from defense growth For revenues million the driven in growth $XXX.X XX% million, full XXXX. primarily increase was the $XXX in reflecting

was revenue compared segment revenues of In revenues by segment to QX Satellite 'XX in revenues QX the $XX.X GAAP last to Network to like terms Services by segment, of to breakdown moving to driven 'XX in the 'XX our due in million basis now the segment fourth Integrated $XX.X same review 'XX. I to same primarily $XX.X $X.X activity termination starting year. with would million year. million of from for vertical. last the million the compared quarter primarily defense the $XX.X and were the of million was revenues QX The results, were decline Infrastructure compared in Networks million quarter before non-GAAP. $XX.X our increase were quarter Russia. QX The Solutions higher

$XX.X [ operating QX improved in $XX.X arbitration gross was Peru, per other 'XX of million driven income increase diluted arbitration income QX operating QX were to in $X.X to GAAP compared due the in recorded mentioned. The XX.X% $X.XX margin GAAP to QX 'XX were as from in was $X.X in share was proceeds $X.XX to Peru, $XX.X XX.X% diluted net 'XX. income QX GAAP to QX 'XX a as in in primarily income profits in per from 'XX. GAAP to compared compared The in million ] million $XX compared of 'XX. which in QX 'XX. is decrease previously million operating share million million 'XX QX QX of or Our or 'XX. in expenses by income

Moving results. to non-GAAP

Our of margin in expenses QX of non-GAAP was operating in compared income 'XX $X.XX $XX.X QX operating to $X.X share improved million was QX 'XX $X.X were million compared QX million 'XX 'XX. in compared of per QX 'XX in QX in compared EBITDA income income $X.X to or was 'XX or net QX Adjusted in 'XX. income to million a XX.X% net $XX.X Non-GAAP a per in Non-GAAP $X.X in 'XX. income diluted gross Non-GAAP XX.X% adjusted QX QX to million of to share EBITDA an income million in million million 'XX. in $XX.X $X.XX QX to an of $X.X compared operating 'XX.

adjusted year, XXXX. For adjusted of compared with $XX.X EBITDA $XX.X the was an million million in EBITDA full

sheet. balance our to Moving

ongoing million XX, net as from As operations the million process $XXX $XX in December December of XXst, arbitration our increase $XXX cash, was to of 'XX. on Peru. restricted as by mainly equivalents were total cash, loans cash XXst, compared 'XX, and to driven in September and million The compared 'XX, well

we of revenues were terrestrial exclude in of in generated activities days, DSOs, due both which previous days cash in revenues down Peru our receivables $XX.X million higher from XX flow, and In from QX XX operating quarter construction network terms to 'XX. collections. increased and projects

$XXX as of December end shareholders' totaled of 'XX. million $XXX Our XXst, million with compared at the equity 'XX,

XXXX between strong million mentioned, ahead, $XXX we $XXX million. and Adi a with expect Looking as projected revenues

provide and to as million. to million for certain earn-out and forward-looking of purchased forward-looking to on not financial unable basis recent expect GAAP we data, EBITDA we $XX related such adjusted are a amortization In intangibles expenses guidance acquisitions. based because guidance addition, do range provide We $XX between reasonably

for able non-GAAP now GAAP to are not review. my to to please? we financial unreasonable effort. That of data for result, a would measures reconciliation provide call forward-looking a Operator, open concludes like without As financial I questions. the

Operator

The Brokers. Instructions] from first [Operator Glinyanov question Sergey Freedom from is

Sergey Glinyanov

related first to XXXX. I $XXX would previous my successful million question million Is roughly another And like start was to is $XXX to yes, with my And Gilat. still guidance making relevant? that congratulations Stellar guidance for Blu. year

Gil Benyamini

in guidance. this is it overall and still yes, included guidance is the relevant, Sergey,

Sergey Glinyanov

be the organizational Will segment regarding this structure? divided new

Adi Sfadia

Stellar and old not part IFC segment. the of division synergies reportable Blu a commercial subsegment Stellar Blu. with is It's Gilat managed of lot a between

So division. overall Commercial the will Gilat under the consolidated be results

Sergey Glinyanov

any about Could Okay. will that you costs the structure incurred? Got to organizational it. new provide details any us related be

Adi Sfadia

help XXXX In a change our added can provided and I And believe segment that investors analysts high-level we model. website, we and short results about which presentation for we to the financial rework their made. also unaudited XXXX,

Sergey Glinyanov

Okay. my there of in question improve EBITDA And is, little it. XXXX. Got was a margin final

there at it is it's X R&D midpoint and your in XXXX can percentage little right? in Blu margin EBITDA around look Stellar a primarily the Is guidance, of and As points. and standards, we decrease marketing because

Adi Sfadia

a the In profit. to profit general, production Blu remember has Gilat usual lower ramp-up EBITDA. gross are course, Stellar need of And Yes. gross phase. its than affects in Blu it that Stellar We

expect So positive them year, the the half to for and the during more of -- we in we them the do be EBITDA of be half EBITDA second XX% second than year. the to do expect

In especially increase are sales and addition, R&D defense the marketing. and division, we planning investment our significantly in in to

improvement this, of is XXXX if XXXX, but overall reason slightly ratio lower the expect combine the EBITDA is than you in So do we for 'XX this a all significant onwards. why main

Operator

next question Blair. is Louie The William from DiPalma of

Louie Dipalma

the for -- And IRISX with discussions and line deployment? expected contracts very associated the the positive? what the with early is discussions been Have IRISX time

Adi Sfadia

-- way. beginning are the initial the some mid-XXXX. issued IRISX discussion the friendly with consortium RFIs in consortium of at the So and a very But

mid provide end and very set this or year. the they before the what I they what -- or of aggressive it's set the based of line. to a either said them on during early awards, of on expect expect probably saying, XXXX. we RFIs Based RFPs with issue year But QX the they awards towards sign agreements the Now are additional they think year half time of probably to

So I those a delay would frames. expect time bit in

Louie Dipalma

the Great. what about products? and in segments, with new contract can reporting trends strong That like within your awards talk And you in the With of future terms look you vertical? the And makes does pipeline sense. different defense opportunities growth forecast defense.

Adi Sfadia

Yes.

more So Gilat new Defense. share light slightly on can this I exciting

expect than well. slightly we $XX that in the XXXX So I of -- XXXX as think in is acquisition 'XX that our and to DataPath more million, grow cornerstone did them

the DoD, also but business seeing So we are U.S. both international. with

with a trying sell DataPath are seeing We both transportable and is solutions lot of synergies for increasing worldwide salesforce Gilat the to and portable pipeline solutions.

On the to Army other solutions DoD. DataPath the side, modem and and relationship with bring DoD U.S. leveraging Gilat is the the into networking their

the to and And like far engage sold there. leverage leveraging DoD. we parallel, We are and seeing we that been of to addition, a relationship that networks with trying SES they announced lot the we this products for are to leverage are to manufacture be the with the to DoD, U.S. a locally network modems huge able We satellite We're with eligible starting network them Gilat already Gilat operators U.S. are and we default have our in that haven't penetrate engage Intelsat global able the bought. years. In compliant of excitement meetings to recently again, that they already to into with and are those in our to

of seeing we jumping a that lot slightly are both barrier So the on about excitement internally this. in promising And and externally we but past. we had are every

I past the are see efforts. for And we programs very in trying support at that development X that a future in several XXXX, XXXX We will in a because growth also be program revenues linear booking And very growth. include large said get project the We come and to it's times to significant bid outcome won't the large increase that onwards. or will least X are based. aiming this we segment will and in think to awards

Louie Dipalma

trend to for forward lower? will guided continue going XXXX. good. there stability? to you revenue as XXXX, for But it Peru be relates Peru, should And a Sounds beyond in decline Or

Gil Benyamini

to grow. renewal delays some some all, in In of of XXXX, believe contracts. that the see first we looking forward, we is So Peru recurring going of

down So see longer Peru's most this revenues revenues a might a for and for push definitely bit. terms, are of Peru. long-term trajectory little growth we But overall,

Adi Sfadia

in would expecting we expansion we like and XXXX, an the that XXXX, some to add at got beginning some of project past leftovers this that I are revenues, operational revenues we award had XXXX. transaction some construction from from start to seeing in and

that the will think misleading it's operations I revenues year-over-year. if construction you So on see you side, bit growth a reduce

Louie Dipalma

ESA of Stellar terms you systems I have was an of with Stellar wondering, terms Adi, Blu of shipped that you in contingent also, XXX indicated you payments? in antenna Blu. provide the stands where And And update could the

Adi Sfadia

stages I think early it's really in now. right

deliver of several hundreds in first The margin. milestone to units a is grid

first usually the the costly ramp-up, are as because you of units than The issues. the fix part units ramp-up learn production more and

we the I really in terminal about a to talk are think it's good early reduce position costs, the to earn-out. too but

The first end earn-out midyear. will be by

give some So that the able we'll during quarter, I on it. to light guess be more second

Operator

of The Koontz & question is from Company. Ryan next Needham

Ryan Koontz

of been you here. and like on with where ramp the you go to there 'XX? have the production company questions we Most first my that look Stellar through Blu, to ramp anticipate But QX the was us volume what of at as in refresh half regard can answered

Adi Sfadia

Yes.

delivered until the systems units performed now, production. And systems was activated well. I of are initial QX. on in installed the several The very around already They active happy. production have QX and that So XX They have aircraft. terms customers think of ramp-up very been

So we the right direction. on I are think

Ryan Koontz

'XX, can versus the performing to in you us some impact are there on impact installed of you exiting Russia. there commercial saw if remind And well. historical That's you us Can numbers Russia and side, to 'XX? relative great. that Great the was 'XX hear your there, in decline remind those

Adi Sfadia

remember we've remember? year. XX% And be around been to per Gil, the exact don't you used give out million, slightly take, around I of Russia XXXX, we I or XXXX, had maybe in number, $XX -- In it. guess

Gil Benyamini

$XX a less million This The year about number. ago. is or more the decline was

Ryan Koontz

And right. post the like All that here. it. Got going What's for market there? you now in opportunities Blu developing how And IFC terms to deal back environment, competitors of do Great. see the just Stellar this and competitive you maybe out versus closing? competitive environment

Adi Sfadia

So direct indirect there is a and effect.

that leading have and On terminal today multi-orbit Stellar available that cost. a and the with and we think in ESA size, has Blu, best cost the the today is power direct market. effect, the is swap I weight that Swap

We with have several providers service and lot opportunities manufacturers. aircraft a of

I think that being a line fit objectives the in one top About of always our the indirect competition, large aircraft for it's manufacturers is there. one of XXXX. and XXXX

compete against Our market and this other that growth Starlink. significantly for the WiFi to shifting the overall, industry But customers against and potential in in each increased the Gilat. fact free general is

Operator

next is Chris from Analytics. question from Quilty Quilty The

Christopher Quilty

wrong. got I'm or pieces. quick line have Apologies guidance, question the follow-up I just driving. Space. for the background the on Quilty It's make noise top sure it Gil, to I

Stellar in You're $XXX million $XXX to still for of million order Blu. looking

buckets, you modems amplifiers did at faster want the seeing businesses and traditional lines? I the the versus growth are of that of organized sort million we're Russia. are those talking terms had and looking $XX headwind the on on segment. But about it business Once you of growth of by the and/or order And for in a back the in sort to necessarily and we we way I if again, where don't missed from business at out, think what -- magnitude I I the headwind. Peru look look

Gil Benyamini

Yes.

we IFC see the highest acquisition, growth. So with the the in obviously,

now We segment. we from growth XXXX. in in guidance becoming also segment under to this to our see provided in XXX And XX some grow vertical XXXX to defense a XXX

area of defense the in and these IFC, are the mentioned. NGSO, some growth at come have that most in and we the headwinds in from. believe And We end in that VHTS day, the areas will our the focus as Peru, the

Christopher Quilty

maybe And large specifically the power there opportunities amplifier on side still are NGSO business, the on the of chasing side? just Understand. you

Gil Benyamini

Yes, project business, do. year. And we also the we overall next ] [ on -- we FCA growth definitely, also

Christopher Quilty

other terms I sizable Blu, of Stellar and to sit it X still got Is think process negotiations? I bringing XXXX get do Back to pushed there, out? it further like is large Where event? in think Or Great. you've looking the customers that you customers. on related does in earn-out some that's a of

Gil Benyamini

of are it will in have we more opportunities. awards, when we a be are XXXX. more orders. Panasonic aircraft and to now, believe think backlog place And manufacturers, as can and it very closed expect And the and in them before large we But lot as But large course, slip gets a XXXX. Right year-end. to Intelsat later we pursuing close with I possible we it soon additional of on. aiming

Christopher Quilty

hardware Got on profitability you. assume the and down Follow-up is into the shift to business it up is you Peru. fair Even to revenues, lower or with service? even as

Gil Benyamini

higher the So service revenues are associated with profitability.

So it compensates the decrease in revenue.

Christopher Quilty

of see there more spending magnitude where Got you. in What are And specific of you area. of order higher opportunity? spending? And defense sort R&D you mentioned Gil, the areas

Gil Benyamini

defense, same the aimed to the much in. in the investment magnitude in of we allocated be So more but new a terminals most participate family be million few at overall, the aim of That and this to the towards expect will level of to dollars. year. less how or that And overall end, to is R&D the R&D that and it's at we it the other have see large is of we'll projects modems --

So it's internal allocation. mainly

Adi Sfadia

that, On Stellar top Blu. it's of the of R&D

features, market. flat applications. steered electronically main with and you adding UAV developing panel capabilities, and on our focus SkyEdge is at are R&D. security defense aiming to support for antennas a and GMP highly features we focus transit the The next-generation more a significant general, also to see on will some fix secured And increase modem. the IV add In end, in So

all, So see defense. the increase in R&D all significant will the in of you a

Christopher Quilty

of growth SkyEdge the is Do 'XX back of you cellular Adi, sort of 'XX? a picking commercial backhaul. the flattish programs you talking there. seems of had see it up was flat. IV, 'XX sort the year And about I'm in in year on XG sort outlook? another like it speaking Or What's guys side? side, great commercial of

Adi Sfadia

SkyEdge right I usually, launch. sell flattish of new will expect to is do I delaying be the as new on But a and the terms where solution now, large we long SkyEdge new keep in of networks because satellites, it think touching cloud-based manufacturers will IV platform with native next-generation launch satellite think are cloud. bit run we -- that the as revenues that SDS satellites, shifting on the to of large see virtual satellite there new IV networks the

the over start So we do networking wins launching return on satellites, new significant once we But again, new satellite expect will some there. growth the manufacturers to side. see to will

Christopher Quilty

terms single-beam question, and But to over the antenna, kind is in has in are dual Blu. sorry, but new of their Where all made Great. in and customers mark do trends the IFC. market. flat What shipping is think, high-level the still terms single multi-band asking relatively is Stellar you in a Ku-band, I panel SpaceX where -- the of Ka-band, Hughes, for the a are back thought in market. I'm of see going solutions. antenna map the this multi-beam, beam, Last Obviously, multi-orbit, beam, here.

Adi Sfadia

Yes.

until I that dual technology today antennas is available. right support antennas The are wasn't Ka the industry think, is the side. But something single next Ku/Ka, that that supporting beam. that now, think Blu success. now, I the on think it will up the also Ku/Ka big of a considering. is, But So I generation best all Stellar beam receive or

see a I of Telesat As constellation that there over we'll lot opportunities is for there up. is ramping think Ka, once

might new I see some think development over So we there.

Operator

Group. is from Gunther question next The Discovery of Karger

Gunther Karger

hear results. good technology Can you all Congratulations. right? A Very question. me

Adi Sfadia

can. we Yes,

Gunther Karger

Great. question. It's technology-oriented a

the traditionally area. passenger operational acquisition market encroachment the operational What into IFC things type? the communications, communications, a the area? and about enable Will Blu, is Stellar Stellar the Blu of Regarding ground this avionics

Adi Sfadia

Blu of Stellar is delivering to I sure They focused in air intention no your on steered to question. electronically fully understand And ground. of operation, going not antenna. I'm the have terms

parts. to So X I'll refer

with is on they compete Stellar the Blu services you service selling, have if customers, intention they asked. no their course, that to services but provides Of this what platform and the provider, meaning maintenance are

Gunther Karger

the the HF, have from of movement wondering the ground. Blu I'm that the VHF antennas traditional communications, Stellar you area systems. HF, the move communications satellite area currently away communication onboard if which and operational would the operational more thinking of I Yes. just VHF is And was as facilities. and to to allow systems primarily

Adi Sfadia

side, On it's it's the regulated but today, doable, communications. aircraft -- it's theoretically,

details So aircraft operation. to the if this I don't have they regulation the this use change for of can antenna allow

Operator

[Operator are this concluding like you There would your statement? Instructions] Benyamini, Mr. to make questions further time. no at

Gil Benyamini

see you very or thank for attention. speak to to in your for Thank you much, call. hope on want and this a us and call time next soon to I all you great our you and We joining have day.

Operator

your you. Quarter Call. concludes for Fourth Gilat's XXXX Thank you Thank participation. Results Conference This

ahead go and disconnect. may You

Gilat Satellite Networks (GILT) 12 Feb 252024 Q4 Earnings call transcript