Gilat Satellite Networks Ltd. (NASDAQ:GILT) Q4 2018 Earnings Conference Call - Final Transcript

Feb 12, 2019 • 09:30 am ET


Gilat Satellite Networks Ltd. (NASDAQ:GILT) Q4 2018 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to Gilat's Fourth Quarter 2018 Results Conference Call. All participants are present in a listen-only mode. Following the management's formal presentation, instructions will be given for the question-and-answer session. (Operator Instruction) As a reminder, this conference is being recorded February 12th, 2019.

I would now like to turn the call over to June Filingeri of Comm-Partners LLC to read the Safe Harbor statement. June, please go ahead.

June Filingeri

Thank you. Good morning and good afternoon, everyone. Thank you for joining us today for Gilat's fourth quarter and full year 2018 conference call and webcast. Recording of this call will be available beginning at approximately noon Eastern Time today, February 12th and will be available for telephone replay until February 17th at noon. The webcast will be archived on the Gilat website for a period of 30 days.

Also, please note that investors are urged to read the forward-looking statements in Gilat's earnings releases with a reminder that statements made on this earnings call that are not historical facts may be deemed forward-looking within the meeting of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements, including statements regarding future financial operating results involve risks, uncertainties, and contingencies, many of which are beyond the control of Gilat and which may cause actual results to differ materially from anticipated results. Gilat is under no obligation to update or alter these forward-looking statements, whether as result of new information, future events or otherwise and the Company expressly disclaims any obligation to do so. More detailed information about risk factors can be found in Gilat's reports filed with the Securities and Exchange Commission.

With that said, let me turn to introductions. On the call today are Yona Ovadia, Gilat's CEO; and Adi Sfadia, Gilat's Chief Financial Officer. I will -- I would now like to turn the call over to Yona Ovadia. Yona, you are ready to begin.

Yona Ovadia

Thank you, June. Good morning, good afternoon and good evening, everyone, and thank you for joining us. I'm pleased to report our Q4 results as well as to provide a summary of our performance in 2018. At the end of my review, I will also provide some highlights on our objectives for 2019. Q4 was another strong quarter concluding a year of important progress for Gilat. In 2018, we continue to focus on building a mix of quality, profitable revenues for our growth engines of 4G/LTE cellular backhaul for the mobile market, mobility, in-flight connectivity and broadband. And in fact, full year 2018 revenues from our fixed network segment, which includes our backhaul increased 24% from 2017, while our mobility solution segment including IFC increased 10% from the previous year.

In contrast, terrestrial infrastructure segment revenues in 2018 were down 68% from 2017. This was in part, expected as the construction phase of our first three regions in Peru for FITEL was winding down. However, delays in the inspection and approval process by FITEL delayed certain