Gilat Satellite Networks Ltd. (NASDAQ:GILT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 19, 2019 • 09:30 am ET


Gilat Satellite Networks Ltd. (NASDAQ:GILT) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to Gilat's Third Quarter 2019 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, November 19, 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 Third Quarter 2019 Conference Call and Webcast. A recording of this call will be available beginning at approximately noon Eastern Time today, November 19, and will be available for telephone replay until November 22 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 release with a reminder that statements made on this earnings call that are not historical facts may be deemed forward-looking statements within the meaning 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 a 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 would now like to turn the call over to Yona Ovadia. Yona, we are ready to begin.

Yona Ovadia

Thank you, June. Good morning, good afternoon and good evening, everybody. Thank you for joining us today. I'm very pleased to share with everyone that the third quarter was marked by no less than four landmark achievements that demonstrate Gilat's progress over the last quarters and years. The first is becoming a prominent player in the ground segment for non-geostationary orbit, also abbreviatedly known as NGSO satellite, as SES chose our platform for its O3b mPOWER Medium Earth Orbit Constellation. The second one is in the Aero Mobility, where we are encouraged by the clear directions of airlines to offer free WiFi, which is already starting to generate significant demand for Gilat equipment in this quarter.

The third achievement is the signing of a $10 million multi-year services contract in Peru, materializing our vision of making through a profitable recurring revenue engine for Gilat over the networks that we have built. The last one is the substantial progress we continue to demonstrate in improving profitability. In fact, we have attained a record achievement of a double-digit millions of dollars of adjusted EBITDA, $10.1 million to be exact. This has been achieved only once before since we made growth in profitability,