Company overview

Gilat Satellite Networks supplies the ground equipment that connects users to satellite networks. Satellite operators, telecom providers and government and defense customers pay it for equipment, network deployment and ongoing services. Its SkyEdge platforms manage satellite networks, while antennas and radio equipment connect users on the ground or in motion. Subsidiary SBS supplies the Sidewinder terminal for in-flight connectivity. Commercial customers provide most revenue, and equipment sales and network construction bring in more revenue than services such as connectivity, maintenance and support.

Gilat also builds and operates mainly fiber-optic and wireless networks in Peru, where government agency PRONATEL is a major customer. These contracts pay Gilat to construct infrastructure and provide connectivity and network services over a defined operating period; some require it eventually to transfer the network to the government customer. This business is not limited to satellite communications.

Revenue depends heavily on a major European satellite telecommunications customer and the U.S. customer it acquired, which together represent a large share of sales. PRONATEL is another substantial source of revenue. Large projects require Gilat to fund construction and bank guarantees before customers have paid in full, making project execution and payment timing important to the business.

Network operations require local telecom approvals, airborne products require aviation certification, and controlled products and technology require export authorizations. DataPath, Gilat’s U.S. defense subsidiary, performs classified government work under a proxy arrangement: independent U.S. proxy holders oversee that business, limiting Gilat’s access to information and participation in management decisions.