Benzinga | Aug 10, 2021 07:25PM EDT

Strong End Market Momentum Helps Gilat Clock 49% Q2 Revenue Growth

* Gilat Satellite Networks Ltd (NASDAQ:GILT) reported second-quarter FY21 revenue growth of 49% year-on-year to $56.9 million, beating the analyst consensus of $38.3 million.

* Segments: Fixed Networks revenue increased 41.5% Y/Y to $30.8 million, Mobility Solutions revenue rose 42.2% Y/Y to $19.9 million, and Terrestrial Infrastructure Projects revenue climbed 144.1% Y/Y to $6.1 million.

* The gross margin expanded 434 bps to 29.4% as costs surged 40% Y//Y.

* Adjusted EBITDA climbed to $2.5 million from $0.1 million in Q2 FY20. The margin expanded 415 bps to 4.4% as expenses rose 30.7% Y/Y.

* Non-GAAP EPS was $0.01.

* Gilat held $81.95 million in cash and equivalents and generated $8.4 million in operating cash flow.

* Gilat buttressed its Mobility segment in maritime with a multi-million-dollar award from SES and NGSO with over $15 million in orders from a leading satellite operator.

* The Defense segment secured deals for over $10 million in Asia, Latin America, and the U.S.

* Inflight connectivity sector recovery, in addition to continued growth expected from the Maritime, Cellular Backhaul, NGSO, and Defense market segments, and its Peru operations, are likely to drive the revenue and profitability 2H of FY21 and FY22.

* Price Action: GILT shares closed higher by 1.63% at $10.57 on Tuesday.