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Gilat Satellite falls on Q3 miss, lower guidance

  • Gilat Satellite Networks (GILT -8.7%) shares plunged after the company missed expectations in Q3. Revenue of $71.3M (-11% Y/Y) missed by $12.9M. EPS of -$0.04, missed by $0.04.
  • Management noted on the conference call that the revenue shortfall was caused by delays in 2 projects that were expected in Q3: a $12M deal with Entel and an expansion project for an existing customer in LatAm.
  • The company expects "Q4 will be better than Q3 ... but [does] not expect it will be enough to make up for the Q3 shortfall." It cut full-year guidance to revenue of $310M (vs. consensus of $338.2M) and EBITDA margin of 6%.
  • Gilat's divestment of Spacenet to SageNet has been delayed after SageNet stated "it is not willing to proceed to closing at this time based on several assertions ... At this time the closing has been delayed."

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