Gilat Reports Loss For Q3; Cuts Revenue Guidance For 2013

(RTTNews) - Gilat Satellite Networks Ltd (GILT), a provider of products and services for satellite-based broadband communications, Wednesday reported a loss for the third quarter over profit in the same period last year as revenues fell on account of delays in two of the company's divisions and lesser revenue from Compartel in Colombia. Further, the company slashed its revneue guidance for 2013.

"We have taken immediate action to cut costs reducing our global headcount and fixed expenses by approximately $9 million annually,"said Erez Antebi, CEO. "We expect to see most of the impact of the reductions beginning in the first quarter of 2014."

The company posted third quarter loss of $4.04 million, or $0.10 per share, compared with a profit of $3.3 million, or $0.08 per share, a year ago. Two analysts polled by Thomson Reuters expected the company to report breakeven earnings for the quarter. Analysts' estimates typically exclude one-time items.

Earnings before interest, taxes, depreciation and amortization stood at $2.1 million for the current period, compared with $9.8 million a year ago.

For the three months to September, revenues declined to $71.3 million from $89 million a year ago.

The company held lesser cash and cash equivalents of $53.91 million than $66.97 million a year ago.

Chiefly because of delayed deals in the Commercial Division and in Peru, Gilat lowered its forecast for 2013 revenue to $310 million and EBITDA of 6 percent.

Currently, the stock is trading in the pre-market hours down 6.80 percent, or $0.3548, at $4.86 on the Nasdaq.