Gilat Satellite Networks Says Will Not Meet Management Objectives For 2015

(RTTNews) - Gilat Satellite Networks Ltd. (GILT) said that it will not meet its management objectives for 2015. It revised management objectives for 2015, due to recent decisions to delay several large-scale projects by its customers, mainly in Mexico and Russia and in its defense-related activities.

Based on preliminary estimates, revenues for the second half of 2015 are expected to be between $120 million and $130 million and second half EBITDA is expected to be between $8 million and $10 million. As a result, revenues for the full year of 2015 are expected to be between $210 million and $220 million and EBITDA between $6 million to $8 million.

"I am disappointed that we will not meet our management objectives for 2015. Our revision is due to recent decisions to delay several large-scale projects by our customers, mainly in Mexico and Russia and in our defense-related activities. In addition, although our Fitel project in Peru is progressing well, we have extended the initial planning stage to achieve greater efficiency and improved profitability. These factors will mainly impact the third quarter," said Dov Baharav, Chairman and interim CEO of Gilat.

The company stated that it is in the process of streamlining the operation to achieve greater effectiveness and efficiency, with specific changes scheduled to take positive effect in the fourth quarter of the year.

The company said it continues to see increasing interest in its products and services designed for HTS and Mobility and remain optimistic about its business outlook for 2016 and beyond.