Gilat Satellite Networks reports record results for the first quarter of 2000
|Date: Monday, May 15, 2000 / Company: Gilat|
|15 May 2000 - Gilat Satellite Networks reports record results for the first quarter of 2000|
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Petah Tikva, Israel, May 15, 2000 - Gilat Satellite Networks Ltd. (NASDAQ: GILTF) today announced revenues of US$86 million for the first quarter ended March 31, 2000, an increase of 30 percent over revenues of US$66.1 million for the same period in 1999. Net income was US$6.5 million ($.28 per share).
Gilat Chairman and Chief Executive Officer Yoel Gat said, "Gilat continues to deliver solid results while providing its shareholders with participation in the tremendous growth opportunity of Gilat-To-Home".
COMSYS report names Gilat market share leader
COMSYS, the world's leading telecommunications consultancy specializing in satellite markets, recently announced its 1999 research update on VSAT market trends. The report named Gilat market share leader with a 51 percent share in the interactive data segment, and an overall market growth of 30 percent. This is the fourth consecutive year of market share growth for Gilat, and the first time in the Company's history to claim the number one position.
Chairman Gat stated, "It is an outstanding achievement for the company to have attained market leadership after many years of progressive success.We are proud to be #1 in our core business, and are confident that our satellite-based consumer broadband activities will benefit from our leadership in this competitive industry".
Gilat announces new contracts
New York-based On Site Networks, Inc. (OSN) has chosen Gilat's Spacenet Inc. subsidiary to deliver its Women's Supermarket Network (WSN) custom television programming to 2,000 supermarkets nationwide. Television personality Joan Lunden serves as President and on-air host of WSN, which will use the Company's products and services for an interactive platform for custom content and advertising to the point of sale. One thousand sites are scheduled to be implemented by Fall 2000.
OSN Chairman Bob Jacobs called the relationship significant to the WSN launch. "We selected Spacenet because of its technology and infrastructure, which we believe is well suited to manage the rapid rollout of WSN," he said.
The Gilat Florida Inc. subsidiary will provide a 2,000-site VSAT network to Equus Gaming Company, L.P. (NASDAQ: EQUUS). Equus is a partnership with thoroughbred horseracing and entertainment interests in Latin America and the Caribbean. Equus will use Gilat's Skystar AdvantageÒVSAT network for interactive data applications at its four racetracks and its extensive network of off-track betting agencies. The network is already well into the deployment phase.
Gilat also announced it is providing GTECH Brazil with 1,900 Skystar Advantage VSAT terminals and satellite hub equipment. GTECH Brazil will use the equipment to support the expansion of CAIXA Economica Federal, the operator of the Brazilian national lottery. The new equipment is expected to be installed next month.
Gilat-To-Home market activities
Gilat-To-Home Inc. (GTH) continues to execute on its first-to-market consumer broadband strategy. At present, GTH has over 1,500 pilot consumer sites installed and enjoying always-on broadband Internet connections.
Separately, Spacenet has begun the rollout of the RadioShack demo network, which will serve as GTH's initial retail channel. GTH expects to have 3,000 RadioShack stores capable of providing live customer demos when the consumer broadband service is officially launched in October 2000.
The Gilat shareholders' meeting is being scheduled for August 17, 2000. The meeting will be asked to consider, among other things, the report of the financials of the Company, the election of directors, the share split announced earlier, an increase in the shares authorized under the Company's stock option plan and such other matters as may be brought before the shareholders. The notice of meeting will be given in due course.
Gilat's teleconference to the financial community, scheduled today at 10:30 AM EST in the United States, will also be broadcast live over the Internet. The event can be accessed at http://www.gilat.com where there will also be a link for downloading the necessary software (Windows Media and Real Media).
About Gilat Satellite Networks Ltd.
Gilat Satellite Networks Ltd., with its global subsidiaries Spacenet Inc., Spacenet Europe and Gilat Florida Inc., is a leading provider of telecommunications solutions based on VSAT satellite network technology. The Company, based in Petah Tikva, Israel, provides satellite-based, end-to-end enterprise networking and rural telephony solutions to customers across six continents, and markets interactive broadband data services. The Company is a joint venture partner, with Microsoft Corp., EchoStar Communications Corp. and ING Furman Selz Investments, in Gilat-To-Home Inc., America's first consumer two-way satellite broadband Internet service provider. Gilat-To-Home is based in McLean, Va. SkyBlaster(TM), Skystar Advantage(R), SkyWay(TM), DialAway(R) and FaraWay(TM) are trademarks or registered trademarks of Gilat Satellite Networks Ltd. or its subsidiaries. Visit Gilat at www.gilat.com and Gilat-To-Home at www.gilat2home.com.
Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat's products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with Gilat's international operations and its location in Israel For additional information regarding these and other risks and uncertainties associated with Gilat's business, reference is made to Gilat's reports filed from time to time with the Securities and Exchange Commission.
Vice President, Investor Relations
Gilat Satellite Networks
Ruder Finn, Inc. Robert D. Ferris
Veritas Venture Partners
91 Medinat Hayehudim Street
Herzliya Pituach 46120
Veritas Venture Partners LLC
145 Staghound Court
Alpharetta, GA 30005 USA