Monday, Gilat Satellite Networks Ltd. (GILT), a provider of products and services for satellite-based communications networks, reported a loss for the third quarter compared to a profit last year, reflecting a decline in its business, due primarily to lengthened sales cycles.
Israel-based Gilat posted a third-quarter loss of $546 thousand or $0.01 per share, compared to a profit of $5.85 million or US$0.14 per share in the prior-year quarter.
Income, excluding items, for the quarter was $631 thousand or $0.01 per share, down from $6.14 million or $0.15 per share in the comparable quarter last year.
Operating income for the quarter decreased to $490 thousand from $4.79 million in the prior-year quarter. Non-GAAP operating income was $628 thousand, compared to $5.09 million in the year ago quarter.
Quarterly revenues decreased to $65.29 million from $71.55 million in the previous year quarter.
Commenting on the quarterly results, Gilat's chief executive officer and chairman of the board Amiram Levinberg said, "Our financial results in the third quarter reflect a decline in GNS's business, primarily attributable to lengthened sales cycles, partially offset by strong activity in the U.S. with the receipt of several major orders for gaming and other applications."
During the quarter, Gilat filed a lawsuit against each of the parties that had guaranteed the payment of a termination fee under the Merger Agreement.
On March 31, Gilat Satellite agreed to be acquired by a consortium of private equity investors in an approximately $475 million merger deal. The consortium includes Gores Group LLC and Mivtach Shamir Holdings, as well as companies affiliated with Roy Ben-Yami, Ami Lustig, and Eytan Stibbe and DGB Investment. The company terminated the Agreement and Plan of Merger as the consortium of buyers failed to close the deal before the extended time provided. The deal provides for a termination fee in the amount of $47.3 million, payable to Gilat in the event of an intentional breach of the agreement by the purchasers.
For the nine-month period, net income was $5.33 million or $0.13 per share, compared to net income of $16.31 million or $0.39 per share last year. Excluding items, net income for the nine-month period decreased to $7.82 million or $0.19 per share from $17.37 million or $0.42 per share in the same period last year. Operating income for the period declined to $5.19 million from $12.99 million last year.
Revenues for the period decreased to $201.43 million from $209.92 million in the prior year period.
GILT closed Friday's trading at $2.70, up $0.28 or 11.57%, on a volume of 67K shares on the Nasdaq.
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