Revenues from Gilat Satellite Networks $ 57 million in the second quarter of 2021

Revenues from Gilat Satellite Networks, the maker of satellite communications systems, totaled $ 57 million in the second quarter of 2021. This is a growth of 27% compared to the first quarter of this year, and 48% compared to the corresponding quarter in 2020. The company estimates that in 2022 its growth will be accelerated even further, following the recovery in the field of Internet connectivity in aircraft, along with an expected increase in revenues in the maritime market and in cellular transmission.
The increase in Gilat's revenues was mainly due to growth in the company's revenues from providing products and services to cellular and fixed communications networks at sites where there is no economic viability to deploy fiber optics, including islands and small and isolated localities (Fixed Networks). Revenue from this source grew by 24% compared to the previous quarter and by 41% compared to the corresponding quarter in 2020, and amounted to $ 31 million.
The company's CEO Adi Tzafdia claims that the main projects that led to an increase in revenue from this source were a project to improve the coverage of cellular networks in Japan, a $ 15 million project for the Australian Government Communications Company (NBN) that provides satellite communications infrastructure to businesses in rural areas through gateway amplifiers. Of a group of low-band broadband satellites, as well as an increase in revenues from services that Gilat provides over the communications network that the company has set up for the Peruvian government.
In addition, revenues from the supply of products for wireless Internet systems in aircraft, ships and trains and for military communications grew by 82% in the second quarter of 2021 compared to the first quarter, and by 43% compared to the corresponding quarter in 2020, and amounted to $ 20 million. The increase in revenue from this source was mainly due to sales of satellite-based communications systems to soldiers of one of the Asia-Pacific armies.
The company's revenues from the execution of communications infrastructure projects decreased in the past quarter by 25% compared to the first quarter of 2021, but increased by 148% compared to the corresponding quarter in 2020, and amounted to $ 6.2 million. Gilat Tzemach's gross profit was 35% in the second quarter of 2021 compared to the first quarter, and 74% compared to the corresponding quarter in 2020, and amounted to $ 17 million. Gross profit in the second quarter accounted for 29% of turnover, a figure similar to its counterpart in the first quarter (28%) but a decrease compared to the fourth quarter of 2020 (31%).
The improvement in Gilat's financial results continues even though one of the company's growth engines is still far from returning to its normal level: Gilat lost $ 100,000 in the second quarter of 2021, based on US GAAP - a 97% decrease compared to the loss in the corresponding quarter In 2020.
Tzafdia says this is a negligible loss. According to him, the company's revenue in the lucrative field of wireless internet systems in aircraft, which are still negligible, is an achievement. He said the company has won many projects, and is investing large sums in the development of unique connectivity systems such as Internet for cruise ships for the SES satellite operator, which will be delivered in 2022.