Gilat Lowers Annual Revenue Forecast; Shares Fall

In depth

Satellite communications company Gilat lowered its annual revenue forecast by about $45 million, and the shares are plunging. Third-quarter revenue totaled $116.2 million, about $10 million below consensus. The details are not yet fully clear.

Delays in satellite launches and postponed deliveries hurt growth, and the slowdown in activity in Peru contributed to the decline. Management presents a complex picture: defense activity grew 53% and profitability improved. CEO Adi Tsafdia said: "Market changes are intensifying competition."

Tsafdia noted that market changes are strengthening the company's strategic direction, led by building the defense activity segment. Difficulties in deliveries and orders continue to weigh on commercial activity.