Gilat Satellite Networks (GILT) 8 Aug 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Gilat Second Quarter 2023 Results Conference Call. All participants are at present in listen-only mode.

Following management’s formal presentation, instructions will be given for the question-and-answer session. [Operator Instructions]

conference recorded this X, reminder, a is August being XXXX. As received you press should now, the have By all company’s release.

or Investor If you Relations at news Global Investor the company’s contact please in website, X-XXX-XXX-XXXX section Relations www.gilat.com. of have not team received at it, view the it Gilat EK

to please? Relations. I would Mr. would call you now of Helft like hand to Ehud like begin, Helft, EK the to over Mr. Global Investor

today call Thank you, Gilat’s Operator. webcast. and XX morning, XXXX August for a on conference second approximately for Thank available X us results good afternoon, quarter of webcast today, days. at Gilat you A joining everyone. Eastern recording will Good call for beginning website Time period as noon and of be this a

urged historical note this read deemed may Gilat’s XXXX. that that statements in a are Act Reform not release on forward-looking statements Private within made meaning please of are forward-looking facts investors earnings that of the with the reminder the Securities be Litigation statements call to earning Also,

such actual from regarding Gilat, operating which uncertainties cause involve risks, control differ to of future contingencies, beyond and statements, statements many All results, and of which may financial anticipated are including results. materially results forward-looking the

information expressly obligation company is and Exchange risk disclaims of whether factors as any the new reports Securities alter to Gilat a about no filed to the in these Gilat’s obligation under so. result otherwise, can or information, or update forward-looking Commission. detailed More and with statements, be future found do events

turn me introductions. to let that, With

Mr. Adi Gilat’s Sfadia, CEO; Gil call Mr. the On Adi Mr. Benyamini, CFO. Gilat’s are -- today and

to turn to to Sfadia like now begin. Adi would the over call I

to for good for everyone. I us thank call. of quarter you, Ehud, today day XXXX to earnings Thank you and our second joining want

strong another was XXXX strong growth. we of showed in quarter quarter second year-over-year revenue which The

business last year. totaled the areas Our across XX% growth and above was multiple broad same quarter

income operating our adjusted of an EBITDA We EBITDA our is year-over-year of more the adjusted than which last that, $X.X the GAAP to profitability. quarter we significantly than improved million, year. and second Adding tripled had higher XX%

imagine, results quarter can I’m half and you As pleased the with of of XXXX. the second very first the

Looking ahead, our XXXX. expectations year the profitability are for full increasing and revenue we

million of of $XX $XXX million million, profitable GAAP adjusted operating million expect million. and We to XXXX of and $XX continues million a revenues demonstrate $XXX between between between to to income year to EBITDA $XX strong Gilat. for $XX

business Gilat’s communications industry very the achievements I The satellite will growth in fuel massive satellites in and the and our which continues activity to revolved engines, now constellations. satellite non-geostationary of area focus quarter. throughput around on opportunities new high

VSATs the globally Aquarius also in-flight we connectivity, in cellular last taking several and dollars our delivery received of partners, of the multiple and and such in millions SkyEdge backhaul orders quarter, IV satellite this of support operator. Like from expansion Network enterprise. quarters, of place applications, strategic are as

in line, SSPA our In NGSO pleased engagement potential product significant large report for on major successful a project continued constellation. to with I’m

to and this track production moving quarter in third year. on of are the We

important important our connectivity, making with growth partnerships. progress engines significant new in we I’m that two of excited to report in-flight strategic are

steered First, develop OneWeb’s as to rule and Direct supply signed an announced, a over new low-profile partner, to constellation. strategic agreement LEO we recently with we electronically new to Satcom antennas operate

solutions. Satcom communication aviation X,XXX delivering to of They are in use leading worldwide. a provider aircraft. Satcom fully to end-to-end business today Their in solutions is over are integrated and Direct global satellite connectivity government dedicated

dollars few value the several received we of years. over next of tens dollars. agreement of During first millions This the of tens of has of additional order quarter, potential millions the

government we jets, enable future engine and the profile by such entering and connectivity as IFC press new This market for military important ultra-low The ESA business for aviation. of ESA point terminal growth as turning market. project to is important enter segments an well ESA its promising an Gilat an growing new will development increase first as as and

another business system aerospace integrator. first Tier multimillion-dollar this the partnership are receiving strategic we orders from with our quarter Second, expanding IFC X

to We will for premier reinforce our position IFC support SSPA industry-leading next-generation a the of IFC supplier equipment as marketplace.

signature sets will received anticipate an to the occur regulatory of CFIUS quarter, Following we questions. approvals. U.S. in satisfactory the and of agencies, the we submitted the with the the acquire QX. and the are other DataPath transaction during several the required the at with Inc. of necessary upon Together Conditioned of answer already progressing conclusion, we of we DataPath, that previous process agreement closing end notices obtaining

an During confidence customer. booked defense demonstrating in additional with quarter, order our antennas a market. UAV dollars we the includes This our of in orders leading strategic multimillion second partnership of

for U.S. initial the we from the a Aquarius in Gilat step based modems system integrators are Furthermore, U.S. first received leading orders defense SkyEdge channel Government our in establishing IV on for next-generation modems two the demand. significant These

SkyEdge the growth backhaul, cellular strategic provide backhaul services. cellular say with next-generation global to pleased satellite In multimillion-dollar engine, operators that continue expanding our to platform we IV the I’m continually is our orders. presence another chosen by

based This SkyEdge mobile our current backhaul is cellular from platform in addition existing new their satellite. to orders network to operators are receiving network leading that on expanding and over see

of instrumental agency. for the local in agency. dollars -- example working of the to satellite sites requirements in with federal Mexican presence in federal Gilat this the XG Within solution. deployment Mexico is hundreds within provide led Telecommunications by Gilat global framework, with technology a best available special CFE this initiative operators -- to addressing -- are are Gilat leading All the and awarded the by of and connect important millions An was where Internet

progress network the nodes. in this about quarter Amazonas region Peru, access we made XX% concluded we In of where of the the construction

this We finishing the line extension implementation year, from are moving the of the construction project. recent received towards that this for in with networks the we Pronatel of

in six awarded acceptance we to This the Gilat. the passed region, operation Ica fifth phase. of and operational the the out moved to In region is

we model. leverage business a growth showed profitability, in conclude, quarter had To which our improved demonstrating revenue in significantly strong strong we and the

with had some we with very business, of addition, which booking IFC is a strategic deals, one areas. our In growth especially our key important strong

continue enter The for into as revenues coming is market significant huge not are improve engine in to achievements and promising reflected growth optimistic I’m expansion we this profitability quarters, embark in the and there future as in path further about our IFC stone only ability stepping important I a and exciting the but guidance. the for achievements growth quarter, recent ESA existing market. new on our -- profitability our increased

I Gil Benyamini, Gil, CFO. over to our please. that, And hand with

internally non-GAAP morning everyone non-GAAP believe Thank current We manage supplemental everyone. evaluate understand Good financial to that measures good business to financial to presented to both understand, like measures and results and provide would operating our you, afternoon and financial these consistent comparable non-GAAP I GAAP and help use operating decisions. Adi. and future to in our regularly our basis. and measures We make remind investors are performance.

press or restructuring lease mainly amortization or effect expenses, related measures income financial acquisition other and litigation held-for-sale tax trust earnings. non-GAAP tax in Non-GAAP of income one-time amortization, secrets exclude release adjustments, intangibles, historical exclude to on related reconciliation trade changes our one-time effects these tax merger, compensation, to expenses The the information reorganization table data income and impairment of assets highlights incentive our costs, assets, track and claims, and deferred items. related of of expense the expenses, income litigation this stock-based purchase presented of release

of as XXXX. Adi Overall, highlights XXXX. move our for quarter I the mentioned the financial will are we of second to with second now quarter very pleased strong earlier,

a compared Non-GAAP year. revenue higher to adjusted and QX last our XX% gross was reporting growth We’re XX% an EBITDA in improvement XX% year-over-year in margin by and $X.X million, reached profitability.

as operating the targets robust decided adjusted guidance, and well increase pipeline in the HX us, I XXXX performance cover Given see the of ahead for as our GAAP will EBITDA later. we revenue strong profit to which our and we year,

in were our terms of the the quarter results. growth quarter higher those mainly for last driven million, by cellular the Network than Satellite in-flight improvement In year. XX% backhaul second verticals. The enterprise the financial of from connectivity, $XX.X and was segment, of second Revenues

Network QX enterprise in-flight the connectivity significant to mainly same the a deals compared The breakdown increase delivered revenue In well in Satellite million, $XX.X terms year. were by this million market, base. last large quarter from the of as customers segments, resulted backhaul in customer segment our $XX.X strategic revenues with quarter as of volume as our to cellar high

to QX quarter were and million, $XX.X million Integrated Solutions $XX.X XXXX last last were same compared in to Network the Infrastructure $XX.X revenues of million the year. of compared $XX.X million, in the Services QX quarter XXXX segment revenues same year. the segment

to both like now GAAP non-GAAP and results. quarter our I second would summarize

high recognized mix our revenue, the The product be to this of grew the aware that XXXX compared quarter QX in and mainly quarters gross Please revenue margin in Our due was outcome actual revenue filming. and XX.X% and volume as between year. may profitability GAAP services an gross in same favorable last particularly fluctuate margins the margin quarter, revenue. XX.X%, to of level to the improvement a

compared expenses operating million in of of was the quarter $X.XX. per GAAP operating $X.X the million year. is in to of the for compared year. last million, million or with This in last compared revenue the GAAP the earnings in million income same quarter year. to XX% quarter $X.X improved QX share share in $X.XX last or diluted quarter net same GAAP $X.X in of GAAP to $XX.X quarter XXXX of net or per diluted or income same XX% were revenue, quarter a the $XX.X $X.X earnings income second million

non-GAAP to Moving the results.

were the income EBITDA This in an $X.X year. in margin second improved of same the the $X.X compared million for quarter operating year. Our million an non-GAAP operating year. $X.XX improved of same with quarter improvement the in $X.X of $X.X was EBITDA million, diluted million, same share $X.X same million quarter XX.X%, the income Non-GAAP quarter last quarter or last compared was diluted same QX adjusted compared XX.X% net $X.X net million Non-GAAP year. income to compared last quarter quarter for QX compared to the the per in quarter non-GAAP XXXX in the non-GAAP earnings last to year. of gross $X.XX. in with in per $XX.X And XXXX expenses to in of million, share with a $XX.X earnings Adjusted last or is XX%, million

Moving to our sheet. balance

XX, million cash, in release of X, with total $XX.X not for million were compared the as that cash a June a XXXX. compared to cost restricted and quarter cash equivalents, $XX.X total the of decline $XX.X compared June which XX, million, any payment March of The previous including our hold to $XX.X voluntary for $XX.X on and million As XXXX, We historical do cash was million completed purpose. of due of debt. tax to one-time payment approximately earnings, XXXX,

rate The an and the in tax. as to substantial relief expired XXXX take companies share significantly acquisition distribution Israeli allow actions in tax of paying advantage or without the foreign pay to temporary future such dividends, buyback reduced company to certain of chose tax of corporate that November additional

terms cash quarter operating million $X XXXX. we the generated In from during second of flow, of activities

$XX.X operating mentioned from million payment, one-time the million Excluding tax we quarter. activities $XX.X about this generated

the excludes receivable than receivables network to an days. quarter. in previous a which were in impacted in XX construction was Peru and quarter higher collection of decrease our DSOs, XX which by the revenues, alongside DSO, due of The lower project decrease revenues increase terrestrial were days, in

XXXX XXXX. Our shareholders’ of compared of $XXX totaled June $XXX XX, with the about equity March end at as million million,

I as operating for increased ahead, income guidance, guidance revenue our GAAP already EBITDA we’ve year. the Looking mentioned, and

$XXX representing previously million, strong between to Our and than of show expectations of the anticipated a $XXX three million XX% with at are stronger year-over-year even midpoint. growth revenue

to million GAAP between year-over-year representing at XXX% midpoint. to of year-over-year of million, And the midpoint. operating the million, growth growth million adjusted between income $XX $XX at $XX EBITDA of of XX% representing $XX

now questions. financial open That I Operator, would please? to and your call to concludes happy the my take review. like be we’ll

is question of Company. Koontz Thank Needham [Operator first from ahead. & go Instructions] Please The you. Ryan

strength there. It to can big IFC are be ESAs Networks segment. understand Satellite want the nice color inside or for about Hi. there. in IFC the on the the to the there driven segment results sounds call. I contributor the second sort nice thanks the really remarks. strength the great here primarily was us the like Congrats and a and on on prepared It’s what this of Obviously, quarter. on business ask But that amplifier help going what’s by in maybe customers driving Is you quarter? the

say, goes to year related required, XX it’s very would give then mainly and it’s, agreement, the but baseband and modems growth IFC half, agreement, is commercial engine, or aviation. Hi, Ryan. certification. a and It’s ESA development Intelsat months I -- in it’s to the strength that and a future the important of strategic The take,

XXXX. So I won’t expect significant revenues before

We SSPA. goes mainly companies also have revenues equipment. But the from is this to baseband This was it quarter, like decent Honeywell. mainly

driving as far smaller driver this near-term a of as results opportunity a future? factor, helpful. Thank you. far commentary that the opportunity? that’s And that of it. around plan comments that’s your as also is that’s Got is year’s Again, -- I maybe small ESAs guess the And XXXX or your into an moving down your market. for sounds that more kind like as form really

the it’s is a already first need into It’s revenue mainly fruitful. develop revenue. the start But but jet. to business and step stream. The We is just this deliver, XXXX to the XXXX opportunities

We will time. expect to have we to that but take solutions see -- other it sell,

I’m systems. that’s market lightly penetrated performance high sure great. that’s with a That’s

it great So sounds opportunity. a like

potential there only than And jets has X,XXX it’s huge not but the more based connected general. broadband, on our NSR, from to and a in is aircraft broadband more connectivity XX,XXX than Satcom perspective, business Direct -- for of a opportunity. aircraft it’s on

high I and with think the very big. Satcom So opportunity is opportunity the market is overall Direct very also

pretty that. signs you for is and strong that a there sounds strength? that’s selling Is backhaul also driving systems new Thanks this in. you’re orders the with primarily coming great. and And quarter That’s that had SkyEdge new like business it some agreement in

an is us. for engine important backhaul growth Cellular Correct.

Today, We partner are IV. SkyEdge on SES, also the II-c and that of satellite both with for we market we on XX% the XX% working other Advance, using operators market soon are SkyEdge have our Intelsat equipment, are focus and than choice share. and and have share and worldwide. both exclude cellular large XG MNOs and if over we market largest the And on you about overall XG XG more backhaul

Can your to circling back back the doing today? on there. what going specifically, remind where and last us in you around rollout IFC you’re And Great. topic previous comments, is the Satcom just IFC OneWeb of with

to OneWeb think is global I provide starting service.

IFC, they some a provide service know provider the several services rather and I capacity to capacity not OneWeb. On that are providers service the from providers. bought service

them. also engaged is So is with HNS Intelsat them Satcom Direct engaged them, with and is engaged with

in quarters. feels increase their is IFC capacity it sale So that to like few going the next

Great to year-over-year on change lastly, margin us and gross gross just that’s progress the a mix driving hear. margin, product year-over-year Can down great sequentially. there, maybe step And and remind you some sequentially? of both the the

Yeah.

first Ryan. So, hi, --

margin You have then cellular the have and the product to margin higher Naturally, volume. gross list. to according remember related mix that products down the our fluctuates and have backhaul a IFC in we gross

margins sell enterprise-related the they products we any almost We them. and consumer-related don’t lower have have gross and products with associated

gross trend margin the in of see last the On that, from you of next we and we the sometime margin construction over are can in at years higher time, we’re in increase revenues few gross look company. overall with the shifting top few have to an gross If you operation to are the that expecting operation business the construction than end quarters. associated Peru margins where the the

next more few would in our that we IV quarters I deployment that hardware-based more platform SkyEdge drive and margins the is will will Ryan, the IV. more add software-based expect see it SkyEdge we higher next-generation and once and the of

the initial of in the expansions later most need So hardware. will software additional on expense be hardware done by only we provide and of operator without

helpful. Thanks, Thanks, quarter. Adi. Gail, Got Really it. nice and

See Ryan. you, you soon. Thank

Quilty Chris go question Analytics. Quilty Please ahead. next from The of is

Adi. Hi,

forward is Intelsat the going question. Just that to or Can up the XC X? you remind follow with me, on

global got SkyEdge when system. Sky-XC of our acquired Gogo, and IV IS they for largest Intelsat, they Both. they the XG, network acquired

that are addition, In per Modem serve can to we providing XXX-megabit platform. Taurus both them can second reach that our

So it’s Sky-XC move can backward with compatible between systems. the they and it

one North one SkyEdge systems. between a hope over active their So the modem system America. be and management very IV that will perspective, it’s can shift that We from the soon

Got you.

good position software-defined new got there? with still Do your they’ve making order. doing about so Are what satellites? feel the on And decision on a you they’re about satellites four they

confident in feel I Intelsat. our with relationship

largest are that flex the ST Engineering solution together there, with the we mainly the own ST’s backhaul the network have today, largest is -- As we networks. probably two cellular not and as we enterprise. and largest

comfortable our they in that very is show to Intelsat. feel guaranteed, that solutions but The deployed comfortable and -- next a providing were stickiness high very we fact for a I globally. that in they is feeling satellite, Intelsat. the have strong It’s candidate. the with Gilat relationship Nothing our -- I way, solution are a

are simply more per doing baseband all equipment roll? you, a deployment baseband the aircraft or at And to deployed this still point, and there is you’re

parallel, roll. there more they more new are and transponder, modems increase that equipment. to every expect of increase every quarter, buy Wi-Fi, there and Aero per new every second we that capacity baseband, time replacing they need and modems. a more the almost gigabyte, they basement XXX-megabit So offer time our need they Every Taurus Capricorn is be to their to need free capacity, acquire new XXX-megabit ground airline every few rollout to In new per will to satellite, Modems our from rolling years, second

you seeing only or I been XX%, are a or and a versus with existing for, shift? in are I while. you be at much to like Great. process? think, has sales, think IV new around is quicker SkyEdge where the trending? And mean, I year of of you kind XX% where the still in terms SkyEdge and half, I what, a for II-c on the are that But year mean, new going market old is orders

launched going SkyEdge we are are SkyEdge some be we lot operators buy are and in large have we although see those continued the and The interest that No. continue to and market kicking the all a regional the real The see SkyEdge to to shift is service. cases, satellite but shifting about that develop of not a and satellites IV, IV, in SkyEdge the II-c, operators talking the satellite fast. care with is of and to features provide lot and to

years disappear. So it will will SkyEdge take II-c until several

I remind this IV and you a Empower on based new rollout. SkyEdge that is is

the the We providing expect service QX. year to of start during them end towards

a the is seeing are on to today the years is II-c. majority three but -- SkyEdge the business we new years of it one. four Empower based So SkyEdge deployment new the very from still, large of between IV, to Usually platform platform the to old shift takes

I has the out planning said given I backed satellites, year. tend four as of problems SES still guys with and mean, to in the the having of companies deployment first the come the this your by launch as you’re Great. assumptions? end like? don’t problems the get know there’s sort have solved publicly Empower would industry, for off of quickly you But

currently, list a with usual, we honest, gateway be deploy business of have to as together SES. To

When So plans. forecasts, it upside of and factor a lot making our we affect doesn’t downside.

So at to at is everything guideline. updated the end, point, factored this our

lot on but question balance a like, Gil, may unusual. pieces just and you, that the the in a bit moving of quarter, it’s ups you the little and there normal downs a sheet for were was Okay. say

from down other quarter? is got you single payables current nice normal up of to the customers assets looking liabilities to a or Is in cut coming just explanation or be the the were trade continue half. down. of significantly. were The simple in this contract going and there sort a through kind Sequentially, there advance Just bump

a $XX.X trust liabilities. I thing $XX thing of and quarter, short-term we this that say, one I payment So tax unique this million which -- other profits the that the for the the that affected with tax our mentioned, was million one would bit, completed had The Chris. hi, payment our

DSO I a is changes course. normal quarter normal other of and than very, had strong way, and this very in are positive the in collection would business. and other say in the that course that, the everything all this AR a affected We

unchanged of you. year of balance capital the the working capital expect of impact maybe trends drawdown flow. And buildup kind on or the customer continuing in you significant a just that for rollouts Do through of contracts Got from current terms or and relatively working cash levels? thought and any

looking and a cash see I quite general, think the good the year, operating in EBITDA correlation can that, activities. at flows this between from results the you

to have which we percentage milestones Peru, not XXX% to are revenues, correlated which of in completion. according Sometimes payments, are of recognized

either be But be might there So correlated. some way. that, other pretty should it much than bumps

around for are -- ESA relationship. did Is or the and the that forget both there say think you and I in I antenna the Satcom KU announcement labors? plans Direct Great. KA initial

OneWeb. This is KU the for specific flavor

any We that also the can future, KA have a customer wants. And demo unit solution. flavor of our the for offer we

I past, with what As band said the really at is because split the -- commercial you with or that business much had base. jet, existing installed development times if progress the the depends so a you you customers, can want, base other already what with antenna is in is several it’s the of it there reminder, if IFC end, the it’s

the need customer the order you to tailor solution. in So

was say Got you. did one last. a question That because you dumb

the original a aviation I’m aperture, guys parlayed was smaller it jets. of of that you commercial for a this, form regional original much factor, is the KU. into So more development were how was factor like assuming just being developing But form east which is

for smaller schedule. help will the significantly wants the yesterday. have factor commercial years a accelerate XEveryone that to It’s knowhow very Yeah. experience the than a we development and we have tight the form us and terminal aviation. And

and Got for pays all who different for that STCs you the types. the aircraft handles Satcom And Is or Direct. you.

responsible they and It relevant Satcom the for provide certifications. are Direct. antennas We all is the

I back a like DataPath just any QX done Great. there get and there Are government? slipping think, normal hoping it’s answers that, you am or I and is, One bit. questions. originally looks coming from issues seeing the it Two in were major correct little final you’re questions to

to questions. to information and time not relevant it’s It of took gather have we a executives documents answer themselves exercise and lot us file all private normal and because CFIUS provide from all that for investors a than to some to easy information more directors. such about shareholders and the it’s their X% think I an

and process announce. us took time XX almost the once hours. than initially a submitted answering we more response public files, we because timely in couldn’t before other are we bit agencies, start from are a we U.S. But it matter a of a we we CFIUS So company, the the and are and expected getting

So it seems like progress as expected and we can. want to close as soon as we

Great. Final Networks. Integrated question on

said I to power expect can delivery, them correct? think you is QX in in of that NGSO your your sort get shipping -- some think, initial I you script for start And we customer amplifiers, that in but next for the well, I as of we where scale. but reflected year, to starts that it’s this expect not look to year, we maybe guess, magnitude Integrated order to Networks out of guidance,

Yeah.

will it half of year. think next the start second towards I to mainly scale

moving are to production. We

call production some would real units, handmade mainly, delivered it’s it, I until we now, not unit, but units. up So is for

we be So And the of year production. and deployment onwards. deliveries would it to over to larger customer moving are XXXX on next scale depends second much half I with expect a real

to Great. I Thanks, say great quarter. don’t guys. forget

you, Thank Chris.

Thank you, Chris.

Karger Gunther go from is of question Discovery ahead. next Please Group. The

cash regarding combinations? or Yes. is, questions is Question this A call. comment. taking and acquisition, couple me, any excuse how comment Thank the you for on DataPath stock, one for going a be to the paid of

is DataPath payed mainly stock. in acquisition The

to Gilat paying And be are of But I will And $X shareholders about then tax upon can about U.S. are and pay taking of say shares. going $XX we million mainly shares. an DataPath would some Gilat up million depends It closing debt in XX% be shareholders. ourselves mechanism to on to the paid banks or is there XX% million additional Gilat, earn-out of mostly cash. We in with it’s $XX on that paid in that, with about requirements

Thank you.

on the and defense any military Second question, sector? comment

Yes. This is it’s -- strategic. more more becoming and a very

for of are acquisition, progress. making We closing but are waiting the we the

the -- the and and a ordered an for the partner is who into we we our are awards and acquisition Modems integration integrators large two building that increase one presence. year. had agreement significantly decent are the We with quarter. defense our very our local this get close, additional we to several or that will have Aquarius the we We strategic business have units we of once Still, We RFPs DoD. expect with during increased U.S. of expect our one to channels numbers relatively DataPath and of will start the low UAV

the And you. a and lot congratulated have very and we right of much, tell my [ph] on should comment, you to Levinson around you, Gil so into be yes, thank today, I’m and you Thank I and followed time company leading growing the Adi. direction

looking the Thank talk compliment, to you for soon. you to Gunther. I’m

you. Thank

are questions There no [Operator Instructions] Mr. statement? concluding this like at further time. Benyamini, would you to make your

and soon We or call want see time for a us this attention. hope have for you you very your to in great you joining our I all day. speak Thank and on you. call. Thank you and to much Yes. thank next to

results XXXX you. participation. your This Thank for Thank quarter concludes conference Gilat’s you second call.

and go may ahead You disconnect.