Gilat Satcom Share Discussion Threads

[tole] 09/8/2006 08:34

Whats the panic in here then?

[m.t.glass] 02/6/2006 08:26

Ah - I see Outsider started a duplicate thread (albeit without moderation facility) so have now posted same message there.

[m.t.glass] 02/6/2006 08:13

This morning tipped by Investors Chronicle as a buy

[m.t.glass] 02/6/2006 08:10

Got itself a buy rec in Investors Chronicle today I gather

[balcee] 30/5/2006 09:28

Quite a rise here this morning.

Was tipped on Sunday in 'The Business'. Seymour Pierce also rated it as 'outperform' a couple of weeks ago. Looks as though there is more upturn to come...

[outsider] 16/5/2006 08:04

GILAT SATCOM LTD.


RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2006

and

UPDATE ON STRATEGY


Gilat Satcom Ltd. ('Gilat'; AIM symbol: GLT), the telecommunications operator
specialising in the developing world, announces its unaudited results for the 3
months ended 31 March 2006 and an update on strategy.


Key points:

+-------------------------+---------------+---------------+-----------------+
|Figures in US$000s | 3 months ended| 3 months ended| Year ended|
| | | | |
| | 31 March 2006| 31 March 2005| 31 December 2005|
+-------------------------+---------------+---------------+-----------------+
|Revenues | 8,048| 5,153| 31,751|
+-------------------------+---------------+---------------+-----------------+
|Gross profit | 2,471| 1,235| 9,668|
+-------------------------+---------------+---------------+-----------------+
|Gross margin (%) | 30.7%| 24.0%| 30.4%|
+-------------------------+---------------+---------------+-----------------+
|Operating profit | 661| 446| 3,876|
+-------------------------+---------------+---------------+-----------------+
|Operating margin (%) | 8.2%| 8.7%| 12.2%|
+-------------------------+---------------+---------------+-----------------+
|Profit before tax | 338| 610| 3,501|
+-------------------------+---------------+---------------+-----------------+


Note: IP Planet was acquired with effect from 29 March 2005 and was consolidated
starting Q2 2005.


• Business refocused on marketing and sales to drive growth.

• A number of initiatives taken, following review of strategy, to create a
platform for future growth.

• Planned expansion in range of telecoms services and markets.

• New business wins continue including Telkom Kenya.

• Positive cashflow with net debt (excluding long-term satellite capacity
leases) reduced to $9.3m from $11.5 m at 31 December 2005.

• The market for Gilat Satcom's services remains strong.


Amos Lasker, Gilat's CEO stated:

'As a result of the actions taken, we are beginning to see a significant
improvement in performance. Demand for our services in the developing world
remains strong and is growing. We have laid firm foundations for a steadily
improving performance as the current year progresses and we are confident that
we will achieve our objectives.'



Contacts

Gilat Satcom Ltd.: [phone]
Amos Lasker, Chief Executive Officer

Bankside: [phone]
Simon Bloomfield or Steve Liebmann

Seymour Pierce [phone]
Stuart Lane or John Depasquale



FIRST QUARTER STATEMENT

Introduction

We are pleased to report Gilat Satcom's results for the three months ended 31
March 2006 and to provide an update on strategy. Following the appointment of
Amos Lasker as Chief Executive Officer in January 2006, emphasis has been placed
on reviewing the positioning and strategy of the company to ensure that a firm
foundation for future growth has been established.

Results

The results for the first quarter, although lower than the previous quarter,
were broadly in line with management's expectations with revenues of $8.0
million, an operating profit of $661,000 and a profit before tax of $338,000.
Both revenue and operating profit were significantly ahead of the same period
last year, although profit before tax was lower, reflecting a higher interest
charge in Q1 2006. Comparative pro forma results for Q1 2005, assuming IP Planet
had been consolidated since the 1 January 2002 (the acquisition was completed on
29 March 2005), showed revenue of $8.5 million and an operating profit of
$544,000.

Positive cash flow during the first quarter resulted in a reduction in net
borrowings (excluding long-term satellite capacity leases) to $9.3 million as at
31 March 2006 from $11.5 million at 31 December 2005.

Business and strategy review

The outcome of the strategy review is to reaffirm the focus on providing
internet connectivity, bandwidth and telecommunications services within
developing nations. Particular emphasis is now being placed on improving sales
performance and increasing service capabilities, building on Gilat's satellite
networks and engineering expertise. An early result has been the new contract
with Telkom Kenya, Kenya's national telecommunications provider, announced on 24
April 2006. Gilat is now the main provider of broadband internet connectivity to
Telkom Kenya.

Specific changes introduced during the quarter include the appointment of Avihu
Bergman to the new position of Executive Vice President, Sales and Marketing to
spearhead the sales effort. In order to increase service levels and to help
retain customers, additional technical support staff have been hired and
improved training programmes and information systems have been put in place. In
addition, staff incentive schemes have been revised to create a focus on sales.

The review of markets has highlighted the improving conventional and wireless
telecoms infrastructure in some parts of Gilat's traditional markets within
developing nations. Accordingly, Gilat plans to expand its internet backbone
service offering to include other telecoms infrastructure options alongside its
satellite services. A number of options are being considered for this planned
expansion, including acquisitions, which is expected to result in an increased
presence within existing markets and entering new geographic markets including
Latin America and South East Asia.

Current trading and outlook

As a result of the actions taken, we are beginning to see a significant
improvement in performance. Demand for our services in the developing world
remains strong and is growing. We have laid firm foundations for a steadily
improving performance as the current year progresses and we are confident that
we will achieve our objectives.



Consolidated Profit & Loss Account

Figures in US$000s 3 months ended 3 months ended Year ended
31 March 2006 31 March 2005 31 December 2005
Unaudited Unaudited Audited

Revenues 8,048 5,153 31,751
Cost of revenue (5,577) (3,918) (22,083)
Gross profit 2,471 1,235 9,668
30.7% 24.0% 30.4%

Sales & marketing expenses (724) (252) (2,479)
General & administration (1,086) (537) (3,313)
expenses
Total operating expenses (1,810) (789) (5,792)
Operating profit 661 446 3,876
8.2% 8.7% 12.2%
Financial (expenses) income (323) 164 (385)
Capital gain - - 10
Profit before tax 338 610 3,501
Tax charge (310) 390 (562)
Net profit for the period 28 1,000 2,939

Note: IP Planet was acquired with effect from 29 March 2005 and was consolidated
starting Q2 2005.



Consolidated Balance Sheet

Figures in US$000s At 31/03/2006 At 31/03/2005 At 31/12/2005
Unaudited Unaudited Audited

Current assets
Cash 5,364 4,005 6,987
Short Term Deposit 162 158 160
Trade Receivables, Net 2,948 651 2,676
Other Receivables 1,272 3,016 2,182
Inventory 1,121 1,259 1,000
10,867 9,089 13,005

Property and equipment, net 20,320 19,234 21,336
Intangible Asset 8,476 7,097 9,101
Deferred income taxes 524 - 702
Other Assets 53 52 53
29,373 26,383 31,192

40,240 35,472 44,197

Current liabilities
Current maturities of bank 4,107 12 3,934
loans
Accounts Payable 3,288 2,125 3,249
Related Parties 29 20,050 -
Other payable 893 3,441 1,050
8,317 25,628 8,233

Long-Term Liabilities
Lease 6,384 3,945 6,300
Long term bank loans 10,599 - 14,572
Deferred Income Taxes 87 - 304
Severance Benefits, Net 69 48 53
17,139 3,993 21,228

Shareholder's Equity 14,784 5,851 14,736
40,240 35,472 44,197




Consolidated Statement of Cash Flows

Figures in US$000s 3 months ended 3 months ended Year ended
31 March 2006 31 March 2005 31 December 2005
Unaudited Unaudited Audited
Cash flows from operating
activities:
Net Profit (loss) for the 28 1,000 2,939
period
Adjustments to reconcile net
profit (loss) to net cash
provided by operating
activities:
Depreciation and amortization 1,407 881 4,826
Share based payment 20 - 97
Revaluation of finance lease 84 - 247
Revaluation of bank deposits (1) - (27)
Decrease (increase) in trade (271) (203) (2,245)
receivables
Decrease in other receivables 913 1,685 1,593
decrease (Increase) in (121) (60) 199
inventories
Increase in other non current - (3)
assets
Increase (decrease) in trade 39 (995) 129
accounts payable
Increase (decrease) in other (112) 1,324 (1,029)
payables and current
liabilities
Increase (decrease) in deferred 308 (394) 578
income taxes
Net cash provided by operating 2,294 3,132 7,304
activities

Cash flows from investing
activities:
Purchases of property and (117) 8,231 (7,185)
equipment
Acquisition of subsidiaries - 6,745 (11,381)
Appendix A
Investment in short-term bank 98 123
deposits and proceeds
Purchase of intangible assets (3,256)
Net cash used in investing (117) (14,878) (21,699)
activities

Cash flows from financing
activities:
Loans raised (Repayments of 11,602 (8,111)
loans) from related parties
Repayments of loans from banks (9,125) (1,496)
Receipt of long term loans from 5,325 20,00
bank
Decrease in Short term loans (12)
Receipt on account of shares 6,850
Net cash provided by financing (3,800) 11,602 17,233
activities

Increase (decrease) in cash and (1,623) (144) 2,838
cash equivalents
Cash and cash equivalents
at the beginning of the period 6,987 4,149 4,149
Cash and cash equivalents
at the end of the period 5,364 4,005 6,987



Appendix A - Acquisition of subsidiaries as of 31 March 2005

Figures in US$000s Book Fair value Fair
value adjustments value
Net assets acquired
Property and equipment (802) - (802)
Other long-term receivables (29) - (29)
Deferred tax assets (65) - (65)
Inventories (857) - (857)
Trade receivables (215) - (215)
Other receivables (395) - (395)
Cash and cash equivalents (1,510) - (1,510)
Short-term credit from banks 12 - 12
Trade and other payables 557 - 557
Other payables and current 1,671 - 1,671
liabilities
Retirement benefit obligations 35 - 35
(1,598) - (1,598)

Customer portfolio (2,013)
Goodwill (5,084)
Total consideration (8,695)

Satisfied by:
Cash (8,255)
Credit from Parent Company (440)
(8,695)

Net cash outflow arising on
acquisition:
Cash consideration (8,255)
Cash and cash equivalents 1,510
acquired
(6,745)


Appendix B - Additional information pertaining to investment activities not
involving cash flows: for the three month period ended March 31, 2005:


According to a lease agreement, the Company leased certain satellite
transponders for a period of 7 years, for consideration of a first payment of
$8,120,000 and a second payment, which will be paid until December 2008 of an
additional $4,880,000. The Company treated the lease transaction as a financial
lease, and accordingly recorded a fixed asset in the amount of $12,059,000.
Therefore the second payment of $4,880,000 is an investment activity, which did
not involve cash flows (the present value - $3,945,000).

[kdwilson] 15/5/2006 14:13

results tomorrow could show evidence of a turnaround so buyers around

[richardw] 11/5/2006 09:55

Removed By ADVFN

[outsider] 24/4/2006 07:49

Gilat Satcom Limited
24 April 2006



FOR IMMEDIATE RELEASE 24 April 2006

GILAT SATCOM LIMITED

NEW CONTRACT SIGNED WITH TELKOM KENYA


Gilat Satcom Ltd. ('Gilat'), the international broadband services company quoted
on AIM (stock code: GLT), announces an expansion of its relationship with Telkom
Kenya, Kenya's national telecommunications provider and the sole provider of
landline phone services in Kenya.


Gilat Satcom has supplied satellite broadband internet services to Telkom Kenya
since 2002. Under the new agreement, effective from 1st April 2006, Gilat Satcom
becomes the main internet connectivity provider to Telkom Kenya which, in turn,
will distribute internet services through its landline telecoms infrastructure.
The contract is expected to be worth approximately US$1.5 million in 2006 and is
expected to develop further to accommodate the rapid growth of Telkom Kenya's
data connectivity and telephony services.


Gilat's Chief Executive Officer, Amos Lasker commented: 'Our expanded contract
with Telkom Kenya builds on a successful, established relationship. It
demonstrates both the growing demand for broadband internet connectivity and
Gilat's strength as a supplier of wholesale bandwidth to leading telcos in
Africa.'

[put it all on red] 21/4/2006 12:43

Came across this from the the recent 3GSM conference in Barcelona. Have copied the relevant bits from this link:



1) Are there any technologies which will play a key role in the developing markets this year?
2) What changes would you make to the developing markets in which you operate?
3) What particularly annoys you about the developing markets in which you operate?
4) Can you see a time when your company receives more income from the developing markets than from the mature ones?



Guy Eran, Marketing Manager, Gilat Satcom:

1) We believe that in emerging markets in the developing world 2006 will still be a year dominated by GSM. It is our belief, though, that 3G will gradually grow in presence and capacity, to significantly lift off during 2007
2) The markets are not really there for us to change. At Gilat Satcom we try to adapt our focus and make the services we offer the best we can to each market's requirements, and evolve with it at its pace. Where satellite communications is the best means to relay capacity – we excel in providing exactly that. In regions where fibre-optic technology is growing, we gladly promote that platform to best accommodate our customers, and support it with satellite back-up to ensure continuity
3) We cannot view the markets in which we operate with any negative perspective, as they are our home. Gilat Satcom would not have been as successful as it has been over the years had we not viewed our customers as partners, with whom we grow together. We have found the challenges of bridging the digital divide fascinating, each region and its complex conditions and requirements. We have found it ever more satisfying to evolve with our markets, introducing new services and technological platforms as these become available, maintaining continuous, long-term relations with our partners and customers
4) Our assumption at Gilat Satcom is that within 2-3 years the number of mobile subscribers in quite a few developing countries' markets will be higher than it is in many "mature" ones, as the emerging markets often do not rely on well-developed PSTN land infrastructure. The mobile phone in such regions is in many cases also the first phone a subscriber owns , and the growth in the number of mobile subscribers thus supersedes the PSTN subscribers growth traditionally witnessed in developed countries

[outsider] 12/4/2006 20:46

I think operating margins will improve here , as they are buying more block time at reduced prices, I remember reading about one deal which saved $300,000 pa.

[th3 equ4lis3r] 12/4/2006 18:53

I wonder if these guys ever got it on with Citrix,

Were talking about 2-3 yrs ago,

[outsider] 12/4/2006 18:51

Latest news from website:


Press Release
Source: Network Appliance, Inc.
Network Appliance(TM) FAS3000 Series Named Best NAS Product of the Year by InfoWorld
Tuesday January 3, 5:32 pm ET

From yahoo finance

NetApp(R) FAS3020c Receives Top Marks for Simplicity and Performance in Midrange Storage
SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 3, 2006--Citing "solid performance, flawless failover, exceptional scalability, and a jack of all trades," the NetApp FAS3020c was named "Best NAS Solution of the Year" in InfoWorld's 2006 Technology of the Year honors. This marks the second consecutive year that Network Appliance, Inc. (Nasdaq:NTAP - News) has won Best NAS from InfoWorld. In 2005, the NetApp FAS200 series also received the award.

The FAS3000 series delivers up to twice the price/performance and supports more users per system than previous generation FAS storage systems for greater storage architecture capability. As part of the unified NetApp architecture, these midrange systems support file services, FC SAN, IP SAN, and multiple network configurations, while offering scalability to higher performance systems with seamless, painless upgrades without requiring the "forklift" data migration needed by most other offerings currently on the market. With storage capacity of up to 84TB and 336 disks, the FAS3000 series brings high-end capabilities with a midrange price tag.

The InfoWorld awards recognize significant technologies of the past year that promise to make the greatest impact on enterprise IT strategies as well as the products that best exemplify the implementation of those technologies. The InfoWorld Technology of the Year awards are not open to outside nominations; only products reviewed by InfoWorld's Test Center during the previous year are eligible. The final selections are made by InfoWorld's Test Center analysts and editors.
"After reviewing the FAS3020c, my conclusion is that the system is hard to beat and is an excellent choice for companies looking for high functionality at moderate pricing levels. The clustering capabilities of the FAS3020c are something to behold, and the support NetApp offers is the stuff of legend," said Paul Venezia, senior contributing editor at InfoWorld's Test Center.

"Network Appliance is honored to be selected by InfoWorld for our FAS3000 series," said Elisa Steele, vice president of Worldwide Integrated Marketing at Network Appliance. "InfoWorld is a top technology publication and is recognized for its editorial excellence, strong industry analysis, and solid news coverage. This award validates our technology innovation and the customers who have chosen the FAS3000 series to consolidate storage, maximize data protection, and streamline backup/archiving in order to get more value from IT investments."

Details on all winners of the InfoWorld 2006 Technology of the Year awards are available online at www.infoworld.com/article/06/01/02/01FEtoyawards_1.html?s=feature.

About Network Appliance
Network Appliance is a world leader in unified storage solutions for today's data-intensive enterprise. Since its inception in 1992, Network Appliance has delivered technology, product, and partner firsts that simplify data management. Information about Network Appliance solutions and services is available at www.netapp.com.

Network Appliance and NetApp are registered trademarks of Network Appliance, Inc. in the U.S. and other countries. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.

-------------------------------------------------------------------------
Press Release

El Al Launches New Iridium-Based
In-Flight Calling Service for Passengers

BETHESDA, MD – January 24, 2006 - El Al Airlines has announced plans to introduce a new passenger calling service that will provide worldwide telephone connections in-flight through the Iridium satellite network. The service will use convenient prepaid calling cards with rates of just US$1.60 per minute.

El Al will offer the new calling service for passengers in all classes on its fleet of Boeing 767 long-haul passenger jets. Passengers will be able to purchase the calling cards duty-free in flight. The cards will be valid for 12 months and will be usable on future flights. Passengers will use the cards to place calls to terrestrial phone numbers anywhere in the world. El Al expects to complete the installations on all of the 767s in early 2006.

Gilat Satcom, through its GayaCom subsidiary, is supplying the Iridium satellite terminals and calling card services. GayaCom is the authorized Iridium service provider in Israel.

Haim Romano, CEO of El Al Airlines, said, "We are excited to be the first airline to offer our passengers the convenience of worldwide in-flight calling-card telephone service through the Iridium satellites at a very reasonable per-minute rate."

"Iridium's unique constellation of 66 low-earth orbiting (LEO) cross-linked satellites will ensure uninterrupted passenger communications, even if the aircraft is flying over extreme Polar Regions outside the coverage area of other satellite systems," said GayaCom Managing Director, Ami Schneider.

"GayaCom has played a key role in achieving the first deployment of the new passenger calling-card system with El Al, and has also spearheaded market development for Iridium products and services in the Middle East region." said Don Thoma, executive vice president of Iridium Satellite.

About El Al
El Al Airlines is Israel's national carrier. El Al has annual revenues of about $1.4 billion, and it carries more than 1.3 million passengers annually. The airline flies directly to more than 40 destinations around the world, and to many additional destinations by means of partnership agreements with other airlines. It operates 33 aircraft, of which it owns 30. El Al is the leading airline in the cargo market in Israel. It is active in the charter flight market by means of its subsidiary, Sun D'Or. El Al is marking its 56 th year of service.

About Gilat Satcom
Gilat Satcom is an international broadband satellite service provider, supplying Internet, data and voice services to telecommunication providers, private businesses and government organizations in over 40 countries worldwide. Gilat Satcom is traded on the London Stock Exchange (AIM symbol: GLT), with headquarters in Israel and an office in the United States.

[outsider] 12/4/2006 17:37

Started a new thread for this one:

[outsider] 12/4/2006 17:30

WARNING Please note I have not verified the information contained in this thread so PLEASE DO YOUR OWN RESEARCH to VERIFY




WEBSITE:






Q4 in profit

[fortunatus] 17/11/2005 11:53

Any thoughts on the c.£10m loan due to be paid off over the next 5 years (+ interest). Got to be a drag on profits, surely?

[jonwig] 17/11/2005 11:45

For those interested, I wouldn't invest (in any new issue) until I'd read the prospectus very carefully:

[jonwig] 17/11/2005 09:03

Well, they can (I guess) make $3.2m after tax for the full year, and with a MCap of £14.9m that's a P/E of about 12 for the year.

On the plus side they are growing strongly, on the minus they are dealing with some pretty dodgy governments.

I don't hold these and haven't looked closely yet; but very interesting and worth more research.

[t1lal] 16/11/2005 15:23

ANY VIEWS PEOPLE????

[m.t.glass] 19/8/2005 15:57

$2.5m to raise $8m?

Sources: Gilat Satcom's IPO expenses should have been $1.5 million at most.

Golan Fridenfeld 11 Aug 05 12:22


Gilat Satcom Ltd. (AIM: GLT), controlled by World Group Holdings (TASE: WRGR) subsidiary Satcom Systems (TASE: STCM), raised $8 million last week within a relatively short time on the London Alternative Investment Market (AIM), and its managers deserve compliments for it. At the same time, a document submitted by World Group to the Tel Aviv Stock Exchange indicates that the company's expenses incurred in the issue totaled $2.5 million 31% of the amount raised. In all the conversations I had with various entities with experience in issues in London, I was invariably told that this amount is unusual. No way of looking at the structure of expenses for the issues yields a figure of $2.5 million. Fixed expenses for an issue in London (payments to accountants, lawyers, underwriters, investor relations costs, etc.) come to $800,000-1 million. Expenses that vary with the size of the issue are 5-7%. In Gilat Satcom's case, this comes to another $500,000, giving total expenses of at most $1.5 million for an issue of this type, assuming that there were no expenses that deviated from the usual level. The question is how Gilat Satcom incurred such high issue expenses; Gilat Satcom controlling shareholder Zvi Barinboim has the answers.
Gilat Satcom raised $8 million at a company value of $30 million, before money. Before the issue, in order to boost its chances of success, Gilat Satcom recruited a big gun - former Israel Prime Minister Ehud Barak and gave him the title of "non-executive president." Barak received monthly management fees and options for 5% of the company's capital.

Satcom Systems, which still owns 76.1% of Gilat Satcom after the issue, is due to post a NIS 9 million capital gain on the issue.

The company stated, "In deciding to float Gilat Satcom on a stock exchange in London, the directors of Satcom Systems Ltd. and Gilat Satcom Ltd. also took into account the costs involved in raising capital on a foreign stock exchange. These costs are higher than capital-raising costs in Israel for the following reasons, among others: A company making an issue in London has to pay its Israeli lawyers, and also British lawyers. The company had to pay its local accountants, the accountants drawing up the economic reports for the underwriter, and British accountants. In addition, because an issue of shares was involved, the company had to pay the underwriter a success commission (underwriting commission) amounting to 5-8% of the issue proceeds. All the expenses for service providers in the UK are denoted in British pounds, which makes the process more expensive.

"The companies do not regard Gilat Satcom's issue in London as the end of a business process, but as a stage in the development of Gilat Satcom into a global communications provider. The capital raised will enable the company to accelerate its organic growth. The fact that the company's share is listed for trading in London will enable the company to position itself as a global communications company, help it compete in large tenders in the countries in which it operates, and facilitate future processes of mergers and acquisitions in its business environment, of which consolidation is a prominent feature."

Satcom Systems provides local and international communications services, based primarily on satellite communications. In April 2004, World Group, controlled by Barinboim, acquired 52% of Satcom Systems through SPL Software in which World Group has a 65% stake. Satcom Systems was formerly called Gilat Satcom. Following the acquisition, the company's owners and management formulated a strategic plan, while solving the company's financial problems.

In the first quarter of 2005, the company revenue totaled NIS 22.2 million, compared with NIS 16.6 million in the corresponding quarter last year. Net profit grew from NIS 2 million in the first quarter of 2004 to NIS 3 million in the first quarter this year.

Since last September, Satcom Systems has acquired Gaya Com, a private Israeli company that has an agreement with international company Iridium Satellite. Iridium provides mobile telephone services through its global satellite network. Satcom also acquired IP Planet Network, which was controlled by Eurocom Communications.

Published by Globes [online] - www.globes.co.il - on August 11, 2005

[m.t.glass] 19/8/2005 15:55

Presumably there will soon be dozens of newly floated companies dealing with satellite communications. Here's one of them. I have no idea if it stands any better chance than the others.. Any views?


Company website:

intraday (spread shaded)
5 day (spread shaded)
one month candlesticks


Currently two MMs, quoting 2500 lots. (Edit: now 3 x 2500)


Sharecast, 9 August:
Gilat Satcom beams on Aim debut
LONDON (SHARECAST) - Israel-based satellite service provider Gilat Satcom got off to a flying start when it began trading on London's Aim this morning, adding a quick fire 18% before easing back later on.

The group, which supplies broadband satellite services to developing nations, especially in Africa, raised £4.57m from a placing at 120p, valuing the business at £21.23m.

Gilat said it will use the extra cash to fund expansion in Latin America, South East Asia, the Far East, Europe and the US and increase sales in markets where it is already established.

Vice chairman Erez Gissin said, "Gilat Satcom is well positioned to grow rapidly and profitably as a major provider of satellite broadband services in the developing world. We now have the funds to implement our strategy for achieving this objective."

Gilat hopes that non-executive president and former Israeli prime minister Ehud Barak can help establish and develop top-level relationships in its target markets.

Seymour Pierce is the company's nominated adviser and broker.