Gilat Wins Contracts in Latin America Worth $129m

Colombian and Peruvian government ministries award contracts worth $99 and $30 million respectively to expand Internet coverage.

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Gilat Satellite Networks, which makes equipment for sending and receiving satellite transmissions, said on Thursday it had won two large contracts in Latin America totalling $130 million.

Shares of the company closed up 6% in Tel Aviv Stock Exchange, trading at 16.29 shekels.

Colombia’s Ministry of Information and Technology, a long-time customer of Gilat, awarded the Israeli company a $99 million contract to deploy and provide connectivity services for some 1,900 of its Digital Kiosks in two regions over the next three-and-a-half years. Gilat will spend about 10 months erecting the equipment to be used to provide Internet and telephone services in rural areas, along with l three years of connectivity and training.

Digital Kiosks is a Colombian government initiative that aims to provide community Internet access points to every Columbian population center with 100 or more people by 2014.

“It is very satisfying to see an organization such as MINTIC continue to rely on Gilat’s ability to provide technology and services of this size and scope,” said Gilat CEO Erez Antebi.

Also on Thursday, Gilat was awarded a $30 million contract for Peru’s Integracion Amazonica Loreto project by the country’s Transportation and Communications Ministry.

Gilat will design and build a high-capacity broadband network between Iquitos and the town of Isla Santa Rosa to provide Internet and telephone service to 70 communities in the country’s Loreto region.

The company will operate and maintain the network for 10 years.

Gilat lost $4.1 million on revenue of $234 million in the first nine months of this year, compared with a profit of $8.3 million on revenues of $251 million during the same period in 2012.

Satellite communications company Gilat was one of few to do well on the TASE Tuesday (illustration).Credit: Gilat

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