Gilat Satellite Networks Ltd. (NASDAQ:GILT) Q1 2024 Earnings Call Transcript

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But definitely, they will take a decision this year. As for Project Kuiper Amazon is planning to start service in 2026. So I guess they will need to start equipping the hubs and gateways towards 2025. As we said several times in the past, we are working with several NGSO players, some we cannot name by name. One of the large LEO constellations that we are supporting. We started to deliver SSPAs based on the initial order that we received two years ago, and we expect to get follow-on orders doing the — if not this quarter, probably next quarter. But the large deployment is expected towards 2025 and 2026. I guess, orders will be probably will be towards the end of the year.

Omri Efroni: Okay. Great. Thanks for the color. I was wondering about the situation in Europe and how we’re perfecting about on the defense market, especially about the Satcom defense market. And then you have some opportunities to buy and acquire some companies. I think you DataPath [ph] in the United States. I was wondering how you think about the European market?

Adi Sfadia: So overall, I think that it’s best to say, but sometimes war is doing good for business and defense, in particular, you see a lot of traction around satellite communication. If we look at news articles about SpaceX in Ukraine, so we see a lot of traction around satellite communication, both in Europe, but not only in Europe. But it’s too early to quantify. It’s not – when you work with government, it takes time. Not everything is urgent as it seems in the news. We believe it’s the long-term growth on the defense will happen also in Europe. As for your second question about acquisition. So we are monitoring and reviewing a lot of opportunities. Some of them are also in Europe. But there is nothing that is relevant to speak right now. Once it will be relevant, we will advise.

Omri Efroni: And last one for me, last year you said that you want to hire about 200 people. So I’m wondering how it’s going on. And if the 200 personnel is still part of the business plan?

Adi Sfadia: I think we said that at the beginning of 2023, and it was relevant to 2023, where we recruited more than 150 people. We continue to recruit worldwide based on our needs. Once we will get the large award that we spoke before, this will require additional significant headcount increase. But right now, we are recruiting only based on immediate needs.

Omri Efroni: Okay. Thanks for the color.

Adi Sfadia: Thank you.

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

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

Operator: Thank you. This concludes Gilat’s first quarter 2024 results conference call. Thank you for your participation. You may go ahead and disconnect.

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