GILAT ANNOUNCES SECOND QUARTER 2006 RESULTS

Mergers, Acquisitions and Financial Results

Gilat Satellite Networks Ltd (one of the larger satellite resellers in Africa) reported its results for the quarter ending June 30, 2006.

Revenues for the second quarter of 2006 were $61.0 million, up from $51.4 million in the same period of 2005. Net income for the second quarter of 2006 was $2.1 million or $0.09 per diluted share, compared to a net loss of $1.1 million or $0.05 per diluted share in the second quarter of 2005. Non-GAAP net income (1) for the second quarter of 2006 was $3.1 million, or $0.12 per diluted share, versus a net loss of $1.1 million or $0.05 per diluted share in the same quarter of 2005. EBITDA (2) for the second quarter of 2006 was $9.5 million, increased from $5.2 million in the comparable period of 2005.

Revenues for the six month period ended June 30, 2006 were $119.6 million, increased from $104.4 million in the comparable period of 2005. Net income for the six month period ended June 30, 2006 was $3.3 million or $0.14 per diluted share, compared to a net loss of $3.0 million or $0.13 per diluted share in the same period of 2005. Non-GAAP net income for the six month period ended June 30, 2006 was $5.7 million, or $0.24 per diluted share, versus a net loss of $3.0 million or $0.13 per diluted share in the comparable period of 2005. EBITDA for the six month period ended June 30, 2006 was $18.2 million, increased from $9.9 million in the comparable period of 2005.

Non-GAAP net income, earnings per share and EBITDA for the three and six month period of 2006 exclude non cash stock option expenses in an amount of $1.0 million and $2.4 million respectively, which are not included in the comparable periods of 2005.

Gilat's Chief Executive Officer and Chairman of the Board Amiram Levinberg said, "We are pleased to see strong growth in the second quarter. These results were driven by growing sales in our core markets. We were also successful in achieving first orders in new market segments including, business continuity with Cisco and backhaul solutions for cellular and enterprise operators."

Business Wire