Gilat Satellite Networks (GILT) saw its loss narrow to $0.78 million, or $0.01 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.03 million, or $0.09 a share. On an adjusted basis, net profit for the quarter stood at $1.66 million, or $0.03 a share compared with a net loss of $2.21 million, or $0.05 a share in the last year period. Revenue during the quarter grew 21.39 percent to $63.93 million from $52.66 million in the previous year period. Gross margin for the quarter expanded 358 basis points over the previous year period to 27.12 percent. Operating margin for the quarter period stood at positive 0.03 percent as compared to a negative 5.63 percent for the previous year period.
Operating income for the quarter was $0.02 million, compared with an operating loss of $2.96 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $2.46 million compared to operating loss of $1.15 million in prior year period.
Yona Ovadia, chief executive officer of Gilat, commented: "I am pleased to report that Gilat achieved further positive results in the first quarter of 2017 as evidenced by continued year-over-year improvement in profitability, both on a GAAP and non-GAAP basis. It shows the fruit of focusing on our growth engines and on more profitable revenues, along with our continued drive to reduce costs."
Operating cash flow turns positive
Gilat Satellite Networks has generated cash of $24 million from operating activities during the quarter as against cash outgo of $4.06 million in the last year period. Cash flow from investing activities was $4.79 million for the quarter, down 50.86 percent or $4.95 million, when compared with the last year period.
The company has spent $3.98 million cash to carry out financing activities during the quarter as against cash inflow of $8.64 million in the last year period.
Cash and cash equivalents stood at $65.08 million as on Mar. 31, 2017, up 96.25 percent or $31.92 million from $33.16 million on Mar. 31, 2016.
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