Q4 2024 Gilat Satellite Networks Ltd Earnings Call
Ladies and gentlemen, thank you for standing by.
The call will begin shortly.
Ladies and gentlemen, thank you for standing by. Welcome to GILOTS fourth quarter 2024 results conference call. All participants are present in listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session.
For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded February 12th, 2025.
Speaker Change: I would now like to hand over the call to Ms. Mayrav Sher, Head of Finance and IR. Ms. Sher, please go ahead.
Speaker Change: Yes, thank you, Operator. Good morning and good afternoon, everyone. Thank you for joining us today for GILAD's fourth quarter 2024 Resolve conference call and webcast. I am Mayrav Sher, GILAD's Head of Finance and Investor Relations.
Speaker Change: Also, a recording of this call will be available beginning at approximately noon Eastern Time today, February 12, and a webcast on Gilad's website for a period of 30 days.
Speaker Change: Also, please note that statements made on this earning call that are not historical facts may be deemed false-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Helft, Adi Sfadia, Gil Benyamini, Mayrav Sher
Gilad: Many of which are beyond the control of GILAD and which may cause actual results to differ materially from anticipated results.
Gilad: Gilad is under no obligation to update or alter this forward-looking statement, whether as a result of new information, future events, or otherwise, and the company explicitly disclaims any obligation to do so.
Gilad: More detailed information about these factors can be found in Gilad's report filed with the Security and Exchange Commission.
Also, on today's call, management will refer to non-GAAP measures.
Gilad: The reconciliation of GAAP results to non-GAAP measures can be found in the fourth quarter of fiscal year 2024 earnings brevity that the company issued and furnished to the FEC earlier today on Form 6K.
Speaker Change: With that, let me turn to introduction. On the call today are Mr. Adi Sfadia, Gilad CHIO, Mr. Gil Benyamini, Gilad CFO. I would now like to turn the call over to Adi Sfadia. Adi, go ahead please.
Speaker Change: Thank you, Mayrav, and good day to everyone. Thank you for joining us today to discuss our fourth quarter and full year 2024 results.
Speaker Change: On the call, we will highlight key achievements for the quarter and talk about our opportunities and plans to accelerate revenues in 2025 as we capitalize on the acquisition of Stellar Blue and Datapath and continue to drive innovation.
Speaker Change: We finish 2024 with a strong fourth quarter, achieving a strong adjusted EBITDA and accelerating our revenue growth.
Growth Eurovision.
Speaker Change: This new structure is an outcome of a strategic process which we identified our main growth opportunities.
Speaker Change: and that also led to our recent acquisition of DataPass and Stellar Blue.
Speaker Change: Our new organizational structure will allow us to focus more precisely on serving the growing defense market and the increasing opportunities in the commercial, NGSO, and VHDS markets, specifically the IFC segment.
Speaker Change: We also believe that this structure will provide investors with greater insight into Gilad business lines and simplify the understanding of our operations.
Speaker Change: As of January 1, 2025, the company is divided into three new divisions, Gilad Defense, Gilad Commercial and Gilad Peru. Let me take a moment to explain in more detail.
Speaker Change: I will start with Gilad Defense. About three years ago, we identified defense as a market with significant potential for our growth.
Speaker Change: The demand for government and defense sub-consolutions is growing and is driven by macro-political dynamics and the increasing need for multi-obvious connectivity strategies.
Speaker Change: Defense organizations require multiple layers of communication redundancy to ensure high availability, making SATCOM a critical component of mission success.
Speaker Change: Recognizing these trends, we acquired DataPath in 2023 and now have created GILAD Defense Division specifically to meet these demanding needs.
Speaker Change: The newly formed GILAD Defense Division is dedicated to meeting the specific needs of defense integrators, military and government organizations worldwide, with a strong focus on the U.S. Department of Defense.
Speaker Change: By integrating products from the wide portfolio of GILAD WaveStream and DataPath, the GILAD Defense Division delivers secure, rapid deployment solutions and battlefield connectivity.
Speaker Change: Moving to Gilad Commercial, the satellite industry is rapidly shifting towards multi-orbit connectivity, driven by the need for greater resiliency, flexibility, and seamless global coverage.
Speaker Change: At the same time, the push for digital inclusion and the growing demand for in-flight connectivity are reshaping the commercial market.
To address these evolving needs, we established the Commercial Division.
Speaker Change: Our acquisition of Stellar BlueSurf is one of the cornerstones of this division, strengthening our position in the high-growth ISP market and enabling us to provide cutting-edge connectivity solutions that meet the demands of passengers, airlines, and service providers worldwide.
Speaker Change: The last commercial division is focused on providing advanced broadband satellite communication network solutions.
Speaker Change: for enterprises and cellular backhaul being the partner of choice for the global and regional satellite operators for HTS, VHTS and NGSO constellations with guarantee solutions for service providers, MNOs, satellite operators and enterprises.
Speaker Change: The third division is Gilad, Peru. Latin America in general, and specifically Peru, faces enormous challenges in terms of connectivity, especially in rural and hard-to-reach geographies.
Speaker Change: Gilad Peru is focused on digital and social inclusion and end-to-end telco solutions focusing on government solutions across Peru.
Speaker Change: Gilad Teru plays a vital role in bridging the digital divide, connecting underserved communities and delivering high quality telecommunication services.
Speaker Change: More specifically, Gilad Peru focuses on telecom services and the operation and implementation of large-scale network projects.
Gilad Group: Gilad Group provides terrestrial fiber optic wireless network and satellite network construction, implementation and operations.
Gilad Group: You can find a link to a dedicated presentation for the matter in the Q4 press release and our website in the investor relations section.
Gilad Group: The acquisition marks a significant milestone in Gilad's strategy to expand our leadership in the IFC market.
Gilad Group: As discussed before, this acquisition enhanced our capabilities to deliver advanced multi-orbit ESA solutions and strengthened our position in the commercial aviation, making us the market leader in this rapidly growing sector.
Gilad Group: Stellar Blue brings unique expertise in satellite communications and system integrations for aviation, complementing our existing solutions and extending our reach to key commercial partners.
Gilad Group: The addition of Stellar Blue strengthened our position to capture a larger share of the IFC market. In addition, Stellar Blue continues to make progress in extending its product line into the defense sector's error applications.
Gilad Group: We are already seeing strong early results, promising partnerships, and significant new business opportunities.
Gilad Group: Building on this momentum, Stellar Blue has made significant strides in the IFC market. With over 125 multi-orbit ESA aero terminals shipped to date and activation is well underway, Stellar Blue is leading the way in next-generation aviation connectivity.
Our production capacity is scaling to meet this growing demand.
Gilad Group: During Q4, we received very significant orders of approximately $19 million for network equipment from our ISV partners, successfully expanding our deployments with them. These are very large-scale ISV operating networks over multi-orbit constellations.
Gilad Group: Also, Gilat Wavestream demonstrates consistent growth and continued success with SSPA and terminal-related avionics products dedicated to the IFC market.
Gilad Group: and Maritime. Leveraging our SkyEdge family of vSAT platforms, InterSAT is enhancing its global SATCOM network to deliver seamless, high-performance connectivity across diverse orbital assets.
Gilad Group: This expansion reinforces our position as a key technology provider and opens new long-term revenue opportunities.
Gilad Group: As we look ahead to 2025, we see significant opportunities for our IFC product portfolio as multi-orbit constellations grow in capacity and coverage.
Gilad Group: In the fourth quarter, we saw strong demand in the NGSO market with Gilat WaveStream Leo Gateway Solid State Power Amplifiers product portfolio, a category leader, playing a key role in supporting Leo constellations.
Gilad Group: In 2024, SES successfully launched its service for all 3BM power, a major milestone that underscores the strengths and advanced capabilities of our SkyEdge4 platform.
Gilad Group: This launch cements our leadership in next-generation satellite networking, demonstrating our ability to support highly flexible, software-defined satellite services.
At the same time,
Gilad Group: These achievements further validate our strategy of delivering cutting-edge, future-proof satellite communication solutions.
Gilad Group: As we look ahead to 2025, we are well positioned to secure very significant orders for our LEO Gateway products while also anticipating growth with FCS and Intersat's multi-orbit and cloud strategy.
Gilad Group: In addition, the recent award of the Irish Square Constellation by the EU to the Space Rights Consortium that includes Eurostat, SES and ISPASAT is a positive development with significant opportunities and potential.
Gilad Group: Turning to defense, we concluded the year with significant wins for Gilad DataPath securing key deals for our portable and transportable products.
Gilad Group: Includes contracts with both the U.S. DoD and international defense organizations, further solidifying our position in the critical market.
Gilad Group: Specifically, in the fourth quarter, we received approximately $9 million in orders from the U.S. DOD and other international defense organizations.
Gilad Group: 2024 was the first full year of DATAPAS operating under GILAD, and we couldn't be more pleased with the results. GILAD DATAPAS transportable and portable products have gained success with various defense organizations all over the globe.
Gilad Group: At the same time, we have been advancing our defense strategy by adapting SKYDS4 to meet military requirements and developing our next generation GLT, software-defined radio modem, tailored to the evolving needs of the defense market.
Gilad Group: As we look ahead to 2025, we are planning significant investments in GILAD defense, substantially increasing our R&D efforts to introduce more products, solutions and features.
Gilad Group: Additionally, we will increase GILAD defense sales and marketing investment to approach the defense market channels and customers.
Gilad Group: We see significant opportunities for GILAD Defense Unified Solutions, seamlessly integrating the expertise and technologies of GILAD, DataPass, and WaveStream to provide a comprehensive mission-critical offering for the Defense Government customers worldwide.
Gilad Group: In Peru, we experienced solid growth this year, securing $20 million in orders from major players in the country's communications sector.
Gilad Group: Our efforts remain focused on bridging the digital divide, enabling underserved communities to gain access to high-quality internet connectivity.
Gilad Group: Given our spending opportunities set in 2025, we expect another year of top-line and profit growth. We expect 2025 revenues of between $415 and $455 million. We expect an adjusted EBITDA of between $47 and $53 million.
Gilad Group: declining launch costs and growing data transfer demand. Our SkyScore platform, particularly with VHDS and NGSO technologies, is ideally suited to capitalize on these trends.
Gilad Group: Our commercial business, bolstered by Stellar Blue, is poised for significant expansion as we establish our leadership.
in the Expanding ESA for IFC Markets.
Gilad Group: Our portfolio of ESA products and multi-orbit solutions will be instrumental in capitalizing on the increasing demand for IFC by airlines and passengers.
Gilad Group: Our defense business also maintains strong momentum with increased orders and awards as Gilad DataPath leverages our expertise in supporting operations in most challenging environments.
Gilad Group: The defense segment represents a significant growth opportunity, and we are pleased with our progress in meeting government and military customer needs with innovative satellite solutions. And with that, I will end over the call.
Gilad Group: Over to Gil Benyamini, our CFO. Gil, please go ahead. Thank you, Adi. Good morning and good and afternoon to everyone. I would like to remind everyone those are financial results are presented both on gas and non-gas basis.
Gilad Group: I will now walk through our financial highlights for the fourth quarter of 2024, followed by a review of the full year performance.
Gilad Group: 2024 was a pivotal year for Gilad, marked by the strategic acquisition of Stellar Blue, which we expect to further accelerate our growth. Notably, the acquisition was completed after the balance sheet date and is therefore not reflected in our 2024 financials.
Gilad Group: In terms of our financial results, revenue for the fourth quarter was $78.1 million, 3% increase compared to $75.6 million in Q4-23.
Gilad Group: For the full year, revenues totaled $305.4 million, reflecting 15% growth from $266 million in 2023.
Gilad Group: The increase was primarily driven by growth in the defense vertical.
Gilad Group: In terms of revenue breakdown by segment, Q4-24 revenues for the satellite network segment were $49.1 million compared to $53.5 million in the same quarter last year. The decline was primarily due to termination of our activity in Russia.
Gilad Group: Q4-24 revenues of the integrated solution segment were $17.3 million compared to $9.5 million the same quarter last year. The increase was primarily driven by higher revenues from the distance vertical.
Gilad Group: I would now like to review our fourth quarter results starting with gap basis before moving to the known gap numbers.
Gilad Group: Our GAP growth margin in Q4-24 improved to 39.7% compared to 38.2% in Q4-23.
Gilad Group: Gap operating expenses in Q4-24 were $18.3 million compared to $26 million in Q4-23. The decrease is primarily due to proceeds from arbitration in Peru, which were recorded as other operating income in Q4-23.
Gilad Group: Gap operating income in Q4-24 was $12.8 million compared to $2.9 million in Q4-23. The increase was driven by profits from the arbitration interview as previously mentioned.
Gilad Group: Gap net income in Q4'24 was $11.8 million, or a diluted income per share of $0.21 compared to $3.4 million, or a diluted income per share of $0.03 in Q4'23.
Gilad Group: Moving to non-GAAP results, our non-GAAP growth margin in Q4-24 improved to 40.4% compared to 39.1% in Q4-23.
Gilad Group: Non-GAAP operating expenses in Q4'24 were $21.9 million compared to $23.4 million in Q4'23.
Gilad Group: Mayrav Sher, Adi Sfadia, Gil Benyamini, Mayrav Sher, Gil Benyamini, Mayrav Sher, Gil Benyamini,
Gilad Group: Non-GAAP net income in Q4-24 was $8.5 million or a diluted income per share of $0.15 compared to a net income of $6.5 million or income per share of $0.11 in Q4-23.
Gilad Group: Adjusted EBDA in Q4'24 was $12.1 million compared to an adjusted EBDA of $9.4 million in Q4'23.
Gilad Group: For the full year, Adjusted EB DAO was $42.2 million compared with an Adjusted EB DAO of $36.4 million in 2023.
Gilad Group: compared to 106 million on September 30, 2024 and compared to 95 million on December 31, 2023. The increase was mainly driven by our ongoing operations as well as from the arbitration process in Peru.
Gilad Group: In terms of cash flow, we generated $16.3 million from operating activities in Q4.4.
Gilad Group: DSOs, which exclude the receivables and revenues of our terrestrial network construction projects in Peru, were 71 days down from 83 days in previous quarters due to both increased revenues and air pollution.
Gilad Group: Our shareholders' equity as of December 31st, 2014, totaled $304 million, compared with $275 million at the end of 2022.
Gilad Group: In addition, we expect adjusted EBITDA to range between $47 and $53 million.
We do not provide forward-looking guidance on gap basis.
Gilad Group: such as amortization of purchase intangibles and earners-based expenses related to recent acquisitions. As a result, we are not able to provide a reconciliation of gap to non-gap financial measures for forward-looking data without unreasonable effort.
Gilad Group: That concludes my financial review. I would now like to open the call for questions. Operator, please.
Gilad Group: Thank you. Ladies and gentlemen, at this time we will begin the question and answer session.
Speaker Change: If you have a question, please press star 1. If you wish to cancel your request, please press star 2. If you are using speaker equipment, kindly lift the handset before pressing the numbers. Your questions will be polled in the order they are received. Please stand by while we poll for your questions.
Speaker Change: The first question is from Sergei Glymyamov of Freedom Brokers. Please go ahead.
Helft, Adi Sfadia, Gil Benyamini, Mayrav Sher
Speaker Change: Hello everyone and I would like to start from my congratulations with another successful year for the GILAD.
and yeah.
Is that guidance relevant?
Sergei Glymyamov: Hi, Sergei. Yes, this guidance is still relevant and it is included in the overall guidance.
and Gil Benyamini. Thank you.
Thank you. Thank you. Thank you.
Will this segment be divided regarding the new organizational structure?
Speller-Bleu is not a...
Speaker Change: It's not a reportable segment. It's managed out of the commercial division with a lot of synergies between...
Speaker Change: Gilat, Old IFC Subsegment and Stellar Blue. So the overall results will be consolidated under the Gilat Commercial Division.
Speaker Change: Would you provide any details about any costs related to the new organizational structure that will be introduced?
Speaker Change: financial results for 2023 and 2024, which I believe can help analysts and investors to rework their model.
Speaker Change: Okay, got it. And my final question is, there was a little improvement of Ibiza marketing in 2024.
Speaker Change: Mayrav Sher, Adi Sfadia, Gil Benyamini, Mayrav Sher, Adi Sfadia, Gil Benyamini, Mayrav Sher,
Speaker Change: and Ibida during the second half of the year. In addition,
We are planning to increase significantly our investment in the
but we do expect significant improvement in 2026 onwards.
Thank you. Thank you.
Great, thank you, that's all from me. Thank you, Juli.
Speaker Change: The next question is from Louis De Palma of William Blair. Please go ahead.
Adi, Gil, and Mayrav, good afternoon.
All right, good afternoon.
Have the discussion...
discussions with Iris Squared been positive?
Speaker Change: The initial discussions with the consortium are in a very friendly way.
But, and you know the...
IRIS Square Consulting issued some RFIs.
Speaker Change: Probably towards the mid or half of the year, or probably Q3 this year, based on what they said, based on what they are saying, they expect
Speaker Change: within the defense vertical with the new reporting segments you forecast.
Speaker Change: strong growth and in defense and and what does the pipeline look like in terms of future contract awards and and opportunities with your different products?
Speaker Change: I can share slightly more light on this exciting new G-Lock defense.
Thank you.
Speaker Change: We are seeing a lot of synergies with Gilad Salesforce worldwide.
Thank you.
Speaker Change: who are starting to engage with meetings that we haven't been able to engage for years.
and many other global satellite operators like SES and Intelsat.
and that they already have a huge network of gilat.
Speaker Change: Benyamini, Mayrav Sher, Adi Sfadia, Gil Benyamini, Mayrav Sher, Adi Sfadia, Gil Benyamini, Mayrav
jumping on every barrier that we had in the past.
Speaker Change: We are seeing a lot of excitement both internally and externally about this. We are trying to bid for very large programs that will include also a...
He is
We said several times in the past that...
Speaker Change: Growth in this segment won't be linear because it's a project and program based.
Speaker Change: We are aiming to get at least one or two very large awards to support future growth.
Sounds good. And as it relates to...
Peru. Gil, you guided for a decline for...
Mayrav Sher: Benyamini, Mayrav Sher, Gil Benyamini, Gilbenamini, Mayrav Sher, Gil Benyamini, Gil Benyamini, Mayrav Sher.
Mayrav Sher: First of all, you know, looking forward, we believe that Peru is going to grow. In 2025, we see some delays in renewal of some of the recurring contracts.
Mayrav Sher: So, this might push revenues down a little bit, but overall, most of Peru's revenues are for longer terms, and we definitely see a long-term growth trajectory for Peru.
Mayrav Sher: past transaction and some extension that we got an award at the beginning of 2024 and we are expecting to start seeing operational revenues too.
Mayrav Sher: from this project in 2025. So I think that it's a bit misleading if you reduce the construction revenues on the operations side, you will see growth over here.
Thanks, and...
Speaker Change: Also, Adi, you indicated that you have shipped 125 of the ESA antenna systems with Stellar Blue. And I was wondering, could you provide an update in terms of...
where Stellar Blue stands in terms of the contingent payments.
Speaker Change: The first milestone is to deliver several hundreds of units in a grid margin. The first units usually are...
more costly than the production ramp-up units because
Speaker Change: As part of the ramp-up, you learn and fix issues. I think we are in a good position to reduce the terminal costs.
Great. Thanks, everyone.
Thank you, Louis.
Speaker Change: The next question is from Ryan Kunz of Needham & Company. Please go ahead.
Ryan Kunz: Most of my questions have been answered here, but with regard to the production ramp there at Stellar Blue, can you refresh us on where the company was in Q4 and what you anticipate that volume ramp to look like as we go through the first half of 2025?
Speaker Change: Q4 was the initial ramp-up of production. They delivered around 75 units.
Speaker Change: I think the customers are very happy, the systems perform very well, so I think we are on the right direction.
Speaker Change: It's great. Great to hear those are installed and performing well. And on the commercial side, relevant to your historical numbers there, the decline you saw in 24, can you remind us, I think there was some Russia impact there exiting Russia, can you remind us of that impact in 24 versus 23?
Speaker Change: 20 million give or take per year. In 2024, I guess we had slightly, you know, around 50% out of it. And in 2023, we've been, I don't remember the exact number. Gil, do you remember?
Speaker Change: The decline was about 10 million dollars a year, this is more or less the number.
Got it.
Speaker Change: All right, great. And just in terms of the competitive environment, maybe going back to IFC here, what's that competitive environment like for you now, you know, post-Zone Blue, deal closing and, you know,
Speaker Change: How do you see this market developing versus the opportunities and competitors out there? Thanks
Speaker Change: There is a direct and indirect effect. On the direct effect, I think that today with Stellar Blue we have the leading multi-orbit ESA terminal.
Speaker Change: Mayrav Sher, Adi Sfadia, Gil Benyamini, Mayrav Sher, Adi Sfadia, Gil Benyamini, Mayrav Sher,
Thank you.
about the indirect competition, it's always there, our customers compete.
Speaker Change: That's great. Thanks for those comments and we look forward to being at 25 and full. Thanks.
Thank you, Ryan. Thank you.
Thank you.
Speaker Change: The next question is from Chris Quilty from Quilty Analytics. Please go ahead.
Speaker Change: Oh, it's quoting Stacy, I got it wrong. Apologies for the background noise. I'm driving. Gil, quick question or follow-up on the, the top-line guidance.
Speaker Change: Just to make sure I have the pieces, we're still looking for order of 120 to 150 in the Stellar Blue. I think we're talking about a 10 million headwind from Russia and I miss the sort of order of magnitude on the Puli business in terms of a headwind.
Speaker Change: Once we back that out, what are we looking at for... And again, I don't want to look necessarily on the traditional businesses the way we had it organized by segment.
Speaker Change: But, you know, if I did and looked at sort of amplifiers versus modems, you know, those buckets, you know, where are you seeing growth and or, you know, the faster growth in the business arms?
We also see growth in our defense.
in 2024 to 110 in 2025.
Speaker Change: As mentioned, at the end of the day, our focus area in the IFC, in the defense, and in the VHDS and NGSO, these are the areas that we believe that most growth will come from.
Speaker Change: I understand and maybe just specifically on the power amplifier side of the business, are you still chasing large opportunities there?
on the NDSO time.
Speaker Change: Yeah, definitely, definitely we do, and we also, on the overall SBA business, we also project growth next year, of course.
Great.
Speaker Change: Back to Stellar Blue, I think you've got two sizable customers there, and I think some of the earn-out is related to bringing on other large customers. Where do you sit in that process in terms of negotiations? Is it still looking like that 2025 event, or does it get pushed further out?
Speaker Change: I think we are pursuing it in 2025. Right now we believe it will be closed before year-end, but of course it can slip.
Later on but
Speaker Change: Gotcha. Follow-up on Peru. Even with the lower revenues, is it fair to assume profitability is even or up as you shift out of the hardware business and into service?
Speaker Change: You mentioned higher R&D spending in the defense area. What sort of order of magnitude of spending and are there specific areas where you see more opportunity?
So...
Most of the investment is aimed towards new modems.
Speaker Change: and Family of Terminals and other large projects that we aim to participate in.
and Burney King.
Speaker Change: At the end, we'll have to see how much of the overall R&D will be allocated to the defense, but it's in the magnitude of a few million dollars.
So it's mainly an internal allocation.
Thank you.
Speaker Change: In general, we are aiming to add more features for SkyH4 to support different applications. The main focus is on security features.
Speaker Change: adding transit and FIT capabilities, developing our next generation GLT, highly secured modem.
Speaker Change: and also some flat panel and electronically steered antennas with a focus on the UAV market. So all in all, you will see a significant increase in the R&D.
Moshe Deshensky.
Thank you.
Speaker Change: Adi, speaking of SkyEdge 4, you guys had a great year in 2023, a growth there, 2024 seems like it was sort of flat, and I'm talking about the commercial side, sort of 5G cellular backhaul. What's the outlook? Do you see programs picking back up in 2025, or is it another sort of flat-ish year on the commercial side?
I think that right now there is...
Speaker Change: I'll keep on delaying the launch of the new satellite, the new SDF satellite.
I think we'll be...
Speaker Change: It will be a bit flattish in terms of new networks.
I'm in touch with new satellite launches.
Speaker Change: But we do expect to see revenues of the next generation SkyEdge 4 shifting to virtual platform and cloud-based solution where the SkyEdge 4 will run on native cloud.
So we do expect to see some new wins.
Speaker Change: over there. But again, once the satellite manufacturers will start launching new satellites, we will return to significant growth on the networking side.
Speaker Change: Great, thank you. Last question. I'm sorry I'm all over the map here, but back to Stellar Glue.
Speaker Change: We wonder, and this is kind of a high level thought in the market. Obviously SpaceX is made a mark in the IFC.
Speaker Change: Hewes, I think, is shipping their single beam antenna, flat panel antenna, it's still relatively new in the market. Where do you see the trends going in terms of...
Speaker Change: to single beam, dual beam, multi-beam, multi-orbit, KA band, KU band, multi-band, in terms of where the customers are asking for solutions.
Thank you. Thank you. Thank you.
Speaker Change: I think that right now Stellar Blue is the best technology available, but all the antennas today are supporting single beam. The next generation will support dual beam on the receive side.
Speaker Change: KUKA Antennas is also something that I think the industry is considering, but up until now it wasn't that of a big success.
Speaker Change: As for KA, I think that there is a lot of opportunities over there once we see Telesat Constellation is ramping up, so I think we might see some new development over there.
Speaker Change: Very good. Thank you and appreciate the details there and good luck in the year ahead. Got a busy one today. Thank you, Chris. Thank you.
and Gil Benyamini.
and Gil Benyamini.
Gunther Carver: The next question is from Gunther Carver of Discovery Group. Please go ahead.
Speaker Change: Gil Benyamini, Adi Sfadia, Gil Benyamini, Mayrav Sher, Gil Benyamini, Mayrav Sher
Speaker Change: Yes, thank you. Very good results. Congratulations. A technology question. Can you hear me all right?
and Gil Benyamini.
Speaker Change: What about the operational area? Will the cellular view and provision enable encroachment into the operational communications, ground communications, avionics, and things of this type?
Speaker Change: And in terms of operation, I'm not sure I fully understand your question, so I'll refer to two parts. Of course, Stellar Blue provides services and maintenance services on the platform that they are selling, but they have no intention to compete with the service provider, meaning their customers.
This is what you asked.
Speaker Change: Yes, thank you. I was thinking more of the operational communications, which is...
Speaker Change: primarily HF-VHF air-ground, and as the systems move to the satellite area, and you have on-board antennas and communication facilities, I'm just wondering if the Astellablue will allow the movement of operational communications.
to that area away from the traditional HF-EHF systems.
Thank you.
On the aircraft side, theoretically, it's doable, but it's...
Mayuv Helft, Adi Sfadia, Gil Benyamini, Mayrav Sher
Thank you very much.
Thank you, Gantil.
Speaker Change: If there are any additional questions, please press star 1. If you wish to cancel your request, please press star 2. Please stand by while we poll for more questions.
Speaker Change: There are no further questions at this time. Mr. Benyamini, would you like to make your concluding statement?
Speaker Change: 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. Thank you. This concludes the last fourth quarter 2024 results conference call. Thank you for your participation. You may go ahead and disconnect.