[SatNews] Gilat Satellite Networks Ltd. (Nasdaq:GILT) (TASE:GILT) has revised its management objective targets for 2013.
Revenue for 2013 is now expected to be between $335 million to $345 million as compared to the previously stated range of $350 million to $360 million and EBITDA is expected to be approximately 7 percent, as compared to 9 percent.
The projected revenue and earnings shortfall is primarily due to lower than expected sales in the Defense division related directly to sequester budget cuts and purchasing slowdowns by the U.S. Department of Defense. An additional factor for the shortfall is the Compartel contract which, as reported earlier in the year, ended on March 31, 2013 and was not extended.
“We are targeting defense programs of record that are strategic in nature and as such we remain confident about the long term prospects of our Defense division,” said Erez Antebi, CEO of Gilat Satellite Networks. “We will provide a business overview during our regularly scheduled earnings release and conference call on August 14.”
Second quarter 2013 financial results will be released on Wednesday, August 14, 2013.
