Gilat Satellite Networks Q4 2008 Earnings Call Transcript

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2009-02-17 10:08:10.0

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Question-and-Answer Session

Operator: (Operator Instructions). The first question is from Jonathan Ho of William Blair. Please go ahead.

Jonathan Ho - William Blair & Company

Good morning, guys. Just wanted to get a sense from you in terms of the general environment for VSAT and maybe some greater clarity on your expectations for that top-line growth and sort of the improvement in bottom-line profitability. Can you just give us more detail on that front as well?

Amiram Levinberg

I'll suggest, Ari I'll start and then you can fill in if you like. Generally speaking as you know Jonathan, we have a fairly diversified business means we are diversified on that geographic basis, and we are diversified in terms of having the non-recurring and recurring revenues in our business as we are service organization and we also selling equipment to other service providers worldwide. When we look kind of the international market, not all areas suffer from the same economical situation, so that diversification means that in some areas people continue to invest in infrastructure and it is kind of... I should say easier but it is less difficult for us to maintain.

In other areas, where the constraints are higher then like in many other communication areas it is difficult for us either. In the service organizations, the fact that we have non-recurring revenues is obviously helping us because that brings some stability to the business. It is difficult for me to tell you specifically in which regions we feel kind of more comfortable at this point of time, I would say those are the fact that we believe that we will be able to perform the new agreement with the Colombian government leads us to believe that we will have quite a significant revenue coming from the Colombian project which not only help our top-line but also significantly help our bottom-line, should we be able to recognize either for this, do you want to add anything else?

Ari Krashin

[Inaudible].

Amiram Levinberg

Okay. Jonathan did it gave you kind of the sense of the situation do I received?

Jonathan Ho - William Blair & Company

Yeah I think that's good, in terms of the first further question and just in terms of maybe greater clarity in 2009 on the top-line and bottom-line profitability. Can you give any type of guidance or any type of maybe percentage type growth that you're looking for in the business?

 

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