Gilat Satellite Networks Ltd. Q1 2009 Earnings Call Transcript

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2009-05-11 11:52:14.0

Tags: Call Transcript, William Blair Co., Earnings, Gilat Satellite Networks Ltd., Sales Tools, Sales Force Management, Sales Strategy, Pricing, Marketing Research, Sales, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

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

Jonathan Ho - William Blair

My first question is, can you talk a little bit about what you're seeing in the first month of the second quarter and whether we're seeing sort of a pick-up in the enterprise VSAT space?

Amiram Levinberg

Hi, Jonathan, this is Amiram. I didn't say you we can't see pickup. I think [week battle] is much like everyone. So I understand that the bad period is over. But frankly speaking in this field, I don't see any dramatic change, means we find it's good on one hand and on the other hand, it's very difficult to close deals.

Jonathan Ho - William Blair

So can you talk a little bit about maybe the customer environment there? Is this more a situation where they are taking longer to make decisions and so push after the right, or are you seeing more sort of cancellations? Can you talk about what's happening there?

Amiram Levinberg

I don't think cancellation is almost itself, but in reality what happens is that when you see longer and longer sales cycle, you practically spend that or you have net bookings. And with this phenomenon we can't describe, and despite that we see again longer sales cycle that it's normally together just because we have a significant service component.

In Columbia, if we are successful in the implementation or continue to be successful in the implementation, then we should see actually an upside coming to this region. And then the main question is related to GNS. And in GNS, if we start seeing deals that only (inaudible) losing factor, then it's currently due and then if it continues this way, it will continue to be a bit tougher during this period of time.

Jonathan Ho - William Blair

Okay. Taking a look at sort of a pricing environment, have you seen any shifts there in terms of maybe more pricing pressure or customers pressing for that?

Amiram Levinberg

I didn't say that this is specifically different, any different than I will tell you regular updates on the situation in the quarter to be followed. No, I don’t see that.

Jonathan Ho - William Blair

In terms of this Obama and the European stimulus that you guys were mentioning, can you give us a little bit more color on maybe the potential opportunities there and maybe the timeframe that you keep, something flowing out of that opportunity?

 

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