CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

NOTE 15:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

The Company applies ASC 280, "Segment Reporting" ("ASC 280"). Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the chief operating decision maker ("CODM"). The CODM is the Company’s Chief Executive Officer. The Company's CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment.

The Company operates in three operating segments, as follows:

• Satellite Networks is focused on developing and supplying networks that are used as the platform that enables the latest satellite constellations of high throughput satellites ("HTS"), very high throughput satellites ("VHTS") and Non-GEO-Stationary Orbit ("NGSO") opportunities worldwide. The segment provides advanced broadband satellite communication networks and associated professional services and comprehensive turnkey solutions and managed satellite network services solutions. Segment’s customers are service providers, satellite operators, mobile network operators (“MNO”), Telcos, large enterprises, system integrators, defense, homeland security organizations and governments worldwide. Principal applications include IFC, cellular backhaul, maritime, social inclusion solutions, government, defense and enterprise networks and are driving meaningful partnerships with satellite operators to leverage the segment’s technology and breadth of services to deploy and operate the ground-based satellite communication networks. The segment’s product portfolio includes a leading satellite network platform with high-speed VSATs, high performance on-the-move antennas, BUCs and transceivers, as well as multi-band deployable ku/ka/x earth terminal (“DKET”) terminals, and durable, ultra-portable terminals for quick connectivity in remote locations. 

• Integrated Solutions is focused on developing, manufacturing and supplying products and solutions for mission-critical defense and broadcast satellite communications systems, advanced on-the-move and on-the-pause satellite communications equipment, systems and solutions, including airborne, ground-mobile satellite systems and solutions. The integrated solutions product portfolio comprises of leading high-efficiency, high-power solid state power amplifiers (“SSPA”), BUCs and transceivers with a field-proven, high-performance variety of frequency bands. The segment’s customers are satellite operators, IFC service providers, defense and homeland security system integrators, and NGSO gateway integrators.

• Network Infrastructure and Services is focused on telecom operation and implementation of large-scale network projects in Peru. The segment provides terrestrial (fiber optic and wireless network) and satellite network construction and operation. The segment serves the Company’s customers through technology integration, managed networks and services, connectivity services, internet access and telephony over the segment’s networks. The segment implements projects using various technologies (including third party technology), mainly based on BOT and BOO contracts.

a. Information on the reportable operating segments:

1. The measurement of operating income (loss) in the reportable operating segments is based on the same accounting principles applied in these consolidated financial statements and includes certain corporate overhead allocations.

2. Financial information relating to reportable operating segments:  

	Year ended December 31, 2024
	Satellite Networks		Integrated Solutions			Network Infrastructure and Services			Total
Revenues	$	198,174	$	54,925		$	52,349		$	305,448
Cost of Revenues		114,018		38,220			39,879			192,117
Gross profit		84,156		16,705			12,470			113,331
Research and development expenses, net		28,684		9,452			-			38,136
Selling and marketing expenses		22,916		2,304			2,161			27,381
General and administrative expenses		15,243		4,765			6,860			26,868
Other operating expenses (income), net *)		1,877		631			(9,259	)		(6,751	)
Operating income (loss)		15,436		(447	)		12,708			27,697
Financial income, net										1,504
Income before taxes on income										29,201
Taxes on income										(4,352	)
Net income									$	24,849
Depreciation and amortization expenses	$	9,082	$	2,712		$	1,760		$	13,554

	Year ended December 31, 2023
	Satellite Networks			Integrated Solutions			Network Infrastructure and Services			Total
Revenues	$	168,527		$	46,133		$	51,430		$	266,090
Cost of Revenues		79,984			34,651			46,510			161,145
Gross profit		88,543			11,482			4,920			104,945
Research and development expenses, net		30,415			10,758			-			41,173
Selling and marketing expenses		21,316			2,292			1,635			25,243
General and administrative expenses		6,818			5,231			7,166			19,215
Other operating income, net *)		(6,162	)		-			(2,609	)		(8,771	)
Operating income (loss)		36,156			(6,799	)		(1,272	)		28,085
Financial income, net											109
Income before taxes on income											28,194
Taxes on income											(4,690	)
Net income										$	23,504
Depreciation and amortization expenses	$	6,286		$	3,124		$	3,992		$	13,402

			Year ended December 31, 2022
	Satellite Networks		Integrated Solutions		Network Infrastructure and Services			Unallocated			Total
Revenues	$	120,381	$	61,376	$	58,083	$	-			$	239,840
Cost of Revenues		63,463		43,742		45,727		-				152,932
Gross profit		56,918		17,634		12,356		-				86,908
								-
Research and development expenses, net		26,045		9,595		-		-				35,640
Selling and marketing expenses		18,043		2,068		1,583		-				21,694
General and administrative expenses		7,068		5,212		6,132		-				18,412
Other operating expenses, net *)		438		-		-		-				438
Impairment of held for sale asset		-		-		-			771			771
Operating income (loss)		5,324		759		4,641			(771	)		9,953
Financial expenses, net												(2,818	)
Income before taxes on income												7,135
Taxes on income												(13,063	)
Net loss											$	(5,928	)
Depreciation and amortization expenses	$	5,009	$	3,093	$	3,506		$	-		$	11,608

*) See Note 14

b. Geographic information:   Revenues attributed to geographic areas, based on the location of the end customers and in accordance with ASC 280, are as follows:

	Year ended December 31,
	2024		2023		2022
United States	$	145,780	$	103,389	$	96,954
Peru		52,383		53,187		58,251
Israel		15,386		4,074		2,570
Others		91,899		105,440		82,065
	$	305,448	$	266,090	$	239,840

c. The Company’s long-lived assets (property and equipment, net and operating lease right-of-use assets) are located as follows:

	December 31,
	2024		2023
Israel	$	57,413	$	59,141
United States		9,046		9,085
Peru		5,011		5,806
Others		5,920		5,388
	$	77,390	$	79,420

d. The table below represents the revenues from major customers and their segments:

	Year ended December 31,
	2024			2023			2022
Customer A – Network Infrastructure and Services		15	%		15	%		21	%
Customer B – Satellite Networks		12	%		14	%		*	)
Customer C – Satellite Networks		11	%		15	%		*	)

*) Less than 10%

Customer A is located in Peru, Customer B is located in the European Union and Customer C is located in the United States of America.

e. Commencing January 1, 2025, as the Company increases its focus on the defense market segment and the IFC sectors as primary growth engines, the Company operates in three new operating segments as follows:

• Gilat Defense Division: provides secure, rapid-deployment solutions for military organizations, government agencies, and defense integrators, with a strong focus on the U.S. Department of Defense resulting from the Company’s strategic acquisition of DataPath Inc. By integrating technologies from Gilat, Gilat DataPath, and Gilat Wavestream, the Gilat Defense Division delivers resilient battlefield connectivity with multiple layers of communication redundancy for high availability.

• Gilat Commercial Division: provides advanced broadband satellite communication networks for IFC, Enterprise and Cellular Backhaul, supporting HTS, VHTS, and NGSO constellations with turnkey solutions for service providers, satellite operators, and enterprises. The Company’s acquisition of SBS (see Note 19) serves as the cornerstone of this division, strengthening the Company’s position in the IFC market and enabling the Company to provide cutting-edge connectivity solutions that meet the demands of passengers, airlines, and service providers worldwide.

• Gilat Peru Division: specializes in end-to-end telco solutions, including the operation and implementation of large-scale network projects. With expertise in terrestrial fiber optic, wireless, and satellite networks, the Gilat Peru Division provides technology integration, managed networks and services, connectivity solutions, and reliable internet and voice access across the region.