Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) subsidiary Spacenet Inc. has won a $27 million five-year contract extension through 2018 from a national US retailer. The current contract has two years still to run.
The contract could reach $35 million through store expansion. Spacenet provides the retailer with VSAT network services.
Spacenet will continue supporting the retailer's stores with diverse network connectivity for a variety of data applications for business continuity and multicast content delivery. It will also support the retailer's requirements for rapid site expansion as it adds new stores across the US.
Gilat has signed several large contracts this year, including a $40-50 million contract with the state lotteries in Texas and Illinois in January; an Australian contract potentially worth $120 million over five years, signed in May; a $70 million five-year contract in Europe, signed in August; and earlier this month it signed a follow-on US government contract for military satellite communications services and a Latin American government contract for systems to support broadband Internet connectivity in schools.
Gilat's share price opened at $3.44 on Nasdaq today, giving a market cap of $140 million, and rose 1.9% on the TASE to NIS 12.98. The share price has fallen by a third since July.
Published by Globes [online], Israel business news - www.globes-online.com - on September 21, 2011
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