From Standard & Poor's Equity ResearchWILLIAM BLAIR REITERATES OUTPERFORM ON GILAT ON NEW COLOMBIA PACT
William Blair analyst Jonathan Ho says Gilat Satellite Networks (GILT) on Dec. 31 announced a new pact with Colombian Ministry of Communications that will resolve standoff between the two parties, resulting in the release of about $24 million over 2009 and 2010.
Ho says the new pact addresses a key overhang on the stock; GILT had been losing about $3 million per quarter from the prior Colombia pact, which he expects to now approach break-even levels. He notes that the new pact revolves around assets in rural areas that previously were underutilized.
He expects to raise his $0.14 2009 EPS estimate pending further details on the deal.