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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.
 
Commencing January 1, 2025, 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 (“DPI”). By integrating technologies from Gilat, DPI, 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.

 

  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
  
   
Commercial
    
Defense
    
Peru
    
Total
  
                         
Revenues
  
$
155,344
    
$
97,755
    
$
52,349
    
$
305,448
  
Cost of Revenues
    
80,063
      
72,175
      
39,879
      
192,117
  
Gross profit
    
75,281
      
25,580
      
12,470
      
113,331
  
                                 
Research and development expenses, net
    
28,760
      
9,376
      
-
      
38,136
  
Selling and marketing expenses
    
17,395
      
7,825
      
2,161
      
27,381
  
General and administrative expenses
    
7,248
      
12,760
      
6,860
      
26,868
  
Other operating expenses (income), net*)
    
2,973
      
(465
 )    
(9,259
 )    
(6,751
 )
                                 
Operating income (loss)
    
18,905
      
(3,916
 )    
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
  
$
6,571
    
$
5,223
    
$
1,760
    
$
13,554
  
 
   
Year ended December 31, 2023
  
   
Commercial
    
Defense
    
Peru
    
Total
  
                         
Revenues
  
$
195,022
    
$
19,638
    
$
51,430
    
$
266,090
  
Cost of Revenues
    
101,980
      
12,655
      
46,510
      
161,145
  
Gross profit
    
93,042
      
6,983
      
4,920
      
104,945
  
                                 
Research and development expenses, net
    
34,987
      
6,186
      
-
      
41,173
  
Selling and marketing expenses
    
21,354
      
2,254
      
1,635
      
25,243
  
General and administrative expenses
    
9,760
      
2,448
      
7,007
      
19,215
  
Other operating expense (income), net *)
    
(7,347
)
    
1,185
      
(2,609
)
    
(8,771
)
                                 
Operating income (loss)
    
34,288
      
(5,090
)
    
(1,113
)
    
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
  
$
7,800
    
$
1,610
    
$
3,992
    
$
13,402
  
 
   
Year ended December 31, 2022
  
   
Commercial
    
Defense
    
Peru
    
Unallocated
    
Total
  
                               
Revenues
  
$
172,161
    
$
9,596
    
$
58,083
    
$
-
    
$
239,840
  
Cost of Revenues
    
100,557
      
6,648
      
45,727
      
-
      
152,932
  
Gross profit
    
71,604
      
2,948
      
12,356
      
-
      
86,908
  
                                         
Research and development expenses, net
    
32,090
      
3,550
      
-
      
-
      
35,640
  
Selling and marketing expenses
    
18,797
      
1,314
      
1,583
      
-
      
21,694
  
General and administrative expenses
    
11,540
      
806
      
6,066
      
-
      
18,412
  
Other operating expenses, net *)
    
-
      
438
      
-
      
-
      
438
  
Impairment of held for sale asset
    
-
      
-
      
-
      
771
      
771
  
                                         
Operating income (loss)
    
9,177
      
(3,160
)
    
4,707
      
(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
  
$
7,449
    
$
653
    
$
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 – Peru
    
15
%
    
15
%
    
21
%
Customer B – Commercial
    
12
%
    
14
%
    
*
)
Customer C – Commercial
    
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.