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Gilat, the satellite equipment manufacturer, reported second quarter results Wednesday, which were partly impacted by a contract one of its units had with bankrupt WorldCom.
Gilat said revenues were $51.6 million and $123.7 million for the second quarter and first half of 2002, respectively. The net loss was $35.7 million.
The results included a one-time, non-cash provision amounting to $12 million that is related to work Gilat did for WorldCom. When eliminating the impact from the non-recurring, non-cash provision related to WorldCom as well as a financial impact from rStar, Gilat had an operating loss of $9.3 million.
Gilat's work with WorldCom consisted of a contract the troubled telecommunications giant had with the U.S. Postal Service. Gilat's Spacenet subsidiary, which was supplying VSAT terminals under the deal, said it reached an agreement with WorldCom regarding pre-petition amounts owed to the company. Spacenet has received payment as part of its agreement with WorldCom and also re-affirmed and extended its relationship with WorldCom and the Postal Service for an additional three years.
From SkyReport (Used with Permission)
Gilat said revenues were $51.6 million and $123.7 million for the second quarter and first half of 2002, respectively. The net loss was $35.7 million.
The results included a one-time, non-cash provision amounting to $12 million that is related to work Gilat did for WorldCom. When eliminating the impact from the non-recurring, non-cash provision related to WorldCom as well as a financial impact from rStar, Gilat had an operating loss of $9.3 million.
Gilat's work with WorldCom consisted of a contract the troubled telecommunications giant had with the U.S. Postal Service. Gilat's Spacenet subsidiary, which was supplying VSAT terminals under the deal, said it reached an agreement with WorldCom regarding pre-petition amounts owed to the company. Spacenet has received payment as part of its agreement with WorldCom and also re-affirmed and extended its relationship with WorldCom and the Postal Service for an additional three years.
From SkyReport (Used with Permission)
