| CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION |
| NOTE 10:- |
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION
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a. |
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.
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b. |
The Company operates in three operating segments, as follows:
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• |
Gilat Defense Division: provides secure, rapid-deployment solutions for military organizations, government agencies, defense integrators, and other strategic governmental customers, with a strong focus on the U.S. Department of War resulting from the Company’s strategic acquisition of DataPath, Inc (“DPI”). By integrating technologies from Gilat, Gilat DataPath, and Gilat Wavestream, the Gilat Defense Division delivers resilient battlefield and mission-critical connectivity with multiple layers of communication redundancy for high availability.
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• |
Gilat Commercial Division: provides advanced broadband satellite communication networks for IFC, Enterprise and Cellular Backhaul, supporting HTS, VHTS, and NGSO satellite constellations with turnkey solutions for service providers, satellite operators, and enterprises. The Company’s acquisition of SBS (see Note 15) serves as an important part 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.
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• |
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.
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c. |
Information on the reportable operating segments:
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1. |
The measurement of operating income (loss) in the reportable operating segments is based on the same accounting principles applied in these condensed interim consolidated financial statements and includes certain corporate overhead allocations.
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2. |
Financial information relating to reportable operating segments:
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Six months ended
June 30, 2026
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Commercial
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Defense
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Peru
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Total
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Revenues
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$
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155,771
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$
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47,890
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$
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29,476
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$
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233,137
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Cost of Revenues
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104,654
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|
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38,294
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|
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15,283
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|
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158,231
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Gross profit
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51,117
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|
9,596
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|
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|
14,193
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|
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|
74,906
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|
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|
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|
|
|
|
|
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|
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Research and development expenses, net
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18,380
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|
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5,338
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|
-
|
|
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23,718
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Selling and marketing expenses
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11,319
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|
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|
6,763
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|
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|
1,129
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|
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|
19,211
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General and administrative expenses
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7,327
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(*) |
11,948 |
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3,343
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|
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22,618
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Other operating expenses (income), net
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(6,501
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)
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6,834
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|
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|
(52
|
)
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|
281
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|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Operating income (loss)
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20,592
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(21,287
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)
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9,773
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|
9,078
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Financial income, net
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3,462
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Income before taxes on income
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|
|
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12,540
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Taxes on income
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|
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|
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|
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|
|
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|
841
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Net income
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|
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$
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13,381
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|
|
|
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|
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|
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Depreciation and amortization expenses
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$
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7,912
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$
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1,340
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$
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1,171
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$
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10,423
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(*) Including $7,000 related to the Additional Earn-Out Consideration, see Note 15.
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Six months ended
June 30, 2025
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Commercial
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Defense
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Peru
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Total
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$
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133,277
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$
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43,004
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$
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20,726
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$
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197,007
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95,933
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30,094
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10,655
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|
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|
136,682
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Gross profit
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37,344
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|
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|
12,910
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|
|
|
10,071
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|
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60,325
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|
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|
|
|
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|
|
|
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|
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Research and development expenses, net
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17,032
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|
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|
6,898
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|
-
|
|
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23,930
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Selling and marketing expenses
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10,420
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|
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|
5,076
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|
|
|
971
|
|
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16,467
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General and administrative expenses
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6,630
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3,360
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3,037
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13,027
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Other operating expenses (income), net
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5,014
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|
1,884
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(2,934
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)
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3,964
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|
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Operating income (loss)
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(1,752
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)
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(4,308
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)
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8,997
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|
2,937
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Financial expenses, net
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|
|
|
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(2,186
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)
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Income before taxes on income
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|
751
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Taxes on income
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3,083
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Net income
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$
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3,834
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|
|
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|
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|
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Depreciation and amortization expenses
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$
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7,742
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$
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1,363
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$
|
837
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$
|
9,942
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| *) |
During the six months ended June 30, 2026 and 2025, the Company recognized revenues from construction performance obligations in the amount of $11,137 and $1,396, respectively, which are presented within the Peru operating segment.
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d. |
Geographic information:
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Revenues attributed to geographic areas, based on the location of the end customers and in accordance with ASC 280, are as follows:
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Six months ended
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| |
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June 30,
|
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2026
|
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2025
|
|
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United States
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$
|
128,548
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$
|
135,936
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Peru
|
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29,476
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20,726
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Israel
|
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12,505
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1,524
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Others
|
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62,608
|
|
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38,821
|
|
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|
|
|
|
|
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|
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$
|
233,137
|
|
|
|
197,007
|
|
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e. |
The table below represents the revenues from major customers and their operating segments:
|
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|
Six months ended
June 30,
|
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| |
|
2026
|
|
|
2025
|
|
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|
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Customer A - Commercial
|
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|
47
|
%
|
|
|
50
|
%
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Customer B - Peru
|
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|
11
|
%
|
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|
*
|
)
|
*) Less than 10%
Customer A is located in the European Union and Customer B is located in Peru.
|