Shares of Gilat Satellite Networks (NASDAQ:GILT) rallied today after the company said it was awarded a multi-million dollar contract with two mobile operators in Mexico by AXESS Networks.
The tech stock was by as much as 33.2% today and had gained 31% as of 11:57 a.m. EST.
Gilat provides cellular backhaul solutions via satellites that will allow AXESS to connect hundreds of its cellular sites for two of its mobile network operators.
AXESS' vice president of operations, Pablo Hoyos, said in a statement, "AXESS chose Gilat due to its leading technology, global expertise and local presence, for providing services to two of the most important cellular connectivity projects in Mexico."
Tobias Dezordi, regional vice president for Latin America at Gilat, said the company is "honored to be a longtime partner of AXESS" and to be awarded this contract to expand rural network coverage in Mexico.
Gilat said the contract is worth "multi-million dollars" but didn't disclose any other specifics about the financial agreement.
Gilat's stock has been particularly volatile over the past 12 months, with several large share price gains and subsequent drops throughout the year. The tech stock was in negative territory before today, but this morning's share price jump puts the stock up 4.5% over the past year.
With such a massive jump in just one day, investors can likely expect more volatility from this company's stock in the future.