SatixFy Announces Full Year 2023 Results
Rehovot, Israel – March 29, 2024 – SatixFy Communications Ltd. (the
“Company” or “SatixFy”) (NYSE AMERICAN: SATX), a pioneering force in next-generation satellite communication systems driven by in-house developed chipsets, has released its consolidated financial
results for the full year period ended December 31, 2023. The Company has filed its Annual Report on Form 20-F for the year ended December 31, 2023 (the “Annual Report”) with the U.S. Securities and Exchange Commission (“SEC”) and can be accessed
on its website at www.SatixFy.com.
Financial Highlights for the Full Year 2023
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Total Revenues: $10.7 million, reflecting a 1% increase compared to $10.6 million in 2022.
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Gross Profit: $4.8 million a 22%
decrease from $6.1 million in 2022. The decrease in gross profit and margin due to the Company’s engagement in 2023 in projects which carry lower gross margins compared to 2022.
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Operating Loss: $41.8 million, compared to $22.3 million for 2022. The increase was mainly attributed to higher Research and Development (R&D) costs, as described below.
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Research and Development (R&D): $29.1 million, compared to $16.8 million for 2022. The increase in R&D expenses was mostly driven by the significant effort the Company invested into the development of its space grades Application
Specific Integrated Circuit (“ASICs”) in order to bring the ASICs to maturity. Research and development expenses were also affected by a net decrease in European Space Agency grants and tax credits and a decline in contributions from
government support and grants, which all are recorded as offsets to R&D expenses.
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Selling and Marketing: $2.9 million, compared to $2.3 million for 2022. The increase was primarily driven by increased participation in trade shows, related travel costs and a slight increase in payroll, and RSU grants.
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General and Administrative: $14.6 million, compared to $9.2 million for 2022. The increase was primarily driven by the settlement of a legal proceedings with Alta Partners, LLC of $2.3 million, as well as an increase in legal
costs, an increase of director and officer insurance expenses, and a provision for expected credit loss. This was offset by a decrease in bonuses to the chairman of the Company’s board of directors.
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Finance expenses: $12 million, compared to $10 million for 2022. The increase was primarily driven by a $3 million interest expense recorded on the advanced payments from MDA Ltd. (“MDA”), offset by $1 million of currency fluctuation
effects.
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Cash and Cash Equivalents: Cash and cash equivalents amounted to $14 million compared to $11.9 million as of December 31, 2022.
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Management Commentary
Nir Barkan, Acting Chief Executive Officer of SatixFy, commented, “2023 was marked by strategic advancements and solid progress within our product development and customer engagements. The $60 million agreement with MDA has refocused
SatixFy on its core competencies, fortifying a long-term business relationship with a leading satellite developer and providing us with advanced payments for sales of the Company’s cutting-edge space-grade ASICs. From a product standpoint, the
progression of our Prime 2.0 and Sx4000 chips to advanced customer sampling stages, has brought us a significant step closer towards ultimate commercialization. Our success is due to our ongoing product development, with our products offering a
highly compelling value proposition, with potential for significant capital expenditure savings, improved communication efficiencies and performance, enabling a broader coverage footprint across fewer satellites. “
“SatixFy is at a key inflection point in the industry, driven in-part by the fast-growing Low Earth Orbit (“LEO”) low-latency satellite market providing
broad data coverage anywhere, anytime. We also believe that our Digital Beam Former is going to be a key component in the coming Direct to Device LEO constellations. We continue to focus on our R&D investments in order to maintain our leading
edge and advance our satellite communication systems and chipsets.”
SatixFy develops end-to-end next-generation satellite space and ground communications systems, including satellite multi beam digital
antennas, user terminals and modems, based on powerful chipsets that it develops in house.
SatixFy’s products include modems that feature Software Defined Radio (SDR) and Fully Electronically Steered Multi Beam Antennas
(ESMA) that support the advanced communications standard DVB-S2X. SatixFy’s innovative ASICs improve the overall performance of satellite communications systems, reduce the weight and power requirements of terminals and payloads, and save real estate
for gateway equipment. SatixFy’s advanced Very Small Aperture Terminal and multi-beam fully electronically steered antenna arrays are optimized for a variety of mobile applications and services, using LEO, Medium Earth Orbit and Geostationary
satellite communications systems, for aero/in-flight connectivity systems, high-end communications-on-the-move applications, and more.
SatixFy is headquartered in Rehovot, Israel with additional offices in the UK, US and Bulgaria.
Shareholders may request, free of charge, a hard copy of the Annual Report, which includes SatixFy’s complete audited consolidated financial statements for the
year ended December 31, 2023, by contacting finance@satixfy.com.
For more information, please refer to www.SatixFy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and other Federal securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify
forward-looking statements. For example, SatixFy is using forward looking statement in this press release when it discusses its collaborations with strategic partners, including long-term business relationships, its commercialization efforts, the
potential benefits of its products and technologies, its belief that its products offer potentially significant capital expenditure savings, its belief that its Digital Beam Former is going to be a key component in the coming Direct to Device LEO
constellations, and the maintenance of its leading edge and advance our satellite communication systems and chipsets. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated
in these forward-looking statements include, among others: the Company's planned level of revenues and capital expenditures; the Company's available cash and its ability to obtain additional funding; the Company's ability to market and sell its
products; legal and regulatory developments in the United States and other countries; the Company's ability to maintain its relationships with suppliers, distributors and other partners; the Company's ability to maintain or protect the validity of
its patents and other intellectual property; political, economic and military instability in the Middle East, specifically in Israel; as well as those factors set forth in the Risk Factors section of the Company's Annual Report on Form 20-F for the
year ended December 31, 2023 filed with the SEC on March 29, 2024, as amended, and other documents filed with or furnished to the SEC which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these
statements for revisions or changes after the date of this release, except as required by law.
Contacts
Investor Contact:
Kenny Green & Ehud Helft, EK Global IR, satixfy@ekglobal.com
Media Contact:
Helena Itzhak / Aviv Sax Nahamoni, info@satixfy.com
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As of December 31,
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2023
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2022
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Revenues:
|
|
|
|
|
|
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Development services and preproduction
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|
$
|
8,249
|
|
|
$
|
10,081
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|
Sale of products
|
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|
2,481
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|
|
|
545
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|
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Total revenues
|
|
|
10,730
|
|
|
|
10,626
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|
|
|
|
|
|
|
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|
|
|
|
Cost of sales and services:
|
|
|
|
|
|
|
|
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|
Development services and preproduction
|
|
|
4,930
|
|
|
|
4,166
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|
Sale of products
|
|
|
1,008
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|
|
|
332
|
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|
Total cost of sales and services
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|
|
5,938
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|
|
4,498
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|
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|
|
|
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Gross profit
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4,792
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|
|
|
6,128
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|
|
|
|
|
|
|
|
|
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|
Research and development expenses, Net
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|
|
29,126
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|
|
|
16,842
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Selling and marketing expenses
|
|
|
2,866
|
|
|
|
2,335
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General and administrative expenses
|
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14,561
|
|
|
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9,249
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Loss from operations
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(41,761
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)
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(22,298
|
)
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|
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|
|
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Finance Income
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|
|
83
|
|
|
|
17
|
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|
Finance Expenses
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|
(12,129
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)
|
|
|
(9,919
|
)
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|
Derivatives revaluation
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|
|
(17,217
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)
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|
|
(37,377
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)
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|
Other Income
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|
41,657
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|
|
|
5,474
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Listing Expenses
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-
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|
(333,326
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)
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Company's share in the loss of a company accounted by equity method, net
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|
|
(226
|
)
|
|
|
(360
|
)
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|
Loss before income taxes
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|
|
(29,593
|
)
|
|
|
(397,789
|
)
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|
Tax expenses
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|
|
(122
|
)
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|
|
-
|
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|
Loss for the period
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|
$
|
(29,715
|
)
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|
$
|
(397,789
|
)
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|
|
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|
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|
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Other comprehensive income (loss) net of tax:
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Items that will or may be reclassified to profit or loss:
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|
Exchange gain (loss) arising on translation of foreign operations
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|
(609
|
)
|
|
|
3,272
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|
Total comprehensive loss for the period
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|
$
|
(30,324
|
)
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|
$
|
(394,517
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)
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|
|
|
|
|
|
|
|
|
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Basic and diluted loss per share (in dollars)
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|
$
|
(0.37
|
)
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|
$
|
(13.25
|
)
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|
Basic and diluted weighted average common shares outstanding
|
|
|
80,975
|
|
|
|
30,031
|
|
| |
|
|
|
| |
|
|
|
|
|
|
| |
|
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ASSETS
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CURRENT ASSETS:
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|
|
|
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|
Cash and cash equivalents
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|
$
|
13,979
|
|
|
$
|
11,934
|
|
|
Trade accounts receivable
|
|
|
2,260
|
|
|
|
1,295
|
|
|
Contract Assets
|
|
|
4,091
|
|
|
|
5,035
|
|
|
Prepaid expenses and other
|
|
|
2,332
|
|
|
|
3,648
|
|
|
Government departments and agencies receivables
|
|
|
3,076
|
|
|
|
6,156
|
|
|
Related Parties
|
|
|
75
|
|
|
|
157
|
|
|
Derivatives FPA
|
|
|
-
|
|
|
|
12,775
|
|
|
Promissory Notes
|
|
|
20,000
|
|
|
|
-
|
|
|
Inventory
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
|
|
|
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| |
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
Other long-term receivables
|
|
|
2,000
|
|
|
|
-
|
|
|
Right-of-use assets, net
|
|
|
2,235
|
|
|
|
2,794
|
|
|
Property, plant and equipment, net
|
|
|
1,420
|
|
|
|
1,643
|
|
|
Investment in Jet Talk
|
|
|
1,551
|
|
|
|
1,777
|
|
|
Long-term deposits
|
|
|
208
|
|
|
|
203
|
|
|
Derivatives FPA
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
|
|
|
|
|
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| |
|
|
|
|
|
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|
TOTAL ASSETS
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|
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|
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| |
|
|
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| |
|
|
|
|
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| |
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|
LIABILITIES AND SHAREHOLDERS’ DEFICIT
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|
|
|
|
|
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|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
Trade payables
|
|
$
|
1,378
|
|
|
$
|
1,459
|
|
|
Contract Liabilities
|
|
|
1,720
|
|
|
|
622
|
|
|
ESA advance payments
|
|
|
3,842
|
|
|
|
5,800
|
|
|
Prepayment from Customer
|
|
|
3,858
|
|
|
|
3,301
|
|
|
Advanced payments from MDA against future orders
|
|
|
28,138
|
|
|
|
8,875
|
|
|
Lease liabilities
|
|
|
639
|
|
|
|
1,021
|
|
|
Other accounts payable and accrued expenses
|
|
|
9,704
|
|
|
|
7,843
|
|
|
Related Parties
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Long-term loans from financial institutions, net
|
|
|
59,792
|
|
|
|
54,926
|
|
|
Lease liabilities
|
|
|
2,067
|
|
|
|
2,280
|
|
|
Derivatives Instruments Liabilities
|
|
|
114
|
|
|
|
20,305
|
|
|
Other long-term liabilities
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ DEFICIT:
|
|
|
|
|
|
|
|
|
|
Share Capital
|
|
|
-
|
|
|
|
-
|
|
|
Share Premium
|
|
|
451, 093
|
|
|
|
446,488
|
|
|
Capital reserves
|
|
|
1,444
|
|
|
|
3,498
|
|
|
Accumulated deficit
|
|
|
(511,323
|
)
|
|
|
(481,608
|
)
|
|
Total shareholders’ deficit
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT
|
|
$
|
54,702
|
|
|
$
|
76,325
|
|
