SatixFy Communications Ltd. (the “Company” or “SatixFy”) (NYSE American: SATX), a leader in next-generation satellite communication systems based on in-house-developed chipsets, has released its consolidated financial results as of and for full year period ended December 31, 2024, and provided recent operational and business updates.
Management Commentary
Nir Barkan, Chief Executive Officer of SatixFy, commented, “We are very pleased with the strong end to 2024, showing significant positive developments in the fourth quarter, marked by key agreements highlighting growing traction for our chipsets and strong market demand for our satellite communication solutions. In November 2024, we signed a milestone $39 million contract with Telesat to develop Landing Station Baseband Units for Telesat’s Lightspeed Network, solidifying our role as a critical partner to them. Additionally, our collaboration with MDA Space continued to strengthen, with new agreements signed in the past weeks amounting to a further $10 million in addition to the $10 million in agreements signed in the fourth quarter. Under these orders, we will provide engineering models and space-grade chips for testing purposes as well as assembly into MDA Space satellites. We believe all this continues to build our leadership position in space-grade chipsets for the upcoming generation of communication satellites.”
Added Mr. Barkan, “The MDA Space proposed transaction, which was announced earlier today, is a testament to the hard work of our employees in building SatixFy. Together with MDA Space, we will have the scale, resources and stability needed to continue delivering groundbreaking solutions, and we look forward to closing the transaction in the third quarter of 2025."
Financial Highlights for the Full Year 2024
Receipt of Audit Opinion with Going Concern Qualification
As previously disclosed in its annual report on Form 20-F for the fiscal year ended December 31, 2024, which was filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2025, the audit opinion contained a going concern qualification from the Company's independent registered public accounting firm. This announcement is being made solely to comply with the NYSE American Company Guide Sections 401(h) and 610(b), which require separate disclosure of receipt of an audit opinion that contains a going concern qualification. This announcement does not represent any change or amendment to the Company's 2024 audited financial statements or to its 2024 annual report on Form 20-F.
About SatixFy
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 low earth orbit, 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.
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 statements in this press release when it discusses the proposed transaction with MDA Space (the “Merger”) and timing thereof, growing demand for next generation digital constellations, its market-leadership position in space-grade chipsets for the upcoming generation of communication satellites. 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 may be unable to obtain required regulatory approvals or satisfy other conditions to the closing of the proposed Merger; the proposed Merger may involve unexpected costs, liabilities or delays; the occurrence of any event, change or other circumstances could give rise to the termination of the merger agreement; the ability to recognize benefits of the proposed Merger; risks that the proposed Merger disrupts current plans and operations and the potential difficulties in employee retention as a result of the proposed Merger; the impact of the Merger on relationships with the Company’s commercial counter-parties; other risks that may imperil the consummation of the Merger, which may result in the Merger not being consummated within the expected time period or at all; 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, 2024 filed with the SEC on April 1, 2025, 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.
FIN-COM
|
AUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME STATEMENT (in thousands of USD) |
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|
|
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Year Ended |
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|
|
December 31, |
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||||||||||
|
|
|
2024 |
|
2023 |
|
Change |
|
% |
|
||||
|
|
|
(U.S. dollars in thousands, except percentages) |
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Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development services and preproduction |
|
$ |
13,107 |
|
$ |
8,249 |
|
$ |
4,858 |
|
|
59 |
% |
|
Sale of products |
|
|
7,541 |
|
|
2,481 |
|
|
5,060 |
|
|
204 |
% |
|
Total revenues |
|
$ |
20,648 |
|
$ |
10,730 |
|
$ |
9,918 |
|
|
92 |
% |
|
Cost of sales and services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development services and preproduction |
|
|
6,153 |
|
|
4,930 |
|
|
1,223 |
|
|
25 |
% |
|
Sale of products |
|
|
2,168 |
|
|
1,008 |
|
|
1,160 |
|
|
115 |
% |
|
Total cost of sales and services |
|
|
8,321 |
|
|
5,938 |
|
|
2,383 |
|
|
40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
12,327 |
|
$ |
4,792 |
|
$ |
7,535 |
|
|
157 |
% |
|
R&D expenses |
|
|
22,221 |
|
|
29,126 |
|
|
(6,905 |
) |
|
(24) |
% |
|
Selling and marketing expenses |
|
|
2,070 |
|
|
2,866 |
|
|
(796 |
) |
|
(28) |
% |
|
General and administrative expenses |
|
|
10,825 |
|
|
14,561 |
|
|
(3,736 |
) |
|
(26) |
% |
|
Loss from operations |
|
$ |
(22,789 |
) |
$ |
(41,761 |
) |
$ |
18,972 |
|
|
(45) |
% |
|
Finance Income |
|
|
266 |
|
|
83 |
|
|
183 |
|
|
220 |
% |
|
Finance Expenses |
|
|
(17,504 |
) |
|
(12,129 |
) |
|
(5,375 |
) |
|
44 |
% |
|
Derivatives Revaluation |
|
|
(5,605 |
) |
|
(17,217 |
) |
|
11,612 |
|
|
(67) |
% |
|
Other Income |
|
|
- |
|
|
41,657 |
|
|
(41,664 |
) |
|
(100) |
% |
|
Share in the loss of a company accounted by equity method, net |
|
|
(33 |
) |
|
(226 |
) |
|
193 |
|
|
(85) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
$ |
(45,665 |
) |
$ |
(29,593 |
) |
$ |
(16,069 |
) |
|
54 |
% |
|
Tax expenses |
|
|
- |
|
|
(122 |
) |
|
122 |
|
|
(100) |
% |
|
Loss for the period |
|
$ |
(45,665 |
) |
$ |
(29,715 |
) |
$ |
(15,590 |
) |
|
54 |
% |
|
SATIXFY COMMUNICATIONS LTD. AUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands of USD) |
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|
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|
|
|
As of December 31, |
|||
|
|
|
2024 |
2023 |
||
|
|
Note |
In USD thousands |
|||
|
ASSETS |
|
|
|
||
|
CURRENT ASSETS: |
|
|
|
||
|
Cash and cash equivalents |
14 |
14,433 |
13,979 |
||
|
Trade accounts receivable |
|
3,905 |
2,260 |
||
|
Contract assets |
4 |
1,486 |
4,091 |
||
|
Prepaid expenses and other |
|
2,570 |
2,332 |
||
|
Government departments and agencies receivables |
|
5,888 |
3,076 |
||
|
Related parties |
13 |
46 |
75 |
||
|
Promissory notes |
3 |
- |
20,000 |
||
|
Inventory |
5 |
1,279 |
1,475 |
||
|
Total current assets |
|
29,607 |
47,288 |
||
|
|
|
|
|
||
|
|
|
|
|
||
|
NON-CURRENT ASSETS: |
|
|
|
||
|
Right-of-use assets, net |
6 |
1,679 |
2,235 |
||
|
Property, plant and equipment, net |
8 |
2,284 |
1,420 |
||
|
Investment in Jet Talk Limited (“Jet Talk”) |
7 |
1,518 |
1,551 |
||
|
Long term deposits |
|
186 |
208 |
||
|
Other long-term receivables |
3 |
- |
2,000 |
||
|
Total non-current assets |
|
5,667 |
7,414 |
||
|
|
|
|
|
||
|
|
|
|
|
||
|
|
|
|
|
||
|
TOTAL ASSETS |
|
35,274 |
54,702 |
|
SATIXFY COMMUNICATIONS LTD. AUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands of USD) |
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|
|
|||||
|
|
|
As of December 31, |
|||
|
|
|
2024 |
2023 |
||
|
|
Note |
In USD thousands |
|||
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
|
||
|
CURRENT LIABILITIES: |
|
|
|
||
|
Trade payables |
|
3,121 |
1,378 |
||
|
Contract liabilities |
9 |
186 |
1,720 |
||
|
ESA advance payments |
18 (a) |
1,264 |
3,842 |
||
|
Prepayment from Customer |
|
8,381 |
3,858 |
||
|
Advanced payments from MDA Ltd. (“MDA”) against future orders |
3 |
39,296 |
28,138 |
||
|
Lease liabilities |
6 |
786 |
639 |
||
|
Other accounts payable and accrued expenses |
10 |
8,340 |
9,704 |
||
|
Related Parties |
13 |
616 |
740 |
||
|
Total current liabilities |
|
61,990 |
50,019 |
||
|
|
|
|
|
||
|
NON-CURRENT LIABILITIES: |
|
|
|
||
|
Long term loans from financial institutions, net |
12 |
67,691 |
59,792 |
||
|
Lease liabilities |
6 |
1,392 |
2,067 |
||
|
Derivatives Instruments Liabilities |
14 |
5,719 |
114 |
||
|
Other long-term liabilities |
15 |
774 |
1,496 |
||
|
Total non-current liabilities |
|
75,576 |
63,469 |
||
|
|
|
|
|
||
|
|
|
|
|
||
|
SHAREHOLDERS’ DEFICIT: |
17 |
|
|
||
|
Share Capital |
|
- |
- |
||
|
Share Premium |
|
453,252 |
451, 093 |
||
|
Capital reserves |
|
1,444 |
1,444 |
||
|
Accumulated deficit |
|
(556,988) |
(511,323) |
||
|
Total shareholders’ deficit |
|
(102,292) |
(58,786) |
||
|
|
|
|
|
||
|
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
35,274 |
54,702 |
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