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SatixFy lands $20 million order for space-grade chips

EditorAhmed Abdulazez Abdulkadir
Published 17/06/2024, 14:36
SATX
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REHOVOT, Israel - SatixFy Communications Ltd. (NYSE American: SATX), a company specializing in advanced satellite communication systems, has announced a substantial new order worth over $20 million. The deal involves the supply of their Prime2 Space-Grade chips and accompanying software, scheduled for delivery over the next five quarters to an unnamed customer. This agreement follows a previous $4 million order from September 2023.

The Prime2 Space-Grade chip is designed for use in massive MIMO (Multiple Input Multiple Output) antennas for space applications. It is a digital beamformer Application-Specific Integrated Circuit (ASIC) that is pivotal for complex satellite communication systems. SatixFy's chip is intended for multi-beam Low Earth Orbit (LEO) or Geostationary Earth Orbit (GEO) aeronautical antennas. The company claims that their technology offers scalability, flexibility, and enhanced performance, aiming to transform the satellite communications industry.

SatixFy's portfolio includes modems with Software Defined Radio (SDR) and Fully Electronically Steered Multi Beam Antennas (ESMA) that support DVB-S2X, an advanced communications standard. Their ASICs are said to enhance satellite communications system performance while reducing the weight, power requirements, and space needed for terminal and payload equipment. SatixFy's products are tailored for mobile applications and services across LEO, MEO, and GEO satellite communications systems, including aero/in-flight connectivity and communications-on-the-move applications.

Based in Rehovot, Israel, SatixFy also operates from offices in the U.S., U.K., and Bulgaria. The company develops end-to-end satellite communications systems, including digital antennas, user terminals, and modems, built around their in-house-developed chipsets.

The information for this article is based on a press release statement.

In other recent news, SatixFy Communications Ltd. has announced a significant partnership with SCOTTY Group Austria GmbH, a provider of communication solutions for aircraft. This collaboration leads to the first order of SatixFy's Onyx in-flight connectivity (IFC) terminals, specifically designed for small to mid-sized aircraft. The Onyx terminal, equipped with SatixFy's advanced digital beam-forming technology and multi-orbit capabilities, aims to enhance satellite communications for aircraft previously limited by the size of existing terminals.

SCOTTY's initial order includes the Onyx terminal and related product support, with the first installation expected on a business aircraft in the second half of 2024. Both companies have expressed confidence in the partnership, with SatixFy's Acting CEO, Nir Barkan, noting its alignment with the company's goal to lead in satellite-based communications. The partnership between SatixFy and SCOTTY is anticipated to offer improved satellite communication solutions for the aviation sector, with potential expansion into government, business jets, and commercial airlines.

InvestingPro Insights

SatixFy Communications Ltd. (NYSE American: SATX) has recently secured a significant new order, underscoring its potential for growth and expansion in the satellite communications market. To provide a deeper understanding of the company's financial health and market position, let's delve into some key metrics and insights from InvestingPro.

InvestingPro Data reveals a market capitalization of $50.99 million, indicating the company's relatively small size in the industry. Despite the promising new contracts, SatixFy's financials show a P/E Ratio (last twelve months as of Q1 2024) of -5.94, reflecting that the company is not currently profitable. Additionally, the Revenue Growth for the same period was reported at -5.76%, suggesting that the company has faced challenges in increasing its sales figures.

Looking at the performance of the company's stock, SatixFy has experienced a large price uptick over the last six months, with a 6 Month Price Total Return of 72.02%. This recent surge could indicate investor optimism following the announcement of new contracts and developments.

Two InvestingPro Tips highlight critical aspects of SatixFy's financial situation. The company operates with a significant debt burden and is quickly burning through cash, which could pose risks to its financial stability. Moreover, short-term obligations exceed liquid assets, which may impact the company's ability to meet immediate financial commitments.

For readers interested in a more comprehensive analysis, InvestingPro offers a total of 9 additional tips on SatixFy, providing a granular look at the company's financials, market performance, and potential risks. This analysis can be found at https://www.investing.com/pro/SATX. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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