2023 expected to be a key strategic year for
SatixFy with the planned release of two space-grade ASICs and IFC
terminal product expected by year-end
SatixFy Communications Ltd. (“SatixFy”) (NYSE AMERICAN:
SATX), a leader in next-generation satellite communication systems
based on in-house developed chipsets, today announced its
consolidated financial results for the full year 2022.
Ido Gur, CEO of SatixFy, commented: “In 2022, we
navigated a change in leadership amidst challenges brought in the
aftermath of the COVID-19 pandemic and the subsequent supply chain
constraints. Despite those challenges, we continued to invest in
R&D, including advancing our satellite communication systems
and chipsets.”
Continued Mr. Gur, “Since being appointed the new CEO of
SatixFy, together with my management team we have undertaken a
comprehensive strategic review. In an effort to align our current
expense level with our revenues, we have instituted a headcount
reduction to streamline our operations. We have shifted SatixFy’s
focus to concentrate on key growth areas – chips, OBP and payloads
in the space industry and high-end mobile terminals including the
IFC market. At the same time, SatixFy is committed to building a
strong management team to drive our long-term strategy forward and
we have recruited some key C-level executives who will bring strong
experience and industry knowledge to our organization. Looking out
through 2023, from a strategic perspective we are increasing our
focus on execution. We expect to release some important products by
year-end including the release of two flagship space-grade ASICs
and a revolutionary IFC terminal product. At the same time, we are
working on some major satellite projects which we believe will come
to fruition in the coming quarters.
“Our position as a leading fabless semiconductor company that
focuses on chip design, producing some of the most advanced chips
today for satcom applications, enables us to bring cutting-edge
solutions to the market. I believe SatixFy is poised for strong
growth over the coming years. For 2023, we anticipate growth in
revenue and an improvement in the bottom line with a reduction in
losses," concluded Mr. Gur.
Full Year 2022 Results
Revenues were $10.6 million in 2022, compared with $21.7
million in 2021. Ongoing macro-level events, including supply-chain
constraints across the satellite industry, resulted in order delays
and project cancellations by certain current and prospective
customers. Furthermore, management changes due to the passing of
the Company’s founder and CEO during 2022 impacted the Company’s
execution during 2022.
Gross profit was $6.1 million (57.7% of revenues) in
2022, compared with $12.9 million (59.3% of revenues) in 2021.
In terms of operating expenses, research and development
(R&D) expenses, net, amounted to $16.8 million in 2022 compared
with $17.9 million in 2021. Selling and marketing expenses were
$2.3 million in 2022 compared with $1.8 million in 2021. General
and administrative (G&A) expenses were $9.2 million in 2022
compared with $3.7 million in 2021. The increase in G&A
expenses was primarily a result of costs incurred by the Company
becoming a public company in 2022, including costs related to
director and officer liability insurance, director’s fees and
public company-related auditing and compliance costs.
Operating loss was $22.3 million in 2022, compared with
$10.6 million in 2021.
Non-GAAP operating loss was $17.5 million in 2022,
compared with $10.4 million in 2021
Net loss on a GAAP basis for 2022 was $397.8 million
compared with a net loss of $17.0 million in 2021.
The total net loss included a number of one-time factors, as
follows:
- A $318 million non-cash expense incurred in connection with the
business combination of SatixFy with Endurance, which constituted a
share-based transaction pursuant to IFRS 2 (share-based payments).
Under GAAP rules, the share listing expense was calculated as the
excess of the fair value of the equity instruments issued by
Endurance over the fair value of the identified net assets
contributed by the Company in the business combination valued based
on a year-end share price of $7.70 per share;
- $37 million non-cash finance expense, reflecting the
revaluation of a derivative contract relating to the transactions
under a Forward Purchase Agreement entered into as part of the
business combination process by Endurance, SatixFy, Merger Sub and
certain sellers in October 2022; and
- A $5.5 million one-time income recognition due to a life
insurance payment associated with the passing of the Company’s
founder and former CEO, Mr. Yoel Gat.
Net loss on a non-GAAP basis for 2022 was $22.5 million,
compared with $10.6 million in 2021.
Cash used in operating activities was $31.5 million in
2022, compared with $5.9 million in 2021. Cash and cash equivalents
were $11.9 million as of December 31, 2022, compared with $3.9
million as of December 31, 2021.
About SatixFy
SatixFy develops end-to-end next-generation satellite
communications systems, including satellite payloads, 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 VSATs and multi-beam fully
electronically steered antenna arrays are optimized for a variety
of mobile applications and services, using LEO, MEO and GEO
satellite communications systems, for aero/in-flight connectivity
systems, communications-on-the-move applications, satellite-enabled
Internet-of-Things, and consumer user terminals.
SatixFy is headquartered in Rehovot, Israel with additional
offices in the U.S., U.K. and Bulgaria. For more information,
please visit www.SatixFy.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“estimate,” “plan,” “project,” “forecast,” “intend,” “will,”
“expect,” “anticipate,” “believe,” “seek,” “target” or other
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of SatixFy’s management and are not predictions of actual
performance. These forward-looking statements are provided for
illustrative purposes only and are not intended to serve as, and
must not be relied on by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and will differ from assumptions. Many actual
events and circumstances are beyond the control of SatixFy.
SAT-FIN
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version on businesswire.com: https://www.businesswire.com/news/home/20230501005341/en/
Media Contacts: Helena Itzhak, SatixFy, info@satixfy.com
Investor Contacts: Ehud Helft, EK Global IR,
satixfy@ekglobal.com
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