SatixFy Announces a Landmark Order for its Prime2 Space Grade Digital Beam Former Chips of More Than $20 Million

Rhea-AI Summary

SatixFy Communications has secured a major order worth over $20 million for its Prime2 Space-Grade Digital Beam Former chips.

The client is undisclosed, and the delivery will span the next five quarters. This follows a previous $4 million order in September 2023. The Prime2 chip, essential for massive MIMO antennas in space, supports both LEO and GEO applications, offering high scalability, flexibility, and performance.

This order highlights SatixFy's role in advancing satellite communication technology.

Positive

• Secured a $20 million order for Prime2 Space-Grade chips.
• Order spans over five quarters, indicating sustained revenue.
• Follows a previous $4 million order from September 2023.
• Prime2 chip supports high-performance multi-beam LEO and GEO antennas.
• Demonstrates cutting-edge technology in satellite communication systems.

Negative

• Customer identity remains undisclosed, leading to uncertainty.
• Revenue dependent on successful delivery over five quarters, potential execution risk.

Insights

Financial Analyst

The announcement of a $20 million order for SatixFy's Prime2 Space-Grade digital beam former chips marks a substantial financial milestone for the company. An order of this magnitude, especially when added to the earlier $4 million order from September 2023, suggests strong demand for SatixFy's products. This indicates not only a robust pipeline but also market validation for the company's technology. In the short term, investors can expect this influx of revenue to boost SatixFy's financial health, improving cash flow and potentially their earnings in upcoming quarters. Over the long term, securing such a significant order could enhance SatixFy's market position and lead to further contracts, potentially driving sustained revenue growth.

Tech Expert

From a technological perspective, the Prime2 Space-Grade chip is noteworthy because it supports massive MIMO (Multiple Input Multiple Output) antennas used in space communications. This technology is essential for enhancing communication capabilities in both Low Earth Orbit (LEO) and Geostationary Earth Orbit (GEO) satellite systems. The ability to form digital beams allows for greater scalability and flexibility in satellite communication, which is important for handling the increasing data traffic and improving connectivity. With the growing adoption of satellite-based internet and communication services, the demand for advanced solutions like the Prime2 chip is expected to rise, placing SatixFy at an advantageous position in the market.

Market Research Analyst

The order highlights the increasing importance of space communication systems in today's interconnected world. The move towards LEO and GEO satellite constellations for providing global internet coverage has been gaining traction, with significant investments from major tech companies. SatixFy's ability to secure a substantial order in this competitive space signals its competitive edge in the industry. This not only sets a precedent for future orders but also shows the company’s strategic alignment with broader industry trends. Retail investors should note however that while this order is a positive indicator, understanding the broader market dynamics and potential competition is important for long-term investment decisions.

REHOVOT, Israel--(BUSINESS WIRE)-- SatixFy Communications Ltd. (“SatixFy”) (NYSE American: SATX), a leader in next-generation satellite communication systems based on in-house-developed chipsets, today announced it has secured a significant order from an undisclosed customer. Under the terms of the order, SatixFy will be supplying Prime2 Space-Grade chips and software over the coming five quarters in exchange for payment from the customer to SatixFy of more than $20 million.

This is a follow up order to an earlier $4 million order from September 2023.

The Prime2 Space-Grade chip is a digital beamformer Application-Specific Integrated Circuit (ASIC), designed for massive MIMO (Multiple Input Multiple Output) antennas in space, and serves as a cornerstone for complex satellite communication systems. SatixFy’s groundbreaking chip is a game-changer for multi-beam Low Earth Orbit (LEO) or Geostationary Earth Orbit (GEO) aeronautical antennas, allowing for unprecedented scalability, flexibility and performance. With the Prime2 chip, SatixFy underscores its dedication to revolutionizing the space industry, empowering its clients with robust, cutting-edge technology.

About SatixFy

SatixFy develops end-to-end next-generation satellite 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 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 and more.

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 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 its expected timing, obligations and revenues from the order, the potential benefits of its Prime2 Space-Grade chip; and revolutionizing the space industry, empowering its clients with robust, cutting-edge technology. 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.

SAT-COM

View source version on businesswire.com: https://www.businesswire.com/news/home/20240617146720/en/

Investor Contact:

Kenny Green & Ehud Helft, EK Global IR, satixfy@ekglobal.com

Media Contact:

Aviv Sax-Nahamoni, info@satixfy.com

Source: SatixFy

FAQ

What is the value of SatixFy's recent order for Prime2 Space-Grade chips?

The value of the recent order is over $20 million.

Over what period will SatixFy deliver the Prime2 Space-Grade chips?

SatixFy will deliver the chips over the next five quarters.

What does the Prime2 Space-Grade chip support?

The Prime2 chip supports massive MIMO antennas for both LEO and GEO satellite applications.

What was the value of the previous order received by SatixFy in September 2023?

The value of the previous order was $4 million.

What is the stock symbol for SatixFy Communications?

The stock symbol for SatixFy Communications is SATX.