SatixFy Signs over $10 Million in Further Agreements with MDA Space

Rhea-AI Summary

SatixFy Communications (NYSE American: SATX) has secured new agreements worth over $10 million with MDA Space. The deal includes a $6.7 million purchase order for engineering models and space-grade chips, plus a $3.5 million ATP agreement for engineering work. This builds upon a previous $2 million ATP agreement.

The company will provide advanced chipsets and digital beamformers for testing and assembly in MDA Space's satellites. These components are important for next-generation satellite communication networks, supporting both LEO and GEO constellations.

Positive

• Secured new orders worth over $10 million from MDA Space
• Received $6.7 million purchase order for space-grade chips and engineering models
• Additional $3.5 million ATP agreement for engineering work
• Expansion of existing collaboration with major industry player MDA Space

Negative

• None.

Insights

Financial Analyst

SatixFy's new agreements with MDA Space represent a significant financial development for the satellite technology provider. The combined $10.2 million in new business (a $6.7 million purchase order plus $3.5 million ATP) constitutes approximately 10% of SatixFy's $101.8 million market capitalization - making this a material revenue event for a company of this size.

This expanded relationship shows progression beyond the initial $2 million engineering ATP previously announced, demonstrating important commercial momentum. The transition from engineering work to actual purchase orders for chipsets indicates advancing product maturity and MDA's confidence in SatixFy's technology.

For a small-cap company like SatixFy, securing substantial orders from established industry players is important for financial stability. The contract amendments suggest a deepening partnership that could potentially lead to recurring revenue streams as MDA integrates these components into their satellite programs.

MDA Space (TSE:MDA) is a credible customer in the aerospace sector, providing valuable validation of SatixFy's technology in the competitive satellite communications market. While the specific timeline for revenue recognition isn't detailed, these agreements should strengthen SatixFy's near-term financial outlook and potentially improve investor confidence in the company's commercial traction.

Technology Expert

From a technical perspective, SatixFy's chip supply agreement with MDA Space highlights the strategic importance of specialized semiconductor technology in next-generation satellite networks. The company's digital beamforming technology addresses a critical need in modern satellite communications - enabling dynamic signal direction and optimization without mechanical movement.

SatixFy appears to be successfully navigating the challenging transition from engineering development to supplying flight-qualified hardware. The order for both engineering models and space-grade chips indicates progression through qualification phases toward actual deployment. Space-grade components require exceptional reliability, radiation hardening, and performance characteristics that significantly exceed commercial standards.

The fact that MDA is integrating these components into their satellites suggests SatixFy's technology offers meaningful advantages in either performance, power efficiency, or functionality. Digital beamforming enables satellites to create multiple, steerable beams simultaneously, dramatically increasing data throughput and network flexibility.

The mention of both LEO and GEO applications is technically significant, as these orbital regimes have different requirements. Supporting both indicates versatility in SatixFy's architecture. The increasing adoption of software-defined payloads in satellite design aligns with SatixFy's specialty in programmable chips that can be updated even after deployment, potentially extending satellite operational lifespans and capabilities.

Signed purchase order for initial provision of chips and ATP for engineering work

REHOVOT, Israel--(BUSINESS WIRE)-- SatixFy Communications Ltd. (“SatixFy” or the “Company”) (NYSE American: SATX), a leader in next-generation satellite communication systems based on in-house-designed chipsets, today announced the receipt of a purchase order from MDA Space Ltd. (TSE:MDA) (“MDA Space”) of approximately $6.7 million for engineering models and space-grade chips, alongside signing an amended Authorization to Proceed (“ATP”) agreement for an additional $3.5 million for engineering work and an amendment to the existing master purchase agreement between SatixFy and MDA Space.

These latest agreements build upon the previously announced $2 million ATP for engineering work, further strengthening SatixFy’s already significant collaboration with MDA Space. The additional engineering work is associated with the completion of the development and commencing deliveries of SatixFy’s advanced chipsets, a critical component for next-generation satellite communication networks.

Under the purchase order, SatixFy will provide engineering models and space-grade chips, which will be used for internal testing and assembly in MDA Space’s satellites. These advanced chips and digital beamformers will enable high-performance and power-efficient communication satellite solutions for MDA Space.

“We are very happy with this further expansion of our already strong collaboration with MDA Space,” said Nir Barkan, Chief Executive Officer of SatixFy. “We believe that these new agreements further build on our strong foundation and demonstrate the growing market demand for our advanced space-grade chips and digital beamforming technology.”

Mr. Barkan added: “These agreements solidify SatixFy’s role as a key enabler of next-generation satellite communications. Our solutions are very much at the heart of next-generation advanced satellite networks, supporting both LEO and GEO constellations that will define the future of global connectivity.”

About SatixFy

SatixFy develops end-to-end next-generation satellite communications systems, including satellite multi-beam digital Space antennas, Flat panel user terminals and modems, based on powerful in-house designed chipsets.

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 and RCS2. 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, prepared for multi-orbits 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 statement in this press release when it discusses the advantages and benefits of SatixFy’s products; the Company’s belief that these new agreements with MDA Space further build on its strong foundation and demonstrate the growing market demand for its advanced space-grade chips and digital beamforming technology; its belief that latest milestone positions it for significant growth as the Company moves toward production and delivery; that these agreements solidify SatixFy’s role as a key enabler of next-generation satellite communications and that Company’s solutions are very much at the heart of next-generation advanced satellite networks. 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-FIN

View source version on businesswire.com: https://www.businesswire.com/news/home/20250317607944/en/

Investor Contact:

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

Media Contact:

Aviv Sax Nahamoni, info@satixfy.com

Source: SatixFy

FAQ

What is the total value of SatixFy's (SATX) new agreements with MDA Space?

SatixFy's new agreements with MDA Space total over $10 million, comprising a $6.7 million purchase order and a $3.5 million ATP agreement.

What products will SatixFy (SATX) deliver to MDA Space under the new purchase order?

Under the $6.7 million purchase order, SatixFy will deliver engineering models and space-grade chips for internal testing and assembly in MDA Space's satellites.

How will SatixFy's (SATX) technology be used in MDA Space's satellite systems?

SatixFy's advanced chips and digital beamformers will enable high-performance and power-efficient communication satellite solutions for both LEO and GEO constellations.

What is the significance of the ATP agreement between SatixFy (SATX) and MDA Space?

The $3.5 million ATP agreement covers engineering work associated with completing development and commencing deliveries of SatixFy's advanced chipsets for satellite communication networks.