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REHOVOT, Israel, September 06, 2024--(BUSINESS WIRE)--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 the six months ended June 30, 2024.

Management Commentary

Nir Barkan, Chief Executive Officer of SatixFy, commented, "We are very pleased with the progress we have made in 2024, with a solid increase in revenue and gross profit, driven by shipments of engineering samples of our space-grade Application Specific Integrated Circuits (ASICs). We are on track towards commercialization, which we expect by mid-2025. Strategically during the second quarter, we are proud of our landmark order of over $20 million for our Prime2 Space-Grade Digital Beam Former Chips from a world-leading technology company that is building-out its global low earth orbit (LEO) satellite network. This demonstrates the growing demand for our high-performance and market-leading satellite communication solutions. We continue to invest strongly in R&D, to maintain and build on our competitive lead, ultimately commercializing our technology that will underpin tomorrow’s leading satellite communication systems."

Financial Highlights for the First Half of 2024

• Total revenues for the first half of 2024 were $6.1 million, an increase of 7% compared to $5.7 million in the first half of 2023. The majority of revenues were product sales, driven by commencement of shipment of engineering sample of space-grade ASICs. The decrease in revenues from development services and preproduction provided to customers was primarily due to the completion of various development services agreements and the shift towards product sales.

• Gross profit for the first half of 2024 was $4.5 million (gross margin of 74%), a 96% increase from $2.3 million (gross margin of 41%) in the first half of 2023. The increase in gross profit and margin was due to the product mix favoring higher-margin space-grade ASIC products.

• Operating loss was $13.7 million in the first half of 2024, a 17% improvement from the loss of $16.6 million in the first half of 2023. The increase was mainly attributed to a higher gross profit and a reduction in operating expenses, as described below.

• Expenses Breakdown:

  • Research and Development (R&D): $13.3 million, a 1% decrease compared to $13.4 million for the first half of 2023. R&D expenses were primarily driven by the Company’s significant efforts to develop its space grade ASICs and bring them to maturity.

  • Selling and Marketing: $1.1 million, a 21% decrease compared to $1.4 million for the first half of 2023. The decrease was primarily due to a decrease in payroll and related costs.

  • General and Administrative: $3.9 million, a 7% decrease compared to $4.2 million for the first half of 2023. The decrease was mainly due to a decrease in legal fees and insurance costs.

  • Finance expenses: $7.6 million, a 43% increase compared to $5.3 million for the first half of 2023. The increase was mainly attributed to $1.5 million of interest accruals recorded on advanced payments from MDA Space and Robotics Limited.

• Net loss for the first half of 2024 was $21.3 million, or $0.25 per basic and diluted share, a 54% improvement compared with a net loss of $46.3 million, or $0.57 per basic and diluted share, in the first half of 2023. The net loss in the first half of 2023 was impacted by a $24.1 million derivatives revaluation, whereas no such revaluation occurred in the first half of 2024.

• Cash and Cash Equivalents: Cash and cash equivalents as of June 30, 2024, amounted to $7.9 million, compared to $14.0 million as of December 31, 2023.