UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2024
Commission File Number: 001-41544
SATIXFY COMMUNICATIONS LTD.
(Translation of registrant’s name into English)
12 Hamada Street, Rehovot 7670314
Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
CONTENTS
On December 9, 2024, SatixFy Communications Ltd. (the “Company”) issued a press release titled “SatixFy Announces Nine-Month 2024 Results,” a copy of which is furnished as Exhibit
99.1 with this Report of Foreign Private Issuer on Form 6-K.
The press release attached herewith as Exhibit 99.1, excluding the second and the third paragraphs thereof, is incorporated by reference into the Company’s Registration Statements
on Form F-3 (Registration No.
333-279869) and Form S-8 (Registration Nos.
333-268005 and
333-275902),
filed with the Securities and Exchange Commission, to be a part thereof from the date on which this Report of Foreign Private Issuer on Form 6-K is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.
EXHIBIT INDEX
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
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SATIXFY COMMUNICATIONS LTD.
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Date: December 9, 2024
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By:
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/s/ Oren Harari
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Name:
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Oren Harari
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Title:
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Interim Chief Financial Officer
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SatixFy Announces Nine-Month 2024 Results
Expects full year 2024 revenues of between $17-$19 million
Rehovot, Israel – December 9, 2024 – 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 nine month period ended
September 30, 2024 and provided recent operational and business updates.
Management Commentary
Nir Barkan, Chief Executive Officer of
SatixFy, commented, “We are very pleased with the strong momentum we have shown in the third quarter, which has continued into the current quarter. Our recent progress has been marked by key agreements that highlight growing traction for
our chipsets and strong market demand for our satellite communication solutions. Most importantly, in November 2024, we signed a milestone $39 million contract with Telesat to develop Landing Station Baseband Units for Telesat’s Lightspeed Network,
solidifying our role as a critical partner to them. Additionally, our collaboration with MDA Space Ltd. continues to strengthen and we signed a number of further agreements with them in October 2024, including a software development and license
contract supporting their digital payload systems and new agreements expanding our collaboration on space-grade chips. We believe this further strengthens our market-leadership position in space-grade chipsets for the upcoming generation of
communication satellites. Our growing momentum demonstrates the strategic value of our cutting-edge technology to our customers and we believe our success will translate into improved financial metrics over the coming quarters.”
Guidance for 2024
During the fourth quarter of 2024, the Company signed a number of key agreements and expects to meet certain milestones which will result in a significantly increased level of service revenues in the
fourth quarter. As such, the Company currently expects to report full year 2024 revenues of between $17 and $19 million with a gross margin of between 70% and 75%.
Financial Highlights for the Nine Months of 2024
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Total revenues for the nine-month period ended September 30, 2024, were $8.5 million, a decrease of 4% compared to $8.9 million in the same period in 2023. The majority of revenues for the current
nine-month period were from product sales, driven by the commencement of shipments of engineering samples of space-grade Application Specific Integrated Circuits (“ASICs”). It is noted that over the nine-month period there was a decrease in
revenues from development services and preproduction provided to customers due to the completion of various development services agreements as well as the above-mentioned higher level of product sales compared to the same period in 2023.
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Gross profit for the nine-month period ended September 30, 2024 was $6.2 million (gross margin of 72%), a 36% increase compared to $4.5 million (gross margin of 51%) in the same period in 2023. The
increase in gross profit and gross margin was due to the Company’s product mix favoring higher-margin space-grade ASIC products.
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Operating loss for the nine-month period ended September 30, 2024 was $23.1 million, an 18% improvement compared to an operating loss of $28.1 million during the same period in 2023. The decrease was
mainly attributed to a higher gross profit and a reduction in operating expenses, as described below.
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Research and Development expenses, net (“R&D”), for the nine-month period ended September 30, 2024 were $21.4 million, a 15% decrease compared to $25.1 million in the same period in 2023. R&D
expenses were primarily driven by the Company’s significant efforts to develop its space-grade ASICs and bring them to maturity. The decrease in R&D expenditure was driven by a decrease in salaries and related costs combined with a
decrease in post-silicon costs related to ASICs.
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Selling and Marketing expenses for the nine-month period ended September 30, 2024 were $2.1 million, a 13% increase compared to $1.8 million for the same period in 2023. The increase was primarily
due to an increase in payroll and related costs.
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General and Administrative expenses for the nine-month period ended September 30, 2024 were $5.7 million, a 2% increase compared to $5.6 million for the same period in 2023.
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Finance expenses: $11.5 million, a 64% decrease compared to $31.8 million for the same period in 2023. The decrease was primarily due to a $24 million revaluation expense of the Company’s derivatives
in 2023.
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Net loss for the nine-month period ended September 30, 2024, was $34.5 million, or $0.41 per basic and diluted share, a 43% improvement compared with a net loss of $60.0 million, or $0.74 per basic
and diluted share, in the same period in 2023, which included the large derivative revaluation expense as noted above.
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Cash and Cash Equivalents as of September 30, 2024, amounted to $6.5 million, compared to $14.0 million as of December 31, 2023.
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SatixFy develops end-to-end next-generation satellite space and ground 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 Very Small Aperture
Terminal and multi-beam fully electronically steered antenna arrays are optimized for a variety of mobile applications and services, using low earth orbit, Medium Earth Orbit and Geostationary satellite communications systems, for aero/in-flight
connectivity systems, high-end communications-on-the-move applications, and more.
SatixFy is headquartered in Rehovot, Israel with additional offices in the UK, U.S. and Bulgaria.
For more information, please refer to 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 full year 2024 revenues and gross margin; the growing traction for its chipsets; the market demand and its market-leadership position in space-grade chipsets for the upcoming
generation of communication satellites; its growing momentum and belief that the Company’s success will translate into improved financial metrics over the coming quarters. 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.
Contacts
Investor Contact:
Kenny Green & Ehud Helft, EK Global IR, satixfy@ekglobal.com
Media Contact:
Aviv Sax Nahamoni, info@satixfy.com
SATIXFY COMMUNICATIONS LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME STATEMENT
(in thousands of USD)
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Nine months ended
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September 30,
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2024
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2023
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Revenues:
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Development services and preproduction
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1,666
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6,357
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Sale of products
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Total revenues
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Cost of sales and services:
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Development services and preproduction
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291
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3,213
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Sale of products
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Total cost of sales and services
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2,354
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4,367
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Gross profit
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Research and development expenses, net
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21,445
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25,114
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Selling and marketing expenses
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2,082
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1,847
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General and administrative expenses
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Loss from operations
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(23,095
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(28,056
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Finance income
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87
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53
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Finance expense
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(11,478
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(31,804
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Company's share in the loss of a company accounted by equity method, net
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Loss before income taxes
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Income taxes
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Loss for the period
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Other comprehensive income net of tax:
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Items that will or may be reclassified to profit or loss:
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Exchange gain arising on translation of foreign operations
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Total comprehensive loss for the period
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Basic and diluted loss per share (in US dollars)
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(0.41
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(0.74
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Basic and diluted weighted average ordinary shares outstanding
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84,135
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80,732
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SATIXFY COMMUNICATIONS LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of USD)
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September 30,
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December 31,
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2024
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2023
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ASSETS:
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CURRENT ASSETS:
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Cash and cash equivalents
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6,524
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13,979
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Trade accounts receivable, net
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1,423
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2,260
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Contract assets
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3,357
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4,091
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Prepaid expenses and other
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2,621
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2,332
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Government departments and agencies receivables
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4,525
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3,076
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Related parties
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25
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75
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Inventory
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1,737
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1,475
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Promissory Notes
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Total current assets
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NON-CURRENT ASSETS:
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Right-of-use assets, net
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1,774
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2,235
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Property and equipment, net
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1,943
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1,420
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Investment in joint venture
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1,523
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1,551
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Long term deposits
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183
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208
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Other long-term receivables
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Total non-current assets
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TOTAL ASSETS
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SATIXFY COMMUNICATIONS LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of USD)
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September 30,
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December 31,
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2024
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2023
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LIABILITIES AND SHAREHOLDERS’ DEFICIT:
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CURRENT LIABILITIES:
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Trade payables
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1,602
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1,378
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Current portion of long-term bank loans, net
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11,486
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-
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Contract liabilities
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4,120
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1,720
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European Space Agency advance payments
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2,466
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3,842
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Prepayments from customers
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1,395
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3,858
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Advanced payments from MDA Space and Robotics Limited, an affiliate of MDA Ltd., against future orders
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30,390
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28,138
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Lease liabilities
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761
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639
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Other accounts payable and accrued expenses
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4,267
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9,704
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Related parties
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435
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740
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Total current liabilities
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NON-CURRENT LIABILITIES:
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Loans from financial institutions, net
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57,506
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59,792
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Lease liabilities
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1,532
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2,067
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Derivatives instruments liabilities
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114
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114
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Other long-term liabilities
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1,118
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1,496
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Total non-current liabilities
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SHAREHOLDERS’ DEFICIT:
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Share capital
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-
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-
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Share premium
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452,836
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451, 093
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Capital reserves
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1,444
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1,444
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Accumulated deficit
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Total shareholders’ deficit
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TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT
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