May 1, 2023
News
SatixFy's News
SatixFy Announces Full Year 2022 Results
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
Rehovot, Israel – 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, SaixFy 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 expectto 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.
Rehovot, Israel – 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, SaixFy 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 expectto 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.