REHOVOT, Israel - SatixFy Communications Ltd. (NYSE American: SATX), an innovator in satellite communication systems, has announced a partnership with SCOTTY Group Austria GmbH, a provider of communication solutions for aircraft. This collaboration marks the first order of SatixFy's Onyx in-flight connectivity (IFC) terminals, designed for small to mid-sized aircraft.
The Onyx terminal, featuring SatixFy's advanced digital beam-forming technology and multi-orbit capabilities, aims to enhance satellite communications for aircraft that have been limited by the size of existing terminals. SCOTTY's initial order includes the Onyx terminal and associated product support, with the first installation expected on a business aircraft in the second half of 2024.
Nir Barkan, Acting CEO of SatixFy, expressed confidence in the partnership, noting that it aligns with the company's goal to lead in satellite-based communications. Joachim Kalcher, CEO of SCOTTY, highlighted the synergy between the two companies, pointing out SCOTTY's expertise in secure communications in challenging environments.
SatixFy specializes in developing comprehensive satellite communication systems, including multi beam digital antennas, user terminals, modems, and chipsets. The company's products support the DVB-S2X communications standard and are designed for mobile applications across various satellite systems.
SCOTTY, headquartered in Graz, Austria, is known for its advanced communication solutions tailored for aviation and other demanding applications. The company's experience allows it to optimize communication infrastructures for a wide range of clients, including business aviation, peacekeeping forces, and border police.
The partnership between SatixFy and SCOTTY is expected to offer improved satellite communication solutions for the aviation sector, with the potential to expand into government, business jets, and commercial airlines.
This news is based on a press release statement.
InvestingPro Insights
SatixFy Communications Ltd. (NYSE American: SATX) is making waves with its recent partnership announcement, but what do the numbers say about the company's financial health and market position? With a market capitalization of $53.08 million and a revenue of $10.73 million over the last twelve months as of Q4 2023, SatixFy is navigating the competitive satellite communication landscape with significant challenges.
InvestingPro Data highlights a notable revenue growth of just under 1% over the last twelve months, which suggests a relatively stable income stream. However, the quarterly revenue growth has seen a sharp decline of -51.73% in Q4 2023, indicating potential volatility or seasonal fluctuations in the company's performance. The gross profit margin stands strong at 44.66%, which could be a sign of efficient cost management despite the revenue hiccups.
Two critical InvestingPro Tips for SatixFy include the company's significant debt burden and its rapid cash burn rate. These factors could impact the company's ability to sustain operations and invest in growth opportunities, such as the recent partnership with SCOTTY Group Austria GmbH. Additionally, the company's valuation implies a poor free cash flow yield, which, coupled with its non-profitability over the last twelve months, might raise concerns for potential investors.
On a more positive note, SatixFy has experienced a strong return of 54.13% over the last six months, with a year-to-date price total return of 74.88%, showcasing a considerable rebound in investor confidence. However, it's important to note that the company does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income.
For readers interested in a deeper analysis, InvestingPro offers additional insights and metrics on SatixFy's financial performance and market trends. There are six more InvestingPro Tips available at https://www.investing.com/pro/SATX, which can provide a more comprehensive understanding of the company's prospects and challenges. Take advantage of the special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching your investment strategy with expert insights.
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