Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries SatixFy Announces First Quarter 2023 Results By: SatixFy via Business Wire May 26, 2023 at 08:00 AM EDT 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 first quarter of 2023. Ido Gur, CEO of SatixFy, commented: “SatixFy’s first quarter results demonstrate that SatixFy is moving in the right direction. We have taken steps to reduce expenses while continuing our investment in R&D to maintain our edge and advance our satellite communication systems and chipsets. Our results demonstrate that we remain on track for revenue growth in 2023, with an associated improvement in the bottom line.” First Quarter 2023 Results Total revenues for the first quarter of 2023 were $2.4 million, an increase of 12% compared to $2.1 million in the first quarter of 2022. The vast majority of the revenues were from development services and pre-production. Gross profit for the first quarter of 2023 was $1.0 million (at a gross margin of 41.0%), a 16% decline compared with $1.2 million (at a gross margin of 54.7%) in the first quarter of 2022. The decline in gross margin was attributed to the revenue mix, which favored a higher level of development services and preproduction that has a higher cost of services and sales. Operating expenses declined to $7.0 million in the first quarter of 2023 from $7.6 million in the first quarter of 2022, reflecting a steady level of research and development (R&D) expenses, a $0.3 million increase in selling and marketing expenses, and a $1.0 million decrease in general and administrative (G&A) expenses, reflecting the impact in the first quarter of 2022 of a $2.0 million special management bonus, partially offset by public company costs following our business combination with Endurance Acquisition Corp. and listing on the NYSE in the first quarter of 2023. Operating loss was $6.0 million in the first quarter of 2023, down from $6.4 million in the first quarter of 2022. Finance expenses, net for the first quarter of 2023 were $26.3 million, reflecting expense of $43.7 million derived from the valuation of the Forward Purchase Agreement, based on a decrease in the market price of the Company’s ordinary shares, partially offset by $19.6 million in finance income derived from the valuation of Price Adjustment Shares, based on the same reason. Net loss on an IFRS basis for the first quarter of 2023 was $32.4 million, or $0.40 per basic and diluted share, compared with a net loss of $10.0 million, or $0.52 per basic and diluted share, in the first quarter of 2022. Adjusted net loss on a non-IFRS basis for the first quarter of 2023 was $6.1 million, or $0.08 per basic and diluted share compared with a non-IFRS adjusted net loss of $6.5 million, or $0.34 per basic and diluted share, in the first quarter of 2022. Cash and cash equivalents as of March 31, 2023 totaled $14.1 million, compared to $11.9 million as of December 31, 2022. About SatixFy SatixFy develops end-to-end next-generation satellite communications systems, including satellite payloads, 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 VSATs and multi-beam fully electronically steered antenna arrays are optimized for a variety of mobile applications and services, using LEO, MEO and GEO satellite communications systems, for aero/in-flight connectivity systems, communications-on-the-move applications, satellite-enabled Internet-of-Things, and consumer user terminals. 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. Non-IFRS Financial Measures: Non-IFRS adjusted net loss is defined as IFRS net loss after excluding depreciation and amortization and finance expenses, net (including the impact or revaluation of derivatives). This non-IFRS measure is not a measure of the Company’s financial performance under IFRS and is presented for supplemental information purposes only and should be considered in addition to, and not as a substitute for, the comparable IFRS measures. The Company urges investors to treat this measure with caution and review the reconciliation of its non-IFRS financial measure to the most closely comparable IFRS measure included below together with the Company’s financial information presented in accordance with IFRS. The Company is providing non-IFRS adjusted net income because it believes it presents a better measure of the Company's core business activities, excluding certain non-cash and non-recurring items, and management uses this non-IFRS measure internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance. However, the Company’s calculation and presentation of non-IFRS adjusted net income may differ materially from similar measures presented by other companies, including in the Company’s industry and in other industries. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning possible or assumed future results of operations and descriptions of our business plan and strategies and may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of SatixFy’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. The forward-looking statements are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements. Important factors that could cause such differences include, but are not limited to, the matters described in our SEC filings and Annual Report on Form 20-F, in particular in the section “Risk Factors.” Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of SatixFy. Forward-looking statements set forth herein speak only as of the date of this press release. SatixFy has no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event that any forward-looking statement is updated, no inference should be made that SatixFy will make additional updates with respect to that statement, related matters, or any other forward-looking statements. Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from forward-looking statements, including discussions of significant risk factors, may appear in SatixFy’s public filings with the SEC, which are or will be (as appropriate) accessible at www.sec.gov, and which you are advised to consult. SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands of USD) March 31, March 31, December 31, 2023 2022 2022 ASSETS: CURRENT ASSETS: Cash and cash equivalents 14,138 28,658 11,934 Trade accounts receivable 704 165 1,295 Contract assets 4,185 4,665 5,035 Prepaid expenses and other 4,738 2,689 3,648 Government departments and agencies receivables 5,471 3,431 6,156 Related parties 82 85 157 Derivatives FPA 531 - 12,775 Inventory 1,156 631 831 Total current assets 31,005 40,324 41,831 NON-CURRENT ASSETS: Right-of-use assets, net 2,736 2,868 2,794 Property, plant and equipment, net 1,590 930 1,643 Investment in Jet Talk 1,665 2,029 1,777 Long term deposits 218 273 203 Derivatives FPA - - 28,077 Total non-current assets 6,209 6,100 34,494 TOTAL ASSETS 37,214 46,424 76,325 SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands of USD) March 31, March 31, December 31, 2023 2022 2022 LIABILITIES AND SHAREHOLDERS’ DEFICIT: CURRENT LIABILITIES: Trade payables 2,365 5,377 1,459 Contract liabilities 408 358 622 ESA advance payments 4,920 11,385 5,800 Prepayment from customer 12,686 11,156 12,176 Lease liabilities 1,021 985 1,021 Other accounts payable and accrued expenses 5,136 5,359 7,843 Related parties 381 517 408 Total current liabilities 26,917 35,137 29,329 NON-CURRENT LIABILITIES: Long term loans from financial institutions 56,621 50,200 54,926 Lease liabilities 2,181 2,618 2,280 Derivatives instruments liabilities 728 1,392 20,305 Liability for royalties payable 1,153 1,423 1,107 Derivatives FPA 13,423 - - Total non-current liabilities 74,106 55,633 78,618 SHAREHOLDERS’ DEFICIT: Share Capital - - - Share Premium 446,761 48,403 446,488 Capital reserves 3,445 1,056 3,498 Accumulated deficit (514,015) (93,805) (481,608) Total shareholders’ deficit (63,809) (44,346) (31,622) TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 37,214 46,424 76,325 SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands of USD) Three months ended March 31, 2023 2022 Revenues: Development services and preproduction 2,387 1,840 Sale of products - 297 Total revenues 2,387 2,137 Cost of sales and services: Development services and preproduction 1,408 832 Sale of products - 137 Total cost of sales and services 1,408 969 Gross profit 979 1,168 Research and development expenses, net 4,184 4,159 Selling and marketing expenses 780 483 General and administrative expenses 2,018 2,956 Loss from operations 6,003 6,430 Finance income 2 54 Finance expenses (2,154) (3,498) Derivatives revaluation (24,141) - Company's share in the loss of a company accounted by equity method, net (111) (108) Loss before income taxes (32,407) (9,982) Income taxes - - Loss for the period (32,407) (9,982) Other comprehensive income (loss) net of tax: Items that will or may be reclassified to profit or loss: Exchange gain (loss) arising on translation of foreign operations (53) 827 Total comprehensive loss for the period (32,460) (9,155) Basic and diluted loss per share (in dollars) (0.40) (0.52) Basic and diluted weighted average ordinary shares outstanding 80,684 19,260 SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED statements of cash flows (in thousands of USD) Three months ended March 31, 2023 2022 Cash flows from operating activities: Loss for the year (32,407) (9,982) Adjustments to reconcile net profit to net cash provided by operating activities: Depreciation and amortization 293 346 Company's share in the loss of a company accounted by equity method, net 113 108 Finance expenses on loans 1,027 1,222 Change in the fair value of derivatives 24,141 - Share based payments 246 158 Decrease (Increase) in trade accounts receivable 613 649 Decrease (Increase) in contract assets 958 1,242 Increase in inventory (325) 54 Increase (Decrease) in other current assets (181) (2,852) Increase in trade payables 871 (3,162) Increase in ESA prepayments (1,014) (3,205) Increase in other accounts payable and accrued expenses (2,992) (2,907) Increase in prepayments from customers 241 9,652 Increase (decrease) in liability for royalties payable 47 103 Net cash used in operating activities (8,369) (8,574) Cash flows from investing activities Decrease (Increase) in long-term bank deposit (19) (2) Net cash used in investing activities (19) (2) Cash flows from financing activities Receipt of long-term loans from a financial institution 1,424 52,837 Repayment of loan to shareholder - (5,000) Repayment of loans from banks - (13,818) Repayment of royalty liability - (48) Payments of lease liabilities (1,029) (402) Issuance of shares (FPA) 10,026 - Option exercises to shares by employees 26 20 Net cash provided by financing activities 10,447 33,589 Increase (decrease) in cash and cash equivalents 2,059 25,013 Cash and cash equivalents balance at the beginning of the year 11,934 3,854 Effect of changes in foreign exchange rates on cash and cash equivalents 145 (209) Cash and cash equivalents balance at the end of the year 14,138 28,658 Appendix A - Cash paid and received during the year for: Interest paid 44 35 Appendix B - Non Cash transactions during the year for: Issuance of shares against loan - 1,978 SATIXFY COMMUNICATIONS LTD. RECONCILIATION OF NON-IFRS ADJUSTED NET LOSS TO IFRS NET LOSS (in thousands of USD) Three months ended March 31, 2023 2022 IFRS Net Loss (32,407) (9,982) Depreciation and amortization 58 44 Finance Expenses, net 26,293 3,444 Non-IFRS Adjusted Net Loss(1) (6,056) (6,494) IFRS Basic and diluted loss per share (0.40) (0.52) Non-IFRS Adjusted Basic and diluted loss per share (0.08) (0.34) Basic and diluted weighted average ordinary shares outstanding 80,684 19,260 (1) The Company did not record income tax benefit or expense in the periods and the adjustments above had no income tax effect. SAT-FIN View source version on businesswire.com: https://www.businesswire.com/news/home/20230526005011/en/Contacts Media Contacts: Helena Itzhak, SatixFy, info@satixfy.com Investor Contacts: Ehud Helft, EK Global IR, satixfy@ekglobal.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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SatixFy Announces First Quarter 2023 Results By: SatixFy via Business Wire May 26, 2023 at 08:00 AM EDT 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 first quarter of 2023. Ido Gur, CEO of SatixFy, commented: “SatixFy’s first quarter results demonstrate that SatixFy is moving in the right direction. We have taken steps to reduce expenses while continuing our investment in R&D to maintain our edge and advance our satellite communication systems and chipsets. Our results demonstrate that we remain on track for revenue growth in 2023, with an associated improvement in the bottom line.” First Quarter 2023 Results Total revenues for the first quarter of 2023 were $2.4 million, an increase of 12% compared to $2.1 million in the first quarter of 2022. The vast majority of the revenues were from development services and pre-production. Gross profit for the first quarter of 2023 was $1.0 million (at a gross margin of 41.0%), a 16% decline compared with $1.2 million (at a gross margin of 54.7%) in the first quarter of 2022. The decline in gross margin was attributed to the revenue mix, which favored a higher level of development services and preproduction that has a higher cost of services and sales. Operating expenses declined to $7.0 million in the first quarter of 2023 from $7.6 million in the first quarter of 2022, reflecting a steady level of research and development (R&D) expenses, a $0.3 million increase in selling and marketing expenses, and a $1.0 million decrease in general and administrative (G&A) expenses, reflecting the impact in the first quarter of 2022 of a $2.0 million special management bonus, partially offset by public company costs following our business combination with Endurance Acquisition Corp. and listing on the NYSE in the first quarter of 2023. Operating loss was $6.0 million in the first quarter of 2023, down from $6.4 million in the first quarter of 2022. Finance expenses, net for the first quarter of 2023 were $26.3 million, reflecting expense of $43.7 million derived from the valuation of the Forward Purchase Agreement, based on a decrease in the market price of the Company’s ordinary shares, partially offset by $19.6 million in finance income derived from the valuation of Price Adjustment Shares, based on the same reason. Net loss on an IFRS basis for the first quarter of 2023 was $32.4 million, or $0.40 per basic and diluted share, compared with a net loss of $10.0 million, or $0.52 per basic and diluted share, in the first quarter of 2022. Adjusted net loss on a non-IFRS basis for the first quarter of 2023 was $6.1 million, or $0.08 per basic and diluted share compared with a non-IFRS adjusted net loss of $6.5 million, or $0.34 per basic and diluted share, in the first quarter of 2022. Cash and cash equivalents as of March 31, 2023 totaled $14.1 million, compared to $11.9 million as of December 31, 2022. About SatixFy SatixFy develops end-to-end next-generation satellite communications systems, including satellite payloads, 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 VSATs and multi-beam fully electronically steered antenna arrays are optimized for a variety of mobile applications and services, using LEO, MEO and GEO satellite communications systems, for aero/in-flight connectivity systems, communications-on-the-move applications, satellite-enabled Internet-of-Things, and consumer user terminals. 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. Non-IFRS Financial Measures: Non-IFRS adjusted net loss is defined as IFRS net loss after excluding depreciation and amortization and finance expenses, net (including the impact or revaluation of derivatives). This non-IFRS measure is not a measure of the Company’s financial performance under IFRS and is presented for supplemental information purposes only and should be considered in addition to, and not as a substitute for, the comparable IFRS measures. The Company urges investors to treat this measure with caution and review the reconciliation of its non-IFRS financial measure to the most closely comparable IFRS measure included below together with the Company’s financial information presented in accordance with IFRS. The Company is providing non-IFRS adjusted net income because it believes it presents a better measure of the Company's core business activities, excluding certain non-cash and non-recurring items, and management uses this non-IFRS measure internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance. However, the Company’s calculation and presentation of non-IFRS adjusted net income may differ materially from similar measures presented by other companies, including in the Company’s industry and in other industries. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning possible or assumed future results of operations and descriptions of our business plan and strategies and may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of SatixFy’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. The forward-looking statements are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements. Important factors that could cause such differences include, but are not limited to, the matters described in our SEC filings and Annual Report on Form 20-F, in particular in the section “Risk Factors.” Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of SatixFy. Forward-looking statements set forth herein speak only as of the date of this press release. SatixFy has no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event that any forward-looking statement is updated, no inference should be made that SatixFy will make additional updates with respect to that statement, related matters, or any other forward-looking statements. Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from forward-looking statements, including discussions of significant risk factors, may appear in SatixFy’s public filings with the SEC, which are or will be (as appropriate) accessible at www.sec.gov, and which you are advised to consult. SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands of USD) March 31, March 31, December 31, 2023 2022 2022 ASSETS: CURRENT ASSETS: Cash and cash equivalents 14,138 28,658 11,934 Trade accounts receivable 704 165 1,295 Contract assets 4,185 4,665 5,035 Prepaid expenses and other 4,738 2,689 3,648 Government departments and agencies receivables 5,471 3,431 6,156 Related parties 82 85 157 Derivatives FPA 531 - 12,775 Inventory 1,156 631 831 Total current assets 31,005 40,324 41,831 NON-CURRENT ASSETS: Right-of-use assets, net 2,736 2,868 2,794 Property, plant and equipment, net 1,590 930 1,643 Investment in Jet Talk 1,665 2,029 1,777 Long term deposits 218 273 203 Derivatives FPA - - 28,077 Total non-current assets 6,209 6,100 34,494 TOTAL ASSETS 37,214 46,424 76,325 SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands of USD) March 31, March 31, December 31, 2023 2022 2022 LIABILITIES AND SHAREHOLDERS’ DEFICIT: CURRENT LIABILITIES: Trade payables 2,365 5,377 1,459 Contract liabilities 408 358 622 ESA advance payments 4,920 11,385 5,800 Prepayment from customer 12,686 11,156 12,176 Lease liabilities 1,021 985 1,021 Other accounts payable and accrued expenses 5,136 5,359 7,843 Related parties 381 517 408 Total current liabilities 26,917 35,137 29,329 NON-CURRENT LIABILITIES: Long term loans from financial institutions 56,621 50,200 54,926 Lease liabilities 2,181 2,618 2,280 Derivatives instruments liabilities 728 1,392 20,305 Liability for royalties payable 1,153 1,423 1,107 Derivatives FPA 13,423 - - Total non-current liabilities 74,106 55,633 78,618 SHAREHOLDERS’ DEFICIT: Share Capital - - - Share Premium 446,761 48,403 446,488 Capital reserves 3,445 1,056 3,498 Accumulated deficit (514,015) (93,805) (481,608) Total shareholders’ deficit (63,809) (44,346) (31,622) TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 37,214 46,424 76,325 SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands of USD) Three months ended March 31, 2023 2022 Revenues: Development services and preproduction 2,387 1,840 Sale of products - 297 Total revenues 2,387 2,137 Cost of sales and services: Development services and preproduction 1,408 832 Sale of products - 137 Total cost of sales and services 1,408 969 Gross profit 979 1,168 Research and development expenses, net 4,184 4,159 Selling and marketing expenses 780 483 General and administrative expenses 2,018 2,956 Loss from operations 6,003 6,430 Finance income 2 54 Finance expenses (2,154) (3,498) Derivatives revaluation (24,141) - Company's share in the loss of a company accounted by equity method, net (111) (108) Loss before income taxes (32,407) (9,982) Income taxes - - Loss for the period (32,407) (9,982) Other comprehensive income (loss) net of tax: Items that will or may be reclassified to profit or loss: Exchange gain (loss) arising on translation of foreign operations (53) 827 Total comprehensive loss for the period (32,460) (9,155) Basic and diluted loss per share (in dollars) (0.40) (0.52) Basic and diluted weighted average ordinary shares outstanding 80,684 19,260 SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED statements of cash flows (in thousands of USD) Three months ended March 31, 2023 2022 Cash flows from operating activities: Loss for the year (32,407) (9,982) Adjustments to reconcile net profit to net cash provided by operating activities: Depreciation and amortization 293 346 Company's share in the loss of a company accounted by equity method, net 113 108 Finance expenses on loans 1,027 1,222 Change in the fair value of derivatives 24,141 - Share based payments 246 158 Decrease (Increase) in trade accounts receivable 613 649 Decrease (Increase) in contract assets 958 1,242 Increase in inventory (325) 54 Increase (Decrease) in other current assets (181) (2,852) Increase in trade payables 871 (3,162) Increase in ESA prepayments (1,014) (3,205) Increase in other accounts payable and accrued expenses (2,992) (2,907) Increase in prepayments from customers 241 9,652 Increase (decrease) in liability for royalties payable 47 103 Net cash used in operating activities (8,369) (8,574) Cash flows from investing activities Decrease (Increase) in long-term bank deposit (19) (2) Net cash used in investing activities (19) (2) Cash flows from financing activities Receipt of long-term loans from a financial institution 1,424 52,837 Repayment of loan to shareholder - (5,000) Repayment of loans from banks - (13,818) Repayment of royalty liability - (48) Payments of lease liabilities (1,029) (402) Issuance of shares (FPA) 10,026 - Option exercises to shares by employees 26 20 Net cash provided by financing activities 10,447 33,589 Increase (decrease) in cash and cash equivalents 2,059 25,013 Cash and cash equivalents balance at the beginning of the year 11,934 3,854 Effect of changes in foreign exchange rates on cash and cash equivalents 145 (209) Cash and cash equivalents balance at the end of the year 14,138 28,658 Appendix A - Cash paid and received during the year for: Interest paid 44 35 Appendix B - Non Cash transactions during the year for: Issuance of shares against loan - 1,978 SATIXFY COMMUNICATIONS LTD. RECONCILIATION OF NON-IFRS ADJUSTED NET LOSS TO IFRS NET LOSS (in thousands of USD) Three months ended March 31, 2023 2022 IFRS Net Loss (32,407) (9,982) Depreciation and amortization 58 44 Finance Expenses, net 26,293 3,444 Non-IFRS Adjusted Net Loss(1) (6,056) (6,494) IFRS Basic and diluted loss per share (0.40) (0.52) Non-IFRS Adjusted Basic and diluted loss per share (0.08) (0.34) Basic and diluted weighted average ordinary shares outstanding 80,684 19,260 (1) The Company did not record income tax benefit or expense in the periods and the adjustments above had no income tax effect. SAT-FIN View source version on businesswire.com: https://www.businesswire.com/news/home/20230526005011/en/Contacts Media Contacts: Helena Itzhak, SatixFy, info@satixfy.com Investor Contacts: Ehud Helft, EK Global IR, satixfy@ekglobal.com
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 first quarter of 2023. Ido Gur, CEO of SatixFy, commented: “SatixFy’s first quarter results demonstrate that SatixFy is moving in the right direction. We have taken steps to reduce expenses while continuing our investment in R&D to maintain our edge and advance our satellite communication systems and chipsets. Our results demonstrate that we remain on track for revenue growth in 2023, with an associated improvement in the bottom line.” First Quarter 2023 Results Total revenues for the first quarter of 2023 were $2.4 million, an increase of 12% compared to $2.1 million in the first quarter of 2022. The vast majority of the revenues were from development services and pre-production. Gross profit for the first quarter of 2023 was $1.0 million (at a gross margin of 41.0%), a 16% decline compared with $1.2 million (at a gross margin of 54.7%) in the first quarter of 2022. The decline in gross margin was attributed to the revenue mix, which favored a higher level of development services and preproduction that has a higher cost of services and sales. Operating expenses declined to $7.0 million in the first quarter of 2023 from $7.6 million in the first quarter of 2022, reflecting a steady level of research and development (R&D) expenses, a $0.3 million increase in selling and marketing expenses, and a $1.0 million decrease in general and administrative (G&A) expenses, reflecting the impact in the first quarter of 2022 of a $2.0 million special management bonus, partially offset by public company costs following our business combination with Endurance Acquisition Corp. and listing on the NYSE in the first quarter of 2023. Operating loss was $6.0 million in the first quarter of 2023, down from $6.4 million in the first quarter of 2022. Finance expenses, net for the first quarter of 2023 were $26.3 million, reflecting expense of $43.7 million derived from the valuation of the Forward Purchase Agreement, based on a decrease in the market price of the Company’s ordinary shares, partially offset by $19.6 million in finance income derived from the valuation of Price Adjustment Shares, based on the same reason. Net loss on an IFRS basis for the first quarter of 2023 was $32.4 million, or $0.40 per basic and diluted share, compared with a net loss of $10.0 million, or $0.52 per basic and diluted share, in the first quarter of 2022. Adjusted net loss on a non-IFRS basis for the first quarter of 2023 was $6.1 million, or $0.08 per basic and diluted share compared with a non-IFRS adjusted net loss of $6.5 million, or $0.34 per basic and diluted share, in the first quarter of 2022. Cash and cash equivalents as of March 31, 2023 totaled $14.1 million, compared to $11.9 million as of December 31, 2022. About SatixFy SatixFy develops end-to-end next-generation satellite communications systems, including satellite payloads, 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 VSATs and multi-beam fully electronically steered antenna arrays are optimized for a variety of mobile applications and services, using LEO, MEO and GEO satellite communications systems, for aero/in-flight connectivity systems, communications-on-the-move applications, satellite-enabled Internet-of-Things, and consumer user terminals. 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. Non-IFRS Financial Measures: Non-IFRS adjusted net loss is defined as IFRS net loss after excluding depreciation and amortization and finance expenses, net (including the impact or revaluation of derivatives). This non-IFRS measure is not a measure of the Company’s financial performance under IFRS and is presented for supplemental information purposes only and should be considered in addition to, and not as a substitute for, the comparable IFRS measures. The Company urges investors to treat this measure with caution and review the reconciliation of its non-IFRS financial measure to the most closely comparable IFRS measure included below together with the Company’s financial information presented in accordance with IFRS. The Company is providing non-IFRS adjusted net income because it believes it presents a better measure of the Company's core business activities, excluding certain non-cash and non-recurring items, and management uses this non-IFRS measure internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance. However, the Company’s calculation and presentation of non-IFRS adjusted net income may differ materially from similar measures presented by other companies, including in the Company’s industry and in other industries. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning possible or assumed future results of operations and descriptions of our business plan and strategies and may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of SatixFy’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. The forward-looking statements are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements. Important factors that could cause such differences include, but are not limited to, the matters described in our SEC filings and Annual Report on Form 20-F, in particular in the section “Risk Factors.” Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of SatixFy. Forward-looking statements set forth herein speak only as of the date of this press release. SatixFy has no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event that any forward-looking statement is updated, no inference should be made that SatixFy will make additional updates with respect to that statement, related matters, or any other forward-looking statements. Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from forward-looking statements, including discussions of significant risk factors, may appear in SatixFy’s public filings with the SEC, which are or will be (as appropriate) accessible at www.sec.gov, and which you are advised to consult. SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands of USD) March 31, March 31, December 31, 2023 2022 2022 ASSETS: CURRENT ASSETS: Cash and cash equivalents 14,138 28,658 11,934 Trade accounts receivable 704 165 1,295 Contract assets 4,185 4,665 5,035 Prepaid expenses and other 4,738 2,689 3,648 Government departments and agencies receivables 5,471 3,431 6,156 Related parties 82 85 157 Derivatives FPA 531 - 12,775 Inventory 1,156 631 831 Total current assets 31,005 40,324 41,831 NON-CURRENT ASSETS: Right-of-use assets, net 2,736 2,868 2,794 Property, plant and equipment, net 1,590 930 1,643 Investment in Jet Talk 1,665 2,029 1,777 Long term deposits 218 273 203 Derivatives FPA - - 28,077 Total non-current assets 6,209 6,100 34,494 TOTAL ASSETS 37,214 46,424 76,325 SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands of USD) March 31, March 31, December 31, 2023 2022 2022 LIABILITIES AND SHAREHOLDERS’ DEFICIT: CURRENT LIABILITIES: Trade payables 2,365 5,377 1,459 Contract liabilities 408 358 622 ESA advance payments 4,920 11,385 5,800 Prepayment from customer 12,686 11,156 12,176 Lease liabilities 1,021 985 1,021 Other accounts payable and accrued expenses 5,136 5,359 7,843 Related parties 381 517 408 Total current liabilities 26,917 35,137 29,329 NON-CURRENT LIABILITIES: Long term loans from financial institutions 56,621 50,200 54,926 Lease liabilities 2,181 2,618 2,280 Derivatives instruments liabilities 728 1,392 20,305 Liability for royalties payable 1,153 1,423 1,107 Derivatives FPA 13,423 - - Total non-current liabilities 74,106 55,633 78,618 SHAREHOLDERS’ DEFICIT: Share Capital - - - Share Premium 446,761 48,403 446,488 Capital reserves 3,445 1,056 3,498 Accumulated deficit (514,015) (93,805) (481,608) Total shareholders’ deficit (63,809) (44,346) (31,622) TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 37,214 46,424 76,325 SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands of USD) Three months ended March 31, 2023 2022 Revenues: Development services and preproduction 2,387 1,840 Sale of products - 297 Total revenues 2,387 2,137 Cost of sales and services: Development services and preproduction 1,408 832 Sale of products - 137 Total cost of sales and services 1,408 969 Gross profit 979 1,168 Research and development expenses, net 4,184 4,159 Selling and marketing expenses 780 483 General and administrative expenses 2,018 2,956 Loss from operations 6,003 6,430 Finance income 2 54 Finance expenses (2,154) (3,498) Derivatives revaluation (24,141) - Company's share in the loss of a company accounted by equity method, net (111) (108) Loss before income taxes (32,407) (9,982) Income taxes - - Loss for the period (32,407) (9,982) Other comprehensive income (loss) net of tax: Items that will or may be reclassified to profit or loss: Exchange gain (loss) arising on translation of foreign operations (53) 827 Total comprehensive loss for the period (32,460) (9,155) Basic and diluted loss per share (in dollars) (0.40) (0.52) Basic and diluted weighted average ordinary shares outstanding 80,684 19,260 SATIXFY COMMUNICATIONS LTD. UNAUDITED INTERIM CONDENSED statements of cash flows (in thousands of USD) Three months ended March 31, 2023 2022 Cash flows from operating activities: Loss for the year (32,407) (9,982) Adjustments to reconcile net profit to net cash provided by operating activities: Depreciation and amortization 293 346 Company's share in the loss of a company accounted by equity method, net 113 108 Finance expenses on loans 1,027 1,222 Change in the fair value of derivatives 24,141 - Share based payments 246 158 Decrease (Increase) in trade accounts receivable 613 649 Decrease (Increase) in contract assets 958 1,242 Increase in inventory (325) 54 Increase (Decrease) in other current assets (181) (2,852) Increase in trade payables 871 (3,162) Increase in ESA prepayments (1,014) (3,205) Increase in other accounts payable and accrued expenses (2,992) (2,907) Increase in prepayments from customers 241 9,652 Increase (decrease) in liability for royalties payable 47 103 Net cash used in operating activities (8,369) (8,574) Cash flows from investing activities Decrease (Increase) in long-term bank deposit (19) (2) Net cash used in investing activities (19) (2) Cash flows from financing activities Receipt of long-term loans from a financial institution 1,424 52,837 Repayment of loan to shareholder - (5,000) Repayment of loans from banks - (13,818) Repayment of royalty liability - (48) Payments of lease liabilities (1,029) (402) Issuance of shares (FPA) 10,026 - Option exercises to shares by employees 26 20 Net cash provided by financing activities 10,447 33,589 Increase (decrease) in cash and cash equivalents 2,059 25,013 Cash and cash equivalents balance at the beginning of the year 11,934 3,854 Effect of changes in foreign exchange rates on cash and cash equivalents 145 (209) Cash and cash equivalents balance at the end of the year 14,138 28,658 Appendix A - Cash paid and received during the year for: Interest paid 44 35 Appendix B - Non Cash transactions during the year for: Issuance of shares against loan - 1,978 SATIXFY COMMUNICATIONS LTD. RECONCILIATION OF NON-IFRS ADJUSTED NET LOSS TO IFRS NET LOSS (in thousands of USD) Three months ended March 31, 2023 2022 IFRS Net Loss (32,407) (9,982) Depreciation and amortization 58 44 Finance Expenses, net 26,293 3,444 Non-IFRS Adjusted Net Loss(1) (6,056) (6,494) IFRS Basic and diluted loss per share (0.40) (0.52) Non-IFRS Adjusted Basic and diluted loss per share (0.08) (0.34) Basic and diluted weighted average ordinary shares outstanding 80,684 19,260 (1) The Company did not record income tax benefit or expense in the periods and the adjustments above had no income tax effect. SAT-FIN View source version on businesswire.com: https://www.businesswire.com/news/home/20230526005011/en/
Media Contacts: Helena Itzhak, SatixFy, info@satixfy.com Investor Contacts: Ehud Helft, EK Global IR, satixfy@ekglobal.com