REHOVOT, Israel - SatixFy Communications Ltd. (NYSE American: SATX), an innovator in satellite communication systems, has entered into a software development and licensing agreement with MDA Space Ltd. (TSX: MDA). The contract, valued at $9 million, involves SatixFy providing modem and beamforming software, licenses, and a development kit for MDA Space's digital satellite broadband payloads in Low Earth Orbit (LEO) constellations.
The agreement specifies that SatixFy will receive $6 million for delivering the software solution and license for an existing MDA Space customer. An additional $3 million is allocated for future customer support licenses. Moreover, MDA Space retains the option to access a portion of the code for an extra $4 million, which pertains to the data plane.
Nir Barkan, CEO of SatixFy, expressed confidence in the new contract's ability to solidify SatixFy's position as a market leader in space-grade chips and software for cutting-edge digital satellite payloads. He highlighted the growing importance of their space-grade chips in upcoming LEO and Geostationary (GEO) satellite constellations.
SatixFy's offerings include radiation-hardened chipsets with onboard processing capabilities and support for multi-beam digital antennas, as well as advanced ground terminals. These products are designed to enhance satellite communications by reducing weight and power requirements and saving space in gateway equipment.
This partnership underscores the mutual trust and the ongoing collaboration between SatixFy and MDA Space, aiming to advance the satellite communications industry's technological envelope. The deal is a testament to SatixFy's capacity to deliver a comprehensive suite of software and services to its partners.
Based in Rehovot, Israel, SatixFy has a global presence, with offices in the United States, United Kingdom, and Bulgaria. The company specializes in developing end-to-end satellite communication systems, including multi-beam digital antennas and modems, powered by its proprietary chipsets.
The information in this article is based on a press release statement.
InvestingPro Insights
SatixFy Communications Ltd.'s recent $9 million contract with MDA Space Ltd. marks a significant milestone for the company, potentially bolstering its financial outlook. According to InvestingPro data, SatixFy's market capitalization stands at $1.90 billion, with a revenue of $629.14 million for the last twelve months as of Q2 2024. The company has demonstrated strong revenue growth, with a 23.47% increase in the most recent quarter.
InvestingPro Tips reveal that SatixFy generally trades with low price volatility, which could be attractive for investors seeking stability in the volatile satellite communications sector. However, it's worth noting that the company suffers from weak gross profit margins, which investors should consider when evaluating the impact of the new contract on SatixFy's profitability.
The stock has shown impressive performance, with a 89.41% year-to-date price total return and a 86.18% one-year price total return. This positive momentum aligns with the company's recent contract win and its growing position in the satellite communications market.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of SatixFy's financial health and market position.
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