SatixFy and SCOTTY Group Partner to Supply In-Flight Connectivity Terminals

Rhea-AI Summary

SatixFy Communications announced a collaboration with SCOTTY Group, leading to the first order of its Onyx in-flight connectivity (IFC) terminals. The Onyx is a high-performance satellite communications aero terminal designed for small to mid-sized aircraft with advanced digital beam-forming technology and multi-orbit connectivity capabilities. SCOTTY will integrate these terminals into their communication solutions for aircraft, enhancing connectivity in areas previously by terminal sizes. The first installation is expected in the second half of 2024. This partnership aims to meet increasing market demand for reliable high-speed communication solutions in the aviation sector.

Positive

• Partnership with SCOTTY Group, a leading manufacturer in communication solutions.
• First order of Onyx in-flight connectivity terminals.
• Onyx terminal features advanced digital beam-forming technology and multi-orbit connectivity.
• Enhances connectivity for small to mid-sized aircraft.
• First installation expected in the second half of 2024.
• Addresses market demand for reliable high-speed communication solutions in aviation.
• Potential for long-term partnership and further orders.

Negative

• Potential delays in installation scheduled for the second half of 2024.
• Dependence on successful integration and performance of the Onyx terminal in operational settings.
• Future revenue depends on the success of the initial installations and subsequent orders.

Market Research Analyst

The partnership between SatixFy and SCOTTY represents a notable strategic move within the satellite communications and aviation markets. SatixFy’s Onyx IFC terminal, featuring advanced digital beam-forming technology and multi-orbit connectivity capabilities, addresses a niche yet growing demand for reliable in-flight connectivity on small to mid-sized aircraft. This collaboration allows SCOTTY to integrate SatixFy’s cutting-edge terminals into its offerings, providing an enhanced service to sectors that previously faced connectivity challenges due to hardware limitations.

From a market perspective, this deals directly with the rising need for uninterrupted, high-speed connectivity in aviation—a trend driven by increasing data consumption and the expectation for seamless communication services. This partnership can potentially lead to a significant market share acquisition for SatixFy in the aero communication solutions market. With the first installation planned for the second half of 2024, it positions both companies to capture early adopters and set benchmarks in the market.

Investors should consider that while the initial financial impact may be limited to the order of the first batch of terminals, the long-term implications could be substantial. Successful deployment and customer satisfaction will likely drive further orders and solidify SatixFy's position in the market, potentially leading to a steady revenue stream and growth in market valuation over time.

Financial Analyst

Financially, SatixFy’s collaboration with SCOTTY is a positive development for the company. While the announcement does not disclose the financial terms of the initial order, the potential for recurring revenue through ongoing product support and future orders from SCOTTY is apparent. The aerospace sector’s growing appetite for advanced connectivity solutions suggests a robust pipeline of future opportunities.

Investors should note that entering into such partnerships often incurs upfront costs related to R&D and initial production scaling. However, these costs may be offset by the long-term revenue potential if the Onyx terminals gain traction in the market. Additionally, the technical sophistication and unique value proposition of SatixFy’s terminals could command premium pricing, enhancing profitability margins.

Another point to consider is the scalability of SatixFy’s in-house chipset production. The ability to produce custom chipsets can significantly reduce dependency on third-party suppliers and improve control over production costs and timelines, which is a considerable advantage in the highly competitive tech hardware sector.

The first terminal is expected to be installed in the second half of 2024

REHOVOT, Israel--(BUSINESS WIRE)-- SatixFy Communications Ltd. (“SatixFy”) (NYSE American: SATX), a leader in next-generation satellite communication systems based on in-house-developed chipsets, announced a collaboration and the first order of its in-flight connectivity (IFC) terminals, Onyx, with SCOTTY Group Austria GmbH (“SCOTTY”), a leading manufacturer and integrator of communication solutions, including in-flight connectivity for aircraft.

The Onyx is an all-inclusive, high-performance satellite communications aero terminal designed for use on small to mid-sized aircraft, delivering superior in-flight connectivity. Characterized by its compact form factor, the Onyx features SatixFy's cutting-edge digital beam-forming technology, along with multi-orbit connectivity capabilities.

SCOTTY placed an initial order for SatixFy’s Onyx terminal and associated product support. SCOTTY will integrate SatixFy's IFC terminals into its communication solutions for aircraft that previously lacked connectivity due to limitations of terminal sizes, enabling high-end, reliable satellite communication for its customers.

The first system is expected to be installed on a business aircraft in the second half of 2024.

Nir Barkan, Acting Chief Executive Officer of SatixFy, expressed his enthusiasm about the recent collaboration with SCOTTY, stating, “This partnership with SCOTTY and the first order of our Aero terminal is a major milestone for SatixFy. It brings us a step closer to our vision of becoming the leading enabler of reliable satellite-based communications. By combining SCOTTY’s expertise and resources with our market leading satellite communications technology, we are very well positioned to meet the fast-growing market demand for exceptionally reliable, high-speed communication solutions for the aviation sector.”

Joachim Kalcher, Chief Executive Officer of SCOTTY, added that this partnership is a natural fit for a company specializing in critical communication solutions, “With our expertise in secure communication in remote and challenging environments, SCOTTY has found a perfect match in SatixFy. Together, we can provide a comprehensive solution to our customers in the aero market—whether for government, business jets, or commercial airlines. We can also offer our expertise in installing both antennas and indoor equipment for various applications including cabins, cockpits, UAVs, and any other future needs. We are looking forward to a very long and successful partnership with SatixFy and its products.”

About SatixFy

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 Terminals 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, US and Bulgaria.

For more information, please refer to www.SatixFy.com.

About SCOTTY

SCOTTY is an original equipment manufacturer and a global provider of advanced communication solutions tailored for aviation and other challenging applications. Headquartered in Graz, Austria, SCOTTY has spent decades developing specialized expertise in the design and manufacture of secure and customizable satellite-based audio, video and data from all kinds of platforms. SCOTTY’s longstanding experience enables it to optimize complex communication infrastructure through software, hardware, and satellite networks. From business aviation customers and multinational corporations to civil protection agencies, SCOTTY solutions empower customers to stay connected and operate effectively worldwide.

SCOTTY’s solutions are pivotal in the core operations of business aviation, peacekeeping forces, border police, and other organizations that must rely on SCOTTY’s equipment to coordinate essential activities securely and in challenging environments. With strong research and development capabilities, combined with in-house manufacturing, SCOTTY crafts and then deploys specialized communication systems tailored to diverse customer needs across enterprise, civilian and government sectors. Their solutions integrate the latest technologies with proven designs to keep clients connected and productive no matter the circumstances.

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 statement in this press release when it discusses the expected timing of installation of terminals; the potential benefits of its products and technologies; its vision of becoming the leading enabler of reliable satellite-based communications; and its belief that it is well positioned to meet the fast-growing market demand for exceptionally reliable, high-speed communication solutions for the aviation sector. 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 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.

SAT-COM

View source version on businesswire.com: https://www.businesswire.com/news/home/20240522056289/en/

Investor Contact:

Kenny Green & Ehud Helft, EK Global IR, satixfy@ekglobal.com

Media Contact:

Aviv Sax Nahamoni, info@satixfy.com

Source: SatixFy

FAQ

What is the new collaboration between SatixFy and SCOTTY Group?

SatixFy and SCOTTY Group are collaborating to supply Onyx in-flight connectivity terminals for aircraft.

When is the first Onyx terminal expected to be installed?

The first Onyx terminal is expected to be installed in the second half of 2024.

What technology does the Onyx terminal feature?

The Onyx terminal features advanced digital beam-forming technology and multi-orbit connectivity capabilities.

How will the collaboration impact in-flight connectivity?

The collaboration will enhance in-flight connectivity for small to mid-sized aircraft by integrating advanced satellite communications technology.

What market demand is SatixFy aiming to address?

SatixFy aims to address the fast-growing market demand for reliable, high-speed communication solutions in the aviation sector.