Satcom SatixFy stock surges on new $49 million contract
Shares of Israeli satellite communications systems maker SatixFy Communications, which has a market capitalization of $78 million on the New York Stock Exchange (NYSE), soared more than 17% on Monday, November 4, after the company announced a $49 million contract with Telesat, one of the world’s leading satellite operators.
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SatixF stock added 17.2% on the NYSE on Monday to $0.92 per share. It has now gained 153% since the beginning of the year.
Driving Monday’s gains was a company filing with the U.S. SEC that it had signed a contract with satellite operator Telesat. Under the agreement, SatixFy will design and supply systems that enable high-speed connectivity between Telesat’s Lightspeed constellation and ground-based infrastructure. The deal, valued at $49 million, includes equipment and engineering expenses, with SatixFy having already received an initial $5 million.
About Telesat and SatixFy
Telesat is among the largest satellite operators globally, alongside Iris2, OneWeb, Elon Musk’s Starlink, and Jeff Bezos’s Amazon, as another satellite communications company, Gilat Satellite, noted in an investor presentation. Telesat’s Lightspeed constellation consists of 198 low-Earth orbit (LEO) satellites integrated with on-ground data networks, providing high-speed broadband connectivity to businesses and governments, according to SatixFy.
SatixFy, meanwhile, develops next-generation satellite space and ground communications systems. For the first half of 2024, the company reported a 7% year-over-year increase in revenue to $6.1 million, while its net loss shrank 54% to $21.3 million ($0.25 per share).
The last two weeks have been favorable for SatixFy. On October 22, the company announced a $9 million contract with MDA Space, followed by a new agreement and the expansion of an existing contract with MDA the next day. MDA Space, a leading technology and services provider to the space industry, serves both the OneWeb and Telesat Lightspeed constellations. It also conducts Earth and space monitoring for corporate and government clients. Under one of the agreements, SatixFy will provide MDA Space with the modem and software for LEO payloads.
