The company’s advanced chips and systems it has developed will be used for a wide range of broadband communications services, in-flight wifi communications (IFC), satellite Internet connections, mobile fleet communications (land and sea) and satellite communications systems based on the growing demand for LEO and MEO satellites, potential markets in nominees Dollars. Systems based on the company’s first chip, the SX-3000, have been sold to a number of customers and have led from 2018 to sales totaling $ 55 million.
Among Stickspay’s customers, Airbus, which co-finances the development of one of the company’s advanced chips designed to document satellite communications. Stickspay has a partnership agreement with STE Global in the field of commercial aviation, which greatly strengthens the company’s sales capabilities. Stickspay grew in 2019, pre-Corona epidemic, more than 50% per year to sales of about $ 30 million.
Stickspay was founded in 2012 by the entrepreneur and one of the world’s leading technological experts in the field of satellites, Yoel Gat, who serves as chairman and CEO of the company. Since its inception, the company has raised about $ 40 million and has so far received over $ 60 million in grants from the European Space Agency.
The company develops and manufactures advanced products and technologies used in the development and production stages of satellite communication systems, and its products are characterized by a competitive advantage, with an emphasis on cost, physical size, weight and performance, and are based on technologies developed and exclusively owned by it. The company’s communications chips are a key component in all components of satellite communications systems – ground-end user equipment, satellite communications recorders and the network coordinator on the ground.
Against the background of the expected launch of thousands of LEO satellites in the coming years, there is an urgent need for electronic scanning antennas so that continuous and high quality communication can be ensured in the transition from one satellite to another. As part of a project characterized by the company, managed and funded by the European Space Agency, Stickspay has developed a unique electronic scanner antenna that will provide a solution for managing a large number of transmission and reception beams of any size.
Stickspay is developing such a solution for OneWeb, which is setting up a global LEO satellite communications network that will provide connectivity services to governments, businesses and communities around the world. These developments are designed for the next generation of caller IDs and end-user equipment.
The transition of civil aviation to the use of the new LEO satellite resources will provide an advantage to the transition to the use of electronic scanning antennas. The current use of mechanical antennas is almost impossible in a network operated by LEO satellites. The electronically scanned antennas developed by Stickspay allow the simultaneous use of LEO satellites and standard satellites. The collaboration with the Singaporean company STE through its joint ownership in Jet-Talk, gives Stickspay an advantage in the field of commercial aviation.
In addition, Stickspay is developing a broad chip portfolio. As part of this, Airbus is participating in the development of a new Stickspay chip, SX-4000, totaling approximately $ 14 million and an additional investment of $ 3 million for software development specific to its needs, and negotiating with Stickspay for a first-chip purchase agreement.
Stickspay develops satellite communications terminals for its customers based on the modem chips it has developed to provide mobile and fixed satellite communications services. Stickspay is in advanced negotiations with one of the operators of LEO satellite systems for the sale of communications modems to the ground segment of the operator’s communications systems and the company estimates the agreement is expected to be signed during the first half of 2021 and its scope is estimated at $ 30 million. In February 2021 in the first volume of $ 4 million.
Stickspay grew by 50% in 2019 to total sales of $ 30 million. In 2020, affected by the corona plague, revenues in the first half of the year totaled $ 5.5 million and are expected to be similar to the second half of the year. Despite the effects of the corona on global aviation, and in light of the increase in the volume of projects, Stickspay did not lay off or outsource its employees, and in fact increased the workforce by about 20 additional developers.
As of the date of publication of the company prospectus, the total backlog of Stickspay has increased and is estimated at $ 17.5 million.
In exchange for the offering, the company will mainly be used to finance research and development activities and to strengthen the marketing and sales system, with an emphasis on the main target market in the United States.