AmpliTech Group, Inc. (Nasdaq: AMPG), a designer, developer and
manufacturer of state-of-the-art communications components for
satellite communications, space, telecom (5G/6G) and defense
markets, today reported financial results for its second quarter
and first six months of 2021 (Q2’21 and 6M’21) and reviewed its
growth outlook.
AmpliTech is a world leading developer of Low Noise Amplifier
(LNA) components which increase the power of a radio signal while
eliminating the distortion or “noise” that can degrade or destroy
digital signals. AmpliTech believes its LNA technology can play a
vital role enabling substantial performance and bandwidth
improvements in satellite communications and in achieving gigabit
data transmission speeds in next generation 5G networks.
Highlights
- Q2’21 revenue rose 55% to $1,024,410 vs. $660,699 in Q2’20 and
increased 117% vs. Q1’21.
- AmpliTech’s order backlog as of August 16th was $2.45M in
contractual hardware and engineering services anticipated for
delivery over the next three-to-six months, versus $2.4M at the
close of Q1’21.
- Secured Follow-On LNA Order from Fortune 500 global defense and
aerospace company with expected shipment in Q3’21.
- Secured $0.5M in orders in July for custom LNAs to be used in
ground stations for geosynchronous equatorial orbit (GEO), low
earth orbit (LEO) and medium earth orbit (MEO) satellite systems.
Shipments are also anticipated in Q3’21.
First Six Months Highlights
- Completed a financial recapitalization and Nasdaq up-listing in
the first half of 2021, yielding working capital of $29.8M as of
June 30th. The capital is supporting expanded product development,
sales and marketing and infrastructure investments while also
providing the financial strength required to engage with global
customer prospects previously outside AmpliTech’s reach.
- Paid off $1M in debt, secured $0.2M in SBA loan forgiveness,
purchased $0.4M in scientific equipment to enhance product
development and testing and made a strategic investment in its
secure LNA chip development joint venture partner SN2N.
- Achieved design wins for AmpliTech’s LNA product suite which
reaffirm its industry leading performance, extreme durability, and
low power (and heat) dissipation. AMPG LNA components power
satellite constellations and cellular/IoT devices, and its
super-cooled cryogenic LNA components deliver signal amplification
performance required for quantum computing systems and deep space
research.
- Began development, product testing and design integration for
LNA chipsets with hardware encryption to power un-hackable 5G
networks that deliver increased data flow and security to enable
expanded content and data distribution as well as IoT device
adoption
- Built out expanded sales and marketing team and structure
targeting major OEMs as well as system integrators to substantially
expand the Company’s addressable market.
- Established an on-site testing laboratory to expedite new
product development while reducing variable R&D costs and
increasing quality control.
Fawad Maqbool, President, CTO, and CEO, said, “Our Q2 results
reflect initial benefits of our significantly enhanced financial
position and the gradual return of customer prospects to more
normal planning and procurement activity for projects where our low
noise amplifier solutions can deliver game-changing performance and
ROI. Importantly, our financial recapitalization is allowing
AmpliTech to engage for the first time with a range of very large
customer prospects that were previously out of our reach.
“We are making strategic investments in product development,
sales & marketing and personnel and infrastructure to better
position AmpliTech for hyper-growth opportunities we see across
several markets, including satellite communications, the build out
of true 5G infrastructure, quantum computing and space
exploration.
“To address this very large and diversified base of long-term
opportunities, we are transferring our decades of experience and
industry-leading signal amplification technology into semiconductor
chip-based solutions targeted for launch mid-next year. We have had
excellent customer interest in these next-generation LNA solutions
which will offer performance enhancements, built in hardware
security, a far smaller footprint and a lower price point – for a
very compelling ROI for customers.
“The next several years are expected to see unprecedented growth
in the demand for wireless connectivity to power the proliferation
of devices and rapid expansion in bandwidth requirements from cloud
computing, content streaming, Internet of Things (IoT)
applications, autonomous vehicles, quantum computing and space
exploration.
Outlook “AmpliTech is positioning itself to be a key
infrastructure provider to support satellite, 5G and other radio
frequency communications infrastructure that will be scaling
rapidly to address these growing needs. Given our substantially
strengthened financial, product and industry position and the very
favorable industry backdrop, we anticipate significant growth
potential for our Company in the coming years.
“We expect our industry-leading product performance, new product
offerings and growing end-market demand for cost effective digital
bandwidth will drive substantial growth for AmpliTech for years to
come. We are also working to identify potential tuck-in
acquisitions of complementary businesses that can expand our
customer capabilities, footprint and value-add.
“Our business development efforts are proceeding well, enabling
a growing base of new customer dialogues that are progressing to
custom designs as well as initial product testing. We anticipate
generally improving market conditions over the balance of 2021,
though with some potential for project delays related to the
COVID-19 pandemic and its impact on customer activity, along with
related supply chain challenges. Throughout, we will remain sharply
focused on balancing our growth investments with our revenue ramp
and margin profile in order to drive the business to positive cash
flow and profitability.”
Q2’21 ResultsQ2’21 revenue rose 55% to $1,024,410 vs.
$660,699 in Q2’20 and increased 117% vs. Q1’21, reflecting the
Company’s expanded sales efforts along with a return to more normal
business conditions versus disruptions in customer activity related
to the COVID-19 pandemic. AmpliTech was successful in rebuilding
its order backlog during a strong period of product deliveries,
yielding a current backlog of $2.45M which provides a solid outlook
for the balance of the year.
Gross profit rose 52.5% to $344,623 in Q2’21 compared to
$225,988 in Q2’20, reflecting the increase in revenue and a
relatively stable gross margin of 33.6% in Q2’21 compared to 34% in
Q2’20.
Selling, general and administrative expense
increased to $1,043,550 in Q2’21 from $442,457 in Q2’20 principally
due to investments in expanded sales, marketing, R&D,
management, administrative and public-company activities and
personnel intended to support long term growth. Q2’21 also included
approximately $116,000 in expenses related to the Company’s common
stock offering in the period, offset by a Q2’21 $232,200 gain on
the extinguishment of debt reflecting forgiveness of the Company’s
PPP loan.
AmpliTech reported a Q2’21 net loss of ($472,695), or ($0.05)
per share, compared to a net loss of ($243,268), or ($0.10) per
share, in Q2’20. Weighted average shares outstanding increased to
8,863,517 in Q2’21, reflecting shares issued in the Company’s
common stock offerings in the first half of 2021, compared to
2,476,816 shares outstanding in Q2’20. As of August 10, 2021,
AmpliTech had 9,343,671 shares of common stock outstanding.
Balance Sheet AmpliTech had working capital of $29.8M at
the close of Q2’21, including cash, cash equivalents and marketable
securities totaling $28.7M, reflecting proceeds from the Company’s
public offerings in February and April 2021.
About AmpliTech Group, Inc. (www.AmpliTechinc.com)
AmpliTech Group, Inc. designs, develops, and manufactures
state-of-the-art radio frequency (RF) components for global
satellite communications, telecom (5G & IoT), space, defense,
and quantum computing markets as well as systems and component
design consulting services. AmpliTech has a 13+ year track record
of developing high performance, custom solutions to meet the unique
needs of some of the largest companies in the global industries we
serve. We are proud of the unique skills, experience and dedication
of our focused team which enables us to deliver superior solutions,
faster time to market, competitive pricing and excellent customer
satisfaction and repeat business.
Safe Harbor Statement
This release contains statements that constitute forward-looking
statements. These statements appear in several places in this
release and include all statements that are not statements of
historical fact regarding the intent, belief or current
expectations of the Company, its directors or its officers with
respect to, among other things: (i) the Company's ability to
execute its business plan as anticipated; (ii) trends affecting the
Company's financial condition or results of operations; (iii) the
Company's growth strategy and operating strategy. The words "may,"
"would," "will," "expect," "estimate," "anticipate," "believe,"
"intend," and similar expressions and variations thereof are
intended to identify forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, many of which are beyond the Company's ability to
control, and that actual results may differ materially from those
projected in the forward-looking statements because of various
factors. Other risks are identified and described in more detail in
the “Risk Factors” section of the Company’s filings with the SEC,
all of which are available on our website. We undertake no
obligation to update, and we do not have a policy of updating or
revising, these forward-looking statements, except as required by
applicable law.
Company
Twitter: AmpliTechAMPG
Instagram:
AmpliTechAMPG Facebook:
AmpliTechInc
Investor
RelationsTwitter: AmpliTechIRStockTwits:
AMPG_IR
Investor Contact
David CollinsCatalyst IR AMPG@catalyst-ir.com
or 212-924-9800
Amplitech (NASDAQ:AMPG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amplitech (NASDAQ:AMPG)
Historical Stock Chart
From Apr 2023 to Apr 2024