AmpliTech Group, Inc. (Nasdaq: AMPG), a designer, developer, and
manufacturer of state-of-the-art signal-processing components for
satellite and 5G communications networks, defense, space, and other
commercial applications, today reported financial results for its
third quarter and first nine months of 2021 (Q3’21 and 9M’21) and
reviewed its growth outlook.
AmpliTech is a world-leading developer and U.S. manufacturer of
Low Noise Amplifier (LNA) components that 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 in enabling substantial
performance, bandwidth and cost improvements in satellite
communications and in achieving gigabit data transmission speeds in
next generation 5G networks.
AmpliTech is translating its industry-leading performance
designs into the smaller, more flexible and lower-cost form factor
of MMIC semiconductor chip designs. Initial MMIC designs developed
by AmpliTech’s design team are entering fabrication for expected
availability by the end of Q1 2022. MMICs, or monolithic microwave
integrated circuits, are semiconductor chips used in high-frequency
communications applications such as signal amplifiers and filters
for mobile phones or satellites.
Highlights
- Q3’21 revenue was $1,056,595 vs. $1,150,732 in Q3’20 and
$1,024,410 in Q2’21.
- Secured $1.2M in new orders for LNA technology in Q4’21,
increasing AmpliTech’s order backlog to a record $3.35M as of
November 15, versus its $2.45M backlog in August 2021. AmpliTech’s
order backlog represents contractual hardware and engineering
services anticipated for delivery over an estimated six-month
period.
- Executed lease for new 20,000 sq. ft. manufacturing and
headquarters facility on Long Island, replacing and substantially
expanding upon AmpliTech’s existing 13,100 square foot footprint at
two facilities. The move should be completed and the new facility
fully operational in Q1 2022.
- AmpliTech’s cash and equivalents and marketable securities
totaled $27.1M on September 30th, demonstrating it now has the
financial strength required to engage with large global customer
prospects previously outside its reach. The capital is targeted for
growth investments in sales, marketing, technical equipment,
infrastructure, expanded product development, including a new line
of semiconductor solutions, and for strategic acquisition
opportunities.
- Announced opening of MMIC chip design center based in Plano,
TX. As of November 2021, it is now operational and led by a team of
highly experienced chip design engineers
- In early November, AmpliTech completed and released initial
chip designs incorporating its LNA and other technologies for
semiconductor fabrication and expects initial production units to
be available by the end of Q1’22.
Fawad Maqbool, CEO, commented, “This is an extremely exciting
time at AmpliTech as we are now well funded to position our
industry leadership in radio frequency signal processing
technologies in very large markets for satellite communications, 5G
connectivity, and quantum computing. At the core, our solutions and
expertise enable our customers to move data with greater
efficiency, reliability and at a lower cost. This value-add is
particularly important given the enormous cost of the
communications solutions in which our technologies are
deployed.
“Despite supply channel headwinds – which are slowing customer
decision making and progress on projects where AmpliTech’s
solutions could deliver great value, we are building our pipeline
of customer opportunities and our order backlog via expanded
investment in sales and marketing personnel and initiatives. At the
same time, we are aggressively pursuing the transformation of our
signal processing leadership into an all-new line of
semiconductor-based solutions that will substantially expand the
scope and range of applications we can address around the
globe.
“The far smaller, more flexible and lower cost MMIC form factor
will enable a far broader base of customers and partners to
incorporate our signal processing technologies and benefit from our
superior performance. We are building a strong team of chip-design
professionals and are working toward the opening of our own MMIC
design center by year-end. Already, our teams have completed
designs for our initial line of MMIC solutions which are slated for
fabrication and initial commercial availability by the end of Q1
2022.
“We also remain active in our efforts to expand our business via
strategic acquisitions and look to update shareholders as we reach
reportable milestones. Our goals for our M&A activity are to
strengthen our business, technology portfolio and customer reach
and enhance our prospects for growth, profitability and shareholder
value.
“Given the size and projected growth in each of our target
markets, combined with the enhanced performance and ROI our
solutions deliver, we believe AmpliTech is very well positioned for
growth, particularly as the distraction of supply chain issues
fades and our customers are able to focus on projects to support
their long-term goals.”
Q3’21 ResultsQ3’21 revenue was $1,056,595 vs. $1,150,732
in Q3’20 and $1,024,410 in Q2’21, reflecting building business
development activity countered by delays in customer procurement
activity shipping timelines as they address supply chain challenges
impacting their businesses, including projects that could utilize
AmpliTech components or services. Within this environment AmpliTech
was able to build its order backlog by 27% to $3.35M as of November
15th compared to its August 2021 backlog of $2.45M.
Gross profit declined to $313,613 in Q3’21 compared to $520,245
in Q3’20, principally due to an increase in direct assembly labor
and parts as well as increased personnel expense as the Company
builds its team to support its growth objectives. Reflecting the
increase in costs on relatively stable revenue, AmpliTech’s Q3’21
gross margin declined to 29.69% from 45.21% in Q3’20.
Selling, general and administrative expenses increased to
$850,329 in Q3’21 from $475,248 in Q3’20 principally due to
investments in expanded sales, marketing, R&D, management,
administrative and public company-related expenses as well as other
initiatives intended to support long term growth.
AmpliTech reported a Q3’21 net loss of ($592,845), or ($0.06)
per share, compared to net income of $17,010, or $0.00 per share,
in Q3’20. Weighted average diluted shares outstanding increased to
9,343,671 in Q3’21.
Balance Sheet AmpliTech had working capital of $28.6M at
the close of Q3’21, including cash, cash equivalents and marketable
securities totaling $27.1M, reflecting proceeds from the Company’s
recapitalization and Nasdaq up-listing earlier in the year.
About AmpliTech (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.
Non-GAAP Financial InformationThis press release includes
a statement relating to the Company’s and Spectrum’s order backlog.
Backlog represents the dollar amount of net sales that we expect to
recognize in the future from sales orders that have been received
from customers in the ordinary course of business. The Company
considers order backlog a relevant and preferred supplemental
measure for understanding the Company’s financial and market
position. However, such measure has inherent limitations, is not
required to be uniformly applied or audited and other companies may
use methodologies to calculate similar measures that are not
comparable. Readers should be aware of these limitations and should
be cautious as to their use of such measure.
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Contact:
Shan Sawant, Director of
Communications
AmpliTech Group,
Inc.
shan@amplitech.com
646-546-7128
Investor Contact:David Collins or William JonesCatalyst
IRampg@catalyst-ir.com212-924-9800
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