AmpliTech Group Reports Record Revenues for Q3 2022 Of $5.4M, With $577K Net Income, 415% Y0Y Quarterly Revenue Increase; Company Increases FY 2022 Revenue Guidance for the Second Consecutive Quarter To At Least $18M

Rhea-AI Summary

AmpliTech Group (Nasdaq: AMPG) reported financial results for Q3 2022, showcasing a remarkable 414.5% year-over-year revenue increase to $5.44 million. Gross profit soared over 7-fold to $2.66 million, with a gross margin expansion to 49.0% from 29.7% in Q3 2021. The net income turned positive at $576,916, a turnaround of approximately $1.2 million. AmpliTech is optimistic about a robust demand pipeline, revising its revenue guidance from $17 million to at least $18 million for 2022, supported by a strong order backlog of $5.3 million.

Positive

• Revenue increased 414.5% year-over-year to $5,435,654.
• Gross profit grew over 7-fold to $2,660,915, with gross margin at 49.0%.
• Net income reached $576,916 from a prior net loss of $592,845, a swing of approximately $1.2 million.
• Management raised revenue guidance for 2022 from at least $17 million to at least $18 million.
• Order backlog totaled $5.3 million, indicating strong future revenue potential.

Negative

• None.

Gross Profit Increases over 7-fold, Gross Margin Expands from 28.7% to 49.0%

Hauppauge, NY, Nov. 14, 2022 (GLOBE NEWSWIRE) -- AmpliTech Group, Inc (Nasdaq: AMPG), a designer, developer, and manufacturer of state-of-the-art signal-processing components for satellite, 5G, and other communications networks and a worldwide distributor of packages and lids for integrated circuit assembly, and designer of complete 5G/6G systems today announced financial results for the third quarter of 2022, ended September 30, 2022.  The company will host an investor call today, Monday, November 14^th at 1:00 PM EST.

Investor Earnings Call Details

Date/Time:                                        Monday, November 14th at 1:00 pm EST
Dial-in Number:                               1-833-630-0019 (domestic) or 1-412-317-1807 (international)
Online Replay/Transcript:             Audio file and call transcript will be posted to AmpliTech’s news page when available.
Investor Questions:                        May be submitted to investors@amplitechgroup.com prior to or during the call

Third Quarter 2022 Highlights

• Revenue increased 414.5% year-over-year to $5,435,654 in Q3’22 vs. $1,056,596 in Q3’21.
• Q3’ 22 gross profit grew to $2,660,915, an over 7-fold increase from Q3’ 21 gross profit of $313,613. The gross profit margin expanded 193 basis points to 49.0% compared to 29.7% for the same period last year.
• Q3’22 net income reached $576,916 from a Q3’21 net loss of $592,845, a positive swing of approximately $1.2 million.
• AmpliTech had a successful showing at the annual AOC electronic defense show, achieving positive customer engagement and setting a company record for the number of meetings with new and existing customers.
• MMIC chips are now available to customers for sampling purposes in small quantities.
• TGSS, AmpliTech’s fully managed 5G system integrator company is now operational, with a revenue contribution expected to begin in Q3 2023
• On September 30, 2022, cash and equivalents totaled $13,054,956 and working capital was $20,170,386, giving AmpliTech ample capital to fund all of its strategic growth initiatives.

Forward-Looking Update

• Product demand and new orders remain strong and as a result, management is increasing revenue guidance provided last quarter from at least $17M to at least $18M for the twelve months of 2022. This is the second time that management has increased revenue guidance in 2022. The original expectation for 2022 revenue, announced with Q1 earnings, was $15M for the 2022 year. 
•  Order backlog on September 30^th is $5.3M, representing contractual hardware and engineering services projected for delivery over the next 9 months
• MMIC chip developments are on track and are planned to be available on a COTS (commercial off-the-shelf) basis by Q2 2023.

Management Commentary

Fawad Maqbool, Founder, and CEO of AmpliTech commented, “2022 has been a fantastic year for AmpliTech both operationally and financially. In 2021 we were entirely focused on building and delivering the highest performance analog low noise amplifiers (LNAs) on the market, while also providing waveguide products for the RF subsystem through Specialty Microwave. We achieved industry-leading noise figures, and signal-to-noise ratio, and even implemented cryogenic versions of our amplifiers that powered quantum computing research systems at 4 Kelvin (-452℉)! Since then, we have leveraged our operating divisions and implemented these industry designs in our MMIC form factor through AGMDC, begun offering Semiconductor Integrated Circuits packaging through Spectrum, and extended the build-out of our 5G system integrator business through TGSS.”

“Yet even today the communications infrastructure is not even remotely at the level it needs to be. Ookla’s latest 5G networks speed test report shows 57-116 MB/S downstream speeds and 8-11 MB/S upstream speeds from the 3 major carriers. This is far from the 1-2 GB/S speeds that denote true 5G, including the 2-5 GB/S speeds required by AR/VR technologies like Metaverse. We at AmpliTech see this disconnect as a massive opportunity. As we build out our product suite, our goal is to improve the overall infrastructure performance closer to enabling true 5G.”

 “Looking ahead, as the year goes on, we plan to continue to build and grow the AmpliTech brand. As of yet, we have not experienced any slowdown in demand. We continue to generate attractive margins despite increasing material costs as evidenced by the expansion of gross profit margins from 29.7% in Q3 21 vs 49.0% in Q3 22, due to our team’s commendable resource planning as well as our company’s shift to higher margin products, like LNAs and the upcoming MMIC products. Currently, sustained demand gives us the confidence to increase revenue guidance to $18M for the year, up from the $17M we guided to in our Q2 earnings report. AmpliTech is well capitalized with solid cash reserves and healthy working capital of $20.2 million, which, in combination with our low cash burn rate, is expected to be ample to fund the execution of our strategic plans. With our strong financial performance and exciting product and service pipeline, I believe that AmpliTech is well positioned to provide the communications infrastructure of tomorrow, today,” concluded Mr. Maqbool.

About AmpliTech Group

AmpliTech Group, Inc. designs, develops, manufactures, and distributes state-of-the-art radio frequency (RF) microwave components for global satellite communications, telecom (5G & IoT), space, defense, and quantum computing markets as well as systems and component design consulting services. In December 2021, AmpliTech completed the purchase of the assets and operations of Spectrum Semiconductor Materials Inc. a global specialty distributor of semiconductor components based in San Jose, CA. 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 our focused team's unique skills, experience, and dedication, which enables us to deliver superior solutions, faster time to market, competitive pricing, excellent customer satisfaction, and repeat business. For more information, please visit www.amplitechgroup.com

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, 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 Information

This press release includes a statement relating to the Company’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 measures have inherent limitations, and are 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 measures.

Corporate Social Media                                                       
Twitter: @AmpliTechAMPG                                               
Instagram: @AmpliTechAMPG                                          
Facebook: AmpliTechInc

Investor Social Media
Twitter: @AMPG_IR
StockTwits: @AMPG_IR

Company Contact:                                                                  

Company Contact:                                                                  
Shan Sawant, Director of Communications         
AmpliTech Group, Inc.  
Investors@amplitechgroup.com                        

Investor Relations Contact:
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
www.pcgadvisory.com

FAQ

What were AmpliTech Group's financial results for Q3 2022?

AmpliTech Group reported a 414.5% increase in revenue to $5.44 million and a gross profit of $2.66 million, leading to a positive net income of $576,916.

How much has AmpliTech Group increased its revenue guidance for 2022?

AmpliTech increased its revenue guidance for 2022 from at least $17 million to at least $18 million.

What is AmpliTech Group's current order backlog?

As of September 30, 2022, AmpliTech's order backlog totaled $5.3 million.

How did AmpliTech Group's gross profit margin change in Q3 2022?

AmpliTech's gross profit margin improved to 49.0% in Q3 2022, up from 29.7% in Q3 2021.

What was the net income for AmpliTech Group in Q3 2022?

The net income for AmpliTech Group in Q3 2022 was $576,916, compared to a net loss of $592,845 in Q3 2021.