AmpliTech Group's AmpliTech Inc. Division Secures Initial Purchase Order Under 5-Year Basic Order Agreement With Fortune 1000 U.S. Company

Rhea-AI Summary

AmpliTech Group (Nasdaq: AMPG) has secured an initial Purchase Order worth nearly $1M from a Fortune 1000 U.S. company under a recently signed 5-Year Basic Order Agreement. The order includes LNB (Low-Noise Block Downconverters) products and engineering services, representing approximately 20% of the total average LNA sales from the AmpliTech Inc Division. The delivery is scheduled for the first half of fiscal year 2025. The company's proprietary low noise technology, used in their LNA products, is expected to enhance gross margins through in-house manufacturing capabilities.

Positive

• Secured nearly $1M initial purchase order from Fortune 1000 company
• Established 5-year Basic Order Agreement indicating long-term revenue potential
• In-house manufacturing capabilities expected to enhance gross margins
• Order represents 20% of average LNA division sales

Negative

• Delivery not scheduled until first half of 2025

Insights

Financial Analyst

This $1 million purchase order represents a significant development for AmpliTech Group, constituting nearly 20% of their average LNA division sales. The 5-year Basic Order Agreement with a Fortune 1000 company provides stable revenue visibility and potential for follow-on orders. The use of proprietary technology in their LNB products should drive higher gross margins compared to competitors who rely on external suppliers.

The strategic expansion into LNB product lines covering X, Ka and Ku bands demonstrates effective R&D investment and vertical integration. For a company with a market cap of just $10.6 million, securing orders of this magnitude could significantly impact financial performance. The scheduled delivery in H1 2025 provides clear revenue visibility for the upcoming fiscal year.

Tech Expert

The development of proprietary low-noise technology for satellite communications represents a strong competitive advantage. LNB products are important components in satellite communications infrastructure, converting high-frequency satellite signals to lower frequencies for processing. AmpliTech's expansion from LNAs to complete LNB systems shows vertical integration capabilities and technological maturity.

The multi-band coverage (X, Ka, Ku) positions the company well in both commercial and defense markets, where high-performance signal processing is critical. The in-house manufacturing capability for core components reduces supply chain vulnerabilities and enables better quality control, which is particularly valuable given current global semiconductor supply challenges.

PO Valued At Close To US$1 Million for LNB Products And Engineering Services

HAUPPAUGE, N.Y., Nov. 18, 2024 (GLOBE NEWSWIRE) -- AmpliTech Group, Inc. (Nasdaq: AMPG, AMPGW), a designer, developer, and manufacturer of state-of-the-art signal processing components for satellite, Public and Private 5G, and other communications networks, including the design of complete 5G/6G systems and a global distributor of packages and lids for integrated circuits assembly, today announced receiving an initial Purchase Order, as part of the recently announced signing of a 5 Year Basic Order Agreement (BOA), with a US based Fortune 1000 Company. This initial Purchase Order, for nearly $1M, includes delivery of LNB (Low-Noise Block Downconverters) products and engineering services.

As recently communicated to the public, low-noise block downconverter (LNB) is the receiving device mounted on satellite dishes used for satellite TV and data reception, which collects the radio waves from the dish and converts them to a signal which is sent through a cable to the receiver inside the building.

AmpliTech Inc, the core division of AmpliTech Group, founded in 2002, Amplitech Inc, has proprietary low noise technology used in all of the company’s Low Noise Amplifiers (LNA’s). Taking advantage of the available technology, the company embarked on a mission to release an LNB product line covering X band, Ka band and Ku bands, offering superior low noise capabilities across the product line. This initial Purchase Order, of our 5 Year BOA deal represents nearly 20% of the total average LNA sales from our AmpliTech Inc Division. This initial order will be delivered in its entirety during the first half of our fiscal year 2025.

"We are thrilled to have been selected to supply this LNB product and engineering services to a Fortune 1000 company based in the U.S.," said Fawad Maqbool, CEO of AmpliTech Group. "This initial order is highly significant, as it incorporates our proprietary low noise technology LNAs, which will enhance our gross margins. By using our own in-house LNA products to fulfill these orders, we gain a competitive edge over others who rely on external suppliers, thus reducing costs and minimizing risks." Mr. Maqbool continued, "This accomplishment further underscores the value of our R&D investments in new product lines, fueling both top-line and bottom-line growth. It also marks another month where our company has secured orders exceeding $1M, delivering strong value to our shareholders."

About AmpliTech Group
AmpliTech Group, Inc., comprising five divisions—AmpliTech Inc., Specialty Microwave, Spectrum Semiconductors Materials, AmpliTech Group Microwave Design Center, and AmpliTech Group True G Speed Services—is a leading designer, developer, manufacturer, and distributor of cutting-edge radio frequency (RF) microwave components and 5G network solutions. Serving global markets including satellite communications, telecommunications (5G & IoT), space exploration, defense, and quantum computing, AmpliTech Group is committed to advancing technology and innovation. 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, that the receipt of this initial order will lead to further production orders and work for the customer. 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.

Contacts:

Corporate Social Media 
Twitter: @AmpliTechAMPG
Instagram: @AmpliTechAMPG
Facebook: AmpliTechInc
Linked In: Amplitech Group Inc

Investor Social Media
Twitter: @AMPG_IR
StockTwits: @AMPG_IR

Company Contact:
Jorge Flores
Tel: 631-521-7831
Investors@amplitechgroup.com

FAQ

What is the value of AmpliTech Group's (AMPG) recent purchase order?

AmpliTech Group (AMPG) secured an initial purchase order valued at nearly $1 million for LNB products and engineering services.

When will AMPG deliver the LNB products under the new purchase order?

The delivery of the LNB products is scheduled for the first half of fiscal year 2025.

What percentage of AmpliTech's LNA sales does the new order represent?

The initial purchase order represents nearly 20% of the total average LNA sales from AmpliTech Inc Division.

What is the duration of AMPG's Basic Order Agreement with the Fortune 1000 company?

AmpliTech Group signed a 5-year Basic Order Agreement (BOA) with the Fortune 1000 company.