AmpliTech Reports FY 2024 Financial Results

Rhea-AI Summary

AmpliTech Group (AMPG) reported FY 2024 financial results with total revenue of $10.25 million, showing a decline from FY2023. The company posted a net loss of $11 million, including a $3.2 million cryptocurrency fraud loss. Despite challenges, AMPG maintains strong liquidity with $27 million in working capital and over $19 million in cash, with zero debt.

Key achievements include securing a 5-year supplier agreement with Fujitsu for 5G ORAN products, a 5-year Blanket Order Agreement with a Fortune 1000 company ($1.8M initial orders), and a $500,000 order for 5G ORAN configurations. The company secured a significant $78M Letter of Intent through FY 2027, with a $1M initial purchase order already received.

AMPG's 5G division completed successful testing of its CAT B ORAN Massive MIMO 64T64R radio, achieving speeds over 1 Gbps, with FCC certification pending. The company's current backlog is near $5M, with potential multi-year revenue exceeding $100 million based on current LOIs.

Positive

• Strong liquidity position with $27M working capital and $19M cash
• Zero debt on balance sheet
• Secured $78M Letter of Intent through FY 2027
• Multiple long-term contracts including 5-year Fujitsu agreement
• Successful testing of 5G ORAN radio with speeds over 1 Gbps
• Current backlog near $5M with $100M+ potential revenue pipeline
• Secured three new U.S. patents in strategic technologies

Negative

• Revenue declined to $10.25M in FY2024 from previous year
• $11M net loss for FY2024
• $3.2M loss from cryptocurrency fraud incident
• Sales decline due to unfavorable market dynamics
• Demand softness in Asia affecting distribution segment

Insights

Financial Analyst

AmpliTech's FY 2024 results present a complex financial picture with significant concerns balanced by strong fundamentals. The 100+% loss ratio ($11 million loss on $10.25 million revenue) indicates severe profitability challenges, exacerbated by a $3.2 million cryptocurrency fraud incident. The revenue decline from FY2023 amid increased 5G ORAN investments signals a challenging transition period.

However, AMPG's balance sheet strength is exceptional with $28.3 million in current assets versus just $1.5 million in liabilities, creating a remarkably strong 18:1 current ratio. The $27 million working capital and $19+ million cash position with zero debt provides substantial runway to execute their strategic pivot despite current losses.

The $78 million LOI represents significant potential but requires caution as only $1 million has converted to actual purchase orders so far. Similarly, management's mention of $100+ million in potential multi-year revenue from current LOIs should be viewed as aspirational rather than guaranteed.

AMPG's transition from distribution-focused revenue to 5G solutions represents a fundamental business model transformation with inherent execution risks. The company appears to be frontloading investments in 5G technology while managing through weaker traditional segments affected by Asian market softness. The $5 million order backlog provides some near-term visibility but represents only a fraction of the ambitious revenue targets implied by management.

Technology Analyst

AmpliTech's strategic pivot toward 5G ORAN technology appears well-timed despite contributing to current losses. Their CAT B ORAN Massive MIMO 64T64R radio achieving speeds exceeding 1 Gbps represents a significant technical milestone, particularly as the industry shifts toward Open RAN architectures that allow operators more flexibility than traditional vendor-locked solutions.

The 5-year supplier agreement with Fujitsu for 5G ORAN radio products provides crucial validation from an established industry player. Similarly, the multi-year blanket order agreement with a Fortune 1000 company for their LNB product line demonstrates commercial traction beyond just the ORAN segment.

The recent acquisition of ORAN-related IP enabling work with a major Canadian Mobile Network Operator appears strategically important, as carrier relationships typically yield recurring revenue opportunities. The three new U.S. patents across 5G front-end modules, cryogenic quantum computing, and satellite connectivity represent valuable intellectual property in high-growth technical domains.

The pending FCC certification for their ORAN radio is a critical upcoming catalyst, as regulatory approval is mandatory for commercial deployments. While the company faces execution challenges in transitioning from primarily component and distribution revenue to integrated 5G solutions, their technical achievements in achieving high-speed wireless performance position them competitively in the evolving ORAN ecosystem.

The company's explicit focus on becoming an enabler for AR/VR, quantum computing, and global 5G/6G networks aligns with major industry growth vectors, though meaningful revenue from these segments will require successful execution of their current commercialization strategy.

Working Capital of $27 Million; Over $19 Million in Cash; Zero Debt 5G Division’s ORAN Products Positioned for Strong FY 2025 Performance

HAUPPAUGE, N.Y., April 01, 2025 (GLOBE NEWSWIRE) -- AmpliTech Group, Inc. (Nasdaq: AMPG), a leading designer, developer, and manufacturer of advanced signal-processing components for satellite, 5G, and other communication networks, including complete 5G/6G system design, and a global distributor of packaging and lid solutions for integrated circuit assembly, today announced its financial results for the fiscal year ended December 31, 2024.

FY 2024 Profit and Loss:

• Total Revenue and Other Income: $10.25 million, a decline from FY2023
• Net Loss: $11 million, which includes a $3.2 million loss due to Company being a victim of a cryptocurrency fraud incident. An increased investment in 5G ORAN technology, coupled with sales decline due to unfavorable market dynamics contributed considerably to the loss.  

Strong Liquidity and Financial Strength:

• Total current assets of $28.3 million compared to just $1.5 million in current liabilities

• Working capital of $27 million

• Cash reserves exceeding $19 million

• Zero debt on the balance sheet

Operational Highlights for FY 2024:

Despite market headwinds in its distribution segment, driven by demand softness in Asia, AmpliTech achieved several milestones in FY 2024:

• Secured $21 million in capital to strengthen balance sheet and execute growth strategies
• Secured key multi-year contracts:
  
  
  • A 5-year supplier agreement with Fujitsu for 5G ORAN radio products
  • A 5-year Blanket Order Agreement with a U.S. Fortune 1000 company, with over $1.8 million in initial orders for AmpliTech’s new LNB product line
  • An initial order over $500,000 for 5G ORAN radio configurations from a leading industry player

Momentum Heading into FY 2025:

With its 5G division now entering a phase of commercial scaling, AmpliTech is well-positioned to benefit from increasing industry demand for ORAN and private 5G solutions. Key developments include:

• Completion and successful lab testing of the company’s CAT B ORAN Massive MIMO 64T64R radio, achieving speeds exceeding 1 Gbps
• FCC certification is expected imminently, following full compliance with all required testing procedures
• Execution of a transformative $78M Letter of Intent (LOI), the largest single-customer agreement in AmpliTech’s history, to support phased deployments through FY 2027. We have already received $1M P.O. on this LOI.
• Strategic acquisition of ORAN-related IP, enabling the company to serve new markets, including a major Canadian Mobile Network Operator
• Secured three new U.S. patents in 5G front-end modules, cryogenic quantum computing, and satellite connectivity
  

In FY 2024, the AmpliTech Inc. and Spectrum divisions were the primary revenue contributors. In FY 2025, the 5G division is expected to become the company’s flagship division. AmpliTech is establishing partnerships and alliances with 5G industry participants to enhance its market share.

The company’s ORAN Massive MIMO 64T64R radio has completed lab testing, achieving speeds exceeding 1 Gbps. FCC certification is expected soon.

The $78 million LOI is the largest single-customer agreement in AmpliTech’s history and will span FY 2025 through FY 2027.

The recent acquisition of ORAN-related IP allows AmpliTech to expand its 5G offerings and serve a major Canadian Mobile Network Operator. Purchase orders are anticipated shortly.

Management Commentary:

Fawad Maqbool, Founder and CEO of AmpliTech stated, “While our FY 2024 sales were significantly impacted by geopolitical factors, we are now poised to capitalize on the strategic milestones achieved throughout the year. Our recent successes across the AmpliTech Inc. and 5G divisions, coupled with over $2.5 million in Q1 bookings for our Spectrum division, and current company’s backlog nearing $5M mark a strong start to FY 2025. We are entering the new fiscal year with a solid balance sheet, robust working capital, no debt, and enhanced visibility in the 5G space. With over $100 million in potential multi-year revenue based on the current signed and agreed to Letter of Intents the company has on hand, including a transformative IP acquisition that allows us to work directly with Canada’s second-largest MNO, we’re executing against our 5-Year Strategic Plan. Our continued investment in R&D reflects our unwavering commitment to innovation and value creation for our shareholders.”

Mr. Maqbool added, “At AmpliTech, our mission is to empower companies to build the communication infrastructure of the future, enabling breakthroughs in AR/VR, high-performance quantum computing, and global 5G/6G networks. There remains significant work ahead across key sectors including satellite communications, telecom, computing, defense, and aerospace. We are deeply focused on developing solutions to meet the growing demands for speed, efficiency, and connectivity, and we are proud to play a pivotal role in shaping the technologies that will drive tomorrow’s world.”

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, 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; (iv) that letters of intent will result in purchase orders; (v) that certain of the Company’s products will receive FCC certification; and (vi) that there will be increasing demand for ORAN and private 5G solutions. 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, including its Form 10-K for the year ended December 31, 2024, 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

X: @AmpliTechAMPG
Instagram: @AmpliTechAMPG
Facebook: AmpliTechInc
Linked In: Amplitech Group Inc

Investor Social Media

X: @AMPG_IR
StockTwits: @AMPG_IR

Company Contact:

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

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/d6e909c0-9be5-4d1d-abd1-fed502819769

https://www.globenewswire.com/NewsRoom/AttachmentNg/a8401cd9-1462-43fc-88b6-e71748360f50

FAQ

What was AmpliTech's (AMPG) revenue and net loss for FY 2024?

AMPG reported total revenue of $10.25 million and a net loss of $11 million, which included a $3.2 million cryptocurrency fraud loss.

What major contracts did AMPG secure in FY 2024?

AMPG secured a 5-year supplier agreement with Fujitsu, a 5-year Blanket Order Agreement with a Fortune 1000 company ($1.8M initial orders), and a $78M Letter of Intent through FY 2027.

What is the current financial position of AMPG in terms of cash and debt?

AMPG has $27 million in working capital, over $19 million in cash reserves, and zero debt on the balance sheet.

What are AMPG's technical achievements in 5G ORAN technology?

AMPG completed testing of CAT B ORAN Massive MIMO 64T64R radio achieving speeds over 1 Gbps, with pending FCC certification.

What is AMPG's current order backlog and potential revenue pipeline?

AMPG's current backlog is near $5M, with over $100 million in potential multi-year revenue based on current Letters of Intent.