AmpliTech Reports Third Quarter 2023 Financial Results

Rhea-AI Summary

AmpliTech Group, Inc (Nasdaq:AMPG) Reports Q3 Sales of $3.4 Million with $1.5 Million Gross Profit. The company also announced the availability of multiple new LNA products and a conference call scheduled for Tuesday, November 14th at 4:30 PM ET. The financial results show a decline in revenue and gross profit compared to Q3 2022, attributed to lower customer purchasing and international sales. AmpliTech maintains ample capital for strategic growth initiatives and has introduced new advanced communication products.

Positive

• Ample capital for strategic growth initiatives
• Introduction of new advanced communication products
• Anticipation of resurgence in semiconductor demand in 2024

Negative

• Decline in revenue and gross profit compared to Q3 2022

-Q3 Sales of $3.4 Million, $1.5 Million Gross Profit-

-Multiple New LNA Products Now Available-

-Conference Call Tuesday, November 14^th at 4:30 PM ET

HAUPPAUGE, NY / ACCESSWIRE / November 14, 2023 / 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, including the design of complete 5G/6G systems, and a global distributor of packages and lids for integrated circuit assembly, today announced financial results for the third quarter of 2023, ended September 30, 2023. The company will host an investor call on Tuesday, November 14^th, 2023, at 4:30 PM ET.

Investor Earnings Call Details

Date/Time:		Tuesday, November 14th, 2023 at 4:30 PM ET
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 Investor Relations page when available.
Investor Questions:		May be submitted to investors@amplitechgroup.com prior to or during the call

Third Quarter and Recent 2023 Highlights

• Q3 2023 revenue of $3.4 million compared to $5.4 million in Q3 2022, primarily due to lower customer purchasing for inventory of Spectrum Semiconductor products compared to an inventory buildup in the prior period.
• Gross profit of $1.5 million compared to $2.7 million in Q3 2022, primarily due to lower international sales from the semiconductor materials division.
• Gross profit margin was 43.8% compared to 48.95% in Q3 2022, primarily due to the lower sales volumes.
• Loss from operations was $887,700, primarily due to the lower sales volume and the Company's continuing investments in new product development.
• At September 30, 2023, cash, cash equivalents, and liquid marketable securities totaled $8.6 million, ample capital to execute the Company's strategic growth initiatives.
• AmpliTech recently made several announcements of new advanced communication products, including new Low Noise Amplifiers, Coaxial In-Line LNAs and Coaxial In-Line Band Pass Filters tailored for broadcasting applications, and PHEMT MMIC Technology designed to enable wider spread of their industry-leading noise suppression technology into a broader array of communications systems.
• AmpliTech expects continued growth in demand for its core LNA and semiconductor products as it works through its $80M CRM opportunity funnel.

Management Commentary

Fawad Maqbool, CEO of AmpliTech, commented, "This quarter, we observed a dip in sales volumes, which mirrors the trends in the larger semiconductor landscape. The decline is largely attributable to the prior period's over-purchasing by clients adjusting to global supply chain challenges. Despite the short-term contraction, industry analysts are projecting a resurgence in semiconductor demand starting in 2024. In anticipation of this upturn, we remain committed to our strategic investments aimed at driving future growth. We are particularly enthusiastic about the recent launch of our groundbreaking MMIC-based LNAs, which deliver unparalleled performance, reliability, and cost-effectiveness. These products are designed to cater to the commonly utilized frequency spectrums, such as the 2.0 - 4 GHz, 4.0 - 8.00 GHz, and 2-18 GHz bands."

"We are also poised to roll out our innovative LNA 5G MMIC chips, which are fundamental for communication systems to meet the demands of future technologies. Our plan is to integrate these advanced LNAs into our new 5G MIMO radio units. Further, the versatility offered by these MMIC chips will allow us to adopt a commercial off-the-shelf (COTS) model, making them readily available for online purchase. This approach positions us well to serve a broader market segment than we have in the past."

"Despite the current economic uncertainties, we are forging ahead with our product development initiatives. Our aim is to empower our clients with the tools necessary for innovation, and ultimately contributing to the advancement of future technologies. We are moving forward with a balanced approach, tempered by a strategic vigilance in the face of macroeconomic challenges, and excited about the years ahead as we continue to roll out new products for the communications systems of tomorrow," concluded Mr. Maqbool.

For AmpliTech's complete financial results for the third quarter ended September 30, 2023, see the Company's Quarterly Form 10-Q to be filed with the Securities and Exchange Commission on November 14 2023.

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.

Corporate Social Media		Investor Social Media
Twitter: @AmpliTechAMPG		Twitter: @AMPG_IR
Instagram: @AmpliTechAMPG		StockTwits: @AMPG_IR
Facebook: AmpliTechInc
Company Contact:		Investor Relations Contact:
Shan Sawant, Director of Communications		Kirin Smith, President
AmpliTech Group, Inc.		PCG Advisory, Inc.
Investors@amplitechgroup.com		ksmith@pcgadvisory.com
		www.pcgadvisory.com

	AmpliTech Group, Inc.
	Condensed Consolidated Balance Sheets
			September 30,				December 31,
			2023				2022
			(Unaudited)
Assets
Current Assets
Cash and cash equivalents			$	5,457,706			$	13,290,222
Accounts receivable				1,839,648				1,801,769
Inventories, net				6,607,842				6,632,121
Marketable securities				3,097,172				247,450
Prepaid expenses				1,078,249				194,635
Total Current Assets				18,080,617				22,166,197
Property and equipment, net				2,708,360				2,023,687
Operating lease right of use assets				3,672,388				4,197,324
Intangible assets, net				3,021,711				3,134,108
Goodwill				4,696,883				4,696,883
Cost method investment				348,250				348,250
Security deposits				91,481				113,185
Total Assets			$	32,619,690			$	36,679,634
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable and accrued expenses				1,446,399			$	860,366
Customer deposits				67,530				210,848
Current portion of financing lease obligations				16,598				33,480
Current portion of operating lease obligations				530,990				586,379
Current portion of notes payable				117,473				144,358
Revenue earnout				-				2,180,826
Total Current Liabilities				2,178,990				4,016,257
Long-term Liabilities
Financing lease obligations, net of current portion				36,814				49,336
Operating lease obligations, net of current portion				3,310,211				3,768,932
Notes payable, net of current portion				-				89,597
Total Liabilities				5,526,015				7,924,122
Commitments and Contingencies				-				-
Stockholders' Equity
Series A convertible preferred stock, par
value $0.001, 1,000,000 shares authorized,
0 shares issued and outstanding				-				-
Common stock, par value $0.001,
500,000,000 shares authorized, 9,687,113 and 9,634,613
shares issued and outstanding, respectively				9,687				9,635
Additional paid-in capital				36,330,708				36,050,161
Accumulated deficit				(9,246,720	)			(7,304,284	)
Total Stockholders' Equity				27,093,675				28,755,512
Total Liabilities and Stockholders' Equity			$	32,619,690			$	36,679,634

	AmpliTech Group, Inc.
	Condensed Consolidated Statements of Operations
		For the Three Months Ended								For the Nine Months Ended
		September				September				September				September
		2023				2022				2023				2022
Revenues		$	3,387,169			$	5,435,654			$	11,572,699				15,119,216
Cost of Goods Sold			1,904,388				2,774,739				6,305,928				8,096,984
Gross Profit			1,482,781				2,660,915				5,266,771				7,022,232
Operating Expenses
Selling, general and administrative			1,984,452				1,852,345				5,677,778				5,975,440
Research and development			425,573				222,549				1,643,458				811,688
Total Operating Expenses			2,410,025				2,074,894				7,321,236				6,787,128
Income (Loss) From Operations			(927,244	)			586,021				(2,054,465	)			235,104
Other Income (Expenses)
Unrealized gain on investments			4,098				213				41,700				213
Realized gain on investments			36,187				-				49,994				-
Interest Income (expense), net			(750	)			(9,318	)			20,335				(24,316	)
Total Other Income (Expenses)			39,535				(9,105	)			112,029				(24,103	)
Net Income (Loss) Before Income Taxes			(887,709	)			576,916				(1,942,436	)			211,001
Provision For Income Taxes			-				-				-				-
Net Income (Loss)		$	(887,709	)		$	576,916			$	(1,942,436	)		$	211,001
Net Income (Loss) Per Share;
Basic and diluted		$	(0.09	)		$	0.06			$	(0.20	)		$	0.02
Weighted Average Shares Outstanding;
Basic			9,662,003				9,630,739				9,645,367				9,601,084
Diluted			9,662,003				9,712,756				9,645,367				9,716,868

AmpliTech Group, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
		For the Nine Months Ended
		September 30,				September 30,
Cash Flows from Operating Activities:		2023				2022
Net income (loss)		$	(1,942,436	)		$	211,001
Adjustments to reconcile net income (loss) to
net cash used in operating activities:
Depreciation and amortization			359,416				293,460
Amortization of prepaid consulting			-				40,389
Operating lease costs			411,475				381,921
Stock based compensation			280,599				346,692
Gain on termination of right-of-use operating lease			(8,461	)			-
Loss on disposal of property and equipment			-				1,606
Change in fair value of marketable securities			(41,700	)			(213	)
Changes in Operating Assets and Liabilities:
Accounts receivable			(37,879	)			(1,007,555	)
Other receivable			-				194,616
Inventories			24,279				(2,061,139	)
Prepaid expenses			(883,614	)			(28,036	)
Security deposits			21,704				1,187
Accounts payable and accrued expenses			586,033				(1,451,678	)
Operating lease obligations			(392,188	)			(305,597	)
Customer deposits			(143,318	)			(125,474	)
Net cash used in operating activities			(1,766,090	)			(3,508,820	)
Cash Flows from Investing Activities:
Purchase of property and equipment			(931,692	)			(696,253	)
Net investment in marketable securities			(2,808,022	)			(493,110	)
Purchase of cost method investment			-				(98,250	)
Net cash used in investing activities			(3,739,714	)			(1,287,613	)
Cash Flows from Financing Activities:
Repayment on financing lease liabilities			(29,404	)			(32,734	)
Proceeds of notes payable			-				441,139
Repayment of notes payable			(116,482	)			(575,890	)
Payment of revenue earnout			(2,180,826	)			-
Net cash used in financing activities			(2,326,712	)			(167,485	)
Net change in cash and cash equivalents			(7,832,516	)			(4,963,918	)
Cash and Cash Equivalents, Beginning of the Period			13,290,222				18,018,874
Cash and Cash Equivalents, End of the Period		$	5,457,706			$	13,054,956
Supplemental disclosures:
Cash paid for interest expense		$	23,359			$	33,836
Cash paid for income taxes		$	10,200			$	-
Non-Cash Investing and Financing Activities:
Common Stock issued on vesting of RSUs		$	52			$	50
Gain on termination of right-of-use operating lease		$	8,461			$	-
Equipment received for prepaid assets		$	-			$	50,644
Financed purchases of property and equipment		$	-			$	145,630
Loss on disposal of property and equipment		$	-			$	1,606

	AmpliTech Group, Inc.
	Condensed Consolidated Statements of Stockholders' Equity
	(Unaudited)
		For the Three Months Ended September 30, 2023
		Common Stock								Additional								Total
		Number of				Par				Paid-In				Accumulated				Stockholders'
		Shares				Value				Capital				Deficit				Equity
Balance, June 30, 2023			9,639,613			$	9,640			$	36,181,131			$	(8,359,011	)		$	27,831,760
Stock based compensation			-				-				149,624				-				149,624
Common stock issued for vesting of RSU's			47,500				47				(47	)			-				-
Net loss for the three months ended September 30, 2023			-				-				-				(887,709	)		$	(887,709	)
Balance, September 30, 2023			9,687,113			$	9,687			$	36,330,708			$	(9,246,720	)		$	27,093,675

		For the Nine Months Ended September 30, 2023
Balance, December 31, 2022			9,634,613			$	9,635			$	36,050,161			$	(7,304,284	)		$	28,755,512
Stock based compensation			-				-				280,599				-				280,599
Common stock issued for vesting of RSU's			52,500				52				(52	)			-				-
Net loss for the nine months ended September 30, 2023			-				-				-				(1,942,436	)			(1,942,436	)
Balance, September 30, 2023			9,687,113			$	9,687			$	36,330,708			$	(9,246,720	)		$	27,093,675

		For the Three Months Ended September 30, 2022
		Common Stock								Additional								Total
		Number of				Par				Paid-In				Accumulated				Stockholders'
		Shares				Value				Capital				Deficit				Equity
Balance, June 30, 2022			9,629,613			$	9,630			$	35,933,313			$	(6,993,092	)		$	28,949,851
Stock based compensation			-				-				64,419				-				64,419
Common stock issued for vesting of RSU's			2,500				2				(2	)			-				-
Net income for the three months ended September 30, 2022			-				-				-				576,916			$	576,916
Balance, September 30, 2022			9,632,113			$	9,632			$	35,997,730			$	(6,416,176	)		$	29,591,186

		For the Nine Months Ended September 30, 2022
Balance, December 31, 2021			9,582,113			$	9,582			$	35,651,088			$	(6,627,177	)		$	29,033,493
Stock based compensation			-				-				346,692				-				346,692
Common stock issued for vesting of RSU's			50,000				50				(50	)			-				-
Net income for the nine months ended September 30, 2022			-				-				-				211,001				211,001
Balance, September 30, 2022			9,632,113			$	9,632			$	35,997,730			$	(6,416,176	)		$	29,591,186

SOURCE: AmpliTech Group, Inc.
via PRISM Mediawire, LLC

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FAQ

What were AmpliTech Group, Inc's Q3 2023 revenue and gross profit?

AmpliTech reported Q3 2023 revenue of $3.4 million and gross profit of $1.5 million.

When is AmpliTech's investor call scheduled?

The investor call is scheduled for Tuesday, November 14th, 2023, at 4:30 PM ET.

What new products has AmpliTech recently announced?

AmpliTech recently announced new Low Noise Amplifiers, Coaxial In-Line LNAs, Coaxial In-Line Band Pass Filters, and PHEMT MMIC Technology.

What is the CEO's commentary on the Q3 results?

The CEO attributed the decline in sales volumes to the prior period's over-purchasing by clients adjusting to global supply chain challenges and expressed anticipation of a resurgence in semiconductor demand starting in 2024.