Amplitech Reports 2Q Results; Emerges from Covid-19 Ready for Growth

Rhea-AI Summary

AmpliTech Group, Inc. (AMPG) reported its 2Q 2020 financial results, outlining a revenue of $660,699, up 4.67% year-over-year despite disruptions caused by the Covid-19 pandemic. Gross profit fell to $225,988 with a margin of 34.2%, down from 57.2% in 2019. Adjusted EBITDA was $(144,394), compared to $147,054 the previous year. The company is investing for future growth in 5G and quantum computing. Open orders are approximately $1.8 million, signaling a rebuilding pipeline. CEO Fawad Maqbool expressed optimism despite ongoing uncertainties.

Positive

• Revenue increased by $29,491 or 4.67% year-over-year.
• Open orders reached approximately $1.8 million, indicating a recovery in demand.
• Investments in business during 2Q expected to yield results in the latter half of 2020 and beyond.
• Company preparing for a roadshow to promote its 5G initiatives.

Negative

• Gross profit decreased from $360,766 in 2019 to $225,988 in 2020, affecting gross margin.
• Adjusted EBITDA declined to $(144,394) vs. $147,054 in the same quarter last year.
• Operations were significantly impacted by an 8-week facility closure due to Covid-19.

BOHEMIA, NY / ACCESSWIRE / August 17, 2020 / AmpliTech Group, Inc. (OTCQB:AMPG): filed its 10Q for the quarter ended June 30, 2020 ("2Q") on Friday, August 14^th, 2020 with the following key metrics:

• Revenue for 2Q was $660,699 up $29,491 or 4.67% from the same quarter in 2019;
• Revenue in 2Q was significantly affected by the Covid-19 induced shutdown, where both the company was forced to close its facilities for approximately 8 weeks, and its customers and its customer's supply chains were disrupted;
• Gross Profit and Gross Margin were negatively impacted in 2Q vs 2Q 2019, with the company reporting Gross Profit and margin of $225,988 and 34.2% in 2Q vs $360,766 and 57.2% in same quarter 2019;
• Adjusted 2Q EBITDA was $(144,394) as compared to $147,054 in the same quarter in 2019;
• Both Gross Margin and EBITDA were negatively impacted by the reduction in orders processed during the period, as a result of the Covid-19 shutdown;
• In addition, the company made significant investment in the business during the period, which resulted in higher wages and opex in 2Q vs 2Q 2019, which is expected to begin to pay dividends to the company in the second half of 2020, 2021 and beyond, as we emerge from the pandemic;
• Mr. Wayne Homschek agreed to step down from the Board in order for the company to save on operating expenses, until such time as the company's performance has fully recovered, or when the company completes a financing. Mr. Homschek, in his capacity as Managing Director of Bentley Associates L.P., an adviser to the company, will continue to advise the company as it readies itself for a future financing;
• On a positive note, Amplitech is preparing for an investor roadshow to highlight its 5G presentation.
• Cash and cash equivalents and undrawn credit facilities at June 30,2020 was $932,546 as compared to $960,067 at June 30,2019; and
• Open orders at of August 14, 2020 stood at approximately $1.8 million, up significantly from the first quarter 2020, as the company's pipeline begins to rebuild.

In commenting on the performance of the company to date, and on its future prospects, Fawad Maqbool, the CEO said "I am very proud of the job our team has done under these extreme circumstances; we have gotten through a very difficult time and I can see the light at the end of the tunnel. We are not exactly sure how long that tunnel is, but we are confident in our ability to generate significant growth for our stakeholders as we emerge from this pandemic. I say this because I have confidence in our team and our existing products, but, even more so, I am very excited about the future products and markets that we are working on in the areas of 5G and quantum computing, where we have made significant progress on our IP and our designs. We have had new and existing customer requests for custom cryogenic products in both Satcom and Nanophysics markets, indicating support for our new products. We have recently updated shareholders on some of these developments and we look forward to updating shareholders further as these we make progress. Lastly, given the interest by the stock market in the industries in which we currently operate and are targeting (Satcom, Wireless, 5G, Quantum Computing etc), we are hopeful that we will be able to complete a financing and uplift to Nasdaq in the near future. Obviously, there is no guarantee that this will happen given the unknowns in the market, the business and the pandemic, but is our goal to push forward this year with a Nasdaq financing as our priority."

About AmpliTech Group, Inc.

AmpliTech Group, Inc. designs, develops, and manufactures custom and standard state-of-the-art RF components for the Domestic and International, SATCOM, Space, Defense and Military markets. These designs cover the frequency range from 50 kHz to 40 GHz - eventually, offering designs up to 100 GHz. AmpliTech also provides consulting services to help with any microwave components or systems design problems. Our steady growth over the past 13+ years has come about because we can provide complex, custom solutions for nearly ANY custom requirements that are presented us. In addition, we have the best assemblers, wires, and technicians in the industry and can provide contract assembly of customers' own designs. Click here to view AmpliTech video. Website: http://www.AmpliTechinc.com

Forward-looking Statements

This release contains statements that constitute forward-looking statements. These statements appear in a number of 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 financing plans; (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 as a result of various factors.

CONTACT:

Fawad Maqbool, CEO
AmpliTech Group, Inc.
(631) 521-7831

Twitter: https://twitter.com/AmpliTechAMPG
Instagram: https://www.instagram.com/amplitechampg/
Facebook: https://www.facebook.com/AmpliTechInc

SOURCE: AmpliTech Group, Inc.

View source version on accesswire.com:
https://www.accesswire.com/601999/Amplitech-Reports-2Q-Results-Emerges-from-Covid-19-Ready-for-Growth

FAQ

What were AmpliTech's 2Q 2020 revenue results?

AmpliTech reported a revenue of $660,699 in 2Q 2020, which is a 4.67% increase compared to the same quarter in 2019.

How did Covid-19 impact AmpliTech's operations in 2Q 2020?

The company experienced significant disruptions, forcing a closure of facilities for approximately 8 weeks.

What is AmpliTech's adjusted EBITDA for 2Q 2020?

The adjusted EBITDA for AmpliTech in 2Q 2020 was $(144,394), a decline from $147,054 in 2019.

What does AmpliTech expect from its investments made during 2Q 2020?

AmpliTech expects that the investments made during 2Q will start yielding positive results in the second half of 2020 and into 2021.

What is the status of AmpliTech's open orders as of August 14, 2020?

As of August 14, 2020, AmpliTech reported open orders of approximately $1.8 million.