AMPG - AmpliTech Reports Q1 2023 Results

May, 15 2023 09:00 AM Amplitech Group Inc.

(NewsDirect)

AmpliTech Group, Inc . (NASDAQ: AMPG) a designer, developer, and manufacturer ofstate-of-the-art signal-processing components for satellite, 5G, andother communications networks and a worldwide distributor of packagesand lids for integrated circuit assembly, and designer of complete5G/6G systems today announced its financial results for the firstquarter ended March 31, 2023. The company will host an investor callon May 22 ^nd 2023.

Investor Earnings Call Details

Date/Time: Monday May22, 2023, 4 pm EST

Dial-in Number: 1-833-630-0019 (domestic) or 1-412-317-1807(international)

Online Replay/Transcript: Audio file and call transcript willbe posted to AmpliTech’s news page when available.

Investor Questions: May be submitted to investors@amplitechgroup.com prior to or during the call

Q1 2023 Highlights

Q1 2023 revenue of $4.1 million, withgross profits of $1.8M (44%).
Company maintained a healthygross profit margin of approximately 44% amidst inflationarypressures.
Core LNA sales continue to grow, while oursemiconductor distribution sales decreased due to softer internationaldemand.
Company reported loss of $619,000 for Q1 2023,attributable largely to a combination of corporate expenses, ourcontinuing R&D efforts in development of new products, and atemporary downturn in sales within our Spectrum Division.
Asof March 31, 2023, cash, cash equivalents, and marketable securitiestotaled $10.6M and working capital was $18M, giving AmpliTech amplecapital to finance all of its strategic growthinitiatives.

Forward-Looking Update

With our AGMDC division completing designreleases and ready to manufacture MMIC products, an intense marketingcampaign has started in Q2, with expected bookings to occur during Q2and shipments of MMIC related products expected to contribute to salesin Q3 2023.
By successfully utilizing our CRM engine,implementing AI-powered sales prospecting techniques, and leveragingincreased attendance at our trade shows, we achieved a remarkable 70%surge in Request for Quotes (RFQs) for our exceptional low noiseamplifier and 5G systems.
Our CRM currently has $66M in theopportunity funnel, some of which the company expects will turn intosales over the next Q3 and Q4 quarters.
We will participate asa gold sponsor at IMS 2023, where we eagerly anticipate connectingwith some of the 10,000+ attendees and engaging in discussions abouthow our products can add value to their 5G, quantum, satcom, andairline Wi-Fi communications systems.

ManagementCommentary

CEO Fawad Maqbool provided his insights on AmpliTech’sfinancial results and future outlook:

"Despite current economic challenges, ourcommitment to innovation and quality remains resolute as we continueworking to achieve our mission to develop full systems and subsystemsfor rapidly emerging technology sectors, utilizing AmpliTech’sunique core technology.

Our team has been working relentlessly to develop the lowestnoise, lowest power-dissipating amplifiers on the market and these areincluded in our new 5G and wireless infrastructure products and MMICdesigns for the satellite, wireless and 5G markets, including theadvanced military and commercial markets. We have also recentlyexpanded into the design of full-service, true5G Open Radio AccessNetwork (O-RAN) front ends. These offerings are cutting-edge,end-to-end solutionsand also backwards compatible and retrofittablewith existing obsolete 3G, and 4G systems.

We’re excited to be bringing these productsto market at a time that the 5G infrastructure market is projected toreach $99 billion by 2030, a CAGR of 37% from current levels,according to Precedence Research. This tremendous growth outlookreaffirms our belief in the significant potential of our product lineto serve this market. Despite weakening economic trends and theexpected 11% decline in the semiconductor market for 2023, as reportedby Gartner, we remain optimistic about semiconductors, which areintegral to modern technology, and why we have invested heavily in ourAGMDC semiconductor division in Texas.We anticipate that global demandwill bounce back as market conditions improve.

The second quarterlaunch of the MMIC line under the AmpliTech Inc. division, coupledwith our recent distribution deal with NGK, are important developmentsthat are expected to drive future growth, in addition to ourdiversified portfolio, strategic investments, and the unwaveringcommitment of our team. With this strong foundation in place, weremain confident in our ability to empower the communication systemsof tomorrow, today,” concluded Mr. Maqbool.

About AmpliTechGroup:

AmpliTech Group, Inc. designs, develops, manufactures, anddistributes state-of-the-art radio frequency (RF) microwave componentsfor global satellite communications, telecom (5G & IoT), space,defense, and quantum computing markets as well as systems andcomponent design consulting services. In December 2021, AmpliTechcompleted the purchase of the assets and operations of SpectrumSemiconductor Materials Inc., a global specialty distributor ofsemiconductor components based in San Jose, CA. AmpliTech has a 13+year track record of developing high performance, custom solutions tomeet the unique needs of some of the largest companies in the globalindustries we serve. We are proud of our focused team's uniqueskills, experience and dedication, which enables us to deliversuperior solutions, faster time to market, competitive pricing,excellent customer satisfaction and repeat business. For moreinformation, please visit www.amplitechgroup.com .

Safe HarborStatement

This release contains statements that constituteforward-looking statements. These statements appear in several placesin this release and include all statements that are not statements ofhistorical fact regarding the intent, belief or current expectationsof the Company, its directors or its o?cers with respect to, amongother things: (i) the Company's ability to execute its businessplan as anticipated; (ii) trends affecting the Company's?nancial condition or results of operations; (iii) the Company'sgrowth strategy and operating strategy. The words "may""would" "will" "expect" "estimate""anticipate" "believe" "intend" and similarexpressions and variations thereof are intended to identifyforward-looking statements. Investors are cautioned that any suchforward-looking statements are not guarantees of future performanceand involve risks and uncertainties, many of which are beyond theCompany's ability to control, and that actual results may differmaterially from those projected in the forward-looking statementsbecause of various factors. Other risks are identi?ed and describedin more detail in the “Risk Factors” section of the Company’s?lings with the SEC, which are available on our website. Weundertake no obligation to update, and we do not have a policy ofupdating or revising these forward-looking statements, except asrequired by applicable law.

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Company Contact:

Shan Sawant,Director of Communications

AmpliTech Group, Inc.

Investors@amplitechgroup.com

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