AmpliTech Reports Third Quarter 2023 Financial Results

AmpliTech Group, Inc.
12 min read
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In this article:

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

-Multiple New LNA Products Now Available-

-Conference Call Tuesday, November 14th 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 14th, 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



View source version on accesswire.com:
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