AmpliTech Reports Q3 Revenue of $1.1M, Record Order Backlog of $3.4M Reflects Growing Demand for Industry-Leading Performance of its Low Noise Signal Amplifiers for Satellite, Telecom (5G) and Other Applications

Bohemia, New York, Nov. 15, 2021 (GLOBE NEWSWIRE) -- AmpliTech Group, Inc. (Nasdaq: AMPG), a designer, developer, and manufacturer of state-of-the-art signal-processing components for satellite and 5G communications networks, defense, space, and other commercial applications, today reported financial results for its third quarter and first nine months of 2021 (Q3’21 and 9M’21) and reviewed its growth outlook.

AmpliTech is a world-leading developer and U.S. manufacturer of Low Noise Amplifier (LNA) components that increase the power of a radio signal while eliminating the distortion or “noise” that can degrade or destroy digital signals. AmpliTech believes its LNA technology can play a vital role in enabling substantial performance, bandwidth and cost improvements in satellite communications and in achieving gigabit data transmission speeds in next generation 5G networks. 

AmpliTech is translating its industry-leading performance designs into the smaller, more flexible and lower-cost form factor of MMIC semiconductor chip designs. Initial MMIC designs developed by AmpliTech’s design team are entering fabrication for expected availability by the end of Q1 2022. MMICs, or monolithic microwave integrated circuits, are semiconductor chips used in high-frequency communications applications such as signal amplifiers and filters for mobile phones or satellites.

Highlights

• Q3’21 revenue was $1,056,595 vs. $1,150,732 in Q3’20 and $1,024,410 in Q2’21.
• Secured $1.2M in new orders for LNA technology in Q4’21, increasing AmpliTech’s order backlog to a record $3.35M as of November 15, versus its $2.45M backlog in August 2021. AmpliTech’s order backlog represents contractual hardware and engineering services anticipated for delivery over an estimated six-month period.
• Executed lease for new 20,000 sq. ft. manufacturing and headquarters facility on Long Island, replacing and substantially expanding upon AmpliTech’s existing 13,100 square foot footprint at two facilities. The move should be completed and the new facility fully operational in Q1 2022.
• AmpliTech’s cash and equivalents and marketable securities totaled $27.1M on September 30th, demonstrating it now has the financial strength required to engage with large global customer prospects previously outside its reach. The capital is targeted for growth investments in sales, marketing, technical equipment, infrastructure, expanded product development, including a new line of semiconductor solutions, and for strategic acquisition opportunities.
• Announced opening of MMIC chip design center based in Plano, TX. As of November 2021, it is now operational and led by a team of highly experienced chip design engineers
• In early November, AmpliTech completed and released initial chip designs incorporating its LNA and other technologies for semiconductor fabrication and expects initial production units to be available by the end of Q1’22.

Fawad Maqbool, CEO, commented, “This is an extremely exciting time at AmpliTech as we are now well funded to position our industry leadership in radio frequency signal processing technologies in very large markets for satellite communications, 5G connectivity, and quantum computing. At the core, our solutions and expertise enable our customers to move data with greater efficiency, reliability and at a lower cost. This value-add is particularly important given the enormous cost of the communications solutions in which our technologies are deployed.

“Despite supply channel headwinds – which are slowing customer decision making and progress on projects where AmpliTech’s solutions could deliver great value, we are building our pipeline of customer opportunities and our order backlog via expanded investment in sales and marketing personnel and initiatives. At the same time, we are aggressively pursuing the transformation of our signal processing leadership into an all-new line of semiconductor-based solutions that will substantially expand the scope and range of applications we can address around the globe. 

“The far smaller, more flexible and lower cost MMIC form factor will enable a far broader base of customers and partners to incorporate our signal processing technologies and benefit from our superior performance. We are building a strong team of chip-design professionals and are working toward the opening of our own MMIC design center by year-end. Already, our teams have completed designs for our initial line of MMIC solutions which are slated for fabrication and initial commercial availability by the end of Q1 2022.

“We also remain active in our efforts to expand our business via strategic acquisitions and look to update shareholders as we reach reportable milestones. Our goals for our M&A activity are to strengthen our business, technology portfolio and customer reach and enhance our prospects for growth, profitability and shareholder value.

“Given the size and projected growth in each of our target markets, combined with the enhanced performance and ROI our solutions deliver, we believe AmpliTech is very well positioned for growth, particularly as the distraction of supply chain issues fades and our customers are able to focus on projects to support their long-term goals.”

Q3’21 Results
Q3’21 revenue was $1,056,595 vs. $1,150,732 in Q3’20 and $1,024,410 in Q2’21, reflecting building business development activity countered by delays in customer procurement activity shipping timelines as they address supply chain challenges impacting their businesses, including projects that could utilize AmpliTech components or services. Within this environment AmpliTech was able to build its order backlog by 27% to $3.35M as of November 15th compared to its August 2021 backlog of $2.45M.

Gross profit declined to $313,613 in Q3’21 compared to $520,245 in Q3’20, principally due to an increase in direct assembly labor and parts as well as increased personnel expense as the Company builds its team to support its growth objectives. Reflecting the increase in costs on relatively stable revenue, AmpliTech’s Q3’21 gross margin declined to 29.69% from 45.21% in Q3’20.

Selling, general and administrative expenses increased to $850,329 in Q3’21 from $475,248 in Q3’20 principally due to investments in expanded sales, marketing, R&D, management, administrative and public company-related expenses as well as other initiatives intended to support long term growth.

AmpliTech reported a Q3’21 net loss of ($592,845), or ($0.06) per share, compared to net income of $17,010, or $0.00 per share, in Q3’20. Weighted average diluted shares outstanding increased to 9,343,671 in Q3’21.

Balance Sheet
AmpliTech had working capital of $28.6M at the close of Q3’21, including cash, cash equivalents and marketable securities totaling $27.1M, reflecting proceeds from the Company’s recapitalization and Nasdaq up-listing earlier in the year.

About AmpliTech (www.AmpliTechinc.com)

AmpliTech Group, Inc. designs, develops, and manufactures state-of-the-art radio frequency (RF) components for global satellite communications, telecom (5G & IoT), space, defense, and quantum computing markets as well as systems and component design consulting services. 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 the unique skills, experience and dedication of our focused team which enables us to deliver superior solutions, faster time to market, competitive pricing and excellent customer satisfaction and repeat business.

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, all of 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.

Non-GAAP Financial Information
This press release includes a statement relating to the Company’s and Spectrum’s order backlog. Backlog represents the dollar amount of net sales that we expect to recognize in the future from sales orders that have been received from customers in the ordinary course of business. The Company considers order backlog a relevant and preferred supplemental measure for understanding the Company’s financial and market position. However, such measure has inherent limitations, is not required to be uniformly applied or audited and other companies may use methodologies to calculate similar measures that are not comparable. Readers should be aware of these limitations and should be cautious as to their use of such measure.

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Company Contact:                                                                                        
Shan Sawant, Director of Communications                          
AmpliTech Group, Inc.                                                                  
shan@amplitech.com                                                                   
646-546-7128                                                                                   

Investor Contact:
David Collins or William Jones
Catalyst IR
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212-924-9800