AmpliTech Reports Third Quarter 2023 Financial Results
-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 [email protected] 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. | |
| [email protected] | [email protected] | |
| 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:
https://www.accesswire.com/803277/amplitech-reports-third-quarter-2023-financial-results