AmpliTech Reports Third Quarter 2023 Financial Results
AmpliTech Group, Inc (Nasdaq:AMPG) Reports Q3 Sales of $3.4 Million with $1.5 Million Gross Profit. The company also announced the availability of multiple new LNA products and a conference call scheduled for Tuesday, November 14th at 4:30 PM ET. The financial results show a decline in revenue and gross profit compared to Q3 2022, attributed to lower customer purchasing and international sales. AmpliTech maintains ample capital for strategic growth initiatives and has introduced new advanced communication products.
Positive
Ample capital for strategic growth initiatives
Introduction of new advanced communication products
Anticipation of resurgence in semiconductor demand in 2024
Negative
Decline in revenue and gross profit compared to Q3 2022
11/14/2023 - 04:00 PM
-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.
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 $0.00 1, 1,000,000 shares authorized,
0 shares issued and outstanding
- - Common stock, par value $0.00 1,
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
What were AmpliTech Group, Inc's Q3 2023 revenue and gross profit?
AmpliTech reported Q3 2023 revenue of $3.4 million and gross profit of $1.5 million.
When is AmpliTech's investor call scheduled?
The investor call is scheduled for Tuesday, November 14th, 2023, at 4:30 PM ET.
What new products has AmpliTech recently announced?
AmpliTech recently announced new Low Noise Amplifiers, Coaxial In-Line LNAs, Coaxial In-Line Band Pass Filters, and PHEMT MMIC Technology.
What is the CEO's commentary on the Q3 results?
The CEO attributed the decline in sales volumes to the prior period's over-purchasing by clients adjusting to global supply chain challenges and expressed anticipation of a resurgence in semiconductor demand starting in 2024.