/AmpliTech Reports Q1 Results and Growth Outlook Driven by Expected Demand from Satellite, Telecom (5G) and Other Applications With a Cash Position of $30M (via Qpute.com)
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AmpliTech Reports Q1 Results and Growth Outlook Driven by Expected Demand from Satellite, Telecom (5G) and Other Applications With a Cash Position of $30M (via Qpute.com)



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Bohemia, New York–(Newsfile Corp. – May 18, 2021) – AmpliTech Group, Inc. (NASDAQ: AMPG), a designer, developer and manufacturer of state-of-the-art communications components for satellite communications, space, telecom (5G/6G) and defense markets, today reported financial results for the first quarter of 2021 (Q1’21) and reviewed its outlook for Q2’21 and beyond.

AmpliTech is a world leader in the production of Low Noise Amplifier (LNA) components expected to play a vital role in supporting the rapid growth of satellite communications and the build out of next generation 5G and 6G networks.

Recent Highlights

Achieved record Q1 bookings and a record backlog of $2.4M at close of Q1’21. Backlog is defined as a definitive Purchase Order with Terms and Conditions, with contractual obligations and delivery schedule for the hardware or engineering services ordered. Contractual revenue backlog is measured on a forward looking’ 36-month snapshot view monthly.

Ï Completed financial recapitalization of the Company in the first four months of 2021, resulting in a current cash position of $30M to fund expanded product development, sales and marketing and infrastructure investments to support expected accelerating revenue growth in satellite communications, the build out of 5G/6G infrastructure, space exploration and other applications requiring the highest levels of performance.

Ï Achieved design wins in our low noise amplifier product suite, enabling industry leading-performance, extreme durability, and low power (and heat) dissipation in our LNA components that power satellite constellations and cellular/IoT devices as well as in our cryogenic LNA components for quantum computer systems and deep space research.

Ï Established an on-site testing laboratory to test amplifier viability under extreme temperature and other conditions. The facility is expected to further expedite new product development while reducing variable R&D costs and increasing quality control.

Ï Successfully designed and integrated AmpliTech’s new cryogenic amplifier solution into a client’s Electron Paramagnetic Resonance system, delivering a significant improvement in computation time for foundational processes that enable quantum computation and applications including artificial intelligence (AI), and drug discovery.

Ï Began new product testing and integration for the development of solutions for the cyber-security and chipset industry to power un-hackable 5G networks and to support broader IoT device adoption and increased data flow.

Ï Began building out an enhanced sales and marketing structure to target specific OEMs and system integrators to provide added value products with higher gross margins and improved performance. New and legacy products should lead to increased revenues and broadened customer base.

Fawad Maqbool, President, CTO, and CEO, said, “Our Q1 results continued to be negatively affected by the COVID-19 pandemic’s impact on the planning and procurement process of high-tech research and corporate organizations, resulting in a temporary reduction in demand for our products and services. Fortunately, we are already beginning to see a reopening of our markets and expect this to progress gradually as the year unfolds. We expect this trend to benefit AmpliTech going forward, along with potential pent-up demand for solutions in 5G, satellite, cyber security, quantum computing and other markets that have developed over the past year.

“AmpliTech has a track record of developing and launching industry benchmark products on accelerated timelines and at more attractive pricing than is possible by our competitors, many of which are very large and diversified. During the past year of COVID-19 related constraints across the industries we serve, we focused our strategy and team on new product development and positioning our company to participate in hyper-growth opportunities presented in satellite communications, the build out of true 5G infrastructure, as well as quantum computing and deep space exploration.

“Importantly, our solutions deliver industry-leading performance at competitive pricing that delivers substantial ROI for our customers. To support the substantial opportunities we have identified, we completed a recapitalization of our company over the first four months of 2021, providing over $30M in current funding to support our growth and demonstrate financial strength to our customers and partners. Additionally, we also up-listed our Common Stock to Nasdaq to position our company for greater visibility, liquidity and access to a much broader pool of potential investors.”

Q1’21 Results

Q1’21 revenues decreased to $472,974 from $755,948 in Q1’20, principally due to business disruptions resulting from the COVID-19 pandemic, including business closures, social-distancing mandates and work-from-home policies enacted in the later part of Q1’20. Despite these challenges, AmpliTech’s Request for Quote (RFQ) activity, a leading indicator of future business performance, has strengthened in recent months. The Company’s backlog was $2.4M at the close of Q1’21 and is expected to translate to increased sales in the second and third quarters of 2021.

Cost of Goods Sold decreased to $417,993 in Q1’21 from $516,634 in Q1’20, reflecting a decrease in workforce availability at the Company’s facilities, offset by increased salary expense related to the hiring of a new director of operations to oversee production and to help meet company growth objectives, along with ongoing non-variable overhead costs. As a result, gross profit decreased to $54,981 in Q1’21 from $239,314 in Q1’20.

Selling, general and administrative expense increased to $908,554 in Q1’21 from $538,561 in Q1’20 principally due to an increase in one-time and recurring parent company expenses, such as stock compensation, director’s insurance, consulting fees, legal fees, accounting fees and regulatory filing fees relating to the public offering and up-listing of the Company’s shares on Nasdaq. Approximately $300,000 of the Company’s Q1’21 SG&A expenses are non-recurring costs related to the Company’s public offering and Nasdaq uplisting.

Balance Sheet

AmpliTech had cash and cash equivalents of $9,855,238 at the close of Q1’21, reflecting proceeds from the Company’s public offering and Nasdaq uplisting in the period. Subsequent to the close of the first quarter, AmpliTech completed the sale of common stock and common stock warrants generating gross proceeds of approximately $34M. Giving effect to the net proceeds from these transactions, AmpliTech had cash and cash equivalents of approximately $30M as of May 17, 2021.

Outlook

“We expect our new product offerings and the growing end-market demand for the build out of 5G, Satcom, connected automobile and IoT infrastructure will drive substantial growth for AmpliTech for years to come. It is our belief that AmpliTech is solidly positioned in markets that could generate annual revenues in excess of $100M within the next several years, if we execute our business plan as anticipated. Nearer term, we anticipate generally improving market conditions over the balance of 2021, and higher revenues for Q1 and Q2,” concluded Mr. Maqbool.

About AmpliTech Group, Inc. (www.AmpliTechinc.com)

AmpliTech Group, Inc. designs, develops, and manufactures custom and standard state-of-the-art RF components for the Domestic and International, SATCOM, Space, Defense and Military markets. These designs cover the frequency range from 50 kHz to 40 GHz – eventually, offering designs up to 100 GHz. AmpliTech also provides consulting services to help with any microwave components or systems design problems. Our steady growth over the past 13+ years has come about because we can provide complex, custom solutions for nearly ANY custom requirements that are presented to us. In addition, we have the best assemblers, wires, and technicians in the industry and can provide contract assembly of customers’ own designs.

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.

Twitter: https://twitter.com/AmpliTechAMPG
Instagram: https://www.instagram.com/amplitechampg/
Facebook: https://www.facebook.com/AmpliTechInc

Investor Contact:

David Collins
Catalyst IR
[email protected]
212-924-9800

AmpliTech Group, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)

For The Three Months Ended
March 31, March 31,
2021 2020
Revenue $ 472,974 $ 755,948
Cost of goods sold 417,993 516,634
Gross Profit 54,981 239,314
Selling, general and administrative expense 908,554 538,561
Loss From Operations (853,573 ) (299,247 )
Other Expenses
Interest expense, net (26,358 ) (23,714 )
Loss Before Income Taxes (879,931 ) (322,961 )
Provision For Income Taxes
Net Loss $ (879,931 ) $ (322,961 )
Net Loss Per Share;
Basic & Diluted ($0.16 ) ($0.13 )
Weighted Average Shares Outstanding;
Basic & Diluted 5,568,350 2,476,816

AmpliTech Group, Inc.
Condensed Consolidated Balance Sheets

March 31, December 31,
2021 2020
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 9,855,238 $ 199,536
Accounts receivable, net 421,455 357,055
Inventories, net 790,296 517,338
Prepaid expenses 212,062 322,124
Total Current Assets 11,279,051 1,396,053
Property and equipment, net 290,065 289,251
Right of use operating lease assets 321,549 347,156
Intangible assets, net 622,089 632,209
Goodwill 120,136 120,136
Security deposits 26,707 26,707
Total Assets $ 12,659,597 $ 2,811,512
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable and accrued expenses 348,438 $ 113,541
Customer deposits 149,870 15,300
Current portion of financing lease 32,478 32,084
Current portion of operating lease 84,991 87,930
Current portion of notes payable 213,357 205,592
Line of credit 200,000
Total Current Liabilities 829,134 654,447
Long Term Liabilities
Finance lease, net of current portion 42,890 51,159
Operating lease, net of current portion 244,845 267,050
Notes payable, net of current portion 1,346,180 1,398,574
Total Liabilities 2,463,049 2,371,230
Stockholders’ Equity
Series A convertible preferred stock, par value $0.001, 1,000,000 shares authorized, 0 issued and outstanding
Common Stock, par value $0.001, 500,000,000 shares authorized, 6,579,771 and 4,839,448 sharesissued and outstanding, respectively 6,580 4,839
Additional paid-in capital 12,938,271 2,303,815
Accumulated deficit (2,748,303) (1,868,372)
Total Stockholders’ Equity 10,196,548 440,282
Total Liabilities and Stockholders’ Equity $ 12,659,597 $ 2,811,512

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/84440




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