HAUPPAUGE, N.Y., Nov. 15, 2024 (GLOBE NEWSWIRE) -- AmpliTech Group, Inc. (Nasdaq: AMPG, AMPGW), a designer, developer, and manufacturer of state-of-the-art signal processing components for satellite, Public and Private 5G, and other communications networks, including the design of complete 5G/6G systems and a global distributor of packages and lids for integrated circuits assembly, today announced its financial results for the third quarter ended September 30, 2024.
Q3 2024 Highlights
Revenue of $2.834 million, with gross profits of $1.347M (47.6%).
Company increased its gross profit margin by about 5% from previous quarterly results, to 47.6% amidst inflationary pressures.
Global demand continued to be a factor affecting the majority of our customers across all product lines. Semiconductor distribution sales also decreased due to softer international demand.
Company reported a lower loss of $1.1M for Q3, in comparison to previously reported loss of $1.57M for Q2 2024. This quarterly loss is attributable largely to a combination of lower global and domestic sales, an increase in corporate expenses and our continuing R&D efforts and licensing expenses in development of new products.
As of September 30, 2024, we had cash and cash equivalents and accounts receivables of $2,352,468 and working capital of $10,072,061.
Our inventory remains strong, with over $7M in raw materials and finished goods on hand to meet immediate customer needs. The company is fully prepared to continue serving customers as demand for our products returns to normal levels.
Forward-Looking Update
As recently reported, the company has secured two strategically significant five-year agreements with major industry players. The first agreement, signed with Fujitsu Spain, is a five-year supply contract in which AmpliTech Group will provide a range of Private 5G network products. This partnership fully validates AmpliTech’s value proposition within the 5G industry. After months of intensive technical discussions and price negotiations, AmpliTech is now positioned to supply the necessary hardware for every Private 5G deployment by Fujitsu. This ensures Fujitsu can focus entirely on sales development, with the confidence that their supply chain is secured by a solution by AmpliTech Group that meets their specific needs.
The second key agreement is with a Fortune 1000, US-based company. Also a five-year contract, this deal includes an automatic three-year renewal option. Under this agreement, AmpliTech will supply Low-Noise Breakdown (LNB) converter units at an agreed price. Both agreements are expected to result in initial purchase orders imminently.
Additionally, the company has introduced a new line of Network-in-a-Box (NIB) products. The new mobile 5G NIB product line is a ready-to-use, portable solution that includes all the necessary software and hardware components to deploy a pop-up 5G network on the go. This product is specifically designed to serve commercial end-users, government personnel such as first responders, and military applications, addressing the growing demand for on-demand 5G service wherever it's needed.
AmpliTech Group will also participate in the 2025 Mobile World Congress (MWC) Trade Show in Barcelona, scheduled for the first week of March. The company continues to pursue additional strategic relationships to secure further supplier agreements across its product lines.
CEO Fawad Maqbool provided his insights on AmpliTech’s financial results and future outlook:
"Despite the current economic challenges, our dedication to innovation and quality remains unwavering, as we continue to advance our mission of developing complete systems and subsystems for rapidly emerging technology sectors, leveraging AmpliTech’s unique core technology.
Our team has been working tirelessly to establish key strategic supplier agreements to drive sales and growth. This effort has already yielded significant results, including the recent announcement of five-year supplier contracts with companies that command yearly sales revenues in the billions of dollars! The company believes these agreements will provide AmpliTech with sustained sales over the next five years and beyond. I am especially proud of our ability to fully leverage our proprietary low-noise technology to develop our own line of LNBs for the satellite market. We now offer three major product lines to support demands in the X-band, Ka-band, and Ku-band. The first purchase order, expected imminently, is projected to account for approximately 25% of our annual LNA sales at our AmpliTech Inc Division”.
Furthermore, Mr. Maqbool emphasized, "There is nothing more satisfying than receiving validation for our strategic investments in new product lines, with both 5G and LNB sales now beginning to materialize.
The company sees deployments for Private 5G networks to start growing worldwide and the company believes it is perfectly situated with products and licenses to take full advantage of this growing global demand. This tremendous growth outlook reaffirms our belief in the significant potential of our product line to serve this market. Despite weakening economic trends experienced during this initial nine month period, we remain optimistic about our sales prospects. We anticipate that global demand will bounce back as market conditions improve”.
About AmpliTech Group
AmpliTech Group, Inc., comprising five divisions—AmpliTech Inc., Specialty Microwave, Spectrum Semiconductors Materials, AmpliTech Group Microwave Design Center, and AmpliTech Group True G Speed Services—is a leading designer, developer, manufacturer, and distributor of cutting-edge radio frequency (RF) microwave components and 5G network solutions. Serving global markets including satellite communications, telecommunications (5G & IoT), space exploration, defense, and quantum computing, AmpliTech Group is committed to advancing technology and innovation. 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 with respect to, among other things, the five year supplier agreements and overall positive trends in private 5G deployments, that the company will be able to achieve revenues within the $40M range within the next two years, that there will be a large demand for MMIC parts to be supplied over the next two years and that there will be growth in the 5G infrastructure market . 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.
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Company Contact:
Jorge Flores
Tel: 631-521-7831
Investors@amplitechgroup.com
