Hauppauge, NY, March 31, 2022 — McapMediaWire — 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 and a global distributor of packages and lids for integrated circuit assembly, today reported [record revenue] for its fourth quarter and year ended December 31, 2021 (Q4’21 and FY’21) and provided an update on its Q1’22 revenue expectations. AmpliTech will host an investor call in the next two weeks and will announce those details when confirmed.
“AmpliTech solutions enable customers to move data with greater efficiency, reliability and lower cost. These benefits are essential for bandwidth-intensive services from 5G communications to quantum computing – and from AI and the Metaverse to autonomous vehicles. We are committed to building the cutting-edge infrastructure these opportunities require.” – Fawad Maqbool, AmpliTech Founder & CEO
Q4 & 2021 Highlights
- Q4’21 revenue rose 206% to a record $2,721,452 vs. $890,702 in Q4’20.
- 2021 revenue rose 53% to a record $5,275,434 vs. $3,458,081 in 2020.
- Year-end cash and equivalents were $18.0M ($1.87 per share), providing financial strength to support long-term growth and to engage with large global customers.
- Launched its AmpliTech Group MMIC chip Design Center (AGMDC) in Plano, TX, led by a team of highly experienced radio frequency (RF) chip design engineers. Completed production of initial MMICs for customer sampling in Q1’21. The Company expects production units to be available for commercial sale by the end of Q2’22.
Q1 2022 Update
- AmpliTech currently expects Q1’22 revenue of about $4.8M versus $0.5M in Q1’21. The increase reflects a full quarter’s benefit of the Spectrum Semiconductor operations acquired late in Q4’21, as well as growth in Low Noise amplifier (LNA) deliveries. AmpliTech expects an operating loss in Q1’22 as it continues to invest in its MMIC and 5G solutions and completes its move into the Company’s new headquarters and production facility.
- Giving effect to Q1’22 product shipments to date, AmpliTech’s current order backlog is $9.3M, representing contractual hardware and engineering services anticipated for delivery over approximately six months.
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 also translating its LNA technology into smaller, more flexible and lower-cost MMIC semiconductor chip form factor designs. MMICs, or monolithic microwave integrated circuits, are used in high-frequency communications applications such as signal amplifiers and filters for mobile phones or satellites.
Fawad Maqbool, CEO, commented, “AmpliTech made substantial strides in 2021 positioning our company and industry leading technologies for significant growth. It is exciting to see our efforts being realized in solid Q4’21 revenue growth and further momentum in Q1’22.
“During the year we recapitalized the company; acquired Spectrum Semiconductor; built-out our sales, marketing and management team and infrastructure; invested in state-of-the-art testing and production equipment; secured a new, expanded Long Island headquarters, production and testing facility where we are combining our existing facilities. We also expanded our sales and marketing outreach and engagement to pursue large market opportunities in satellite communications, 5G connectivity, quantum computing and other areas.
“Our Q4 and full year results reflect our progress in building customer demand, as well as the range of investments we have made to position AmpliTech for growth, including one-time costs for our recapitalization and Nasdaq up-listing. Much of our investment in repositioning the business is now behind us, and we will be completing the move to our new HQ in early April. We can now turn our full focus on executing across the business and bringing our MMIC chips and 5G system solution to the market. Given our strong order backlog, the industry leading performance of our solutions, and the rapidly growing need for increased signal performance in our target markets, we believe AmpliTech is very well positioned for growth. While our business will likely remain variable on a quarter-to-quarter basis, due to the timing of large customer orders, we are confident in our outlook.”
Q4’21 revenue rose 206% to $2,721,452 vs. $890,702 in Q4’20, principally reflecting the benefit of an initial contribution of $1.8M in revenue from Spectrum.
Gross profit increased to $579,419 in Q4’21 compared to $268,689 in Q4’20, principally due to higher revenue, offset by increased personnel expense and other expenses as the Company builds out its infrastructure and team to support growth. Reflecting an increase in overhead including higher depreciation of production equipment, combined with the lower margin profile of Spectrum revenues, AmpliTech’s Q4’21 gross margin declined to 21.3% from 30.2% in Q4’20.
Selling, administrative and research and development expenses increased to $3,595,623 in Q4’21 from $713,917 in Q4’20 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. Q4’21 included $1.8M in expense related to the company’s development efforts at its MMIC design center as well as costs for the development of the company’s 5G system.
Reflecting these factors, AmpliTech reported a Q4’21 net loss of ($2,813,334), or ($0.30) per share, compared to a net loss of ($476,340), or ($0.13) per share, in Q4’20. Weighted average diluted shares outstanding increased to 9,407,995 in Q4’21 from 3,679,393 in Q4’20, reflecting the impact of shares issued in the Company’s recapitalization in the first half of 2022.
Balance Sheet and Investments
AmpliTech was in a solid financial position at year-end 2021, with working capital of $20.5M, including cash and cash equivalents of $18.0M, reflecting proceeds from the Company’s recapitalization and Nasdaq up-listing. During 2021 AmpliTech invested $1.0M in new scientific and production equipment, $250K in its joint venture with SN2N, $370K in non-recurring expenses related to its recapitalization and its Nasdaq up-listing, $350K in Spectrum acquisition expenses, the elimination of over 90% of outstanding debt (approximately $1.2M), and $1.8M in R&D investments.
About AmpliTech Group (www.amplitechinc.com)
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 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 for 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, 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.
Shan Sawant, Director of Communications
AmpliTech Group, Inc.
David Collins or William Jones