The AmpliTech Group, a designer, developer, and manufacturer of state-of-the-art signal-processing components for satellite, 5G, and other communications networks and a worldwide distributor of packages and lids for integrated circuit assembly, and designer of complete 5G/6G systems announced earnings for second quarter of FY2022.
Key Q2 2022 Highlights
- Revenue rose 347.5% year-over-year to $4,584,042 in Q2’22 vs. $1,024,410 in Q2’21
- Q2’ 22 gross profits improved to $2,037,719 (44.5% gross profit margin) from Q2’ 21 gross profit $344,623 (33.6% gross profit margin)
- Net loss decreased by 21.8% in Q2’22 to $369,540 vs. Q2’21 net loss of $472,695
- Completed move of AmpliTech and Specialty Microwave engineering facilities into a single facility in Hauppauge NY to increase operational efficiency and R&D collaboration. Full operational capabilities were re-gained within four weeks after the move took place.
- First AGMDC MMIC chip designs were produced showcasing AmpliTech’s advanced LNA designs in a more flexible form factor. They were debuted along with other products at the International Microwave Symposium and garnered extensive interest across a wide spectrum of customers.
- Year-end cash and equivalents were $14,361,554 with working capital at $20,189,661, giving AmpliTech ample capital to finance its medium to long-term growth initiatives and stocking inventory on an unimpeded basis
CEO Commentary
Fawad Maqbool, Founder & CEO, commented, “I am very pleased with our financial results this quarter, which included a one-time major event, as we successfully consolidated our two manufacturing and engineering facilities into one building during this quarter. We now have a fully operational expanded facility located in the Hauppauge Industrial Park, Long Island NY with excess capacity for growth. We regained full operational capabilities within four weeks after the move took place.”
“During this quarter, we also welcomed some long-awaited new developments, including our new MMIC designs, and newly expanded product line, while also building the foundation for our new 5G system group, TGSS. Our AmpliTech Inc division, which designs and manufactures our low noise amplifier designs, delivering highly performant and reliable signal processing components, was complemented by our Satcom Systems division, Specialty Microwave. We recently debuted our new MMIC semiconductor designs, from our AGMDC division in Plano Texas, as well as our Spectrum Semiconductor Materials division in Silicon Valley. The two symbiotic groups will help us with the integrated circuit packaging for MMIC chips.”
“Additionally, we plan to offer systems complete innovative true 5G O-RAN radios as well as the planning and optimization services necessary to complete all new 5G installations globally through TGSS, our recently created division. We believe these developments are expected to be incredibly accretive to our business since they provide a more extensive product suite as well as a larger distribution presence. I applaud our whole team’s ability to work cohesively to make this incremental progress and transform the Company from just an amplifier component supplier to a full-service organization with cutting-edge components, systems, and services. This is a big step towards industry recognition and sustained profitability.”
Maqbool continued, “Having more comprehensive solutions in our AmpliTech Group product ecosystem, allows us to capture more of the market as evidenced by a 347% increase in revenue. Against this revenue, we also incurred higher costs this quarter due to rising material costs, R&D expenses related to MMIC design and testing, and marketing expenses related to roadshows. We also incurred one-time expenses due to our recent facility move and a one-time accounting reserve expense against an increase in inventory for our Spectrum division. We expect the rest of 2022 to pose some challenges given macroeconomic conditions.”
“However, given our team’s excellent preparedness, we were able to foresee certain conditions and stock inventory in larger quantities, giving us a lower cost basis. Additionally, the domestic production of AmpliTech products allows us to manage our supply chain more efficiently. Backed by our growing product suite, ongoing product research, and improving financials as evident by our growing revenues and increasing profitability, we look forward to continuing to build the AmpliTech brand and keep on developing world-class solutions to solve challenging problems”.
The company will host an investor call Thursday (8/18) at 4:00 PM EST and audio file and call transcript will be posted to AmpliTech’s news page when available.
