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 financial results for the third quarter of 2022, ended September 30, 2022.
The company reported 414.5% year-over-year growth with revenues of $5,435,654 in Q3’22 vs. $1,056,596 in Q3’21. Q3’ 22 gross profits grew to $2,660,915, an over 7-fold increase from Q3’ 21 gross profits of $313,613. The gross profit margin expanded 193 basis points to 49.0% compared to 29.7% for the same period last year. Q3’22 net income reached $576,916 from a Q3’21 net loss of $592,845, a positive swing of approximately $1.2 million.
Key Business Highlights (Q3 2022):
Management Commentary
Fawad Maqbool, Founder, and CEO of AmpliTech commented, “2022 has been a fantastic year for AmpliTech both operationally and financially. In 2021 we were entirely focused on building and delivering the highest performance analog low noise amplifiers (LNAs) on the market, while also providing waveguide products for the RF subsystem through Specialty Microwave. We achieved industry-leading noise figures, and signal-to-noise ratio, and even implemented cryogenic versions of our amplifiers that powered quantum computing research systems at 4 Kelvin (-452?)! Since then, we have leveraged our operating divisions and implemented these industry designs in our MMIC form factor through AGMDC, begun offering Semiconductor Integrated Circuits packaging through Spectrum, and extended the build-out of our 5G system integrator business through TGSS.”
“Yet even today the communications infrastructure is not even remotely at the level it needs to be. Ookla’s latest 5G networks speed test report shows 57-116 MB/S downstream speeds and 8-11 MB/S upstream speeds from the 3 major carriers. This is far from the 1-2 GB/S speeds that denote true 5G, including the 2-5 GB/S speeds required by AR/VR technologies like Metaverse. We at AmpliTech see this disconnect as a massive opportunity. As we build out our product suite, our goal is to improve the overall infrastructure performance closer to enabling true 5G.”
“Looking ahead, as the year goes on, we plan to continue to build and grow the AmpliTech brand. As of yet, we have not experienced any slowdown in demand. We continue to generate attractive margins despite increasing material costs as evidenced by the expansion of gross profit margins from 29.7% in Q3 21 vs 49.0% in Q3 22, due to our team’s commendable resource planning as well as our company’s shift to higher margin products, like LNAs and the upcoming MMIC products. Currently, sustained demand gives us the confidence to increase revenue guidance to $18M for the year, up from the $17M we guided to in our Q2 earnings report. AmpliTech is well capitalized with solid cash reserves and healthy working capital of $20.2 million, which, in combination with our low cash burn rate, is expected to be ample to fund the execution of our strategic plans. With our strong financial performance and exciting product and service pipeline, I believe that AmpliTech is well positioned to provide the communications infrastructure of tomorrow, today,” concluded Mr. Maqbool.
Forward-Looking Update
- Product demand and new orders remain strong and as a result, management is increasing revenue guidance provided last quarter from at least $17 Million to at least $18 Million for the twelve months of 2022. This is the second time that management has increased revenue guidance in 2022. The original expectation for 2022 revenue, announced with Q1 earnings, was $15 Million for the 2022 year.
- Order backlog on September 30th is $5.3 Million, representing contractual hardware and engineering services projected for delivery over the next 9 months.
- MMIC chip developments are on track and are planned to be available on a COTS (commercial off-the-shelf) basis by Q2 2023.
Click here to view an interview with Fawad Maqbool, the President and CEO (Founder) of the AmpliTech Group.
