AmpliTech Reports Q1 2023 Results Company reports 4.1M revenue, 1.8M gross profits, and maintains 44% gross margins

News release by Amplitech Group, Inc.

Hauppauge, NY, | May 15, 2023 09:00 AM Eastern Daylight Time

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 worldwide distributor of packages and lids for integrated circuit assembly, and designer of complete 5G/6G systems today announced its financial results for the first quarter ended March 31, 2023. The company will host an investor call on May 22^nd 2023.

Investor Earnings Call Details

Date/Time: Monday May 22, 2023, 4 pm EST

Dial-in Number: 1-833-630-0019 (domestic) or 1-412-317-1807 (international)

Online Replay/Transcript: Audio file and call transcript will be posted to AmpliTech’s news page when available.

Investor Questions: May be submitted to investors@amplitechgroup.com prior to or during the call

Q1 2023 Highlights

Q1 2023 revenue of $4.1 million, with gross profits of $1.8M (44%).
Company maintained a healthy gross profit margin of approximately 44% amidst inflationary pressures.
Core LNA sales continue to grow, while our semiconductor distribution sales decreased due to softer international demand.
Company reported loss of $619,000 for Q1 2023, attributable largely to a combination of corporate expenses, our continuing R&D efforts in development of new products, and a temporary downturn in sales within our Spectrum Division.
As of March 31, 2023, cash, cash equivalents, and marketable securities totaled $10.6M and working capital was $18M, giving AmpliTech ample capital to finance all of its strategic growth initiatives.

Forward-Looking Update

With our AGMDC division completing design releases and ready to manufacture MMIC products, an intense marketing campaign has started in Q2, with expected bookings to occur during Q2 and shipments of MMIC related products expected to contribute to sales in Q3 2023.
By successfully utilizing our CRM engine, implementing AI-powered sales prospecting techniques, and leveraging increased attendance at our trade shows, we achieved a remarkable 70% surge in Request for Quotes (RFQs) for our exceptional low noise amplifier and 5G systems.
Our CRM currently has $66M in the opportunity funnel, some of which the company expects will turn into sales over the next Q3 and Q4 quarters.
We will participate as a gold sponsor at IMS 2023, where we eagerly anticipate connecting with some of the 10,000+ attendees and engaging in discussions about how our products can add value to their 5G, quantum, satcom, and airline Wi-Fi communications systems.

Management Commentary

CEO Fawad Maqbool provided his insights on AmpliTech’s financial results and future outlook:

"Despite current economic challenges, our commitment to innovation and quality remains resolute as we continue working to achieve our mission to develop full systems and subsystems for rapidly emerging technology sectors, utilizing AmpliTech’s unique core technology.

Our team has been working relentlessly to develop the lowest noise, lowest power-dissipating amplifiers on the market and these are included in our new 5G and wireless infrastructure products and MMIC designs for the satellite, wireless and 5G markets, including the advanced military and commercial markets. We have also recently expanded into the design of full-service, true5G Open Radio Access Network (O-RAN) front ends. These offerings are cutting-edge, end-to-end solutionsand also backwards compatible and retrofittable with existing obsolete 3G, and 4G systems.

We’re excited to be bringing these products to market at a time that the 5G infrastructure market is projected to reach $99 billion by 2030, a CAGR of 37% from current levels, according to Precedence Research. This tremendous growth outlook reaffirms our belief in the significant potential of our product line to serve this market. Despite weakening economic trends and the expected 11% decline in the semiconductor market for 2023, as reported by Gartner, we remain optimistic about semiconductors, which are integral to modern technology, and why we have invested heavily in our AGMDC semiconductor division in Texas.We anticipate that global demand will bounce back as market conditions improve.

The second quarter launch of the MMIC line under the AmpliTech Inc. division, coupled with our recent distribution deal with NGK, are important developments that are expected to drive future growth, in addition to our diversified portfolio, strategic investments, and the unwavering commitment of our team. With this strong foundation in place, we remain confident in our ability to empower the communication systems of tomorrow, today,” concluded Mr. Maqbool.

About AmpliTech Group:

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 our focused team's unique skills, experience and dedication, which enables us to deliver superior solutions, faster time to market, competitive pricing, excellent customer satisfaction and repeat business. 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, 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.

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Company Contact:

Shan Sawant, Director of Communications

AmpliTech Group, Inc.

Investors@amplitechgroup.com

Investor Relations Contact: