AmpliTech Group, Inc (NASDAQ:AMPG) is a designer, developer, and manufacturer of 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 and 6G systems.
It announced financial results for the third quarter of 2022, ended September 30, 2022.
What Happened? Revenue increased 414.5% year-over-year to $5.44 million in Q3'22 vs. $1.06 million in Q3'21.
The Q3'22 gross profit grew to $2.66 million, an over 7-fold increase from Q3' 21 gross profit of $0.31 million. The gross profit margin expanded 193 basis points to 49.0% compared to 29.7% for the same period last year.
The Q3'22 net income reached $0.58 million from a Q3'21 net loss of $0.59 million, a positive swing of approximately $1.2 million.
MMIC chips are now available to customers for sampling purposes in small quantities.
TGSS, AmpliTech's fully managed 5G system integrator company, is now operational, with a revenue contribution expected to begin in Q3 2023
On September 30, 2022, cash and equivalents totaled $13.05 million, and working capital was $20.2 million, giving AmpliTech ample capital to fund its strategic growth initiatives.
Guidance: Product demand and new orders remain strong, and as a result, management raised its revenue guidance 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 30 is $5.3 million, representing contractual hardware and engineering services projected for delivery over the next nine months.
MMIC chip developments are on track and will likely be available on a COTS (commercial off-the-shelf) basis by Q2 2023.
Fawad Maqbool, Founder, and CEO of AmpliTech, commented, "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.
Price Action: AMPG shares closed higher by 0.79% at $2.54 on Friday.
