AmpliTech Group Q1 2025 Earnings Report

AmpliTech Group EPS Results

• Actual EPS: -$0.09
• Consensus EPS: -$0.08
• Beat/Miss: Missed by -$0.01
• One Year Ago EPS: N/A

AmpliTech Group Revenue Results

• Actual Revenue: $3.60 million
• Expected Revenue: $3.50 million
• Beat/Miss: Beat by +$99.00 thousand
• YoY Revenue Growth: N/A

AmpliTech Group Announcement Details

• Quarter: Q1 2025
• Date: 5/15/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, May 15, 2025
• Conference Call Time: 5:00PM ET

AmpliTech Group (NASDAQ:AMPG) designs, engineers, and assembles micro-wave component-based amplifiers. The company's products include radio frequency (RF) amplifiers and related subsystems, such as low noise amplifiers for use in receivers of various communication systems comprising Wi-Fi, radar, satellite, base station, cell phone, radio, etc.; and medium power amplifiers that provide enhanced output power and gain in transceiver chains. It provides specialty microwave block downconverters used as a test device on satellite access point antennas; specialty microwave 1:2 Tx protection switch panels that is used in satellite communication earth stations; desktop/benchtop and compact wideband power amplifiers used in SATCOM rack mount systems, as well as test equipment used in integrators and manufacturers of various communications systems, such as cellular base stations, simulators, and point to point wireless radios; and waveguide to coaxial adapters for SATCOM and satellite internet gateway systems. In addition, the company offers cryogenic amplifiers for quantum computing, medical, RF imaging, research and development, space communications, accelerators, radiometry, and telephony applications; and cryogenic and non-cryogenic 4g/5g small cell subsystems for high-speed networks and airline Wi-Fi systems. Further, it provides custom assembly designs and non-recurring engineering services on a project-by-project basis, as well as IC packaging and lids products. The company serves aerospace, government, defense, commercial satellite, and wireless industries through sales representatives and distributors in the United States, Europe, the Middle East, and South Asia. AmpliTech Group, Inc. was founded in 2002 and is based in Hauppauge, New York.

AmpliTech Group Q1 2025 Earnings Call Transcript

Key Takeaways

• Revenue rose 57% year‐over‐year to $3.6 million in Q1, the strongest quarter since Q4 FY 2023.
• Record backlog of $19.6 million as of April 30, with cash and receivables of $19.1 million, $4.6 million in working capital, and zero debt.
• Net loss of $1.8 million in Q1 driven by higher operational spending in the 5G division and R&D initiatives.
• Fiscal 2025 revenue guidance raised to nearly $21 million—more than double last year’s total—backed by strong 5G demand.
• Secured over $12 million of firm orders from a $118 million LOI pipeline for its ORAN 5G radios, including shipments to a Tier 1 North American MNO.

Presentation

[Operator]

Good afternoon, and welcome to the Ambly Tech Group's First Quarter twenty twenty five Investors Update Call. Today's call will cover the company's financial results and strategic progress for the quarter ended 03/31/2025. All participants will be in listen only mode during the presentation. A Q and A session will follow management's remarks. This call is being recorded, a replay will be made available on Amplitec's Investor Relations webpage.

[Operator]

I'll now turn the call over to Mr. George Flores, Chief Operating Officer.

[Jorge Flores, Chief Operating Officer at Amplitech Group]

Thank you, and welcome, everyone. We appreciate you joining today's call to hear updates on Architect's operational and financial progress as well as our growth initiatives. Joining me are Pawel Magul, our founder and CEO, and Luisa San Fratello, our CFO. After our prepared remarks, we will open the floor for investor questions. An archived replay of today's call will be posted to the Investor Relations section of the Amplitex corporate website.

[Jorge Flores, Chief Operating Officer at Amplitech Group]

Please note that today's discussion may contain forward looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially. Please refer to our filings with the SEC for a full list of risk factors. We undertake no obligation to update these statements after today's call. With that, I would like to turn the call over to our CEO, Mr. Pawar Mahpoo.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Thank you, George. Thank you all for joining us today. We're pleased to report continued progress across all our divisions in Q1 twenty twenty five. While we recorded a net loss of 1,800,000.0 this quarter, driven by increased operational spending in our five g division and r and d efforts, I'd like to emphasize that these are strategic investments. They directly support the certification, scaling, and deployment of our next generation ORAN five g platform, and we're confident that they'll position Astrotech for long term success in high growth markets.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

With that, I'll go to the q one twenty twenty five highlights and strategic progress. The revenue of 3,600,000.0, up 57% year over year, our strongest quarter since q four fiscal year twenty twenty three. Gross profit of 1,100,000.0, a record backlog of 19,600,000.0 as of April 30, driven by strong bookings. Cash and receivables of 19,100,000.0, 20 4 point 6 million of working capital and zero debt. Inventory of over $7,000,000 to support near term delivery and demand rebound across both the LNA and semiconductor distribution division.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Looking at the growth outlook in the fiscal year twenty twenty five guidance, Following a challenging 2024, we're pleased to see strong demand recovery. Semiconductor and l and a orders are accelerating. Apple Tech has already booked more sales in the first four months than it recorded in all of 2024. Our five g division leads the charge with over 12,000,000 firm orders already booked from hundred and $18,000,000 LOI pipeline. We now forecast fiscal year twenty twenty five revenue of nearly $21,000,000, almost more than double that of the prior fiscal year.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

We expect this to be the trend going into fiscal year twenty twenty six. Our key strategic achievements in q one to secure CE, FCC, and recertifications for our ORAN five g radio, enabling global deployment. We expanded proprietary LNG product line with the next generation satellite solutions based based on Amputek's low noise IT foundation for which we received three patents this year already. Based on quoting activity and demand trends, LNG revenue is projected to match LMA sales within twelve months. We posted our visibility through Mobile World Congress, IEEE, Milcom, and LEAF two thousand twenty six trade shows, and we see emerging opportunities with AI.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

We're partnering with leading AI native wireless companies to develop technologies for spectrum sensing, network optimization, and digital twin applications using our ORAN platform. Our certified ORAN five g radios are already being deployed globally. Over $12,000,000 of our hundred and $18,000,000 in signed LOIs will be delivered to customers this year. So the LOIs are very meaningful for the company. We expect to continue delivering on these LOIs well into fiscal year twenty twenty six.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Shipments are being made to a Tier one MNO in North America. So this validates our ability to service and provide high level equipment in live environment. We're gonna address the tariff resilience and adaptability since that's basically a question by many, many investors. Thanks to our sourcing strategy and operational foresight, we successfully managed tariff related risk. We are prepared to adjust pricing in the industry trend shift cost and customer while maintaining the value and efficiency.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

As I said earlier, we have ample inventory to avoid any immediate effect of the new tariff policies and have not seen a noticeable effect on our supply chain and business at this point in time. In a closing perspective, Amplify is in a position of strength, record backlog, zero debt, certified global product and a growing IP portfolio. With a strong pipeline and execution in place, we expect to deliver continued revenue growth and value creation in 2025 and beyond. That's pretty much in a nutshell. Thank you for your continued trust and support. Operator, please open the call for q and a.

[Operator]

Thank you. We'll now begin the question and answer portion of the call. To ask a question, you may press star then one on your telephone keypad. If using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press then 2.

[Operator]

Our first question will come from Jack Vanderhard with Maxim Group. You may now go ahead.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Okay. Great. Hey. Great to hear all the positive momentum. Congrats on that, especially with the the backlog, the strong outlook, the two LOIs, and the the FCC certification.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Great to see you. So, Paul, it's been a long time coming here. I just want to ask you some more color on the LOIs you've secured that you publicly announced. The acquisition of the ORAN assets, believe, in Canada as well that are kind of tied to that. Can you maybe just touch on on those the acquisition of those assets? Has that closed? And sort of how does what what does that do for you? How does that how do we connect the dots back to the LOIs you do have and the purchase orders you've received? Thanks.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Sure. Sure, Jack. How are you doing? Yeah. I'd be glad to answer that question.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

These LOIs that we announced were based on the relationships that we are having in in discussions with the, you know, large M and O currently. And the idea of that was to acquire assets. By the way, it's closed deal. It's a closed deal. We acquired the assets that we needed to, and we we're basically positioning the company so that we can become a viable supplier to a very large MNO that is looking for a complete push into ORAN technology.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

So there are this is a trend that's going around globally now that ORAN is becoming the acceptable way of of of growth for all of these M and O's, and it gives them flexibility to to go from a RAN based environment, which locked them into other suppliers like Nokia and Ericsson and Fujitsu. Those basically offer a one one shot solution to them. They have no flexibility. They have stuck with them forever, and they have to always go to them for for any changes in technology. We're offering a, basically, a plug and play type of solution with ORAN. The whole idea is that we can replace or their their existing infrastructure, whether it be for replacing integrated architecture or whether it's because of Chinese architecture, any any reason there is. We're able to come in and offer a flexible solution so that now that M and A has a choice to go and change the software partners or the actual hardware partners even though we provide everything from top to bottom for these companies. So it really is meaningful.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

It's a trend that's going up. You'll find that the ORAN growth is over 30 or 40% combined annual growth and the RAN growth with existing existing technology is flat and actually decreasing. So we believe we're in the right positioning. We're a couple of years or few years ahead of all the competitors. They don't have the kinds of products that we have.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

And and making this deal and completing it and acquiring the assets that we need, it actually adds to the IP that we have right now. So it basically goes right to our bottom bottom line assets and and and also continued IP development that we're doing for all the other MNOs and private five g.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Okay. Great. I I have probably at least two more questions for us. Mhmm. Do you have line of sight into the remaining, let's call it, I guess, over a hundred million left between those two LOIs, which I think both are, you know, it's they're kind of like three year LOI agreements.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

You received over, you know, over 12,000,000 between them. Have you do you want a sight into when those how those hundred the extra hundred million will come in? If it will come in, how that would be kind of scattered? Just curious to know, like, how much visibility do you have there?

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Well, I don't think we we haven't received 12,000,000 yet. We have received the orders. We will deliver 12,000,000 by the end of this by the in in this year.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Am I right, sir? Well, we received purchase orders for 12,000,000 because that's already in the backlog. Right? Right. So for 2026 and 2027, we do expect that that is going to be scaling up with our best year 2026 with the higher number of radios that we need to deliver.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

But 2026 is is definitely going to be a a great year for us when it comes to hundreds of deliveries for these radios. The bulk of it will be 2026.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

That was what I was gonna follow-up with. So it sounds like you're expecting you you've already received 12,000,000 of orders. You just have to ship those orders, but you received 12,000,000. And then it sounds like you're expecting that to to significantly ramp in 2026. And then I guess then there'd be even more coming in in 2027 from these two LOIs alone.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Is that is that a fair way to think about it?

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Yes. Okay. Yeah. And the programs we believe we believe they have legs, For example, they're in in one of them with the 78,000,000 that we negotiated already with the end user.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Right now, though, you know, like, at this first negotiation that we have was for three years program, but we are following very closely on their program with their end user as well. And we have seen information that the program is extending through 02/1930. So it's it's expanding as we speak.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Okay. Okay.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

That's fantastic to hear. I look forward to learning more about that. And then, you know, Claude, maybe there's there's so much to chew on here, but I I I guess I'm trying to be I'm trying to structure some the more top of mind thoughts here. So you obviously have one formal MNO relationship in Canada that you have announced publicly. Can you maybe speak to other potential discussions you're having or looking to have with other MNOs globally, North America, wherever?

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Are you gaining traction in any other discussions with other MNOs? Are they knocking on your doors? Did they catch word of, you know, this this pretty large LOI contract you recently signed? Is this is this bringing more MNOs knocking on it on Amplitex door? Thanks.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Yes. Actually, even before this was done, this we even before we did this MNO deal, we were talking to several MNOs in in Europe and in Southeast Asia and and Far East. So we have we are constantly talking with them, but this achievement obviously will make our chances much better to close deals with all these other end nodes. It gives us, you know, working working relationship and it allows them to understand that we can receive these larger orders and deliver them. I mean, we can say that we've already delivered, I guess, three quarters to a half of what we were supposed to deliver this year to this the first time we know already.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

So we're we're really well into this cycle, and it shows that we can deliver it. And that was the whole question. A company like us, the new company, but will we be able to service these MNOs in the proper way? And that's what we're showing now. So, yes, we do expect all these other MNOs to, you know, catch wind of this, and they already have actually, and they've approached us, and we're going to continue to build on that.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

So we we believe we have we will have more bookings.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Excellent. Okay. And then it looks like the balance sheet is is very healthy, very strong. So I'm not gonna ask questions about that. No debt.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

You've lost the cash. So that that's not an issue, I guess, in terms of satisfying any of these orders. My my final kind of question, I guess, would be just if you could touch on the FCC certification and just maybe help us understand the importance of of achieving that milestone. What does that enable you to do that you haven't been able to do in the past? And that's it. Thanks.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Yeah. So so the FCC certification is very important because it allows it gives Amplitec the entity and its own identity to be able to radiate in the spaces that the government allows in The US.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

So it's really purely a US certification, but it's very important for us because we're a US manufacturer and we are trying to gain The US business, not just not not just globally, but US and and the and the world. So it's important to get that certification. At the same time, I'll add that we are also working and getting certification for other countries, other regions, so that we can provide this technology to all of the other countries as well. So we are actively working that way, but FCC is important for US really. And tweaking that means that we have credibility on our our equipment is actually tested.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

It's tested and to a certain standard and when it passes, that's when we get the FCC certification. Now we can radiate and provide our solutions anywhere in the country.

[Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group]

Excellent. Well, congrats again on the momentum. It's it's it's great to see you guys really executing. I look forward to tracking the story. Thanks.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

You're welcome.

[Operator]

Again, if you have a question, please press then 1. Our next question will come from Vishal Mishra with Bard Associates. You may now go ahead.

[Vishal Mishra, Research Analyst at Bard Associates, Inc]

Hi, guys. Yeah. Great great results and great quarter. Congratulations. It seems to me, like like like, the company is more becoming the third line of business, which is R50 radio.

[Vishal Mishra, Research Analyst at Bard Associates, Inc]

With 12,000,000 out of 21,000,000 from from these from these R50 really is up. Will there would you have any any sort of guidelines or or forecast of, like, the margin, especially for the new business and how much will it fall to bottom line? And it seems like if it if past margins hold, you will reach breakeven GAAP earnings by the by the end of the year. Is that what what if you can provide some color on That's a good assumption.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

I mean, basically, we have alluded to the fact that we are transforming the company to follow, you know, for the five g the five g trend, and that's important for us. I think it it will be the largest growth for the company, and that's why we're basically positioning the other groups to be basically supporting and making products to grow this in this this whole five g division. So it's the same reaction. The five g radios, if we sell thousands of radios, we will generate since we're putting our own mimic chips inside them to make them better than our competitors, our own low noise amplifier technology, our own mimic division has our own chips and front end solutions for these radios. So these radios will have our technology that makes it better, and that makes us even better than our competitors.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Even if they have existing radios, they don't have our LMAs inside them. They give them the better coverage, the throughput, the the fidelity of the signal. So therefore, the idea and strategy is that the other groups will feed this five g division. So as this grows, all the other groups will grow because the chips will be required hundreds of thousands of chips will be required to go into these radios. And then the packing division, which is our distribution division in in Silicon Valley, that division will provide the packaging for all these mimics and chips that are developed by our Texas division.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

So therefore, all the way down the line, the revenues will grow and and we will be making our own chips that will be in these radio. So therefore, it's it's really as I mentioned many times before, it's a symbiotic feed symbiotic relationship between all our divisions.

[Vishal Mishra, Research Analyst at Bard Associates, Inc]

That is great. Yeah.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Yeah. And I

[Vishal Mishra, Research Analyst at Bard Associates, Inc]

know yeah. You've been speaking about five g, and it's all putting all all the you're putting all the pieces together now. So this is this is fantastic. Like, are these MNOs who seem to be the biggest customers, are they do they also sign LOIs with, like, who have who whoever else is the five g or any provider in addition to you? Like, how how is that relationship amongst of these MNOs with the with the suppliers of five g or and radio? How how does it look like and or

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

how do we know each supplier? No. They do sign LOIs in general for with companies. And the the the I'm sure they have LOIs for other other products with other companies. But this is basically just catered to to the AMPATEC five g division, and we were able to procure these because of the uniqueness of the radio solutions that we provided.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

So this is in in the past, we have not really done any LOIs with the with with we have not announced LOIs. But this year, we feel that it's very important because it's a main ingredient and and validator for our business, and we have to have that in place. But we also went one step further and actually delivering on the LOIs and not just mentioning them that we have an LOI. So these LOIs, if they were not serious, we would not be mentioning them at all.

[Vishal Mishra, Research Analyst at Bard Associates, Inc]

Mhmm. And is it mostly techno what I'm hearing is technology of your radios, these these MNO customers like better than competitors? Or is there something also like, you are US based with tariffs or is like and the and the other competitors are I don't know. They're they're they're here or they're wrong.

[Vishal Mishra, Research Analyst at Bard Associates, Inc]

Like, how does that how is that differentiating you, if at all?

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

It's a combination of things. I mean, we are because we are a US company making these radios, there are no other US companies making these kind of radios. So it's important because, as I mentioned before, it's ORAN technology. And ORAN, we are pretty much a leader now in in ORAN technology being actually deployed. There's no other company that has this large deployment or this large orders for ORAN business.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

So don't since the whole world is going to be moving towards this, I mean, it gives us it's it's a good position for us to be in as being, you know, a a qualified supplier where there are not that many players in it.

[Vishal Mishra, Research Analyst at Bard Associates, Inc]

Right. So going forward and then you set a lot of pipeline, that seems like your existing businesses will be smaller. Your ORAN business will be larger going forward? Not necessarily.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

I mean, as I mentioned before, if we have a demand that's being created by the radios, we are going to fulfill that demand by providing our own products that go into these radios. And it's gonna grow this this the mimic chip business as well, and it's gonna grow the Silicon Valley business to provide the packages. So they're all growing. We're all scaling it up. Why would we pay in our own designs and our own radios?

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Why would we pay Corvo and make our other companies for these chips when we can make them ourselves. Right? Right.

[Vishal Mishra, Research Analyst at Bard Associates, Inc]

Okay. Great. Thank you very much.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

You're welcome.

[Operator]

That concludes the Q and A. I'll now hand the call over back to Mr. Farwad Macphoon for closing remarks.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Thank you. Well, that concludes the Q and A. So thank you very much, operator, and thank you to all who joined us today to hear about the progress we've made and the plan we have to further our company's mission of providing the communication systems of tomorrow today. We look forward to speaking with you again during our q two two thousand twenty five update in August. Please reach out to Investor Relations for follow-up or one on one meetings.

[Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group]

Stay safe, and thank you for being part of the Amputex journey.

[Operator]

That concludes today's conference call. Thank you, and have a great day.

Participants

Analysts

• Jorge Flores, Chief Operating Officer at Amplitech Group
• Fawad Maqbool, Founder, Chairman, President, CEO, CTO & Treasurer at Amplitech Group
• Jack Vander Aarde, SVP & Senior Research Analyst at Maxim Group
• Vishal Mishra, Research Analyst at Bard Associates, Inc