AmpliTech (AMPG) 14 Nov 222022 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to AmpliTech Group’s 2022 Investor Update Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

As a reminder, today's conference call is being recorded. I'd now like to turn the conference call over to AmpliTech’s Director of Corporate Communications, Shan Sawant. ahead. go Please

thanks will and of joining call. today's Growth Thank the everyone third we questions. investor review and progress quarter Today Initiatives you answer for and AmpliTech’s the

Jorge Founder call the Fawad Company Company today, Louisa AmpliTech’s Flores; On and the and our Maqbool; CEO, the Sanfratello. CFO, COO,

press the date. CEO releases to that, describe press or in results to over Company today's to importance. subject except expected. disclaimed that made are described website. that actual Monday, to cause statements follow let be the anticipate, forward-looking replay its forward-looking update are call will others goals call could of include words including the with among management any will to news materially its me forward-looking of upto corporate words various Company Maqbool. call plans, release questions to expect, AmpliTech’s different are include These section XXXX the Act initial Private November forward-looking. earnings to our found on meaning that forward-looking in statements as statements generally Following call and or With going the Reform XX, Such These in these investor the be comments, QX of be the than today's statements Likewise, taking of matters Remarks and be answers believe, of SEC, we also risks are is future as obligations open filings turn there. described questions. archived XXXX. also posted An as risks filings, within believes such similar has This the Securities Fawad statement, which objectives, that the Company Litigation to of place

We QX speak update and want ventures some market everyone. milestones on our on TGSS. joining time and conditions from and quarter newer update third investor use space, Good on your 'XX, and to operational review two key an call. Thank you, financial provide I overall us communication today's day this appreciate Shan. to MMICs current also

of $X.X Let's million, XX.X% begin margin and profit same positive gross period increased basis compared of a to 'XX The increase net $XXX,XXX. QX XXX year. QX $X.X from loss key net 'XX. 'XX. quarter. with approximately That's reached to in in Revenue profit some Gross XXX% gross the the over a QX last to profit million to points million third to highlights grew $XXX,XXX QX $X.X compared compared $XXX,XXX. X-fold $X.X QX XX% million. expanded income to 'XX 'XX of swing the of

$XX.X As our cash and XX, totaled equivalence our giving was XXXX, ample strategic an of growth of $XX.X million initiatives. capital to capital and million, all fund September working us

the Show, existing at effort showing applications, positive number meetings and update a AmpliTech infrastructure. much and by successful customer Electronic military AOC we operationally, many with had to for was Defense of a a there setting obsolete engagement government Now existing achieving of annual These know the included customers. company a communications the since large new record

MMIC quantities small our sampling for for We to production. the first technology. for expect create chips for time available demand this customers our and now to new are

year. these MMICs We are lead from organizations next government have and had commercial to to interests for production expected and designing’s

now XXXX this QX, operational. expected detail division AmpliTech’s Revenue to on. on that fully by or contribution into system is begin from integrator managed more earlier. later get I'll TGSS Finally, XG is company,

issued by earnings guidance market speak some to color in demand add we revenue the strong, press to remains our guidance I'd product our broader like just to conditions year. the revenue shown for Now and AmpliTech as release. increased

million, quintupling as reported third semiconductor a quarter costs, mentioned 'XX. the basis our We to to products growth that this $X.X optimized to compared How in ‘XX. higher profit note, primarily that's Effectively, It's revenue was LNA in of our loss of income, do quarterly XXX packages. net as guidance, improvement ‘XX for process strong an our attention in of XX.X% million. and this? reported material $X.X demand margin rising to Again, points. record I we QX of raise net we do industry $XXX,XXX our focused per by important previous from driven and revenue we quarter, in QX As XXXX of margins our QX products gross XX% $XXX,XXX and QX manufacturing mentioned despite

to AmpliTech time. is guidance million. with continue well at A minimum guidance revenue of for have strategic our our increase cash products the $XX our $X also the year fiscal capitalized to million, unwavering of million and XXXX see cash executing a of for to XXX% revenues. last low year growth for this from representing increase million quarter, raise demand full burn increasing XXXX reserves a initiatives over We additional need strong healthy solid $XX of and capital working profitable we and operations, no $XX cash our

about see would like for and infrastructure the ahead to speak space opportunities AmpliTech. the today Now, communications I that we

technologies. we that the in the communications previous needs And on I've PR still find industry it level today, calls. infrastructure be power to at to the of past mentioned next is As not investor generation this

to speeds to the what these upstream speeds be, from at that eight XXX latest recently your XG, your and means and shows see strategic it's cell goals. speed with opportunity not speeds, devices. everyone XX test GB/S on on from second can your AR/VR our the numbers megabit phones that just XX X-X by true that like from We as you denotes a megabit the aligned required including so companies disconnect X-X far carriers; should see fact, GB/S we we're speeds, still are major Ookla’s massive this from to and technologies three downstream even quarter, per per Metaverse. XG laptop this In here numbers report network speed second These

improve and MMIC center bring customers. performance to sampling form our noise have the MMIC, and infrastructure this is closer in our LNA it amplifiers with out build been loan to in and we or power that we of filters, our now much to amplifiers, to This add end happy We're components enthusiasm. ship met true As PA is attenuators, XG. chip product form overall suite, enabling expect now AGMDC an goal to report new XXXX. by and available assortment of other great We design products more has

on off-the-shelf schedule bases the or provide our QX, progressing this of Commercial by and we a product to launch are COTS We chips XXXX. on goal line reiterate for MMIC

offer radios as well XG division, services optimization globally. planning We O-RAN are as innovative true also continuing the required the new to TGSS will all development of installations our XG which and complete

let it adapter; use what people For those without converts volts their they that that of analogy. If use and understand to have appliance. me country, XXX O-RAN conversion, to an cannot you overseas XXX appliances give get to don't their you this need or to something travel to XXX; and means, they to XXX another that or

technology. using is to need this have O-RAN this that adapt XG XG, the analogy, to to So something adapter in-place older for you connect to and you'll need

get So in to XG. adapter, this essence, cannot you without

an thus a provide across adapter? important I and the who system. hope XG an relatively understand and infrastructure an to The is range AmpliTech extremely work into like for and existing closer the think performance. which across true ultimately the greater data customers. AmpliTech’s radio travel end work third their technology speeds. how to makes XG allowing to and would move compelling into to carrying that's XG expect to of that in signal great congratulate gen believe open the can clear closing, the I full so wave open communications provide architecture; to the the that the need team loss, quarter essential data We you to networks should convert our adapter noise easily. by old O-RAN buy we next converted So all essential at that. and amplifiers play responsible for implementing we enabling are our record and can execution that's third in a in these ran results. to minimal is for hard building create the we the buy product signal to necessary I'd now be a -- ensuring all are frequencies, diffuse this that AmpliTech unit, achieving XG role feature evident of XG In user. amplifiers They They're quality components low new distances

communications building thrilled of the by tomorrow, today. to challenges infrastructure us, to We of are continue solve ahead

call the up to happy Specific open answer. I'll for be questions, we'd Now Q&A.

question-and-answer the begin [Operator now Session. will Instructions]. We

go question Research. first ahead. come today SCC with from Eric Beder Our Please will

anniversary the the talk see growth going longer at you you Good the for of up bit do on at there further about of What Spectrum? impressive Great. that. do opportunities could afternoon. what almost Congratulations as in When and You're look laughing forward potential you talk an profitability a little kind Spectrum? purchasing a term rate you quarter. --

still the But continued continuing see we requirements growth. the for is. as evolve, own our growth we, all demand demand, be requirements the, for plan have seen infusing the we all and of right and existing and I chips aligned as it's on MMICs in a with mean, that's because it these we well. continued the it technologies now they'll all Well, with XG as

stocking joining of actually spectrum. of it our increase the capability and into will So we scaling that MMICs the by revenue up production

therefore packages an now. able increase but that be will the they'll to only They'll value be both themselves, MMICs companies, the customer in for add existing same both they'll revenue semiconductor in So divisions. to able not have sell the a for be base. also the sell And to packages

I where a an know go little talk in signed of opportunities? about with agreement bit you that that think terms Meta. you could and Wait, recently eventually Could you will you

sign they any info We which Meta. telecom agreements project the join tip, that we Well, is didn't the did with have.

them joined technology evolving structure, the providing for we as this infrastructure. participant all in So a

a Okay. on obviously question piece, computing, it's last it's growing. And big Quantum

forward returns You of and in terms that. have of in for revenue about both the terms What in terms going that? that for of LNAs right

Sure.

quantum the an for we do increase So requirements see definitely computing. in

right rate. As like have We and and stick before, believe it's hockey customers, qualification. we success stick that sent in will the and hockey also curve we've we're they're at now high several I a units a mentioned in to demo of

the products millions. be due compared this. our will very demonstrations next hundreds and year. the see revenue numbers of they So year a pivotal have you comparative we to to year, we pivotal the year, is next in market on these there, is Actually large it when that, really obviously results this but of hardware that what I to all because is been large then see any increase out total a give the can't in very, provided year done users a

well, and in quarter guys, QX. again right a congratulations luck All great for good

question Please our Jack come Aarde And from Maxim Vander with next will Group. ahead. go

right Congrats guidance my Okay, great. result for the strong guys questions. the raise quarter. too to in I but strong obviously more great revenue Hey good the -- you Fawad, taking on obviously sales third And many don't now, a the have results. see year. Thanks quarter. for

seasonally be third a little while opportunity do in me, early overall speaking, remind the fourth you the, expect slower seasonally than is then? speaking, to Just innings, quarter the while the quarter

in Yes, big people customers. just or We take you is this there And that weeks lot a two that. and the holidays the even really slower due vacations usually time, it not holidays. so at of lose general, from are have that, two to and,

up because then So a because next even year. place wait people run year. line, in would and they're orders they the back normally this budget hold the wouldn't they pick they on for of till year until or they though out lot Also, next funds put placed of we be budgets, in

lower. So usually a bit little is it always

of Okay, then aware sense. more in? mentioned, Are come discussions shows? trade update normal? just I've demand having cadence these you the success wondering customer you've what you and got following you, receiving you these you seeing you come this receiving you. And trade test? recent been -- you've are in and you've the these just mentioned are in it, at than the Are from strong orders had, there, customers, you seeing past in makes orders trade is Are after with show orders experiencing That just actively an And and been events. just,

are. we actually Yes,

forecast percentage lot somehow? We large, mentioned have are tool, And before, implemented large of really at and looking funnel CRM we then that will actually, a a percentage of and that. inquiries now. a what it's using we which we the a generated don't as Jorge, large lot are a I we, be inquiries know. of converted for

now, that like the have, And requests CRM of success trade as different solidly the and we turn at RFQ in source from the least right to opportunities shows, just to we're that eventually, Well, you're lot of getting then orders before converting we're our of are which model, doing of add generating it funnel. information at XX% for a have though into new will that aware people. purchase the

Okay, And generate you, sales. at beginning, the at, obviously want I but I a my because then, you're acquisition. get you a expecting of Spectrum ahead obviously don't when orders here. you, quite demand had you get I sizable at when but the that's to XXXX, now backlog skis like that to customer looking helpful. your looking here, need influx huge want acquired to ago Do you're or to, year you're Do you on backlog thoughts guess just when earlier, from a

just coming in customer visibility could you what's in of for and So confidence set growth orders your into, that up level outlook XXXX?

can I, say computing receiving very large purchase close that at experiencing in you current early can't delays. now, in and been But five we well in general, that right there. efforts the to in and applications. QX, as computers, anything now right the conditions as customers XG all of as but as have orders us only we've quantum we it, the I as products in be for these we causes logistics early is least tell QX some my a five, getting quantum results in as estimate but it discussing bookings. not just Well, We're limitations involved conditions, these lot are very see orders. the, of again, revenue, could that could economy that are these There's

Okay, great. Great.

by, closer So of of these it we quarter. start evidence we get coming we possibly like March could you in. to update at an guess see fourth some to probably a next a when February you more domino get report year-end, of sounds And I next, could from you we'll, kind year we'll effect of orders bit see time of that the as or of could

line you So hear. and bottom see, GAAP net over the, up on Also, job profit. the that's I'm too. to on $X a you, of to up revenue yet great to just great put Great put million happy over see you

a be as as have expect that operating great scales, well. imagine I this imagine no So to you, business; imagine continue; profitable? of in that that's, that's not you reason revenue there's I guys Do leverage you'll you to high more degree expect expect I I

Yes, yes.

shift to, smaller the markets just providing customers. regular we here mentioned is goal LNAs Our the there focus, as LNAs to to I were commercial our in just, mode original that before connector from and

as communications noise Our as really well from enable same competitors goal into special is and LNAs, provide us that provide to which We the can. of technologies low and the amplifiers differentiate these fit can competitors. don't can other amplifiers actually very have that kind we

those itself show that put And a applications. military time in, the matter show from is place. feel only of in we before all specifically of government for get that it's that So

a So because military and communications we companies are Navy communications infrastructure all their like and going the applications Space Air whole Force Force, of hardware. revamping after revamping they're and all there's military

can as and exposure chips, in some the the these entire So well access that of for both companies our so, modules -- inroads we've contacting made are MMIC our connector spectrum now getting all entire as applications. we

used do one just these larger a Every to mentioned, like general the towards we're requirements specifically, But larger that regular the things margin in and are margin applications. that just that's before. amplifier we not one So we specifically, of doing. thing focusing we

from big specialty, our overhead we many We've a went into transformed a out manufacturing. building. lowered type actually our from a we've different And more scale one also That's that That's spectrum, for So to full lowers you we've throughput. We've done which overhead into and two by, of actually from lower big, that microwave the company. staying and us specialty to resale buying operation also a in And, averages away really ways the company We've margin. an also I because consolidation. brought ERP of system, overhead manufacturing. so implemented increases are have our the, we a helping. effectively have mean profit into plus buildings

we're So of doing in a to increase lot actually margins turn things our our and profits. gross

forward execute. That's guys color. all Thanks I to and Its watching look really tonight results great Well, guys. congrats you again. the

will question Edward from private Gilmore, ahead. next investor. our And Please come go

call, Congrats for Right. to Thanks one log quarter me. just on in. my strong for question taking a

now release the completed maybe some could that I the TGSS operational, more if the Thanks. wondered press give there. mentioned and eventual you on is impact just in insight You and revenue

Sure.

revenue from two the places comes So TGSS. different in

before, That the carriers so-called in XG which is XG, I need and tack of existing has everyone mentioned right The put the all existing then first possible. that use inter-operability XG all We the these Otherwise to not upgrade now. to is can the so O-RAN is, all there, and inter-operability take that's with right it's of part Basically standardized what systems. the services. it infrastructure LTE, on with need that new right, you XG, compliance, XG. been stuff

anywhere all so hardware. that receive standard TGSS And that provide the up our new hardware, be providing these second XG, will make able is of that's part to XG, that for is to they using compliance services will be to O-RAN in come TGSS the any these services So XG, and to carriers. now country, XG able means plan

they but low they that these not and chips, So are in which them A factor means radios noise. MMIC of hundreds hardware I our itself And can mean the there MMIC form. cost, they're because is fit low very form. so uses in well, fit into as amplifiers, ship have can form the low radio cost,

Now, lower higher because figure provide able much of data, and range to radios of the which increase noise cannot. that, radios we and be would a these other

So fit kind so of these radio it's an systems designed to be easy they retrofit. and that new hardware into existing a is that can

sites all hardware services be it with millions and part first hardware part the retrofitted everything for it sites, the to is handle services these, But to of the millions these So able XG. well. into is of year upgrade to the that the also new going for of hardware this second And of millions to of be provide will to you're sites. have next as

So revenue sides. the that's both in coming where will be from

when Got you, it. to and On the anticipate hardware able Makes do accepting sense do start you being side? orders?

Hardware side would be our sometime is. is what estimate next mid year

one Is that electronically [Operator to made long-term? this for margins? or Instructions] increase Is have operational this changes? we steps sustainable question .We gross what that manufacturing has profit reads AmpliTech do submit to due

products We Sorry, focus it is as higher two multiply And right? of of is quantum the I the infrastructure, sites. modules mentioned did amplifiers a cost not thousands, the also which to before, sell. manufacturing. also all product normally It's, focusing So operational both I'll consolidation is and which that mention to like we'll large the XG that again. we have a and We're several this hardware, millions the companies so by tens margin like of lower the our yes, structure. we computing $X,XXX amplifier

lowered as divisions overhead, in increase. mentioned in internally And as place. as in we revenue in our So we've why well have different that the the manufacturing, I ERP the, system important our, all our will is showing across very that in,

match So sales and more our effectively streamline our production. production we and the our can operations to then effectively much pro manage

well our COTS we're products because products. more providing of So as MMIC

XX the takes a custom faster build. COTS as XX, generates product to turning of the turnover days to XX, sales design that So opposed

with for that adds a more more throughput. operation all So of streamlined up

Thank back call that and the session. Fawad for to over I'd you. answer to like Maqbool closing And concludes remarks. question turn the any

our made systems any press a Thank schedule information of have with director further realize Thank a the the QX progress look March. AmpliTech call. please Operator. to Be our call forward questions other contact year-end you on of in providing and Thank plans we our well to and who updating hear the is Until like to bottom and about would you communication joined releases. earnings good We you. mission you, have the or then, today's you tomorrow, have To whose of day. we've to contact listed if today. management, communications everyone at

now is you. call conference Thank Today's concluded.

disconnect may your at You lines time. this now