For first-quarter 2023, AmpliTech Group Inc of Hauppauge, NY, USA – which designs and makes signal-processing radio frequency (RF) microwave components for satellite communications, telecoms (5G & IoT), space, defense and quantum computing markets – has reported revenue of $4.1m, down on $5.1m a year ago. Core low-noise amplifier (LNA) sales continued to grow, but semiconductor distribution sales fell due to softer international demand.
Gross margin was 44%, down only slightly from 45.6% a year ago despite inflationary pressures.
Compared with net income of $3.63m a year ago, net loss was $619,000, attributed largely to a combination of corporate expenses, continuing R&D efforts in new product development, and a temporary downturn in sales in the Spectrum Division.
As of end-March, cash, cash equivalents and marketable securities totaled $10.6m (down from $16m a year ago). Working capital was $18m. AmpliTech says that this still gives it ample capital to finance all of its strategic growth initiatives.
With the AmpliTech MMIC Design Center (AGMDC) division completing design releases and ready to manufacture monolithic microwave integrated circuit (MMIC) products, in Q2/2023 an intense marketing campaign has begun, with expected bookings to occur during Q2 and shipments of MMIC-related products expected to contribute to sales in Q3/2023.
AmpliTech says that, by utilizing its Customer Relationship Management (CRM) engine, implementing artificial intelligence (AI)-powered sales prospecting techniques and leveraging increased attendance at trade shows, it achieved a 70% surge in request for quotes (RFQs) for its low-noise amplifier and 5G systems. CRM currently has $66m in the opportunity funnel, some of which the firm expects to turn into sales over the next Q3 and Q4 quarters.
AmpliTech is participating as a gold sponsor at the IEEE International Microwave Symposium (IMS 2023) in San Diego, CA, USA (11–16 June).
“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,” says CEO Fawad Maqbool.
“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 solutions and also backwards-compatible and retrofittable with existing obsolete 3G, and 4G systems,” he adds.
The 5G infrastructure market will rise at a compound annual growth rate (CAGR) of 37% to $99bn by 2030, forecasts Precedence Research. “This tremendous growth outlook reaffirms our belief in the significant potential of our product line to serve this market,” continues Maqbool.
“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,” says Maqbool.
“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,” concludes Maqbool.
Source: Semiconductor today
