AmpliTech Group, Inc. Q2 FY2025 earnings call

• Achieved record sales over $11 million in Q2 2025, surpassing 2024 fiscal year total. Lower gross margins in Q2 due to front-loading investments for 5G MNO business, including one-time costs like license fees, production line fees, etc.
• Cash and cash equivalents of $16.423 million, accounts receivables of $16.423 million, working capital of $16.163 million, no long-term debt. Intangible assets including IP increased by $8 million. Inventory over $7 million, backlog around $15 million.
• Industry context: ORAN 5G infrastructure projected to grow 33.4% to over $42B by 2030; quantum computing hardware market to grow 37.3% CAGR to over $9B by 2032; satellite/high-speed connectivity to grow 12% CAGR through 2030. AmpliTech's advanced technologies like true ORAN 5G radios and cryogenic low-noise amplifiers are suited for these markets.
• Positioned as the only U.S.-based company with complete, vertically integrated networking and connectivity solutions. Benefiting from U.S. government initiatives like rural broadband funding, USTDA efforts, and CHIPS Act incentives.
• AGTGSS division's 5G radios as growth engine, AGMDC's MMIC LNA chips integrated with 5G ORAN radios, Spectrum Semiconductor's packaging and production.

No detailed segment-wise revenue breakdown with absolute figures and contribution percentages provided in the transcript as presented. The company mentioned divisions like AGTGSS, AGMDC, and Spectrum Semiconductor but no specific financial performance per segment with percentages.

• Revenue growth already exceeding 100% YOY in FY2025, guidance raised to at least $24 million (140% YOY increase).
• Gross margins expected to get back to double digits in the last 6 months of FY2025 as production costs normalize.
• Positive cash flow from operations and projected profitability in FY2026 assuming current order pace and margin recovery.
• Strong cash management discipline, no immediate plans to raise capital under unfavorable conditions.

Forward-looking statements subject to risks that could cause actual results to differ, including those described in press releases and SEC filings.

Q: Granularity on second Tier 1 orders and feedback A: Already received orders on second Tier 1, with $40M LOI had active shipments in Q2, $78M LOI has $2.5M orders shippable in 2025 Q: Quantum computing engagements and revenue A: Product delivered to large companies but not productionized yet; quantum computers use cryogenic amplifiers with qubits needing LNA products Q: Space division backlog A: Satellite applications to start next year, AGMDC has developed space-qualified hardware Q: Orders under LOIs since $11M revenue A: Additional orders over $5M received, $40M LOI on track for full fill, $78M LOI has $2.5M funded orders Q: ORAN verticals prioritization A: Private 5G (mining, warehouses, etc.) and commercial MNOs are separate, private 5G for last-mile access Q: Competitive environment for autonomous vehicles A: AmpliTech helps MNOs as assisted provider, not competing Q: Change in opportunities since LOI announcements A: More MNOs seeing AmpliTech as viable provider, opening doors Q: Inventory strategy A: Viable to see customer forecasts, onetime costs in Q2 behind us, inventory managed to build to order/forecast Q: Warrant execution A: Contact CFO Louisa Sanfratello at louisa@amplitechgroup.com to exercise warrants, no plan to extend expiry