AmpliTech Group Inc. (NASDAQ:AMPG) stock traded lower Friday after the company reported second-quarter results that included a wider-than-expected loss, even as revenue topped estimates.
AmpliTech reported a second-quarter loss of 12 cents per share, compared with the 2-cent-per-share loss expected by analysts. Sales came in at $8.07 million, slightly above the $8 million estimate.
Revenue rose 50.9% sequentially from $5.35 million in the first quarter, the company said Thursday.
Gross Margin Improves Sharply
The company’s gross profit rose 161.2% year over year to $2.25 million from $860,000. Gross margin improved to 27.9% from 7.8% a year earlier. Sales from AmpliTech’s amplifier and related passive microwave components and subsystems business increased 42.7% year over year.
However, the company’s net loss widened to $3.09 million from $1.77 million in the prior-year quarter. AmpliTech attributed the increase to higher research and development spending and increased selling, general and administrative expenses. Those costs included amortization, legal fees, stock-based compensation, marketing and business development activities.
Research and development expenses more than doubled to $1.37 million from $660,000. The spending included about $1.08 million for 5G development and $300,000 for MMIC design.
Cash, cash equivalents and marketable securities stood at about $12.95 million as of June 30.
AmpliTech Targets Four Growth Markets
AmpliTech continued to expand commercialization across four key markets: 5G and telecommunications, SATCOM and space, defense and aerospace, and semiconductor and quantum computing.
The company said second-quarter revenue growth, new O-RAN 5G product sales, expansion of Spectrum Semiconductor Materials’ distribution business and stronger amplifier and passive microwave sales showed broader monetization across its operations. AmpliTech also continued investing in 5G and MMIC development ahead of what it expects to be larger opportunities.
What’s Next
Management sees multiple potential growth drivers across its four core markets, supported by shared RF, microwave and semiconductor capabilities.
AmpliTech said it remains focused on scaling revenue, improving operating leverage and converting customer and technology programs into greater commercial production.
The company also plans to advance its 5G O-RAN and MMIC programs, grow Spectrum’s semiconductor distribution business and improve operational efficiency as its product and shipment mix evolves.
AmpliTech Price Action
AMPG Stock Price Activity: AmpliTech Group shares were down 26.38% at $4.410 during premarket trading on Friday, according to Benzinga Pro data.
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