Q2 2024 AmpliTech Group Inc Earnings Call
Speaker Change: Today, ladies and gentlemen and welcome to ample tech groups quarterly investor update call where the company will discuss its second quarter, 2024 financial results.
Unknown Executive: Call, where the company will discuss its second quarter, 2024 financial results. 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 is being recorded.
Speaker Change: At this time, all participants are in a listen-over mode. Later, we will conduct a question and answer session, and instructions will be given at that time. As a reminder, today's call for this being recorded. I would now like to turn the call over to Anthropox Management.
Unknown Executive: I would now like to turn the call over to Amplitech's management.
Fawad Maqbool: Thank you for joining us today, Skull, to review the progress from Pitech's growth initiatives and to answer investor questions.
Speaker Change: Thank you for joining today's poll to review the progress from Patex to Growth Initiative and to answer the questions. On the call, today our Patex founder and CEO for Womongpool, the company the CEO of Womongpool, the company CEO.
Unknown Executive: On the call, today are Amplitech's founder and CEO, Awa Maqbool, the company's CEO, Louisa Sanfatello, and Jorge Flores, the company's CEO. Following initial management comments, we will open the call for investor questions.
Speaker Change: Follow me in the information management comments. We will open the call for investor questions.
Unknown Executive: Now, our private play of today's call will be posted to the investor-relations section of Amplitech's corporate website. This call is taking place today, Wednesday, over 28th, 2024.
Speaker Change: Now, I will play you today's call with the post-it or the best relation section of Architects Corporate Workside.
Speaker Change: This call is taking place today Wednesday, over 28, 2024.
Unknown Executive: Remorks that follow and answers to questions include statements that the company will use to be forward-looking within the meaning of the Private Security Leadership Reform Act of 1995. These forward-looking statements generally include words such as anticipates, beliefs, expect, or words of similar importance; likewise, statements that describe future plans, objectives, or words are also forward-looking. These forward-looking statements are subject to various risks that could cause actual results to be materially different from expected. Such risks include, among others, matters that the company had described in its press releases, and in its filings with Securities and Exchange Commissions.
Speaker Change: Remorches that follow and answers to questions include statements that the company believes to be forward-looking within the meaning of the private securities litigation before Microsoft 1995.
Speaker Change: This forward-looking statements generally include more such as anticipate, belief, expect, or words of similar importance, likewise, statements that describe teacher plans, objectives or goals are also forward with you.
Speaker Change: This forward-looking statement or subject to various risks that cool cause actual results to be materially different than expected.
Speaker Change: Social risks include among others. Maris of the company have this project in its press releases. And it is finally with security and exchange commission.
Unknown Executive: Except as described in this filing, the company explains any obligations to update forward-looking statements which are made as of today's date.
Speaker Change: Except of describing the company's claims and new obligations to update forward looking at statements which are made of today's stage.
Unknown Executive: With that, let me turn the call over to our CEO and CEO for one matter.
Parliament: With that, let me turn the call over to our CEO and CEO, Parliament.
Fawad Maqbool: Hello everyone, thanks for joining our Q2-2024 review call today. We will reflect our performance in the second quarter of 2024 and discuss the company's growth and output in market after being. In the second quarter, we reported revenue of 2.5 million, the growth profits of one million. The company maintained the healthy growth profit margin of approximately 42% mixed in place in agriculture. However, due to the significant decrease in global demand and the stationary market dynamics, we could not lead our projected revenue growth. This economic situation with the global and domestic markets continues to be effective, affecting most of our customers across all product lines.
Parliament: Hello everyone, thank you for joining our Q2 2024 review call today. We will do a reflect our performance in the second quarter of 2024 in the sets of companies growth and outlooks in market opportunities.
Parliament: The second quarter we reported revenue of 2.5 million, the growth profits of 1 million.
Parliament: Company mainstreamed the healthy, gross public margin of approximately 42% mixed in fixed inflationary structures.
Parliament: However, due to the significant decrease in global demand and the specializing market dynamic, it could not meet our projected revenue roll.
Parliament: This economic situation is a global and domestic market continues to be a factor of affecting most of our customers across all spot-of-ones.
Fawad Maqbool: I want to believe that our largest customers like LIAFAC, CPI, and L3 Harris Communications can name the few for suffering losses and all the else. Let me conduct the distribution sales from our second division, also decreased through the software and financial demand, mainly from Hong Kong, which is controlled by China now. The change was a sustained, perfect storm of negative market conditions contributing to our loss of revenue for the better part of the first half of the year. We couldn't have predicted such an event with never ever occurred since we have never experienced it before.
Dr. Bullies: Dr. Bullies, there are largest customers like LIAFAC, CPI, and L3 Harris, Relications.
Dr. Bullies: The name is Hugh, the suffering losses and all the others.
Speaker Change: Let me conduct the distribution sales from our spectrum provisions division, also the creates through the software and financial demand, mainly from Hong Kong, which is controlled by China now.
Speaker Change: Seeing the Elizabeth sustained perfect soil of negative market conditions contributing to our loss of revenue for the better part of the first half of the year.
Speaker Change: We couldn't have predicted such an event with several persons we've never experienced before.
Fawad Maqbool: Naturally, this is a significant factor in many of our losses. The good news is that this is just, and yes, I will use the word transitory. Overall, the company reported a loss of 1.57 million for Q2.24, and, as mentioned above, attributed largely to a combination of unexpected lower global and domestic sales. Increased corporate expenses in our continuing R&D efforts to theme licensing and certifications required for development and pending market release of our new 5G products. As of June 30, 2024, we had cash, cash equivalent, and accounts receivable in the amount of approximately 2.1 million, and working capital of nearly 10 million.
Speaker Change: Naturally, this is a significant factor in many of our losses.
Speaker Change: The good news is that this is just, and yes, I will use the word, transit story.
Speaker Change: Over all, the company reported a loss of $1.57 million for Q220 rainfall.
Speaker Change: And as mentioned above, attributed largely to a combination of unexpected lower global and domestic sales. Increased corporate expenses and our continuing R&D efforts to obtain licensing and certifications required for development and pending market release of our new 5G products.
Speaker Change: As of June 30, 2024, we had cash, cash equivalent and council seatable in the amount of approximately 2.1 million.
Fawad Maqbool: Our inventory position, however, remains healthy with over 7 million of raw material and finished goods available to support immediate customer needs. The company is ready to serve its customers as normal demand for our products and expected to reveal them in the upcoming quarters. We have started seeing an increased stream of R&D activities since the beginning of the third quarter. For confidence that the investments we've been making in new products should generate higher returns and profitability for the company. Our products are designed to be not only cutting edge, but also light touch labor and supported by the automated folding and other capabilities of the multi-function CRM system we have in place.
Speaker Change: and working as a very tender tender.
Speaker Change: Our aim for the position, however, may be healthy with over 7 million of raw materials and finish good available support immediate customer need.
Speaker Change: Company is ready to serve its customers as normal demand for our products and respect its resilient and upcoming quarters.
Speaker Change: We have started seeing an increased stream of our activity since the beginning of February.
Speaker Change: For confidence that the investments will be making in new products to generate higher returns and profitability for the company.
Speaker Change: Our products are designed to be not only cutting edge, but also light touch labor.
Speaker Change: And supported by the automated polling and other capabilities of the multi-function CRM system we have in place.
Fawad Maqbool: Our goal is to lower our costs and increase our profit margins.
Speaker Change: Our goal is to lower our thoughts and increase our profit margins.
Fawad Maqbool: Looking ahead, here are some key highlights to provide some revenue guidance for the upcoming quarters. In our public 5G business segment, our massive MIMO-ORAN 5G 64-T 64-R, a lot of numbers, a federal radio which is designed for towers and base stations, is in its third month of testing at the O6 Center and Northeastern University. The university, by the way, is powered by ACAC and Verizon. It's the most advanced radio of its kind for place current 4G LTE, another obsolete equipment, and is moving flawlessly towards completion before the end of the year. It's planned for full deployment in public 5G networks like public MMOs, those are mobile network operators like ACAC, Verizon, and T-Mobile.
Speaker Change: Looking ahead, you are from T.I.L.I. to provide some revenue guidance for the upcoming quarters.
Speaker Change: In our public 5G business segment, our message is my no-or and 5G 64T 64R.
Speaker Change: The loud numbers.
Speaker Change: Thank you, Radio, which is designed for towers and base stations is in its third month of testing at the Ofic Center in Norpiece and University.
Speaker Change: Did you university?
Speaker Change: By the way, it's powered by ATC and Verizon.
Speaker Change: It's the most advanced radio of its kind for closed-turned 4G of the another obsolete equipment. And it's more and flawlessly towards completion before the end of the year.
Speaker Change: It's planned for full deployment in public hygiene networks.
Speaker Change: Like public eminors, those are mobile network operators like ATC, Verizon, and CMOB.
Fawad Maqbool: To fulfill the mandate to provide open, flexible architecture developed mainly by U.S. companies. As such, it should be noted that Amplified Group, via its Amplified Group Trujee service division, is the only U.S.-based massive MIMO-ORAN 5G radio and network equipment provider. Just think of what this means in terms of competitive edge and potential market capture for AMPG. This position is accompanied to replace existing equipment from foreign vendors due to security and other economic concerns.
Speaker Change: To fulfill the mandate to provide open, flexible, architecture, development, mainly for U.S. companies.
Speaker Change: As such, it should be noted that after the group, we have an after-secret group through G-SERP services division, is the only U.S. based massive monochrome ORANF-5G radio and network equipment provider.
Speaker Change: Just think of what this means in terms of competitive edge and the thanks to a market capture for a impregnancy.
Speaker Change: This position is the company to replace existing equipment from foreign vendors due to security and other economic concerns.
Fawad Maqbool: Furthermore, in our 5G business segment, the company has now developed a full, end-to-end private 5G licensed product solution. This offering integrates advanced O-RAN radio, central and distribution units, antennas, core servers, and a versatile range of FWA, or fixed wireless access devices, tailored for diverse deployment scenarios, including buildings and residential homes. Yes, I did say residential homes; FWA replaces cable in fiber to the home of business and makes high-speed connectivity virtually cable-free. This means obsoleting cable or fiber solutions. This is a major monetization opportunity with large volumes and enormous total addressable market and revenue potential. AGPGFS, private 5G entrance solution is designed to be versioning demand for reliable and high-performance 5G networks outside traditional cellular infrastructure, and by 5G networks, I mean true 5G, not 4G LTE or some enhanced burden.
Speaker Change: For the more in our private 5G business segment, the company is now the result of full end-to-end private 5G license product solution.
Speaker Change: This offering integrates advanced orangereos, central and distribution units, antennas, core servers, and the rest of the range of SWA, for fixed wireless access devices, tailored for diverse deployment scenarios, including building and residential homes.
Speaker Change: Yes, I did say it was an actual home.
Speaker Change: FWA replaces table in fiber to the home or business and makes high-speed connectivity virtually capable of free. This means obsolete in table on fiber solutions.
Speaker Change: This is a major monetization opportunity with large volumes and enormous total addressable market and revenue-for-handle.
Speaker Change: AGCGFS, private 5G instance, routine is designed to read versioning demand for reliable and high performance 5G networks outside traditional cellular infrastructure. And by 5G networks, I mean true 5G, not 4G, LTE, or some enhanced version.
Fawad Maqbool: By combining the state of yard hardware components with expert planning and optimization services, which the ADF, TGFS group offers, this ensures a seamless deployment and operation of private 5G networks, delivering true 3G services exceeding 1 gigabits per second data speed. These private 5G networks will be in airport, airlines, mines, etc. This is a big demand for corporations to have their own private 5G networks.
Speaker Change: By combining the city yard hardware components with expert planning and optimization services which
Speaker Change: The AES CGS is group offers
Speaker Change: This ensures a seamless deployment and operation of private 5G networks, delivering 2G services exceeding 1 gigabits per second data speed.
Speaker Change: These private 5G networks will be in airports, airlines, mines, etc., so the big demand for corporations to have their own 5G networks.
Fawad Maqbool: Company expects to announce within the next couple of months key relationships and initial P5G deployment contracts domestically and abroad, so please stay tuned. At this time, our customers at home and abroad tend to take the wrong summer vacations, and summer by investors like to take their tax losses. So don't be, don't let the drop in our market cap strongly. It should only be again transitory. The rest of the year should provide proof to be very exciting.
Speaker Change: Company expects to announce within the next couple of months key relationships, an initial T5G deployment contract domestically and abroad, so please stay tuned.
Speaker Change: At this time
Speaker Change: Our customers are home and abroad, tentatively long summer vacations.
Speaker Change: If someone went best or would like to take their tax walkers.
Speaker Change: So don't let the drop in our market cap strongly.
Speaker Change: It should only be, again, transitory.
Fawad Maqbool: Now, I'd like to set some light on our Apple technical business segments. High-performance satellite ground station LNB. The LNB is the key component that is located at the center of satellite dishes that enables all satellite communications and therefore represents a large growth opportunity due to the levels of expected revenue. You've all seen these large dishes. You've seen the TV trucks outside transmitting. They have the dishes on top and the little white box in the center. That's what we're talking about. The company has also made strides in driving demand for its new LNB product lines. Second advantage of its low noise proprietary technology.
Speaker Change: The rest of the years is provide a good to be very exciting.
Speaker Change: Now I'd like to start some lesson. I'll have with that pink.
Speaker Change: Business Actors.
Speaker Change: Hi Performance Sandlight Ground Station LNB
Speaker Change: The L&B is the key to the moment that is located at the center of satellite species that enables all satellite communications.
Speaker Change: And therefore represents a large growth opportunity due to their levels of expected revenue. You've all seen these large dishes.
Speaker Change: You see that the CB trucks outside transmitting, they have the dishes on top and the robot box in the center. That's what we're talking about.
Speaker Change: The company has also made strife and driving demand for its new LMB product once.
Fawad Maqbool: These LNBs provide satellite companies with unparalleled performance. For example, the KU band LNB market size was valued at $103.2 billion in 2023 and is expected to reach 156.1 billion by the end of 2030. The company's newly released low-noise advanced mimics from our mimic design center. The performance of these LNBs is unparalleled in this industry, giving us a marked advantage over our competitors. The company has been actively quoting these LNB solutions and expects sales for our X-band, K-A-band, and KU-band LNB product lines match or exceed all regular LNB products such in sales within a year from now.
Speaker Change: Taking advantage of its low-noise, proprietary technology, these haven't been provided satellite companies with unparalleled performance.
Speaker Change: For example, the KU band L&B market size was valued at $13.2 billion in 2023 and is expected to reach 156.1 billion by the end of 2030.
Speaker Change: The company's newly released low-noise advanced mimics from our mimics design center, the performance of these LNBs are unparalleled in this industry, giving us a marked advantage over our competitors.
Speaker Change: Company is an actively coding these L&D solutions, an expect sales for our Expan, KABAN, and say you've had L&D product line, max, or it's seen all regular L&A programs person sales within a year from now.
Fawad Maqbool: Again, it should also be noted that our company is the only U.S.-based designer and manufacturer of these high-performance LNBs. These are used by many satellite-enabled companies in GPS content streaming for cinema and TV, news distribution, high-speed internet, and even airline Wi-Fi. These are just a few. There are many other military and commercial industries representing another large monetization opportunity. Like the 5G solutions, we have a similar unique technical advantage over other industry players. So we're never a Me Too product.
Speaker Change: Again, it should also be noted that our company is the only U.S. based designer and manufacturing of these high-performance LNVs.
Speaker Change: These are used by many satellite enables companies in GPS, contact streaming for cinema and TV, news distribution, high speed internet, and even airline Wi-Fi.
Speaker Change: These are just a few. There are many other military and commercial industries representing another large monetization opportunity.
Speaker Change: Like the 5G solutions, we have a similar unique technical advantage over other industry players.
Fawad Maqbool: Cryogenic power supply. The company also recently announced the release of its line of cryogenic power supplies for the quantum computing industry. These new units complement the supply of cryogenic amplifiers and are being quoted as a set to interested customers. Our AppleTech Inc. division also takes orders for its cryogenic amplifiers during this quarter, marking a milestone for the company. The first order was awarded from a major leading quantum computing company within the US. Currently, there are only two manufacturers capable of supplying the required low-noise performance at sub-zero temperatures. One is located overseas, and the other is the AppleTech.
Speaker Change: So, we're never a meat-to-coller.
Speaker Change: Prior to unique power supply.
Speaker Change: The company also recently announced the release of its line of price and its power supplies for the quantum computing industry.
Speaker Change: These new units complement the flying of cryogenic amplifiers and are being quoted as a set to interest in customers.
Speaker Change: Our Apple Tech incubation also take orders for its cryogenic applications during this quarter, parking them miles from the company.
Speaker Change: The first owner was awarded from a major leading quantum computing company within the U.S.
Speaker Change: Currently, there are only two manufacturers capable of supplying the required low-nose performance at sub-zero temperatures.
Fawad Maqbool: Again, this makes AppleTech the only U.S.-based domestic manufacturer for these types of cryogenic products. Once again, this is going to be a significant factor for the company to obtain a leadership position in the quantum computing industry and gives AMPG a significant competitive advantage to be a leading enabler for next gen AI and computing quantum computing applications.
Speaker Change: 1 is located over C.
Speaker Change: And the other is after 3rd.
Speaker Change: Again, this makes Amphalus Act the only US-based domestic manufacturing for these types of cries and its products.
Speaker Change: Once again, this is going to be a significant factor for the companies who obtain a leadership, position in the quality and computing industry, and gives A&PG a significant competitor advantage.
Speaker Change: To be a leading enable for next gen AI and computing quantum computing applications.
Fawad Maqbool: Remix and chips. Our AGNBC division has released over a hundred new MMIT and chip products since its inception. All these configurations are available now for sale at our newly completed online store, where customers can readily purchase the superior performance products online 24-7, thereby leading to a continuous stream of revenue for the company. A global distribution partner, CDI, which distributes locally and abroad, provides local customer service and application support across the Americas. This actively marketing our product, which includes obsolete replacement parts, from large semiconductor companies no longer manufacturing these products. This opens up even more opportunities for our mimic division.
Speaker Change: Let me introduce.
Speaker Change: Our AGNBC division has released over 100 new MMIC and ship products since its inception.
Speaker Change: All these configurations are available now for sale at our newly completed online store. For customers can readily purchase these superior performance products online 24-7, thereby leading to a continuous stream of revenue for the company.
Speaker Change: A global distribution partner CDI which distributes locally and abroad.
Speaker Change: Provides local customer service and applications support across the Americas, is actively marketing our product, which includes obsolete replacement parts, from large semiconductor companies no longer manufacture in these products.
Fawad Maqbool: In addition, our AGNBC center has the capability of designing custom parts. Most recently, our AGNBC MDC division received and performed a custom design for a well-funded space company startup, which the company believes will win their program. This project will require hundreds of thousands of mimic parts to be supplied over the next two to four years. In addition to this, our mimic division is designing the most advanced chipsets to go into our own 5G products. The further differentiates us from our competition in terms of speed, throughput performance, and reliability of the 5G equipment.
Speaker Change: This opens up to the more opportunities for our men to be.
Speaker Change: In addition, our AGNBC Center has successfully a designing custom parts.
Speaker Change: Most recently, our AGAC and the C Division received and performed a cut and design for a well-funded space company startup.
Speaker Change: First, the company believes we'll win their program.
Speaker Change: This project will require hundreds of thousands of mimic parts to be supported over the next two to four years.
Speaker Change: In addition to this, our mimic division is designing the most advanced chipsets to go into our own 5G products. So, further differentiate us from our competition in terms of speed, throughput, performance, and reliability of the 5G equipment.
Fawad Maqbool: That was a summary of some of the products we have been investing in to align the company with an exploding industry demand for innovative and disruptive technology. These products have high margins, high volumes, high performance differentiation, and that's to readily lead to mere term profitability due to the very large dams for these markets.
Speaker Change: That was a summary of some of the products we have been investing in, to align the company with exploding industry demand for innovative and disruptive technology.
Speaker Change: These products have high margins, high volumes.
Speaker Change: High performance differentiation, and that's the readily released near-central facilities due to the very large time for these markets.
Fawad Maqbool: Furthermore, on 5G initiatives, the company planned key global trade-sale participation to promote its 5G-seater products and new disruptive technologies. We have just began that 5G marketing is in its infancy, but we plan on growing that aggressively.
Speaker Change: For the more on 5G initiatives, the company finds key global pressure or participation. The more it's 5G student products and new disruptive technology.
Speaker Change: We have just began that 5G marketing, it's an infancy, but we plan on growing that aggressively.
Fawad Maqbool: I've said a lot, and I truly hope all of you understand our dedication to success. In closing, we're proud that our investment in our research and product development efforts has yielded leading edge technology that will drive our revenue growth for the next few years and beyond. Our products enhance our client's entire communication system, and our commitment remains unwavering to aid our clients in shaping the future of communication and thus improving the quality of life for everyone. Our team has been working relentlessly to develop the lowest noise, lowest power dissipating amplifier on the market, and these are included in our new 5G and wireless infrastructure product mimic design.
Speaker Change: I've said a lot and I truly hope all of you on this day and I've dedicated some success.
Speaker Change: To closing, we're proud that our investment in our research and product development efforts can yield its leading edge technology that will drive our revenue growth for the next few years and beyond.
Speaker Change: Our products enhanced our clients, entire communication system, and our commitment remains unwavering. To aid our clients in shaping the future of communication and thus improving the quality of life for everyone.
Speaker Change: A team has been working relentlessly to develop the lowest noise, the lowest power dissipating atmosphere virus on the market.
Fawad Maqbool: For the satellite, wireless, and 5G markets, including the advanced military and commercial markets. We've also expanded into the design of full-service, true open radio access network, ORAN, public and private 5G network deployments, actual deployments. These offerings are cutting-edge, end-to-end solutions. We have painstakingly developed strategic partnership with giants of the industry. We now have a fully licensed end-to-end private 5G solution we're offering for the 5G market. We just recently released news on our first MOU to deploy a domestic private 5G network on the West Coast. Moreover, we're excited to be bringing these products to market at the time that the 5G infrastructure market is projected to reach 99 billion by 2030, according to the industry research.
Speaker Change: And these are foods in our new 5G and wireless infrastructure product in the new design for the satellite, wireless and 5G markets, including the advanced military and commercial markets.
Speaker Change: We've also standing into the design of Pulse Service Tool, Open Radio Access Network, O-Rain, Public and Private 5G Network's deployments. Actual deployment.
Speaker Change: These offerings are coming at
Speaker Change: And to answer Muslims.
Speaker Change: We have painstakingly developed strategic partnership with giants of the industry.
Speaker Change: We now have a fully licensed M2N private 5G solution. We are all printed for the 5G market. We just recently released news on our first MOU to deploy a domestic private 5G network on the West Coast.
Speaker Change: Moreover, we're excited to be bringing these products to market at the time that the 5G infrastructure market is projected to reach 99 billion by 2030 according to the industry research.
Fawad Maqbool: This tremendous growth outlook reaffirms our belief in the significant potential of our product line to serve this market. Despite the weakening economic trends experienced during this initial six-month period, we remain optimistic about our sales prospects. We anticipate that global demand will bounce back as market conditions will move.
Speaker Change: This tremendous growth out of the way from the belief in the significant potential of our product line to serve this market. Despite the weakening economic trends experienced during this initial six-month period, we remain optimistic about our sales prospects.
Speaker Change: We anticipate that global demand will bounce back as market conditions will move.
Fawad Maqbool: Our 2024 fiscal year marks the third year of our 5G of growth plans after we've became public. Please remember that we still have two years left in our plans to realize and generate tremendous value for the company and our shareholders. From what I mentioned, is evidence that we have made great stride during these initial three-year pact to become public. Considering all the negative dynamics around our public presence, which incidentally has never been fairly evaluated by the market, even when we were profitable. We expect this to change once we gain the traction we anticipate in the coming months.
Speaker Change: Our 2024 fiscal year marks the third year of our five-year growth points after a week of the same public. Please remember that we still have two years left in our plans to realize and generate tremendous value for the company and our shareholders.
Speaker Change: And what I mentioned is evidence that we have made great strides during these initial three years, after but done in public.
Speaker Change: Considering all of the negative dynamics and under public press presence.
Speaker Change: Which incidentally has never been fairly evaluated by the market, even when we were profitable.
Speaker Change: We respect this to change once we gain the traction we anticipate in the coming months.
Fawad Maqbool: We thank you, as always, for your continued patience and trust.
Fawad Maqbool: Thank you.
Speaker Change: We thank you as always for your continued patience and trust.
Unknown Executive: We'll now open the call for questions. Okay, and we'll now move on to Q&A. To ask a question, you may press start at the moment on your telephone keypad. If you're using a speaker phone, please pick up your handset before pressing the keys. If you draw your question, please press start at the moment. Once again, let's start at the moment to ask a question, and we'll pause momentarily to assemble our roster.
Speaker Change: Thank you for now open the call for questions.
Speaker Change: Ok, we will now move onto Q&A to ask a question. You may press draw the one on your telephone keypad. If you're using a speaker phone, please pick up your hands at the full press in the keys. Please draw your question, please press start in two. Once you can, let's start in one to ask a question. We will pause the material into a similar roster.
Jack Aarde: The first question comes from Jack Benderog at Maxim Group. Okay, great. Thanks, Fawad. I appreciate the update. And you've covered plenty of ground. There's a lot to chew on there.
Speaker Change: The first question comes from Jack.
Speaker Change: Then the rug at maximum group.
Speaker Change: [inaudible]
Speaker Change: Okay, great.
Flood: Thanks, Flood. I appreciate the update and you've covered plenty of ground. There's a lot to chew on here. Maybe, maybe, be helpful. If I could just kind of compare some of the stats and just, you know, general stuff that you provided a few quarters ago.
Jack Aarde: Maybe it would be helpful if I could just kind of compare some of the stats and just general stuff that you provided a few quarters ago. And just getting up to that in a simplified way. In terms of the overall pipeline size, maybe I think it was over 120 million by two quarters ago. I'm not sure if you guys are still tracking it the same way, but can you maybe help us provide an easier way to understand what's the pipeline at and kind of what you expect from our revenue perspective for the rest of this year.
Flood: and just getting up to it on that in a simplified way. In terms of the overall pipeline size, maybe I think it was over 120 million by two quarters a go.
Speaker Change: I'm not sure if you guys are so tracking it the same way, but can you say to help us provide an easily, like, an easier way to understand what's the pipeline at and kind of what you expect from our revenue perspective for the rest of this year.
Fawad Maqbool: Well, of course, Jack, you know that we've been facing heavy headwinds from all sides, domestically and abroad. The election year we have seen, you know, too often the customers pushing out orders or again and again, so that's what we experienced. That that pushes out our own, you know, projections that we've had before. And this situation is not just here in our company; it's everywhere, and it's not just related to the company. We've had our contact manufacturers who the same thing to us, and they've said that every customer is doing that to them. So it's not something that we're just experiencing, but it does push our orders and our predictions out.
Speaker Change: Well, of course, Jack, you know that we've been facing heavy with headwinds from all sides, or the next degree at Inner Broad.
Speaker Change: In the last year we have seen a twist to often the customers pushing out orders or get in again, so that's what we experience.
Speaker Change: That pushes out our own projections that we've had before. This situation is not just here in our company. It's everywhere, and it's not just related to the company.
Speaker Change: We've had our contact manufacturers with the same thing to us and they've said that every customer is doing that to them.
Speaker Change: So, it's not something that we're just experiencing, but it does push our orders and our predictions out.
Fawad Maqbool: On the good side, we're seeing an increased RQ activity in a combination of new RQs and then just refreshing older quotations that we've been talking about and counting on before that had been pushed aside for which is that basically refresh the date for them to order. With that said, our 5G, you know, in the opportunity funnel, we see about 130 million in our pipeline; a lot of opportunities. And historically, we've seen about a 25% conversion rate and opportunities to purchase order. So, however, we just started our sales cycle for 5G. We haven't been able to start because of all these other conditions and getting licenses and certifications.
Speaker Change: On the good side, we're seeing an increase our Q activity, you know, combination of new RQs, and then just refreshing all the rotations that we've been talking about in counting on before that has been pushed aside for me to set the basis for your first date for them to order.
Speaker Change: oh
Speaker Change: We have said 5 E.
Speaker Change: You know, in the opportunity funnel, we see about 130 million in our pipeline and a lot of opportunity.
Operator: or the company will discuss its second quarter, 2024 financial results. 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 is being recorded.
Speaker Change: And historically, we've seen about a 25% conversion rate.
Speaker Change: In the opportunity to participate in the work of so-how ever.
Speaker Change: We just started our field cycle for 5G. We haven't been able to start and because of all these other conditions and getting life and tears and then certification takes time.
Jack Aarde: It takes time. So we just feel that we're starting out on our 5G division, which means there's no real history of the conversion for that particular product line. But we can't share that this we're very excited about that.
Fawad Mukbo: I would now like to turn the call over to Amplitech Management. Thank you for joining today's call to review the progress from protects growth initiatives and to answer investor questions on the call.
Speaker Change: So, we just feel that we're starting out on our 5G division, which means there's no real history of the conversion for that to be a part of mine.
Fawad Maqbool: And our engagements with the large part of the players, and we expect this business, like your business, account for at least 75 to 80% of our revenues in 2025.
Speaker Change: We're very excited about that and our engagement to the large part of the employers we expect.
Fawad Mukbo: Today are Amplitech's founder and CEO of a woman who the company see it all with us on the panel and for the floor of the company's CEO. Following initial management comments, we will open the call for investor questions. Now, prior replay of today's call will be posted to the investor relations section of architects corporate website.
Speaker Change: This business budget business to account for at least 75 to 80 percent of our revenues in 20 to 25.
Jack Aarde: Okay, I'm sorry. That business that's going to account for that percentage. Is that the 5G overall? 5G tire upgrades are just private housing networks. 5G overall. Right now, we've just started to make a dent in the private 5G enterprise with our new suite of 5G products. But these are a credit sensor to our commercial 5G, which is the original videos that are planned. For urban, urban deployment by these MNOs, by the companies like AT&T, Verizon. And in all probability, we'll probably start doing that internationally as soon as our radio or commercial applications, the large radio, the advanced radio, the gets.
Speaker Change: Okay, I'm sorry, that business that's going to account for that percentage. That is at the five-year overall. Five-year tower prison just tried to do everything that works.
Fawad Mukbo: This call is taking place today Wednesday over 28, 2024. We mark that follow and answers to questions include statements that the company believes to be forward looking within the meaning of the private security leadership reform act of 1995. This forward looking statements generally include wars such as anticipates believe expect or words of similar importance likewise statements that describe future plans objectives or goals are also forward looking. This forward looking statements are subject to various risks that cool calls actual results to be materially different and expected such risks include among others.
Speaker Change: 5-year-old. This right now we've just started to make a dent in the private 5G enterprise.
Fawad Mukbo: Matters that the company had described in this pressure list and in its filings with securities and exchange commissions. Except are described in this filing, the company explains any obligations to update forward looking statements which are made of today's state.
Speaker Change: We are in the suite of 5G products, but these are credit sets to our commercial 5G, which is the original videos that are planned for urban deployment by these M&Os, by the companies like AT&T, Verizon.
Speaker Change: In all probability, we'll probably start doing that internationally as soon as our radio for commercial application, the large radio, the advanced radio, the gifts.
Fawad Maqbool: We complete our certification and our testing at the OTX Center that's in Northeastern University. We've already gotten demand for that same radio by international players that are looking to use them for urban communities. So it's a global play, but it's hard to push that in US domestic markets a little. We've been contacted by all these large guys, but we definitely expect to see results after we complete our testing. We're in our third month after our fifth month, which will be end of the year and early next year. We'll have the certifications and start receiving orders for the massive MIMO radios.
Speaker Change: We're in complete our certification and our testing at the O.T. Center that's in more recent university. We've already gotten demand for that same radio.
Speaker Change: by international players that are looking to use them for urban communities. So it's a global play, but it's hard to push that in U.S. domestic markets, although we've been contacted by all these large guys.
Speaker Change: What we definitely expected to see results after we complete our testing, we're in a third month.
Fawad Mukbo: With that, let me turn the call over to our CEO and CTO for one moment.
Speaker Change: After our fifth month, which would be end of the year and early next year, we'll have the certification and start receiving orders.
CEO: Hello everyone, thanks for joining our Q2-2024 review call today. We will reflect our performance in the second quarter of 2024 and discuss the company's growth and outlook in market after being. The second quarter we reported revenue of 2.5 million, the growth profits of one million. The company maintained the healthy growth profit margin approximately 42% mixed inflationary pressures. However, due to the significant decrease in global demand and the stationary market dynamics, we could not leave our projected revenue wall.
Jack Aarde: But we should already start receiving orders for the private. 5G. Okay, great, great. And you said about 130 million pipeline, give or take. Is that for overall Amplitech, or is that for 5G?
Speaker Change: for the massive MIMO radios, but we should already start receiving orders for the private agit.
Speaker Change: Okay, great, great. And you said about 130 million pipeline give or take, is that for overall ample tech or is that for 5G?
Fawad Maqbool: Yeah, it's for overall Amplitech. And as we said, I mean, we're converting Amplitech's revenue stream and product line and market target focus into 5G and quantum computing and satellites rather than just amplifiers or compare, and we're converting our connectorized amplifiers and larger labor related assemblies into mimics and chips. This is what the goal was so that we can lower the costs and lower the prices and be more competitive for our advanced technology and then put it into our products like the quantum amplifiers and like the 5G radios and the satellite in space as well as we know.
Speaker Change: Yeah, it's our overall Apple Tech. And as you said, I mean, we're converting Apple Tech's revenue, stream, and product line, and market target focus into 5G and quantum computing and satellites, rather than just amplifiers.
CEO: This economic situation with the global and domestic markets continues to be a factor affecting most of our customers across all product lines. Part to believe that our largest customers like LiFAC, CPI, and L3 Harris communications. The name of the two were suffering losses and all the else. Then we conducted distribution sales from our second division, also decreased through the software and financial demand, mainly from Hong Kong which is controlled by China now.
Speaker Change: We're converting our connectorized amplifiers and larger labor related assemblies into mimics and chips. This is what the goal was, so that we can lower the costs.
Speaker Change: and lower the prices and be more competitive for our advanced technology and then put it into our products
Speaker Change: Like the quantum amplifiers and like the 5G radios and the satellite in space as well as well.
Jack Aarde: Okay, and then I think it was two quarters ago. I know you just kind of referenced it as well in the prepared remarks that, in terms of the revenue guidance you had provided entering the year, was like 35 to 40 million. Obviously, there's been some delays with just, you know, across all your verticals, or they're just delay like across the industry as well, but something specific to you guys. But just so we have an idea, that's 35 to 40 million prior guide. Is that a good proxy to think about, maybe for your expectations for 2025?
Speaker Change: [inaudible]
Speaker Change: Okay, in then
CEO: Since there was a sustained, perfect storm of negative market conditions contributing to our loss of revenue for the better part of the first half of the year. We couldn't have predicted such an event with ever occurred since we have never experienced it before. Naturally, this is a significant factor in many of our losses. The good news is that this is just, and yes, I will use the word transitory. Overall, the company reported a loss of $1.57 million for Q2.24, and as mentioned above, contributed largely to a combination of unexpected lower global and domestic sales, increased corporate expenses and our continuing R&D efforts to same licensing and certifications required for development and pending market release of our new 5G products.
Speaker Change: I think it was two cores go. I know you just kind of referenced as well in the prepared remarks.
Speaker Change: In terms of the revenue guidance you had provided, entering the year, it was like 35 to 40 million. Obviously there's been some delays with just across all your verticals, or there's just delay across the industry as well.
Speaker Change: That's something specific to you guys, but just in just so we have an idea that's 35 to 40 million prior guide.
Speaker Change: Is that a good proxy to think about maybe for your expectations for 2025? Just in the end, if you don't want to provide guidance, that's fine as well. But just so we have an idea of how do you connect the dots back to that original guidance?
Fawad Maqbool: Just and if you don't want to provide guidance, that's fine as well, but just so we have an idea of how do I connect the dots back to that original guidance. Yeah, I was easily say 2025 years. I just can't say definitely what's happening in 2024 because of all that's happened, but we definitely see activity, and we definitely are close to, you know, just thinking the orders. We've been, you know, like I said before, we've been painstageling making these relationships, but for people to get the sign on the dotted line, it takes forever. And especially in an environment like this, private 5G is a very, very technical product, and we have players that we're competing with. But because of our technology, we are going to get adoption very fast.
Speaker Change: Yeah, I would easily say 20, 25, yes.
Speaker Change: I just can't say definitely what's happening in 2020 for because of all that's happened. But we definitely see activity and we definitely are close.
CEO: As of June 30, 2024, we had cash, cash equivalents, and accounts receivable in the amount of approximately 2.1 million, and working capital is nearly 10 million. Our inventory position, however, remains healthy with over 7 million of raw material and finished goods available to support immediate customer needs. Company is ready to serve its customers as normal demand for our products and expected to resume in the upcoming quarters. We have started seeing an increased stream of R&D activities since the beginning of third quarter.
Speaker Change: So, you know, just thinking in the order as we've been.
Speaker Change: You know, as I said before, we've been pain-stately making these relationships, but for people to get the sign on the dotted line, it takes forever, especially in an environment like this, or private 5G, is a very, very technical product.
Speaker Change: And we have players that we're competing with, but because of our technology, we are going to get adoption very fast. There are not that many players that have that technology that we have.
Jack Aarde: There are not that many players that have that technology that we have, so definitely this year we will see the increase compared to the first half of the year. We will definitely start to see both things in the second half of the year, but definitely for 2025, easily 40 million though, so that we will be projected. Okay, got it understood, and then do you also expect your whole new mimic line of business that's going to essentially maybe double the existing run rates of the business. Are you going to be experienced? Do you expect revenue to start trickling in from that during 2024, or is that also a 2025 we've been?
CEO: We are confident that the investments we have been making in new products should generate higher returns and profitability for the company. Our products are designed to be not only cutting edge, but also light touch labor and supported by the automated folding and other capabilities of the multi-function CRM system we have in place. Our goal is to lower our costs and increase our profit margins.
Speaker Change: So definitely this year, we will see the increase compared to the first half of the year. We will definitely start to see both things in the second half of the year. But definitely for 2025, easily 40 million.
Speaker Change: Objective.
Speaker Change: Okay, understood. And then, do you also expect your whole new mimic line of business that's going to essentially maybe double the existing run rate to the business? Are you going to be experienced? Do you expect...
CEO: Looking ahead, here are some key highlights to provide some revenue guidance for the upcoming quarters. In our public 5G business segment, our massive MIMO-ORAN 5G 64-T 64-R, a lot of numbers. The Federal Radio, which is designed for towers and base stations, is in its third month of testing at the O6 Center in Northeast and University. The university, by the way, is powered by ACAC and Verizon. It's the most advanced radio of its kind for place current 4G LTE, another obsolete equipment and is moving flawlessly towards completion before the end of the year.
Speaker Change: Revenue to start trickling in from that during 2024 or that also a 2020-25 event.
Jorge Flores: Yeah, George has been working on the mimic division and also some key customers.
Jorge Flores: George, can you say a couple of words about that? Yes, well, we already have some small revenues on the mimics, but right now those definitely we are going to be expecting to book this type of order. You know, I hope putting Q1, which is going to really drive us the mimic ourselves for 2025 and 2026. We definitely expect a very good news early next year. Yeah, not towards the end of this year. It can't happen, but you can't say anything. Right now, because of what's happening. We know what happens. We have the election coming up.
Speaker Change: Hey, George has been working on the Amendment Division and also some key customers.
George: and we go to can you say a couple words about that? Yes, well we really have a soumest more gravy than some on the mimics.
Speaker Change: But right now those definitely we are going to be expecting to go to the site of an older girl like I hope we're in Q1 which is going to really drive us the mimic ourselves for 2025 and 2025.
CEO: It's planned for full deployment in public 5G networks like public MMOs, those are mobile network operators like ACAC, Verizon, and T-Mobile, to fulfill the mandate to provide open, flexible architecture developed mainly by U.S, companies. As such, it should be noted that AmpliSec Group via its AmpliSec Group 3G services division is the only U.S.-based massive MIMO-ORAN 5G radio and network equipment provider. Just think about what this means in terms of competitive edge and potential market capture for AMPG.
Speaker Change: So we definitely expect a very good news early every next year. Yeah, not so, at the end of this year, it can't happen, but you can't say anything.
Jack Aarde: There's so many uncertainties here that we, it's unusual circumstances. Absolutely, absolutely. Okay, I appreciate that. That's helpful. And if I could maybe just circle back as it relates to the 4G 5G tower upgrade opportunity, you know, there's thousands of these cell towers across the US. And I know you've, you've previously talked about, you know, these are higher. This would be you've even out of box solution to upgrade these towers. And it's a higher ASP. It's a big ticket item as well. He just remind us, you know, is this is this a 2025 opportunity that you expect to ramp? How quickly are you actively targeting certain towers already and working with industry participants or other third parties.
Speaker Change: Right now because of what's happening. What happens? We have your election coming up. There are so many uncertainty here that
Speaker Change: It's a new issue of circumstance.
Speaker Change: Absolutely, absolutely. Okay, I appreciate that code. That's helpful and...
Speaker Change: If I could, maybe just circle back.
Speaker Change: It relates to the 4G-5G Tower of Great Opportunity.
Speaker Change: There's thousands of these cell towers across the U.S. and I know you've previously talked about these are higher, there should be even out of box solution to upgrade these towers.
CEO: This position is accompanied to replace existing equipment from foreign vendors due to security and other economic concerns. Furthermore, in our 5G business segment, the company has now developed a full, end-to-end 5G-licensed product solution. This offering integrates advanced O-RAN radio, central and distribution units, antennas, core servers, and a versatile range of FWA or fixed wireless access devices tailored for diverse deployment scenarios, including buildings and residential homes. Yes, I did say residential homes, FWA replaces cable in fiber to the home or business and makes high-speed connectivity virtually cable free.
Speaker Change: And it's a higher ASP. It's a big ticket item as well. Can you just remind us, you know, is this a 2025?
Speaker Change: opportunity that you expect to ramp, how quickly are you actually targeting certain towers already and working with industry participants or other third parties? How you actually approach and target that opportunity and quickly?
Fawad Maqbool: How you actually approach and target that opportunity and how quickly can we expect those towers to be upgraded and be recognized into revenue for Amplitech. So, there's about a million towers in the US alone. There's all over the country. And then we're talking about not just US, so there's also global. There should be a lot. Now, when you remember, everyone converted from 3G to 4G. And then 4G to what they call 5G. It was a massive deployment like every company, and while including the tower companies like American Tower and Crown Castle, they were all experiencing significant growth.
Speaker Change: Can we expect those towers to be upgraded and be recognized in the revenue for ample tech?
Speaker Change: So one, there's about a million towers in the US alone.
CEO: This means means obsoleting cable or fiber solutions. This is a major monetization opportunity with large volumes and enormous total addressable market and revenue potential. AGPGFS, private 5G entrance solution is designed to be versioning demand for reliable and high-performance 5G networks outside traditional cellular infrastructure. And by 5G networks, I mean true 5G, not 4G LTE or some enhanced burden. By combining the state-of-yard hardware components with expert planning and optimization services, which the AGPGFS Group offers, this ensures a seamless deployment and operation of private 5G networks, delivering true 3G services exceeding 1 gigabits per second data speed. These private 5G networks will be in airport airlines, mines, etc. This is a big demand for corporations to have their own private 5G networks.
Speaker Change: Is it all over the country and then we're talking about let's just U.S. soldiers also global. This should be a lot now. And you remember everyone converted from 3G to 4G and then 4G to what they call 5G.
Speaker Change: It was a massive deployment of every company and while including the tower companies like American Tower and Crown Castle, they were old.
Fawad Maqbool: And I mentioned before that the new deployment for 5G is not even beginning yet. And it's going to be bigger than all the other G's combined. So therefore, we expect, you know, first to start off in the smaller areas for the private 5G. That's why we did this. We licensed private 5G. We went to a lot of trouble to do that so that we can start revenue streams as soon as possible. And now we have actually a full complement of products. So we will definitely be able to start satisfying the customers, but all it takes is the first group of concept and show that it's working.
Speaker Change: Experiencing significant growth.
Speaker Change: And I mentioned before that the new Department for 5G is not even beginning yet.
Speaker Change: And it's going to be bigger than all the other Gs combined. So therefore we expect, you know, first to start off in the smaller areas for the private client G. That's why we did this in the licensed private 5G. We went to a lot of trouble. We'll do that so then we can start revenue streams.
Speaker Change: As soon as possible and now we have actually a full complement of products.
Speaker Change: So we will definitely be able to start satisfying the custom as well. All it takes is the first proof of concept and show that it's working. Everybody has the same question. And really doing that later this year.
Fawad Maqbool: Everybody asks the same question. And we'll be doing that later this year. And, you know, inking a couple of smaller orders this year. And it could be big ones too. But most of that, obviously, the growth will come in 2025. And we have partnered with strategic players. These are called System Integrators. We're partnered with them and also strategic suppliers that make key products like the software for all these radios and the spec hardware. We're providing N10 means that we're providing from the tower to the home. CPE equipment customer premise, which is a wireless routers that are very advanced.
CEO: Company expects to announce within the next couple of months key relationships and initial P5G deployment contracts domestically and abroad, so please stay tuned. At this time, our customers at home and abroad tend to take a long summer vacations. And some of our investors like to take their tax losses, so don't be, don't let the drop in our market cap startle. It should only be again transitory.
Speaker Change: And, you know, inking a couple of smaller orders this year.
Speaker Change: And it could be big ones too. But most of that, obviously the girls will come in 2025. And we have partners with strategic players, these are called system integrators.
Speaker Change: We're partnered with them and also strategic suppliers that make key products, like the software for all these radios, and it's thick hardware. We're providing end-to-end means that we're providing from the tower to the home.
CEO: The rest of the year should provide proof to be very exciting.
CEO: Now, I'd like to set some light on our Apple technical business segments. High performance satellite ground station LNB. The LNB is the key component that is located at the center of satellite dishes that enables all satellite communications and therefore represents a large growth opportunity due to the levels of expected revenue. You've all seen these large dishes. You've seen the TV trucks outside transmitting. They have the dishes on top and the little white box in the center.
Speaker Change: CPE equipment customer premise, which is a wireless router that are very advanced, they have higher than one gigabits speed. And they can be put in the home connecting to a private network or public network outdoors without any cables.
Fawad Maqbool: They have higher than one gigabit speed, and they can be put in home, connecting to a private network or public network outdoors without any cables. So that's including Wi-Fi 7 as well. Wi-Fi 7, you've heard of that. The new technology everyone wants it because it has higher bandwidth and higher speed. We have that already. We have Wi-Fi 7. We have CPEs. We have tower radios. We have connection to the home wirelessly. Everything you can think of. So we think it's a question of marketing and marketing and brand awareness and the partnerships that we're making with the larger players that have actually second tier providers that provide the systems. We're connecting with them to be their hardware provider and service provider so that we're going to obtain this business.
Speaker Change: So that's that's including Wi-Fi 7 as well. Wi-Fi 7 you heard of that new technology. Everyone wants it because it has higher bandwidth and higher our speed. We have that already. We have Wi-Fi 7. We have CPE. We have tower radios. We have.
CEO: That's what we're talking about. The company has also made strides in driving demand for its new LNB product lines. Second advantage of its low noise proprietary technology. These LNB provides satellite companies with unparalleled performance. For example, the KU band LNB market size was valued at $103.2 billion in 2023 and is expected to reach 156.1 billion by the end of 2030. But the company's newly released low noise advanced mimics from our mimic design center, the performance of these LNBs are unparalleled in this industry giving us a marked advantage over our competitors.
Speaker Change: Connection to the home wirelessly, everything you can think of. So we think it's a question of marketing, and marketing, and brand awareness. And partnerships that we're making with the larger players that have actually second-tier providers that provide the systems.
Speaker Change: We're connecting with them to be their hardware provider and service provider so that we're going to obtain this business.
Fawad Maqbool: by climbing up the ladder. And then, therefore, it's immediate access to the markets. And it's not just us doing all the heavy lifting; it's our partners helping us to get there.
Speaker Change: by climbing up the ladder.
Speaker Change: And then therefore it's immediate immediate access to the markets and it's not just us doing all the heavy lifting, it's our partners helping us to get there.
Jorge Flores: I would like to add something, Jack Aarde. This is George. For the private five inheritors, right? You know, in addition to the enhanced security and the data speeds that we can offer our customers, there's also the monetization aspect of them being able to add subscribers and become a revenue-based service for them. So it's not just an expense, which is also ROI related, because they will be able to add subscribers at a fee at the monthly fee, just like I currently have with your cable services or getting a Wi-Fi signal into your homes. So our private 5G networks enable our customer who is going to own this network to add subscribers on a monthly basis.
CEO: The company has been actively quoting these LNB solutions, but expect sales for our expand KA band and KU band LNB product lines, max or exceed all regular LNB products such as sales within a year from now. Again, it should also be noted that our company is the only US-based designer and manufacturer of these high performance LNBs. These are used by many satellite-enabled companies in GPS content streaming for cinema and TV, news distribution, high-speed internet, and even airline Wi-Fi.
Speaker Change: I would like to our sons and gankers, this is George.
Speaker Change: For the private life in miracles, right, you know, in addition to the enhanced security and the data speeds that we can offer our customers.
Speaker Change: This is also the modernization aspect.
Speaker Change: Also, then being able to add subscribers and become a revenue, they service for them. So it's not just an expense.
Speaker Change: If it's also ROI related, because they will be able to add subscribers at a fee at the monthly fee. Just like currently how in your table services or getting a Wi-Fi signal into your homes.
CEO: These are just a few. There are many other military and commercial industries representing another large monetization opportunity. Like the 5G solutions, we have a similar unique technical advantage over other industry players. So we're never a me too product.
Speaker Change: So our private public networks enable our customer who is going to own this network to add subscribers on a monthly basis that we're going to be able to provide credentials, users, names, passwords.
Jorge Flores: They're going to be able to provide credentials, users, names, passwords. They're going to be able to provide levels of services. They're going to be able to charge their customers for this service, and we'll do the maintenance for them as well.
Speaker Change: That going to be able to provide levels of services, you know, I could do it one to six hundred megabits per second, do it one to one gigabits per second.
CEO: Cryogenic power supply.
CEO: The company also recently announced the release of its line of cryogenic power supplies for the quantum computing industry. These new units complement the spline of cryogenic amplifiers and are being quoted as a set to interest in customers. Our Amplitech Inc, division also takes orders for its cryogenic amplifiers during this quarter, parking a milestone for the company. The first order was awarded from a major leading quantum computing company within the U.S. Currently there are only two manufacturers capable of supplying the required low-noise performance at sub-zero temperatures.
Speaker Change: Right now, they're going to be able to charge their constant export service and we do the maintenance for them as well. So, that's why we feel so excited that we have this end-to-end, which is fully licensed now.
Jorge Flores: So that's why we feel so excited that we have this end-to-end, which is fully licensed now, and we are definitely speaking to a lot of customers and trying to educate the customers also that this is just not enhancing your security system, but also provides them with a one-in-dissation experience and capabilities only in this network.
Speaker Change: And we are definitely speaking to a lot of customers on trying to educate the customers also that this is just not enhancing your security system, but also it provides them with a monetization experience and capabilities on these networks.
Jack Aarde: Great. No, I appreciate that.
Jack Aarde: It may be just one more question for me. You put a press release out a few, I guess it was last week, actually. Will you announce your MOU for a private 5G network, and kind of towards the end of that press release, you mentioned. You expect revenue to commence within this current fiscal year. It could be valid in the access of $1 million within finalizes in three months after receipt. Can you touch on that, this particular press release in this private 5G network, that $1 million potential contract? How does that kind of, is that just for the first phase of this?
Speaker Change: Great. Now I appreciate that. Maybe just one more question for me.
CEO: One is located overseas and the other is Amplitech. Again, this makes Amplitech the only U.S-based domestic manufacturer for these types of cryogenic products. Once again, this is going to be a significant factor for the company to obtain a leadership position in the quantum computing industry and gives Amplitech a significant competitive advantage to be a leading enabler for next gen AI and computing quantum computing applications. Memics and chips. Our AGNBC division has released over a hundred new MMIC and chip products since its inception.
Speaker Change: You put a freshly set a few, I guess it was last week, actually, where you announced your MOU with a private 5G network. In kind of towards the end of that, you mentioned.
Speaker Change: You expect the revenue to commence within this, I think, the current fiscal year. It could be actually dialing access of $1 million within, in finalizes, and three months after receipt.
Speaker Change: Can you touch on that, this particular pressure release in this product, 5G network, that $1 million potential contract? How does that kind of, is that just for the first phase of this? How does this, how do you expect this to ramp up?
Jack Aarde: How does this, how do you expect this to ramp up? That would be helpful.
CEO: All these configurations are available now for sale at our newly completed online store where customers can readily purchase the superior performance products online 24-7 thereby leading to a continuous stream of revenue for the company. A global distribution partner, CDI, which distributes locally and abroad provides local customer service and application support across the Americas, is actively marketing our products which include obsolete replacement parts from large semiconductor companies no longer manufacturing these products.
Fawad Maqbool: Yeah, for example, though this would be one of those projects that we call like a proof of concept. We use the terminology "scene is believing" a lot, right? So, you know, that's why our public massive MIMO radius are undergoing inter-probability testing, so we can get those badges or certificates. So then we can have proof, right, that what we said our radius do is going to be certified.
Speaker Change: I'm very proud of you.
Speaker Change: For example, this would be one of the projects that we call like proof of contact.
Speaker Change: We use this terminology, seeing is believing a lot, right? So, you know, okay, that's why our public mass in mind, we're ready, this are undergoing interprovenity testing, so we can get those badges, so certificates, so then we can have.
Fawad Maqbool: So, in this particular case with the private 5Gs, we have these very smaller initial projects that we worked with the customers, right? So they're going to be able to start doing deployment in phases, right? So basically like phase one is going to cover X area on this city and then, you know, like once they see the functionality, the data speed, the performance of the network, you know, again, you know, we're going to be able to open it up into more cities. And then the strategy, of course, is going to be rinse and repeat through all their cities or meaningful policies across the Internet.
Speaker Change: Truth, right, that what we said already is due, is going to be certified. In this particular case, we have the private 5G. We have these very smaller initial projects.
CEO: This opens up even more opportunities for our MMIC division. In addition, our AD and DC center has the capability of designing custom parts. Most recently, our AGNBC and DC division received and performed a custom design for a well-funded space company startup, which the company believes will win their program. This project will require hundreds of thousands of MMIC parts to be supplied over the next two to four years. In addition to this, our MMIC division is designing the most advanced chipsets to go into our own 5G products to further differentiate us from our competition in terms of speed, throughput performance, and reliability of the 5G equipment.
Speaker Change: that we work with the customers, right? So they're going to be able to start.
Speaker Change: during the implementing phases.
Speaker Change: Right? So basically, like phase one is going to
Speaker Change: our cover X-area on this city and then you know, like once they see the functionality, the data speed, the performance of the network, you know, get the Angel and we're going to be able to open it up into.
Speaker Change: More serious and then the strategy of course is going to be rinse and repeat through all their series or municipalities across the United States.
Fawad Maqbool: Jack Aarde, Fawad Maqbool, Jorge Flores, Louisa Sanfratello, Amplitech Group. Jack Aarde, Fawad Maqbool, Jorge Flores, Louisa Sanfratello, Amplitech Group. Jack Aarde, Fawad Maqbool, Jorge Flores. Thank you all for entering. Thanks to everyone who joined today's call to hear about the progress we've made and the plan we have adopted to further our company's mission in providing the communication systems of tomorrow, today. To look forward to updating you further on our two three financial results call in mid-November.
Speaker Change: Injected back on that point where this is dealing with actually cities and municipalities where they move very slow.
CEO: That was a summary of some of the products we have been investing into allowing the company with exploding industry demand for innovative and disruptive technology. These products have high margins, high volumes, high performance differentiation, and that's to readily lead to near-term profitability due to the very large dams for these markets. Furthermore, on 5G initiatives, the company planned key global trade-sale participation to promote its 5G suite of products and new disruptive technologies. We have just began that 5G marketing is in its infancy, but we plan on growing that aggressively.
Speaker Change: So, we have to make sure, you know, we don't know timing why things get delayed, things just for some. What we definitely are there, you know, we're definitely out there and things will happen and we'll be announcing that soon.
Speaker Change: Okay, well great. That's it for me. There's a lot of items in the fire here. It's interesting to track it all, but I look forward to watching you guys execute. Also, it sounds like you'll be announcing some official partnerships and potential contracts in your future. So, best luck and that's it for me. Thank you.
Speaker Change: Thank you Jack, just feel it.
Speaker Change: Once again, to ask a question, you will question the one?
CEO: I've said a lot, and I truly hope all of you understand our dedication to success. In closing, we're proud that our investment in our research and product development efforts have yielded leading-age technology that will drive our revenue growth for the next few years and beyond. Our products enhance our client's entire communication system, and our commitment remains unwavering to aid our clients in shaping the future of communication and thus improving the quality of life for everyone.
Speaker Change: It's concludes Q&A session now on now trying to call back over the Fawad Muppo for closer remarks.
Speaker Change: Thank you all for hearing. Thanks for everyone who joined today's call. We hear about the progress we've made and the plan we have adopted to further our company's mission and providing the communication systems of tomorrow today.
Speaker Change: So the following is updating your further on our two three financial results call in digital November. So then please contact us directly so you have any questions or wish to schedule a call with management.
Unknown Executive: So then, please contact us directly. Should we have any questions or wish to speak to the call with management? Our investor relations team can be reached at the contact information listed at the bottom of our press room.
CEO: Our team has been working relentlessly to develop the lowest noise, lowest power dissipating amplifier on the market. And these are included in our new 5G and wireless infrastructure product and mimic design for the satellite, wireless, and 5G markets, including the advanced military and commercial markets. We've also expanded into the design of full service, true open radio access network, ORAN, public and private 5G network deployments, actual deployments. These offerings are cutting edge, end-to-end solutions.
Speaker Change: Our investor relations team can be reached at the contact information listed at the bottom of our press release.
Unknown Executive: Thank you and be well.
Unknown Executive: Today's conference call is now concluded. Thank you. You may now disconnect your lines. Thank you.
Speaker Change: Thank you and be well.
Speaker Change: Today's conflict goes now concluded. Thank you. You may not disconnect your lives.
Speaker Change: [inaudible]
CEO: We have painstakingly developed strategic partnership with giants of the industry. We now have a fully licensed end-to-end private 5G solution we're offering for the 5G market. We just recently released news on our first MOU to deploy a domestic private 5G network on the West Coast. Moreover, we're excited to be bringing these products to market at the time that the 5G infrastructure market is projected to reach 99 billion by 2030 according to the industry research.
CEO: This tremendous growth outlook reaffirms our belief in the significant potential of our product line to serve this market. Despite the weakening economic trends experienced during this initial six-month period, we remain optimistic about our sales prospects. We anticipate that global demand will bounce back as market conditions will move. Our 2024 fiscal year marks the third year of our 5G of growth plans after we've became public. Please remember that we still have two years left in our plans to realize and generate tremendous value for the company and our shareholders.
CEO: From what I mentioned is evidence that we have made great strides during these initial three-year pact to become public. Considering all the negative dynamics around our public presence, which incidentally has never been fairly evaluated by the market, even when we were profitable. We expect this to change once we gain the traction we anticipate in the coming months.
CEO: We thank you as always for your continued patience and trust. Thank you.
Operator: We'll now open the call for questions. Okay, and we'll now move on to Q&A. To ask a question, you may press start at the moment on your telephone keypad.
Operator: If you're using a speaker phone, please pick up your handset before pressing the keys. If you draw your question, please press start at the moment. Once again, let's start at the moment to ask a question and we'll pause momentarily to assemble our roster.
Jack Benderog: The first question comes from Jack Benderog at Maxim Group. Okay, great. Thanks, Flood. I appreciate the update. You covered plenty of ground. There's a lot to chew on here. You know, maybe, maybe helpful.
Jack Benderog: It's just, if I can, if we could just kind of compare some of the stats and just, you know, general stuff that you provided a few quarters ago. And just getting up to that in a simplified way. In terms of the overall pipeline size, maybe, I think it was over 120 million by two quarters ago. I'm not sure if you guys are still tracking it the same way, but can you just maybe help us provide an easily, like an easier way to understand what's the pipeline at and kind of what you expect from a revenue perspective for the rest of this year?
CEO: Well, of course, Jack, you know that we've been facing heavy ahead wins from all sides domestically and abroad. The election year we have seen, you know, too often the customers pushing out orders or getting it again. So that's what we experienced. That that pushes out our own, you know, projections that we've had before. And this situation is not just here in our company, it's everywhere, and it's not just related to the company.
CEO: We've had our contact manufacturers who the same thing to us and they've said that every customer is doing that to them. So it's not something that we're just experiencing, but it does push our orders and our predictions out. On the good side, we're seeing a increased RQ activity, you know, combination of new RQs and then just refreshing older quotations that we've been talking about and counting on before that had been pushed aside for which is that basically refresh the date for them to order.
CEO: With that said, our 5G, you know, in the opportunity funnel, we see about 130 million in our pipeline, a lot of opportunities. And historically, we've seen about a 25% conversion rate and opportunities to purchase order. So however, we just started our sales cycle for 5G. We haven't been able to start because of all these other conditions and getting licenses and then certifications. It takes time. So we just feel that we're starting out on our 5G division, which means there's no real history of the conversion for that particular product line.
CEO: But we can't share that this, we're very excited about that and our engagements with the large 5G players, and we expect this business like your business account for at least 75 to 80% of our revenues in 2025. Okay, I'm sorry, that business that's going to account for that percentage, is that the 5G overall 5G tire upgrades are just private housing networks. 5G overall, this right now we've just started to make a dent in the private 5G enterprise with our new suite of 5G products, but these are credit sensor to our commercial 5G, which is the original videos that are planned.
CEO: For urban, urban deployment by these MNOs, by the companies like AT&T Verizon. And in all probability, we'll probably start doing that internationally as soon as our radio or commercial application, the large radio, the advanced radio, the gets, where we complete our certification and our testing at the OTIC center that's in Northeastern University. We've already gotten demand for that same radio by international players that are looking to use them for urban communities, so it's a global play.
CEO: But it's hard to push that in US domestic markets a little, we've been contacted by all these large guys, but we definitely expect to see results after we complete our testing. We're in our third month after our fifth month, which would be end of the year and early next year, we'll have the certifications and start receiving orders for the massive MIMO radios. But we can already start receiving orders for the private sector.
CEO: Okay, great, great. And you said about 130 million pipeline give or take. Is that for overall Amplitech? Or is that for 5G? Yeah, it's for overall Amplitech. And as we said, I mean, we're converting Amplitech's revenue stream and product line and market target focus into 5G and quantum computing and satellites rather than just amplifiers. We're config and we're converting our connectorize amplifiers and larger labor related, you know, assemblies into mimics and chips.
CEO: This is what the goal was so that we can lower the costs and lower the prices and be more competitive for our advanced technology and then put it into our products like the quantum amplifiers and like the 5G radios and the satellites in space as well as ground. Okay, and then I think it was two quarters ago. I know you just kind of referenced it as well in the prepared remarks, but in terms of the revenue got into you provided entering the year was like 35 to 40 million.
CEO: Obviously, there's been some delays with just, you know, across all your verticals or they're just delay like across the industry as well. It's not that it's not that specific to you guys, but just so we have an idea that 35 to 40 million prior guide. Is that a good proxy to think about maybe for your expectations and for 2025? Just and if you don't want to provide guidance, that's fine as well.
CEO: But just so we have an idea of how do I connect the dots back to that original guidance? Yeah, I was easily say 2025. Yes, I just can't say definitely what's happening for because of all that's happened, but we definitely see activity and we definitely are close to, you know, just thinking the orders. We've been, you know, as I said before, we've been painstaking making these relationships, but for people to get the sign on the data line, it takes forever, especially in an environment like this or private 5G is a very, very technical product.
CEO: And we have players that we're competing with, but because of our technology, we are going to get adoption very fast. There are not that many players that have that technology that we have. So definitely this year we will see the increase compared to the first half of the year. We will definitely start to see both things in the second half of the year, but definitely for 2025 easily 40 million. Okay, understood.
CEO: And then do you also expect your whole new mimic line of business that's going to essentially maybe double the existing run rates of the business? Are you going to be experienced? Do you expect revenue to start trickling in from that during 2024 or is that also a 2025 event?
George: Yeah, George has been working on the mimic division and also some key customers and George, can you say a couple of words about that? Yes. Well, we already have some small revenues on the mimics, but right now, those definitely we are going to be expecting to book this type of order. You know, I hope putting Q1, which is going to really drive the mimic ourselves for 2025 and 2026. So we definitely expect a very good news early next year.
George: Yeah, not towards the end of this year. It can't happen, but you can't say anything. Right now because of what's happening. We know what happens. We have the election coming up. There's so many uncertainties here that we it's unusual circumstances. Absolutely, absolutely. Okay, I appreciate that. That's helpful.
Jack Benderog: And if I could maybe just circle back as it relates to the 4G 5G tower upgrade opportunity. You know, there's thousands of these sell towers across the US and I know you've previously talked about, you know, these are higher. This would be you've even out of box solution to upgrade these towers and it's a higher ASP. It's a big ticket item as well.
CEO: Can you just remind us, you know, is this is this a 2025 opportunity that you expect to ramp how quickly are you are you actively targeting certain towers already and working with industry participants or other third parties. How you actually approach and target that opportunity and how quickly can we expect those towers to be upgraded and be recognized into revenue for Amplitech. So one, there's about a million towers in the US alone.
CEO: There's all over the country. And then we're talking about not just US, so there's also global. There should be a lot. Now, when you remember everyone converted from 3G to 4G. And then 4G to what they call 5G. It was a massive deployment like every company, and while including the tower companies like American tower and crown castle, they were all experiencing significant growth. And I mentioned before that the new deployment for 5G is not even beginning yet, and it's going to be bigger than all the other G's combined.
CEO: So therefore we expect, you know, first to start off in the smaller areas for the private 5G. That's why we did this in the licensed private 5G. We went to a lot of trouble with that so that we can start revenue streams as soon as possible. And now we have actually a full complement of products. So we will definitely be able to start satisfying the customers, but all it takes is the first group of concept and show that it's working.
CEO: Everybody asked the same question. And we'll be doing that later this year and inking a couple of smaller orders this year. And it could be big ones too. But most of that obviously the growth will come in 2025. And we have partnered with strategic players. These are called system integrators. We're partnered with them and also strategic suppliers that make key products like the software for all these radios and the spec hardware.
CEO: We're providing N10 means that we're providing from the tower to the home, CPE equipment customer premise, which is wireless routers that are very advanced. They have higher than one gigabit speed and they can be put in home connecting to a private network or public network outdoors without any cables. So that's including Wi-Fi 7 as well. Wi-Fi 7 you've heard of that the new technology everyone wants it because it has higher bandwidth and higher speed. We have that already. We have Wi-Fi 7. We have CPEs. We have tower radios. We have connection to the home wirelessly. Everything you can think of.
CEO: So we think it's a question of marketing and marketing and brand awareness and the partnerships that we're making are with the larger players that have actually second tier providers that provide the systems. We're connecting with them to be their hardware provider and service provider so that we're going to obtain this business, by climbing up the ladder. And then therefore it's immediate access to the markets. And it's not just us doing all the heavy lifting, it's our partners helping us to get there.
George: I would like to add something Jack, this is George, for the private-party miracles, right? In addition to the enhanced security and the data speeds that we can offer our customers, there's also the monetization aspect of them being able to add subscribers and become a revenue-based service for them. So it's not just an expense, it's also ROI related because they will be able to add subscribers at a fee at the monthly fee, just like I currently have with your cable services or getting a Wi-Fi signal into your homes.
George: So our private-party networks enable our customer who is going to own this network to add subscribers on a monthly basis. They're going to be able to provide credentials, users, names, passwords. They're going to be able to provide levels of services. You know, if you want to take 100 megabits per second, do you want one gigabit per second, right? And then they're going to be able to charge their customers for this service.
George: And we'll do the maintenance for them as well. So that's why we feel so excited that we have this end-to-end, which is fully licensed now. And we are definitely speaking to a lot of customers and trying to educate the customers also that this is just not enhancing your security system, but also provides them with monetization experience and capabilities all in these networks.
Jack Benderog: Great. No, I appreciate that.
Jack Benderog: It may be just one more question for me.
Jack Benderog: You put a pressure list out a few, I guess it was last week actually, where you announced your MOU for a private 5G network. And kind of towards the end of that pressure list, you mentioned, you expect revenue to commence within this current fiscal year. And it could be valid in the access of $1 million within finalizes in three months after receipt.
CEO: Can you maybe touch on that, this particular pressure list in this private 5G network, that $1 million potential contract? How does that kind of, is that just for the first phase of this? How does this, how do you expect this to ramp up? That'd be helpful. Yeah, yeah. For example, though, this would be one of those projects that we call like a proof of concept. We use the terminology seeing is believing a lot, right?
CEO: So, you know, that's why our public massive MIMO radios are undergoing inter-probability testing, so we can get those badges, those certificates, so then we can have proof that what we said our radios do is going to be certified. So, in this particular case with the private 5G, we have these very smaller initial projects that we worked with the customers, right? So, they're going to be able to start doing deployment in phases, right?
CEO: So, basically like phase one is going to a covert X area on this city, and then you know, like at once, they see the functionality, the data speeds, the performance of the network, you know, that then, you know, we're going to be able to open it up into more cities, and then the strategy, of course, is going to be rinse and repeat through all their cities, and we need to target this across the buildings. Inject back on that point where I mean, this is dealing with actually, you know, cities and municipalities where, you know, they move very slow. So we have to make sure, you know, we don't know timing wise, things get delayed, things get worse down, but we definitely are there. We definitely are there and things will happen. We'll be announcing that.
Jack Benderog: Okay, well, great. Look, that's it for me. There's a lot of irons in the fire here. It's interesting to track at all, but I look forward to watching you guys execute and also something you'll be announcing some official partnerships and potential contracts in the near future. So best of luck and that's it for me. Thank you. Thank you, Jack. Once again, to ask a question, you requested one.
Operator: It concludes Q&A session.
Fawad Mukbo: Now I'm now trying to call back over to Fawad Mukbo for closing remarks. Thank you, operator. Thanks for everyone who joined today's call to hear about the progress we've made and the plan we have adopted to further our company's mission of providing the communication systems. This is up tomorrow today to look forward to updating you further on our two three financial results fall in mid-December.
Fawad Mukbo: So then please contact us directly. Should you have any questions or wish the schedule to call with management? Our investor relations team can be reached at the contact information listed at the bottom of our press room.
Operator: Thank you and you all. Today's conference call is now concluded. Thank you. You may now disconnect your lines. Thank you.