AmpliTech Group, Inc. (NASDAQ:AMPG) Q3 2022 Earnings Call Transcript

Jack Vander Aarde: Okay, great. Great. So it sounds like we could we could see a bit of a domino effect possibly as we get closer to year-end, you could start to see some evidence of more of these orders coming in. And I guess we’ll, we’ll kind of get an update from you probably by, February or March of next, of next year at that time when you report the fourth quarter. So that’s great to hear. Also, I’m happy to see, great job on the, on the bottom line too. Great to see you, you put up over just over $5 million of revenue and yet you put up a GAAP net profit. So that’s, that’s great as well. Do you, I imagine you expect you guys have a high degree of operating leverage in this business; I imagine that there’s no reason to not expect that to continue; I expect as revenue scales, I imagine you’ll be more profitable?

Louisa Sanfratello: Yes, yes. Our goal is to, to shift our focus, as I mentioned before from the original mode that we were providing the LNAs connector LNAs just, just in regular commercial markets here and there to smaller customers. Our goal is to provide the very special LNAs, which differentiate us from other competitors. We really don’t have competitors that can provide the same kind of amplifiers and low noise amplifiers that can actually fit into and enable these communications technologies as well as we can. So we feel that it’s only a matter of time before all of those get put in place. And the government itself from that show in, specifically that show is for military applications. So we are going after all the military applications because there’s a whole revamping of military communications infrastructure and companies like Space Force and Navy and Air Force, they’re all revamping their communications hardware.

So we’ve made inroads in contacting all these companies and are now getting some exposure for both our connector modules as well as our MMIC chips, so, that we can access the entire — the entire spectrum of applications. So that’s just one thing that we’re doing. But in specifically, specifically, we are focusing towards the larger margin applications. Every one of these things that we mentioned, a larger margin and not just the regular general amplifier requirements like we used to do before. So we’ve really transformed the company into a different type of company. And, and in many ways we’ve done consolidation. We’ve brought to the, the specialty microwave from two buildings into one building. We’ve effectively lowered our overhead so that you have more of a profit margin.

That’s also a big, big plus for us because by, buying specialty, I mean spectrum, we have actually went into a resale operation that averages out to a lower overhead from manufacturing. And we are staying away from full scale manufacturing. That’s also helping. We’ve also implemented an ERP system, which lowers our overhead and actually increases our throughput. So we’re doing a lot of things to actually increase our gross margins and in turn our profits.

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

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

Unidentified Analyst: Right. Congrats on a strong quarter to log in. Thanks for taking my call, just one question for me. You mentioned in the press release that the TGSS is now completed and operational, and I wondered if you could just maybe give some more insight on the eventual revenue impact there. Thanks.