Vishal Mishra

Vishal Mishra with Bard Associates inquired about the tradability of the distributed rights and sought more specific color on the gross margins for AmpliTech's ORAN 5G products, particularly whether they would align with historical 30-40% levels given new product lines.

Answer

Fawad Maqbool, Founder, CEO, and CTO, confirmed that the rights are expected to be traded. Jorge Flores, COO, explained that while specific gross margin details for ORAN 5G products cannot be disclosed due to competitive reasons, the company expects to achieve at least double-digit gross margins. He noted a strong recovery to over 40% gross margins in Q3 2025 after Q2's one-time costs and stated that capital allocation would continue to improve margins.

Vishal Mishra with Bard Associates inquired about the tradability of AmpliTech Group's rights offering and sought further clarification on the gross margins for the company's new ORAN 5G products, specifically asking if they would align with historical margins or be different due to the new product lines.

Answer

Fawad Maqbool, Founder, CEO, and CTO, confirmed that the rights are expected to be traded upon distribution. Jorge Flores, COO, explained that while specific gross margin details for individual ORAN 5G products cannot be disclosed due to competitive reasons, the company anticipates achieving at least double-digit gross margins across all products. He also noted the recovery to over 40% gross margins in Q3 2025, despite one-time costs in Q2, and stated that capital would continue to be allocated to improve margins.

Vishal Mishra of Bard Associates asked about the margin profile of the growing 5G ORAN business and its path to profitability. He also inquired about the competitive landscape, MNO procurement habits, and what differentiates AmpliTech's offerings from rivals.

Answer

CEO Fawad Maqbool explained that while specific margin guidance wasn't provided, the 5G division's growth will drive demand for the company's own proprietary MMIC chips and packaging, creating a symbiotic growth model across all divisions. He emphasized that AmpliTech's key differentiators are its unique, deployable ORAN technology and its position as a leading U.S.-based supplier in a market with few competitors.

Inquired about the margin profile for the new 5G ORAN radio business, the potential to reach GAAP breakeven by year-end, the nature of MNO relationships regarding LOIs, and the key competitive differentiators for AmpliTech's products.

Answer

The executive explained that the 5G business will drive synergistic growth across all divisions as they supply their own proprietary components for the radios, though no specific margin guidance was given. He noted the LOIs are specific to AmpliTech's unique offerings and that their competitive edge comes from being a U.S.-based leader in deployed ORAN technology with superior proprietary components. He also clarified that the legacy businesses are expected to grow in tandem with the 5G division.

Vishal Mishra sought clarification on the company's approximately $30 million backlog, asking for the portion that is expected to be converted to revenue and shipped within the next 12 months, especially considering a $6.3 million order is scheduled for after 2022.

Answer

CFO James Tivy responded that the large $6 million order is not expected to ship until after 2022. He attributed the overall backlog strength to the ongoing recovery in the avionics market and successful business with existing customers, but did not provide a specific figure for the backlog convertible within the next 12 months.