Amplitech Group, Inc.

Good afternoon and welcome to the AmpliTec Group's first quarter 2025 investors update call. Today's call will cover the company's financial results and strategic progress for the quarter ended March 31, 2025. All participants will be in listen-only mode during the presentation. A Q&A session will follow management's remarks. This call is being recorded and a replay will be made available on AmpliTech's Investor Relations webpage. I'll now turn the call over to Mr. George Flores, Chief Operating Officer.

Thank you and welcome everyone. We appreciate you joining today's call to hear updates on AmpliTech's operational and financial progress, as well as our growth initiatives. Joining me are Fawad Magbul, our founder and CEO, and Luisa Sanfratello, our CFO. After our prepared remarks, we will open the floor for investor questions. An archived replay of today's call will be posted to the investor relations section of the AmpliTex corporate website. Please note that today's discussion may contain forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements involve risks, and uncertainties that could cause orchard results to differ materially. Please refer to our filings with the SEC for a full list of risk factors. We undertake no obligation to update these statements after today's call. With that, I would like to turn the call over to our CEO, Mr. Fawad Makbool.

Thank you, George. Thank you all for joining us today. We're pleased to report continued progress across all our divisions in Q1 2025. While we reported a net loss of $1.8 million this quarter, driven by increased operational spending in our 5G division and R&D efforts, I'd like to emphasize that these are strategic investments. They directly support the certification, scaling, and deployment of our next-generation O-RAN 5G platforms. And we're confident that they'll position AmpliTech for long-term success in high-growth markets. With that, I'll go to the Q1 2025 highlights and strategic progress. The revenue of 3.6 million, up 57% year over year, our strongest quarter since Q4 fiscal year 2023. Gross profit of 1.1 million. The record backlog of 19.6 million as of April 30th, driven by strong bookings. Cash and receivables of 19.1 million, $24.6 million of working capital and zero debt. Inventory of over $7 million to support near-term deliveries and demand rebound across both the LNA and semiconductor distribution divisions. Looking at the growth outlook in fiscal year 2025 guidance, following a challenging 2024, we're pleased to see strong demand recovery. Semiconductor and LNA orders are accelerating. AmpliTech has already booked more sales in the first four months than it recorded in all of 2024. Our 5G division leads the charge with over 12 million in firm orders already booked from $118 million LOI pipeline. We now forecast fiscal year 2025 revenue of nearly $21 million, almost more than double that of the prior fiscal year. We expect this to be the trend going into fiscal year 2026. Our key strategic achievements in Q1, we secured CE, FCC, and REACH certifications for our O-RAN 5G radios, enabling global deployments. We expanded proprietary LNB product lines with the next generation satellite solutions based on AmpliTec's low-noise IP foundation, for which we received three patents this year already. Based on quoting activity and demand trends, L&B revenues projected to match L&A sales within 12 months. We boosted our visibility through Mobile World Congress, IEEE, Milcom, and Leap 2026 trade shows. And we see emerging opportunities with AI. We're partnering with leading AI native wireless companies to develop technologies for spectrum sensing, network optimization, and digital twin applications using our O-RAN platforms. Our certified O-RAN 5G radios are already being deployed globally. Over $12 million of our $118 million in signed LOIs will be delivered to customers this year. So the LOIs are very meaningful for the company. We expect continued delivering on these LOIs well into fiscal year 2026. Shipments are being made to a Tier 1 MNO in North America, so this validates our ability to service and provide high-level equipment in live environments. We're going to address the tariff resilience and adaptability, since that's basically a question by many, many investors. Thanks to our sourcing strategy and operational foresight, we've successfully managed tariff-related risk. We are prepared to adjust pricing if industry trends shift costs and customers while maintaining the value and efficiency. As mentioned earlier, we have ample inventory to avoid any immediate effects of the new tariff policies and have not seen a noticeable effect on our supply chain and business at this point in time. In a closing perspective, AmpliTech is in the position of strength, record backlog, zero debt, certified global products, and a growing IP portfolio. With a strong pipeline and execution in place, we expect to deliver continued revenue growth and value creation in 2025 and beyond. That's pretty much in a nutshell. Thank you for your continued trust and support. Operator, please open the call for Q&A.