Thursday, December 16, 2021 9:19:05 AM
December 16, 2021, 9:15 AM EST
AmpliTech Completes Acquisition of Spectrum Semiconductor Materials, Nearly
Quadrupling its Revenue Base and Substantially Expanding its Distribution
Reach and Growth Potential; Reports Record Combined Order Backlog of $11.4M
San Jose, CA & Bohemia, NY, Dec. 16, 2021 (GLOBE NEWSWIRE) -- AmpliTech Group,
Inc. (Nasdaq: AMPG), a designer, developer, and manufacturer of
state-of-the-art signal-processing components for satellite and 5G
communications networks, defense, space, and other commercial applications,
announced today that it has executed a definitive agreement to acquire the
assets and operations of Spectrum Semiconductor Materials Inc., a rapidly
growing global specialty distributor of semiconductor components based in San
Jose, CA. The transaction is expected to close within our fiscal year 2021,
subject to the satisfaction of certain closing conditions.
Spectrum Logo.jpg
Spectrum
The purchase is expected to deliver significant strategic and top and
bottom-line benefits while also building on AmpliTech’s technical and
management expertise and distribution reach. Spectrum is on track to achieve
unaudited 2021 revenue of $10M - $11M, representing double-digit growth over
Spectrum Semiconductor Materials sales in fiscal 2020, with 2021 pre-tax net
income of approximately 25% of revenue. Spectrum achieves such strong net
margins by stocking a wide variety of specialty products and employing
disruptive digital inventory practices that optimize operating efficiency.
AmpliTech’s revenue for the past four quarters was $3.5M and recently
announced a record order backlog of $3.4M following $1.2m in new orders.
Spectrum Semiconductors has a record current order backlog of $8M in orders
anticipated to ship through June 30, 2022.
The purchase price is $8.0M in cash plus $1.5M to be held in escrow through
December 2022, to fund any purchase price or other adjustments, plus the grant
of 188,442 restricted shares of AmpliTech common stock. The parties have
agreed to a purchase price adjustment of 25% of Spectrum’s cumulative net
revenue above or below $20M in sales for calendar years 2021 and 2022
combined. On September 30^th AmpliTech had approximately $28M in cash, cash
equivalents, and marketable securities, and no long-term debt.
Of strategic importance, Spectrum Semiconductors provides a powerful
distribution platform in the U.S., Europe, and Asia for AmpliTech’s new line
of monolithic microwave integrated circuit (MMIC) chip designs, and Spectrum
has been building its radio frequency (RF) focused semiconductor revenue base.
AmpliTech’s innovative MMIC chip designs integrate its industry-leading low
noise signal amplification (LNA), signal filter, and signal attenuator
technologies into the much smaller and more flexible chip form factor. Foundry
production of initial MMIC chipsets is targeted for commercial availability by
the end of Q1 2022.
Each company brings proven sales personnel and relationships that will
complement each other in addressing the combined company’s expanded market
opportunity. Furthermore, as AmpliTech develops its new MMIC line, Spectrum
can package the designs for high-volume applications expected to drive sales
growth. The acquisition is expected to bring AmpliTech a substantial business
development presence in Silicon Valley and international markets, building on
its existing East Coast and Texas teams to create a broad global footprint.
AmpliTech CEO, Fawad Maqbool, commented, “Spectrum Semiconductors is a perfect
fit for advancing AmpliTech’s strategic goals and delivering shareholder
value. With Spectrum, we will add a well-managed, growing business with a
long-term track record for high quality and excellent customer service and the
ideal distribution platform for the launch of our MMIC chip solutions. This
transaction will allow us to more than triple our current annual revenue run
rate, while also being immediately accretive to our bottom line.
“Of equal importance, Spectrum brings us a highly satisfied, long-term, and
global customer base with excellent penetration in our core end markets of
aerospace, defense, automotive, and computing, along with a deep Silicon
Valley presence, to support the launch of MMIC chip solutions we plan to bring
to market by the end of Q1 2022. We expect AmpliTech and Spectrum will play a
key role in improving the speed and efficiency of communications systems
around the world in high-growth applications such as 5G cellular, MEO and LEO
satellites, quantum computing, and autonomous vehicles. Importantly, AmpliTech
is well funded to complete this transaction and to then execute on the growth
opportunities of the combined business.”
Robert Larson, Spectrum CEO, commented, “Joining forces with AmpliTech is a
big win for our company, our customers, and our suppliers. It provides us with
a broader base of opportunity and exciting growth potential as we collaborate
to bring AmpliTech’s premier MMIC chip solutions to market. I look forward to
collaborating with the transition efforts with the AmpliTech team to execute
on this exciting growth.”
About Spectrum Semiconductor Materials, Inc.
Spectrum is a global authorized distributor of semiconductor components for
integrated circuit (IC) assembly for prototyping, testing and production
requirements. It has a 31-year track record for delivering high-quality
products, excellent customer service and long-standing supplier relationships.
Spectrum’s particular strength is its flexibility and ability to meet customer
needs, stocking the broadest range of off-the-shelf or custom package
configurations and providing support in tooling packages for specific
technical requirements. Spectrum economies of scale allow it to meet
customers’ quantity requirements with quick turn capabilities at highly
competitive pricing.
Spectrum QMS is ISO 9001:2015 and AS9120B certified, meeting the highest
standards required by global and environmental directives. Spectrum sources
only the highest quality materials from major manufacturers such as Kyocera,
NTK and Materion Advanced Materials.
Recent AMPG News
- AmpliTech Group Receives Over $700,000 In Cash From Single Products Sale At Their Spectrum Division • GlobeNewswire Inc. • 09/19/2024 12:30:00 PM
- AmpliTech Group’s AGTGSS Division Receives Initial Order For Its Midband 5G Radio Networks From Historic University of Edinburgh UK • GlobeNewswire Inc. • 09/12/2024 12:30:00 PM
- AmpliTech Group Announces Pricing of $1.0 Million Registered Direct Offering, Priced At-The-Market • GlobeNewswire Inc. • 09/10/2024 12:30:00 AM
- AmpliTech Group’s AGTGSS Division To Participate At Mobile World Congress Shows in Las Vegas And Barcelona To Market Its Comprehensive Private 5G End-to-End Solution for Businesses and Homes • GlobeNewswire Inc. • 09/04/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/03/2024 11:00:17 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/30/2024 09:42:22 PM
- AmpliTech Group’s Bookings Surpass $1M In August 2024 • GlobeNewswire Inc. • 08/30/2024 01:00:00 PM
- AmpliTech Group’s AGMDC Division Moves to Allen Tech Hub in Watters Creek District In Allen Texas • GlobeNewswire Inc. • 08/26/2024 01:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/26/2024 01:00:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/21/2024 08:03:51 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/21/2024 08:03:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/21/2024 07:59:59 PM
- AmpliTech Group To Hold Q2-2024 Investor’s Conference Call • GlobeNewswire Inc. • 08/20/2024 01:30:00 PM
- AmpliTech Group’s AGTGSS Division Signs Memorandum Of Understanding For Initial Domestic Private 5G Network Deployment • GlobeNewswire Inc. • 08/20/2024 12:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/14/2024 09:00:41 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/14/2024 08:30:44 PM
- AmpliTech Group Reports Q2 Revenue of $2.5M with 1.05M Gross Profits and 42% Gross Margins • GlobeNewswire Inc. • 08/14/2024 08:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/01/2024 08:30:11 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/29/2024 08:30:14 PM
- AmpliTech Group’s AGTGSS Division Unveils Comprehensive Private 5G End-to-End Solution for Businesses and Homes • GlobeNewswire Inc. • 07/29/2024 01:30:29 PM
- AmpliTech Group's Division, AmpliTech Inc, Unveils Quantum Computing Cryogenic Power Supplies • GlobeNewswire Inc. • 07/25/2024 12:30:00 PM
- AmpliTech Group Releases Letter to Shareholders • GlobeNewswire Inc. • 07/17/2024 12:30:15 PM
- AmpliTech Announces Receipt of Notice from Nasdaq Regaining Compliance • GlobeNewswire Inc. • 05/30/2024 12:30:00 PM
- AmpliTech Announces Receipt of Notice from Nasdaq Regarding Late Filing of Quarterly Report on Form 10-Q • GlobeNewswire Inc. • 05/24/2024 08:05:00 PM
- AMPG Files For Shelf Registration To Replace Expired Identical Shelf Without Dilution, Reinforcing Financial Stability • GlobeNewswire Inc. • 04/16/2024 02:36:38 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM