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HAUPPAUGE, N.Y. - AmpliTech Group, Inc. (NASDAQ: AMPG), known for its advanced signal processing components, has entered into a letter of intent with a contract manufacturer for the sale of $78 million worth of its Band 50 Radios 4x20 Watts. The potential deal, announced today, could see deliveries commence in FY2025 and increase annually through 2027. This deal value represents roughly three times the company’s current market capitalization of $26 million, according to InvestingPro data, which also indicates the stock appears undervalued at current levels.
The agreement, however, remains non-binding and contingent upon the execution of definitive purchase orders. AmpliTech has noted that there is no guarantee that any purchase orders will be finalized, or that they will cover the full amount stated in the letter of intent.
The proposed transaction involves AmpliTech’s high-powered radios, which are integral to satellite and 5G communications networks. The company, with a diverse portfolio that includes 5G/6G system design and distribution of integrated circuit packaging, serves sectors ranging from space exploration to defense.
While the announcement has the potential to significantly boost AmpliTech’s revenues over the coming years, the company cautions investors about the forward-looking nature of these statements. Factors outside the company’s control may impact the final outcome, and there is no assurance that the anticipated revenue from this deal will be realized under generally accepted accounting principles.
AmpliTech Group, with its five divisions, continues to focus on advancing technology in the RF microwave component and 5G network solution spaces. This intent to purchase underscores the company’s role in the evolving telecommunications landscape.
This news is based on a press release statement from AmpliTech Group, Inc. and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Investors are encouraged to review the company’s filings with the SEC for a more detailed understanding of the associated risks.
In other recent news, AmpliTech Group, Inc. has reported over $2.1 million in purchase orders for the current quarter, marking a significant achievement with contributions from a Fortune 1000 company and international orders for its 5G ORAN radio products. The company has also crossed the $1 million mark in first-quarter bookings, driven by a 5-year Basic Order Agreement with a US-based Fortune 1000 firm. Additionally, AmpliTech’s patents have been independently valued at $14.9 million by ipCapital Group, highlighting potential revenue from licensing in areas such as 5G low noise amplifiers and cryogenic amplifiers. The company has secured a new patent for its MMIC LNA designs, further strengthening its intellectual property portfolio. AmpliTech continues to advance its True 5G technology, with plans for deployment by the end of Q2 2025, pending FCC licensing. The company is positioning itself as a leader in telecommunications with innovations like its Private 5G network solution. These developments underscore AmpliTech’s strategic focus on research and development to enhance its market presence and technological capabilities.
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