AmpliTech Completes Acquisition of Spectrum Semiconductor
San Jose, California and Bohemia, NY, December 16, 2021 (GLOBE NEWSWIRE) – AmpliTech Group, Inc. (Nasdaq: AMPG), designer, developer and manufacturer of advanced signal processing components for satellite and 5G communications networks, defense, space and other commercial applications, today announced that it has signed 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, California. The transaction is expected to be finalized during our 2021 fiscal year, subject to the satisfaction of certain closing conditions.
The purchase is expected to deliver significant strategic benefits, top and bottom, while also leveraging AmpliTech’s technical and managerial expertise and distribution reach. Spectrum is on track to achieve unaudited revenue of $ 10-11 million in 2021, representing double-digit growth over Spectrum Semiconductor Materials sales in fiscal 2020, with a 2021 net profit before tax of approximately 25% of sales. Spectrum achieves such high net margins by stocking a wide variety of specialty products and using disruptive digital inventory practices that optimize operational efficiency. AmpliTech’s revenue for the past four quarters was $ 3.5 million and recently reported a record backlog of $ 3.4 million after 1.2 million new orders. Spectrum Semiconductors has a current record backlog of $ 8 million with orders scheduled to ship through June 30, 2022.
The purchase price is $ 8.0 million in cash plus $ 1.5 million to be held in escrow until December 2022, to fund any purchase price or other adjustments, plus the 188 grant. 442 restricted shares of AmpliTech common stock. The parties have agreed to a purchase price adjustment of 25% of cumulative Spectrum net revenues above or below $ 20 million in sales for calendar years 2021 and 2022 combined. September 30e AmpliTech had approximately $ 28 million in cash, cash equivalents, and marketable securities, and no long-term debt.
Of strategic importance, Spectrum Semiconductors provides a powerful distribution platform in the United States, Europe and Asia for the new line of monolithic microwave integrated circuit (MMIC) chip designs from AmpliTech, and Spectrum built its revenue base for radio frequency (RF) driven semiconductors. AmpliTech’s innovative MMIC chip designs integrate its low noise signal amplification (LNA), signal filter and signal attenuator technologies into a much smaller and more flexible chip form factor. Foundry production of the initial MMIC chipsets is slated for commercial availability by the end of the first quarter of 2022.
Each company brings a proven sales force and relationships that will complement each other to meet the expanded market opportunities of the combined company. Additionally, as AmpliTech develops its new MMIC line, Spectrum can package designs for high-volume applications intended to drive sales growth. The acquisition is expected to provide AmpliTech with a substantial business development presence in Silicon Valley and international markets, leveraging its existing East Coast and Texas teams to create a large global footprint.
AmpliTech CEO Fawad Maqbool commented, âSpectrum Semiconductors is uniquely suited to advance AmpliTech’s strategic goals and create shareholder value. Along with Spectrum, we will add a well-managed growing company with long-term experience for high quality and excellent customer service and the perfect distribution platform for the launch of our MMIC chip solutions. This transaction will allow us to more than triple our current annual rate of return, while being immediately accretive to our bottom line.
âEqually important, Spectrum brings us a very satisfied, long-term global customer base and excellent penetration in our key end markets of aerospace, defense, automotive and IT, as well as a deep presence in Silicon Valley, to support the launch of the MMIC chip solutions that we plan to bring to market by the end of the first quarter of 2022. We expect AmpliTech and Spectrum to play a key role in improving speed and performance. efficiency of communication systems around the world in high growth applications such as cellular 5G, MEO and LEO satellites, quantum computing and autonomous vehicles. It is important to note that AmpliTech is well funded to complete this transaction and then exploit the growth opportunities of the combined business. “
Robert Larson, CEO of Spectrum, said: âJoining our forces with AmpliTech is a great victory for our company, our customers and our suppliers. It provides us with a broader base of opportunities and exciting growth potential as we collaborate to bring AmpliTech’s first MMIC chip solutions to market. I look forward to collaborating on transition efforts with the AmpliTech team to bring this exciting growth to fruition. “
About Spectrum Semiconductor Materials, Inc.
Spectrum is an authorized global distributor of semiconductor components for the assembly of integrated circuits (ICs) for prototyping, testing and production needs. She has 31 years of experience in providing 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 widest range of standard or custom assembly configurations and providing tooling assembly support for specific technical requirements. The economies of scale of the spectrum allow it to meet customers’ quantity requirements with fast turnaround capabilities at very competitive prices.
Spectrum QMS is ISO 9001: 2015 and AS9120B certified, meeting the highest standards required by global and environmental guidelines. Spectrum sources only the highest quality materials from leading manufacturers such as Kyocera, NTK and Materion Advanced Materials.
About AmpliTech (www.AmpliTechinc.com)
AmpliTech Group, Inc. designs, develops and manufactures advanced radio frequency (RF) components for the global satellite communications, telecommunications (5G and IoT), space, defense and quantum computing markets , as well as systems and components design consulting services. AmpliTech has over 13 years of experience developing high performance custom solutions to meet the unique needs of some of the largest companies in the global industries we serve. We pride ourselves on the unique skills, experience and dedication of our focused team which enables us to provide superior solutions, faster time to market, competitive pricing and excellent customer and business satisfaction. repeated.
Safe Harbor Declaration
This press release contains statements that constitute forward-looking statements. These statements appear in several places in this press release and include all statements that are not statements of historical fact concerning the intention, belief or current expectations of the Company, its directors or officers with respect to, among others: (i) the ability to execute its business plan as planned; (ii) trends affecting the financial position or results of operations of the Company; (iii) the growth strategy and the operating strategy of the Company. The words “may”, “would” “will” “expect” “estimate” “anticipate” “believe” “intend” and similar expressions and variations thereof are intended to identify statements prospective. Investors are cautioned that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s control, and that actual results may differ materially from those projected in the statements. prospective because of various factors. Other risks are identified and described in more detail in the âRisk Factorsâ section of the Company’s filings with the SEC, all of which are available on our website. We assume no obligation to update, and we have no policy to update or revise, these forward-looking statements, except as required by applicable law.
Non-GAAP financial information
This press release includes a statement relating to the backlog of the Company and Spectrum. Backlog represents the dollar amount of net sales that we expect to recognize in the future from sales orders received from customers in the normal course of business. The Company considers the order book as an additional relevant and privileged measure to understand the financial and stock market situation of the Company. However, such a measure has inherent limitations, does not need to be uniformly applied or audited, and other companies may use methodologies to calculate similar measures which are not comparable. Readers should be aware of these limitations and should be cautious about their use of such a measure.
Corporate social networks
Investor social media
Company details :
Shan Sawant, Director of Communications
AmpliTech Group, Inc.
David Collins or William Jones