Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Peraso Inc (PRSO, Financial) reported a meaningful improvement in operating performance with operating expenses decreasing by almost 20% year over year.
- The company has successfully converted nine prior design engagements into production wins, indicating strong progress in customer engagement.
- Peraso Inc (PRSO) has a robust pipeline of 82 customer engagements, with 23 active engagements undergoing hardware evaluation or at advanced design stages.
- The company secured significant customer wins in diverse geographies, including Africa and Asia, for its millimeter wave solutions.
- Peraso Inc (PRSO) anticipates total revenue for the second half of 2024 to increase over the first half and represent double-digit growth over the prior year period.
Negative Points
- Total net revenue for the third quarter of 2024 decreased to $3.8 million from $4.2 million in the prior quarter and $4.5 million in the third quarter of 2023.
- GAAP gross margin decreased to 47% in the third quarter from 55.5% in the prior quarter, primarily due to a $0.3 million write-down of millimeter wave inventory.
- The company reported a GAAP net loss of $2.7 million for the third quarter of 2024, compared to a net loss of $0.6 million in the same quarter a year ago.
- Peraso Inc (PRSO) is still facing challenges from the broader macro environment and prolonged inventory adjustments.
- The company's cash and equivalents decreased to $1.3 million as of September 30, 2024, indicating a cash burn of approximately $0.6 million from the prior quarter.
Q & A Highlights
Q: When should we expect to see an inflection in revenue from the recent design wins?
A: Ron Glibbery, CEO, indicated that the company anticipates seeing a significant inflection in revenue starting in Q1 2025. This is based on the current backlog and the resolution of inventory issues, with strong design win activity supporting this outlook.
Q: Are inventory issues being resolved, particularly with North American customers?
A: Ron Glibbery, CEO, confirmed that inventory issues are being addressed both in North America and with other customers. The company has diversified its customer base significantly, reducing reliance on a few large customers, and expects to see new customer engagements coming online in Q1 2025.
Q: What is the profile of WISP customers adopting Peraso's fixed wireless access solutions?
A: Ron Glibbery, CEO, stated that over 95% of WISP customers are experienced providers. These customers are replacing existing 5 GHz systems with Peraso's solutions to address congestion issues, indicating a strong market understanding and need for the company's technology.
Q: Is there any activity related to the BEAD program funding for fiber and fixed wireless access?
A: Ron Glibbery, CEO, mentioned that while the BEAD program is still in early stages, there is interest from WISPs in applying for funding. The company is hopeful for a shift towards a tech-neutral approach that includes their technology, which could accelerate market opportunities.
Q: Can you provide details on the military contract and expected shipment timeline?
A: Ron Glibbery, CEO, described the military contract as material to the business, with shipments expected to begin in volume by Q2 2025. The contract is sensitive, but it highlights the demand for stealth, high-speed communications in military applications.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
