Peraso (PRSO) Q3 Earnings call transcript Nov 12, 2024

Daily EarningsWednesday, Nov 13, 2024 6:45 pm ET

1min read

Peraso Inc. held its third quarter 2024 earnings call, highlighting the company's financial performance and strategic initiatives. The call, led by CEO Ronald Glibbery and CFO James Sullivan, provided investors with an in-depth look into the company's operational efficiency, product development, and market expansion.

Operational Performance

The company reported a total net revenue of $3.8 million for the third quarter, a decrease from the previous quarter's $4.2 million and the year-ago quarter's $4.5 million. This decrease was primarily due to a $0.3 million write-down of mmWave inventory and lower royalty and other revenue. However, the company's operating expenses decreased by approximately 20% year-over-year, indicating a successful cost-cutting strategy and improved efficiency.

Product Development and Market Expansion

Peraso has been focusing on expanding its mmWave solutions into various markets, including fixed wireless access, tactical military communication, and transportation applications. The company reported significant progress in this regard, with a robust pipeline of customer engagements and several design wins. These wins include the release of the FreeMile 60 radio from SAF Tehnika and Miliwave's MWC-932 product, both utilizing Peraso's Perspectus mmWave modules. Additionally, Peraso's DUNE platform for dense urban applications has been gaining traction, with recent orders from South African and Kenyan WISPs.

Strategic Initiatives

Peraso has been actively addressing the challenges posed by the broader macro environment and inventory adjustments. The company is optimistic about the future, with a focus on converting design wins into production orders for its mmWave products. Furthermore, the company is making progress in fulfilling its remaining backlog of memory IC orders, which will contribute to meaningful revenue and cash flow in the coming months.

Outlook and Investor Questions

During the Q&A session, investors inquired about the potential inflection point for revenue growth, the impact of BEAD funding on the company's prospects, and the transition from 5G to 60-gig solutions in North America. Peraso expressed optimism about these developments, particularly the potential for a tech-neutral approach in the BEAD program and the growing demand for high-speed, low-latency wireless connectivity.

Conclusion

Peraso Inc.'s third quarter 2024 earnings call provided insight into the company's operational performance, product development, and strategic initiatives. Despite the challenges faced in the broader macro environment, Peraso is making progress in expanding its mmWave solutions into various markets and fulfilling its memory IC backlog. The company remains optimistic about its future prospects, with a focus on converting design wins into production orders and leveraging the potential of BEAD funding and the transition to 60-gig solutions in North America.

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