Revenue Performance - For the three months ended June 30, 2024, product revenue increased to $4.1 million, an 84% increase from $2.2 million in the same period of 2023[129] - Revenue from memory ICs for the three months ended June 30, 2024, was $3.4 million, up from $1.6 million in the same period of 2023[130] - The company expects revenues to increase in 2024 compared to 2023, driven by anticipated sales of memory IC products based on EOL purchase orders[131] - Royalty and other revenue decreased to $129,000 for the three months ended June 30, 2024, a 23% decline from $168,000 in the same period of 2023[132] Profitability - The gross profit margin for the three months ended June 30, 2024, improved to 55% compared to 25% in the same period of 2023[134] - Gross profit for the three months ended June 30, 2024, was $2,351,000, a 287% increase from $608,000 in 2023, representing 55% of total net revenue[136] - Gross profit for the six months ended June 30, 2024, was $3,657,000, a 44% increase from $2,535,000 in 2023, representing 52% of total net revenue[136] Expenses - Research and development expenses for the three months ended June 30, 2024, were $2,644,000, a 28% decrease from $3,668,000 in 2023, representing 62% of total net revenue[137] - Research and development expenses for the six months ended June 30, 2024, were $5,457,000, a 28% decrease from $7,555,000 in 2023, representing 77% of total net revenue[137] - Selling, general and administrative expenses for the three months ended June 30, 2024, were $2,141,000, an 8% increase from $1,977,000 in 2023, representing 51% of total net revenue[139] - Selling, general and administrative expenses for the six months ended June 30, 2024, were $4,243,000, a 1% increase from $4,219,000 in 2023, representing 60% of total net revenue[139] Losses and Financial Position - The company incurred net losses of approximately $6.5 million for the six months ended June 30, 2024, and an accumulated deficit of approximately $173 million as of the same date[124] - The company incurred net losses of approximately $6.5 million for the six months ended June 30, 2024, and $16.8 million for the year ended December 31, 2023[146] - The company expects to continue incurring operating losses and will need to secure additional capital to sustain operations beyond 2024[147] - Cash and cash equivalents as of June 30, 2024, were $1.9 million, with working capital of $1.1 million[142] - Net cash used in operating activities for the first six months of 2024 was $3.2 million, primarily due to a net loss of $6.5 million[142] Corporate Actions - The company completed a 1-for-40 reverse stock split effective January 2, 2024, to consolidate its outstanding shares[125] - The company initiated an end-of-life (EOL) for its memory IC products in May 2023, with expected final shipments by March 31, 2025, and a non-cancelable purchase order backlog of $9.1 million as of June 30, 2024[131] - The company anticipates increased sales of mmWave products over the next 12 months as new customers are expected to commence production during 2024[131] Indemnification Agreements - The company has entered into contractual arrangements for indemnifications related to breaches of representations and warranties, with no material amounts reflected in the financial statements for the three and six months ended June 30, 2024[155] - Indemnification agreements have been established with the company's officers and directors, but no significant financial impact has been reported[155]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $4.2 million, exceeding the high end of guidance, representing over 50% sequential growth and more than 70% year-over-year growth [6][16] - GAAP gross margin increased to 55.5% from 46.4% in the prior quarter and 25.3% year-over-year, while non-GAAP gross margin rose to 68.8% from 66.4% sequentially and 45.9% year-over-year [17] - GAAP net loss for Q2 2024 was $4.4 million or a loss of $1.88 per share, compared to a net loss of $2 million or $1.07 per share in the prior quarter and a net loss of $4.1 million or $6.68 per share in the same quarter a year ago [19] Business Line Data and Key Metrics Changes - Product revenue from memory integrated circuits and millimeter-wave products was $4.1 million, compared to $2.7 million in the prior quarter and $2.2 million in the same quarter last year, with approximately 80% from memory and 20% from millimeter-wave [16][33] - Shipments of end-of-life memory IC products increased to approximately $3.4 million from $2.4 million in the prior quarter, with a remaining backlog of approximately $9.1 million [7][16] Market Data and Key Metrics Changes - The company is focusing on expanding its millimeter-wave business across diverse geographies and end markets, with a current engagement pipeline of 95 total engagements, up more than 25% compared to the previous year [10][12] - The DUNE platform received its first volume production order from a South African service provider, indicating strong market interest and potential for future orders [11][12] Company Strategy and Development Direction - The company aims to convert existing customer engagements into production orders for millimeter-wave products and expects ongoing shipments of memory IC products to contribute to revenue and cash flow [15] - The anticipated guidance from the NTIA regarding funding for unlicensed spectrum fixed wireless access could significantly expand market opportunities for the company [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong design activity in millimeter-wave technology, particularly in fixed wireless access and military applications, indicating a robust pipeline for future growth [23][24] - The company expects total revenue for the second half of 2024 to increase over the first half, with Q3 2024 revenue projected between $3.8 million and $4.2 million [21] Other Important Information - GAAP operating expenses for Q2 2024 were $6.8 million, up from $4.9 million in the prior quarter, primarily due to severance and software license charges [18] - The company had $1.9 million in cash as of June 30, 2024, a decrease of approximately $0.6 million during the quarter [20] Q&A Session Summary Question: Can you talk about the expansion in your engagement pipeline and customer diversity? - Management noted strong design activity in millimeter-wave technology and increasing opportunities in fixed wireless access, with new opportunities arising almost weekly [22][23] Question: How do you view the Wi-Fi 8 opportunity and development? - The company is considering collaboration with existing players rather than significant capital investment, focusing on fixed wireless and military applications for now [25][26] Question: What is the size of the market opportunity for the DUNE platform? - Management indicated that deployment is ready, and the speed of service provider adoption will determine revenue generation [27][28] Question: What is the potential impact of BEAD funding on fixed wireless access? - Management estimated that around 20 million homes in North America could benefit from fixed wireless technology, with expectations for funding eligibility to be announced soon [30][31] Question: Can you elaborate on military engagements? - The company has ongoing proof of concept deals and is seeing strong interest due to the stealth capabilities of their technology [39][40]

Company Performance - Peraso reported a quarterly loss of $0.88 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.29, representing an earnings surprise of -203.45% [1] - The company posted revenues of $4.24 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 0.91%, and showing a year-over-year increase from $2.4 million [2] - Over the last four quarters, Peraso has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Movement and Outlook - Peraso shares have declined approximately 89% since the beginning of the year, contrasting with the S&P 500's gain of 12% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at -$0.09 on $5 million in revenues for the upcoming quarter and -$1.16 on $18.02 million in revenues for the current fiscal year [7] Industry Context - The Technology Services industry, to which Peraso belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable environment for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Group 1: Momentum Investing Overview - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for trending stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 2: Investment Strategy - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2] - The 'Fast-Paced Momentum at a Bargain' screen is effective in spotting fast-moving stocks that remain attractively priced [2] Group 3: Peraso (PRSO) Stock Analysis - Peraso (PRSO) has shown a four-week price change of 9.3%, indicating growing investor interest and positioning it well within the momentum investing framework [3] - Over the past 12 weeks, PRSO has gained 9.3%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - PRSO has a beta of 1.82, suggesting it moves 82% more than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - PRSO has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to leverage its momentum [5] - The stock has a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investor interest [6] - PRSO is trading at a Price-to-Sales ratio of 0.36, indicating it is relatively cheap, as investors pay only 36 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - Besides PRSO, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-32929 PERASO INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer Incorpor ...

Peraso Inc. (NASDAQ:PRSO) Q1 2024 Earnings Call Transcript May 13, 2024 5:00 PM ET Company Participants Jim Sullivan - CFO Ron Glibbery - CEO Conference Call Participants David Williams - Benchmark Kevin Liu - K. Liu & Company Jon Hickman - Ladenburg Operator Good afternoon and welcome to Peraso Inc.'s first quarter 2024 conference call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded today, Monday, May 13th, 2024. I wou ...

Peraso (PRSO) came out with a quarterly loss of $0.83 per share versus the Zacks Consensus Estimate of a loss of $1.26. This compares to loss of $3.60 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 34.13%. A quarter ago, it was expected that this semiconductor technology company would post a loss of $3.41 per share when it actually produced a loss of $8.52, delivering a surprise of -149.85%. Over the last four quarters, the ...

EX-99.1 2 prso_ex991.htm PRESS RELEASE BY PERASO INC EXHIBIT 99.1 Peraso Announces First Quarter 2024 Results Total Revenue Increased 54% Sequentially; GAAP Gross Margin Expanded to 46.4%, Non-GAAP to 66.4% SAN JOSE, Calif., May 13, 2024 – Peraso Inc. (NASDAQ:PRSO) ("Peraso" or the "Company"), a global leader in mmWave technology for 60 GHz unlicensed and 5G licensed networks, today announced financial results for the first quarter ended March 31, 2024. Management Commentary "First quarter revenue increased ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-32929 PERASO INC. (Exact name of registrant as specified in its charter) Delaware 77-0291941 (State or other jurisdiction of incorporation or organization) (IRS Employer Identificatio ...

Peraso Inc. (NASDAQ:PRSO) Q4 2023 Earnings Conference Call March 18, 2024 5:00 PM ET Company Participants James Sullivan - CFO Ronald Glibbery - CEO Conference Call Participants David Williams - Benchmark Kevin Liu - K. Liu & Company Operator Good afternoon, and welcome to Peraso, Inc.'s Fourth Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded today, Monday, March 18, 2024. I would now like to ...