Revenue Performance - mmWave product revenue increased 45% sequentially and over 200% year-over-year, contributing to total net revenue of $2.2 million for Q2 2025[1][4] - The company expects total net revenue for Q3 2025 to be in the range of $2.8 million to $3.1 million[9] Operating Expenses - Total operating expenses decreased to $2.9 million in Q2 2025 from $3.2 million in the prior quarter and $6.8 million year-over-year[6] - Operating expenses on a non-GAAP basis for Q2 2025 were $2.7 million, down from $3.1 million in the prior quarter[6] - Total stock-based compensation expense for Q2 2025 was $141 million, down from $1.155 billion in Q2 2024[22] - Amortization of intangible assets for Q2 2025 was $815 million, compared to $1.630 billion in Q2 2024[22] - Total severance costs for Q2 2025 were $424 million, slightly down from $446 million in Q2 2024[22] Profitability Metrics - GAAP net loss for Q2 2025 was $1.8 million, or ($0.31) per share, compared to a net loss of $0.5 million, or ($0.08) per share in the prior quarter[7] - Adjusted EBITDA for Q2 2025 was negative $1.6 million, compared to negative $0.3 million in the prior quarter[8] - GAAP net loss for Q2 2025 was $1.829 million, compared to a loss of $4.425 million in Q2 2024, representing a 58.8% improvement[22] - Non-GAAP net loss per share for Q2 2025 was $(0.28), an improvement from $(0.88) in Q2 2024[22] - GAAP gross profit for Q2 2025 was $1.073 billion, a decrease of 54.4% from $2.351 billion in Q2 2024[24] - Non-GAAP gross profit for Q2 2025 was $1.073 billion, maintaining a gross margin of 48.3%[24] - GAAP gross margin for Q2 2025 was 48.3%, down from 69.3% in the prior quarter and 55.5% year-over-year[5] - GAAP net loss for the first half of 2025 was $2.300 million, an improvement from a loss of $6.456 million in the first half of 2024[22] - Non-GAAP gross profit for the first half of 2025 was $3.753 billion, a decrease from $4.784 billion in the first half of 2024[24] Market Position and Partnerships - The company achieved over two million cumulative shipments of mmWave devices, highlighting its market leadership[2][3] - A leading partner, Tachyon Networks, selected Peraso's mmWave module for its latest 60 GHz fixed wireless solution, indicating market expansion[3] Financial Adjustments - Change in fair value of warrant liabilities for Q2 2025 was $29 million, compared to a loss of $54 million in Q2 2024[22]

Company Overview - Peraso is a pioneer in high-performance 60 GHz unlicensed and 5G mmWave wireless technology[9] - The company has approximately 110 patents as of March 31, 2025[9] - Peraso is a global leader in mmWave communications, shipping in volume since 2016[11] Market Opportunity - The global mmWave technology market was valued at $34 billion and is forecast to grow at a 20% CAGR[20] - Allied Market Research estimates the Millimeter Wave Technology Market at $34 billion, projecting growth to $179 billion[17] - 5G mmWave-capable device unit shipments are expected to grow at a 204% CAGR[17] Financial Performance - Peraso's total revenue for FY 2024 was $146 million[59] - Q1 2025 total revenue was $39 million[59] - The company projects medium-term revenue growth at 50%+ and long-term growth at 30%+[59] Product and Technology - Peraso is focused on the 24GHz to 71GHz spectrum, leveraging mmWave beamforming[15] - The company has an integrated HW/SW solution utilizing mmWave modules[32] - Peraso's technology enables Internet access rivaling fiber performance, with benefits such as low cost of deployment and faster time to market[24]

Financial Performance - For the three months ended March 31, 2025, the company reported net revenue of $2.676 million, a decrease of 42% compared to $3.800 million for the same period in 2024[117]. - The product revenue for mmWave ICs increased to $975,000 in Q1 2025 from $77,000 in Q1 2024, reflecting a change of 1160%[117]. - The company incurred a net loss of approximately $0.5 million for the three months ended March 31, 2025, and an accumulated deficit of approximately $177.6 million as of the same date[109]. - Gross profit for the three months ended March 31, 2025, was $1.306 million, representing a 105% increase from $2.680 million in Q1 2024[122]. - The company incurred net losses of approximately $0.5 million for the three months ended March 31, 2025, and $10.7 million for the year ended December 31, 2024, with an accumulated deficit of approximately $177.6 million as of March 31, 2025[134]. Expenses - Research and development expenses decreased by 44% to $2.835 million for the three months ended March 31, 2025, compared to $1.583 million in the same period of 2024[123]. - Selling, general and administrative expenses decreased by 23% to $2.102 million for the three months ended March 31, 2025, compared to $1.611 million in Q1 2024[126]. Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $2.8 million and working capital of $3.0 million[128]. - Net cash used in operating activities was $2.6 million for the first three months of 2024, primarily due to a net loss of $2.0 million[130]. - The company expects to continue incurring operating losses during 2025, as cash expenditures are anticipated to exceed receipts for at least the next 12 months[135]. - The company is currently seeking additional financing to meet cash requirements for the foreseeable future, raising uncertainty about its ability to maintain liquidity[136]. Market Outlook - The company expects revenues to decrease in 2025 compared to 2024 due to the cessation of memory IC product sales after March 31, 2025, but anticipates an increase in mmWave product sales[118]. Compliance and Risks - The company received a letter from Nasdaq indicating non-compliance with the minimum bid price requirement, with a compliance period until October 1, 2025[110]. - The company is subject to various risks, including competition, financing challenges, and market volatility, which could impact future operations[114]. - The independent registered public accounting firm expressed substantial doubt about the company's ability to continue as a going concern[136]. Inventory and Financing Activities - As of March 31, 2025, the company had outstanding non-cancelable purchase orders for inventory of approximately $2.9 million[133]. - The company sold 328,966 shares of common stock for proceeds of approximately $433,000 during the three months ended March 31, 2025[137]. - Net cash provided by financing activities for the three months ended March 31, 2024, included $3.4 million in net proceeds from a public offering of common stock[132]. Workforce Management - The company implemented workforce reductions, eliminating 19 full-time equivalent positions to preserve cash[139]. Off-Balance Sheet Arrangements - The company has no off-balance sheet arrangements that are likely to have a material effect on its financial condition[142].

Financial Data and Key Metrics Changes - Total net revenue for Q1 2025 was $3.9 million, an increase from $3.7 million in the prior quarter and $2.8 million in Q1 2024 [20] - Product revenue from memory integrated circuits and millimeter wave products was $3.8 million in Q1 2025, compared to $3.7 million in the prior quarter and $2.7 million in Q1 2024 [20] - GAAP gross margin increased to 69.3% in Q1 2025 from 56.3% in the prior quarter and 46.4% in the year-ago quarter [21] - GAAP net loss for Q1 2025 was $500,000, or a loss of $0.10 per share, compared to a net loss of $1.6 million, or a loss of $0.37 per share in the prior quarter [23] Business Line Data and Key Metrics Changes - Millimeter wave product revenues were $1.5 million for Q1 2025, compared to $200,000 in the prior quarter and $300,000 in Q1 2024 [21] - The company achieved a significant increase in millimeter wave revenue, exceeding total revenue for the full year of 2024 in Q1 2025 [8] Market Data and Key Metrics Changes - The company reported nearly 120 total engagements in its pipeline, representing a 25% increase in identified commercial opportunities over the last twelve months [9] - The technology is currently being utilized in at least 68 products across 14 unique customers, deployed in various regions worldwide [10] Company Strategy and Development Direction - The company is focused on continuous innovation in MMWave technology to expand its product portfolio and adapt existing products for new applications [11] - A strategic contract was announced for delivering mission-critical wireless applications to military and defense forces, indicating a significant new revenue opportunity [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing market opportunities for MMWave technology, particularly in tactical communications and military defense applications [18] - The company expects to deliver sequential revenue growth for MMWave solutions throughout 2025, driven by increased demand and purchase orders [18] Other Important Information - The company had $2.8 million in cash and equivalents as of March 31, 2025, down from $3.3 million at the end of 2024, primarily due to operating cash burn [24] - The company expects total net revenue for Q2 2025 to be in the range of $1.8 million to $2.0 million, reflecting anticipated roll-off of end-of-life memory IC shipments [25] Q&A Session Summary Question: Can you talk about the visibility you have from some of the deals you've announced previously? - Management indicated better visibility with backlog on existing customers and initial shipments for defense applications expected this quarter [31] Question: Any impact from tariffs on your cost of goods or customer reactions? - Management stated there has been no impact from tariffs as most production is done in Asia or locally in Canada and Europe [33] Question: How quickly can the upgraded prospectus modules for fixed wireless access be deployed? - Management confirmed that the upgrade is a software enhancement that can be deployed immediately by customers [35] Question: Are you seeing more interest from the military side or defense? - Management noted increased interest in tactical communications due to the stealth capabilities of their technology [42] Question: When might other agencies or countries show interest in this type of application? - Management reported global interest in stealth communications technology, with ongoing quotes for opportunities in Europe, the Middle East, and Asia [48] Question: Any updates on BEAD funding and its impact on fixed wireless access? - Management expressed optimism about the positive impact of BEAD funding on their business, expecting benefits in the second half of the year [51]

Financial Data and Key Metrics Changes - Total net revenue for Q1 2025 was $3.9 million, an increase from $3.7 million in the prior quarter and $2.8 million in Q1 2024 [19] - GAAP gross margin increased to 69.3% in Q1 2025 from 56.3% in the prior quarter and 46.4% in the year-ago quarter [20] - GAAP net loss for Q1 2025 was $500,000, or a loss of $0.10 per share, compared to a net loss of $1.6 million, or a loss of $0.37 per share in the prior quarter [22] Business Line Data and Key Metrics Changes - Product revenue from memory integrated circuits and millimeter wave products in Q1 2025 was $3.8 million, compared to $3.7 million in the prior quarter and $2.7 million in Q1 2024 [19] - Millimeter wave product revenues were $1.5 million for Q1 2025, significantly up from $200,000 in the prior quarter and $300,000 in Q1 2024 [20] Market Data and Key Metrics Changes - The company reported nearly 120 total engagements in its MMWave technology pipeline, representing a 25% increase in identified commercial opportunities over the last twelve months [9] - The company has 68 products in commercial production across 14 unique customers, indicating strong market penetration [10] Company Strategy and Development Direction - The company is focused on continuous innovation in MMWave technology to expand its product portfolio and adapt existing products for new applications [11] - A strategic contract was announced for delivering mission-critical wireless applications to military and defense forces, indicating a new revenue opportunity [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing market opportunities for MMWave technology, particularly in tactical communications and military defense applications [17] - The company expects solid double-digit sequential growth in millimeter wave revenue for Q2 2025, despite a roll-off of end-of-life memory IC shipments [24] Other Important Information - The company had $2.8 million in cash and equivalents as of March 31, 2025, down from $3.3 million at the end of 2024, primarily due to operating cash burn [23] Q&A Session Summary Question: Can you talk about the visibility you have from some of the deals you've announced previously? - Management indicated better visibility with backlog on existing customers and initial shipments for defense applications expected this quarter [30] Question: Any impact from tariffs on your cost of goods or customer reactions? - Management stated there has been no impact from tariffs as most production is done in Asia or locally in Canada and Europe [32] Question: How quickly can the upgraded prospectus modules for fixed wireless access be deployed? - Management confirmed that the upgrade is a software update, allowing customers to deploy more endpoints immediately [34] Question: Are you seeing more interest from the military side or defense? - Management noted increased interest in tactical communications due to the stealth capabilities of their technology, with initial shipments expected this quarter [42] Question: Are you seeing interest from customers in deploying fixed wireless access due to BEAD funding? - Management expressed optimism about future benefits from BEAD funding, expecting direct impacts in the second half of the year [49]

[Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong Q1 2025 mmWave revenue growth, offsetting memory IC EOL, and anticipates continued mmWave solution growth - First quarter **mmWave revenue** alone exceeded the total mmWave revenue for the entire full year of 2024[2](index=2&type=chunk) - The company completed the final **end-of-life (EOL) shipments** for its memory IC products during the quarter[2](index=2&type=chunk) - Achieved a major upgrade to PERSPECTUS modules for fixed wireless access (FWA), increasing supported users per access point by **50%**[3](index=3&type=chunk) - Secured a strategic contract with a leading specialized defense contractor, with initial production shipments expected in Q2[3](index=3&type=chunk) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) Peraso reported **$3.9 million** total net revenue in Q1 2025, a **37%** increase, with improved gross margin and reduced net loss Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Net Revenue | $3.9 million | $2.8 million | +37% | | GAAP Gross Margin | 69.3% | 46.4% | +22.9 p.p. | | GAAP Operating Expenses | $3.2 million | $4.9 million | -34.5% | | GAAP Net Loss | ($0.5 million) | ($2.0 million) | +75% Improvement | | GAAP Net Loss Per Share | ($0.10) | ($1.07) | +90.7% Improvement | | Adjusted EBITDA | ($0.3 million) | ($1.4 million) | +78.6% Improvement | [Business Outlook](index=2&type=section&id=Business%20Outlook) The company projects Q2 2025 total net revenue between **$1.8 million** and **$2.0 million**, reflecting memory IC discontinuation - Expects total net revenue for Q2 2025 to be in the range of **$1.8 million** to **$2.0 million**[9](index=9&type=chunk) - The anticipated sequential decline in total revenue for Q2 is due to the planned roll-off of **EOL shipments** for memory IC products[4](index=4&type=chunk)[9](index=9&type=chunk) - Despite the Q2 total revenue outlook, the company anticipates solid sequential revenue growth for its core **mmWave solutions** throughout 2025[4](index=4&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, including operations and balance sheets [Condensed Consolidated Statements of Operations](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 total net revenue increased to **$3.87 million**, with gross profit doubling and operating loss significantly narrowing Statement of Operations (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total net revenue | $3,869 | $2,816 | | Gross Profit | $2,680 | $1,306 | | Total operating expenses | $3,194 | $4,937 | | Loss from operations | ($514) | ($3,631) | | Net loss | ($471) | ($2,031) | | Net loss per share | ($0.10) | ($1.07) | [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets were **$6.73 million**, liabilities decreased, and stockholders' equity increased Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,775 | $3,344 | | Total current assets | $5,959 | $6,293 | | Total assets | $6,729 | $7,206 | | Total current liabilities | $2,962 | $3,503 | | Total liabilities | $3,136 | $3,740 | | Stockholders' equity | $3,593 | $3,466 | [Reconciliation of GAAP to Non-GAAP Measures](index=5&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP to non-GAAP financial measures, adjusting for non-cash items to show core performance [Reconciliation of GAAP to Non-GAAP Net Loss and Net Loss Per Share](index=5&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Loss%20and%20Net%20Loss%20Per%20Share) Q1 2025 non-GAAP net loss improved to **$0.38 million** (or **$0.08** per share) from **$1.59 million** in Q1 2024 GAAP to Non-GAAP Net Loss Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | GAAP net loss | ($471) | ($2,031) | | Stock-based compensation | $125 | $1,222 | | Amortization of intangibles | $0 | $815 | | Change in fair value of warrant liabilities | ($35) | ($1,591) | | **Non-GAAP net loss** | **($381)** | **($1,585)** | [Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit](index=5&type=section&id=Reconciliation%20of%20GAAP%20Gross%20Profit%20to%20Non-GAAP%20Gross%20Profit) Q1 2025 GAAP and non-GAAP gross profit were identical at **$2.68 million** (**69.3%** margin) due to no amortization GAAP to Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP gross profit | $2,680 (69.3%) | $1,306 (46.4%) | | Amortization of intangibles | $0 (0.0%) | $563 (20.0%) | | **Non-GAAP gross profit** | **$2,680 (69.3%)** | **$1,869 (66.4%)** | [Reconciliation of GAAP Net Loss and Adjusted EBITDA](index=6&type=section&id=Reconciliation%20of%20GAAP%20net%20loss%20and%20adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 improved to negative **$0.31 million** from negative **$1.40 million** in Q1 2024 Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | GAAP net loss | ($471) | ($2,031) | | Non-GAAP net loss | ($381) | ($1,585) | | EBITDA adjustments | $68 | $181 | | **Adjusted EBITDA** | **($313)** | **($1,404)** |

Financial Position - As of December 31, 2024, the company had cash and cash equivalents of $3.3 million and an accumulated deficit of $177.1 million[71]. - The company incurred net losses of approximately $10.7 million and $16.8 million for the years ended December 31, 2024 and 2023, respectively[79]. - The company has approximately $212.1 million in net operating loss carryforwards, which may expire if ownership changes occur[126]. Revenue Challenges - The discontinuation of memory IC products, which represented over 85% and 60% of revenues for the years ended December 31, 2024 and 2023, will negatively impact future revenues[75]. - The company recorded inventory write-downs of approximately $0.4 million and $3.5 million for the years ended December 31, 2024 and 2023, respectively[78]. - The company expects to ship remaining end-of-life purchase orders totaling approximately $2.3 million by March 2025[75]. - The company has a history of fluctuating revenues and operating losses, raising uncertainty about future profitability[79]. - The company may need to raise additional capital to continue operations, which may not be available on favorable terms[73]. - The company faces risks related to reliance on a small number of customers, which could harm results if key revenue sources are lost[68]. - The company's revenue concentration is high, with three largest customers accounting for approximately 86% and 75% of total revenue for the years ended December 31, 2024 and 2023, respectively[102]. - At December 31, 2024, three customers represented approximately 91% of total trade receivables, indicating significant credit risk associated with revenue concentration[104]. - The design-win process is lengthy and competitive, taking one to three years from initial engagement to production volume shipments, which impacts future revenue growth[89]. - Future revenue growth is dependent on winning designs with existing and new customers, retaining current customers, and successful commercialization of products[88]. - The discontinuation of memory IC production due to the sole foundry's decision will negatively impact future revenues and cash flows[92]. - Customer adoption delays and product failures could materially affect anticipated revenues due to potential loss of design wins[94]. Operational Risks - The semiconductor industry is cyclical, and downturns could negatively affect the company's revenue[68]. - The company faces challenges in transitioning to new wafer fabrication technologies, which may result in reduced manufacturing yields and increased costs[91]. - The complexity of products may lead to defects and failures, resulting in lost revenues and increased costs, which could harm operating results[105]. - The company relies on estimated demand forecasts from customers, leading to limited visibility regarding product needs and potential revenue fluctuations[106]. - Substantial warranty claims may result in order cancellations or modifications, significantly impacting revenue and operating results[107]. - Overestimating customer demand could lead to excess inventory, while underestimating could result in lost revenue opportunities and market share[108]. - The company depends on independent foundries for manufacturing, and any failure in the supply chain could harm customer relationships and sales[109]. - Supply chain disruptions in the global semiconductor market have led to increased lead times for customer orders, potentially affecting revenue[112]. - Price increases from suppliers could reduce margins, and the company may struggle to pass these costs onto customers due to contractual limitations[113]. Regulatory and Geopolitical Risks - International operations expose the company to regulatory, economic, and political risks that could adversely affect demand and pricing[119]. - Changes in international trade policies, including tariffs, could have immediate adverse impacts on the company's business and financial condition[121]. - The company faces risks related to the protection and enforcement of its intellectual property rights, which could impair competitiveness and reduce technology value[116]. - Geopolitical issues and global economic disruptions, such as those caused by the COVID-19 pandemic, could have a material adverse impact on the company's operations[134]. Security and Compliance Risks - The company may face unauthorized access attempts to its network, potentially compromising proprietary information and disrupting systems[127]. - Any security breaches could result in significant costs, operational consequences, and harm to the company's reputation, potentially leading to legal claims and regulatory investigations[129]. - The company is classified as a "smaller reporting company," which results in reduced disclosure and governance requirements compared to other issuers[148]. - Due to its status, the company is only required to provide two years of audited financial statements in annual reports, potentially making it harder for investors to analyze its financial prospects[148]. Stock and Market Risks - The company may incur additional expenses related to the accounting treatment of its common stock warrants, which could adversely affect its financial statements and market price[145]. - The market price of the common stock may fluctuate during the delay period, impacting the value of the consideration for holders of exchangeable shares[149]. - The company may face volatility in its common stock price, which could negatively impact investment and result in dilution for existing shareholders[138]. - The reverse stock split could increase the number of shares available for issuance, potentially diluting existing stockholders' ownership and affecting earnings per share[140]. - The company is subject to provisions that could delay or prevent a change of control, which may depress the market price of its stock[142]. - If the company fails to meet Nasdaq's continued listing requirements, it could face delisting, adversely affecting the liquidity and price of its common stock[146]. Future Acquisitions - Future acquisitions may not improve the company's financial position as planned, and there are risks associated with integration and retaining skilled employees[132]. Inflation Impact - Inflation has led to increased costs for labor, materials, and transportation, which could adversely affect the company's financial condition and profitability[135].

Financial Data and Key Metrics Changes - Fourth quarter revenue was $3.7 million, representing a 100% year-over-year growth compared to $1.8 million in Q4 2023 [10][36] - Full year 2024 total net revenue was $14.6 million, up from $13.7 million in 2023 [36] - GAAP gross margin increased to 56.3% in Q4 2024 from 47% in the prior quarter and negative 147.3% in Q4 2023 [38] - Non-GAAP gross margin for Q4 2024 was 71.6%, compared to 61.7% in the prior quarter and negative 116.6% in Q4 2023 [38] - GAAP net loss for Q4 2024 was $1.6 million, improving from a net loss of $8.9 million in the same quarter a year ago [40] Business Line Data and Key Metrics Changes - Product revenue from memory integrated circuits and millimeter wave products in Q4 was $3.7 million, compared to $1.5 million in Q4 2023 [36] - Full year product revenue was $14.2 million, up from $12.9 million in the prior year [37] - Operating expenses decreased by 20% year-over-year in Q4 2024, despite revenue doubling [11] Market Data and Key Metrics Changes - The demand for fixed wireless access (FWA) is projected to increase significantly, with global FWA connections expected to reach 280 million by 2028 [17][19] - North American FWA has become the majority of all broadband net additions, with major carriers adding approximately 10.4 million FWA connections since 2021 [18] Company Strategy and Development Direction - The company is focusing on diversifying its customer base for mmWave solutions, expanding into new geographies and applications [13][15] - The DUNE mmWave platform is gaining traction in dense urban environments, addressing the challenges of high-speed connectivity [22] - The company is optimistic about the impact of the BEAD program, which aims to improve access to high-speed internet through various technologies, including mmWave [25][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive shift in customer demand and purchase orders, indicating the end of the inventory correction impacting fixed wireless access customers [20] - The company expects mmWave revenue for Q1 2025 to exceed the total revenue for the full year 2024, driven by increasing order backlog [35] - Management expressed optimism about the military applications of mmWave technology, with initial production orders expected to commence in Q2 2025 [31][80] Other Important Information - The company had $3.3 million in cash and cash equivalents as of December 31, 2024, up from $1.3 million at the end of Q3 2024 [42] - Adjusted EBITDA for Q4 2024 was negative $0.4 million, an improvement from negative $5.9 million in Q4 2023 [41] Q&A Session Summary Question: Can you provide details on the $3.6 million order and its fulfillment timeline? - Management indicated that the order fulfillment will be reasonably linear, with a slight weighting towards the second half of the year [50] Question: How are other customers trending regarding inventory? - Management noted a significant increase in the customer base, reducing dependency on any single customer, and expressed optimism for 2025 [53] Question: Are there developments in military applications? - Management confirmed active engagements in various military applications, with some expected to convert to production by 2026 [80] Question: How will AI trends impact connectivity needs? - Management highlighted that there is growing interest in enterprise environments for high-speed data transfer, which aligns with the company's capabilities [62] Question: What is the expected contribution from the BEAD program? - Management expressed hope that the BEAD program will start showing effects this year, with a focus on technology-neutral approaches to broadband access [84]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $3.7 million, representing a 100% year-over-year growth compared to $1.8 million in Q4 2023 [10][36] - Full year 2024 total net revenue was $14.6 million, up from $13.7 million in 2023 [36] - GAAP gross margin increased to 56.3% in Q4 2024 from 47% in the prior quarter and negative 147.3% in the year-ago quarter [38] - GAAP net loss for Q4 2024 was $1.6 million, a significant improvement from a net loss of $8.9 million in Q4 2023 [40] Business Line Data and Key Metrics Changes - Product revenue from memory integrated circuits and millimeter wave products in Q4 was $3.7 million, compared to $1.5 million in Q4 2023 [36] - Full year product revenue was $14.2 million, up from $12.9 million in the prior year [37] - Operating expenses decreased by 20% year-over-year in Q4 2024, despite revenue doubling [11] Market Data and Key Metrics Changes - The demand for fixed wireless access (FWA) is projected to grow significantly, with global FWA connections expected to reach 280 million by 2028 [17][19] - North American FWA has become the majority of all broadband net additions, with major carriers adding approximately 10.4 million FWA connections since 2021 [18] Company Strategy and Development Direction - The company is focusing on diversifying its customer base for mmWave solutions, having increased its customer count significantly over the past two years [53] - The DUNE mmWave platform is gaining traction in dense urban environments, addressing the challenges of high-speed connectivity [22] - The company is optimistic about the potential of the BEAD program to enhance funding for fixed wireless access technologies [25][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive shift in customer demand and purchase orders, indicating the end of the inventory correction impacting fixed wireless access customers [20] - The company expects mmWave revenue for Q1 2025 to exceed the total revenue for the full year 2024, driven by increasing order backlog [35] Other Important Information - The company had $3.3 million in cash and cash equivalents as of December 31, 2024, up from $1.3 million at the end of Q3 2024 [42] - Adjusted EBITDA for Q4 2024 was negative $0.4 million, an improvement from negative $5.9 million in Q4 2023 [41] Q&A Session Summary Question: Can you provide details on the $3.6 million order and its fulfillment timeline? - Management indicated that the order fulfillment will be reasonably linear, with a slight weighting towards the second half of the year [50] Question: How are other customers trending regarding inventory? - Management expressed optimism about a more diverse customer base and indicated that the inventory crisis is over [53] Question: Are there developments in military applications? - Management confirmed ongoing engagements in military applications, with some expected to convert to production by 2026 [80] Question: What is the expected contribution from the BEAD program? - Management is hopeful that the BEAD program will start to show effects this year, with a focus on technology-neutral funding [84]

Company Performance - Peraso reported a quarterly loss of $0.13 per share, better than the Zacks Consensus Estimate of a loss of $0.17, and a significant improvement from a loss of $8.52 per share a year ago, indicating an earnings surprise of 23.53% [1] - The company posted revenues of $3.68 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.21%, but showing growth from $1.83 million in the same quarter last year [2] - Over the last four quarters, Peraso has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Peraso shares have declined approximately 30.6% since the beginning of the year, contrasting with the S&P 500's decline of 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.30 on revenues of $3.38 million, and for the current fiscal year, it is -$1.60 on revenues of $13.25 million [7] Industry Outlook - The Technology Services industry, to which Peraso belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Peraso's stock performance [5]