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 ...

Financial Performance - The company incurred net losses of approximately $16.8 million and $32.4 million for the years ended December 31, 2023 and 2022, respectively, with an accumulated deficit of approximately $166.4 million as of December 31, 2023[85]. - The company recorded inventory write-downs of approximately $3.5 million and $0.4 million for the years ended December 31, 2023 and 2022, respectively[84]. - The company completed a public offering in February 2024 for net proceeds of approximately $3.4 million, which is expected to support capital needs through at least Q4 2024[76]. - Sustained inflation has led to increased costs, including labor, wafer, and transportation, which may adversely affect the company's financial condition and results of operations[138]. Revenue and Customer Concentration - The company intends to discontinue the production of its memory products, which represented over 60% of revenues for the year ended December 31, 2023[80]. - Revenue concentration is high, with the three largest customers accounting for approximately 75% of total revenue in 2023[109]. - Four customers represented about 83% of total trade receivables as of December 31, 2023, posing credit risks[111]. - The company’s revenue concentration among a small number of customers poses credit risks that could negatively affect cash flow and financial condition[75]. Operational Challenges - The company has implemented workforce reductions, eliminating five positions in February 2023 and three positions in November 2023, including a temporary lay-off of 16 positions in Canada[90]. - The company’s gross profit may fluctuate due to various factors, including customer and product mix, market acceptance, and competitive pricing dynamics[81]. - The semiconductor industry is cyclical, which can lead to significant fluctuations in revenue and profitability[108]. - Delays in product development and customer adoption can adversely affect anticipated revenues in upcoming years[103]. - The lengthy sales cycle, ranging from six to 24 months, complicates revenue forecasting and can lead to significant fluctuations[107]. - The company must continue to develop and enhance products to maintain customer engagement and competitive position[105]. Manufacturing and Supply Chain Risks - The company relies on contract manufacturers for a significant portion of its revenue, which could be adversely affected if these manufacturers face financial difficulties[116]. - As a fabless semiconductor company, the company depends on third-party foundries for manufacturing, and any disruptions in this supply chain could impact customer relationships and sales[117]. - The company has experienced disruptions in the global semiconductor supply chain, leading to increased customer order lead times and potential revenue impacts[120]. - Price increases from suppliers could adversely affect revenue or reduce margins, as the company may not be able to pass these costs onto customers[121]. - The company does not have long-term supply contracts with its suppliers, which could lead to challenges in securing necessary materials and timely production[117]. - The company’s vendors are located in regions at high risk for natural disasters, which could disrupt operations and impact product development and sales[118]. Future Outlook and Capital Needs - The company’s future success depends on its ability to raise additional capital and achieve sustainable revenues and profitable operations[78]. - Future revenue growth is highly dependent on design wins with existing and new customers, as well as retaining current customers[96]. - The design win process can take one to three years, and there is no guarantee of revenue even after incurring significant costs[97]. - The discontinuation of memory IC production will negatively impact future revenues and cash flows[101]. Compliance and Stock Performance - The company received a deficiency letter from Nasdaq due to the closing bid price of its common stock being below the minimum $1.00 per share for 30 consecutive business days[151]. - The company was initially given 180 calendar days to regain compliance with Nasdaq Listing Rule 5550(a)(2), which was extended by an additional 180 days[151]. - A reverse stock split was executed at a ratio of one post-split share for every 40 pre-split shares on January 2, 2024[151]. - The company regained compliance with Nasdaq Listing Rule 5550(a)(2) on January 18, 2024[151]. - The potential volatility of the company's common stock could negatively affect investment returns, as historical fluctuations have been significant[141]. - Future sales of common stock could adversely affect the market price and dilute existing stockholders' ownership[139]. Legal and Security Risks - The company may incur substantial litigation expenses related to potential claims of intellectual property infringement, which could adversely affect profitability[122]. - The company faces risks from potential unauthorized access to its network, which could compromise sensitive data and lead to significant costs and operational consequences[129]. - Future acquisitions may result in financial risks, including increased costs and potential economic dilution to gross and operating profit[133]. - The company may incur one-time charges related to acquisitions, which could impact its financial results[134].

Financial Data and Key Metrics Changes - Total net revenue for Q4 2023 was $1.8 million, down from $4.5 million in the prior quarter and $3.9 million in the same quarter a year ago [68] - GAAP gross margin was negative 147.3% in Q4 2023, compared to positive 45.4% in the prior quarter and 44.2% in the year-ago quarter [10] - GAAP net loss for Q4 2023 was $8.9 million or a loss of $12.48 per share, compared to a net loss of $0.6 million or $0.87 per share in the prior quarter [12] - For the full year 2023, total net revenue was $13.7 million, down from $14.9 million in the prior year [68] Business Line Data and Key Metrics Changes - Product revenue from memory integrated circuits and millimeter wave antenna solutions in Q4 was $1.5 million, down from $4.3 million in the prior quarter and $3.8 million in Q4 2022 [34] - Non-GAAP gross margin for Q4 was negative 116.6%, compared to positive 58% in the prior quarter [69] - Non-GAAP operating expenses for Q4 were $4 million, consistent with the prior quarter and down from $4.8 million in the same quarter a year ago [70] Market Data and Key Metrics Changes - The company reported an increase in active engagements from 18 to 25 over the past six months, indicating a growing interest in their mmWave solutions [30] - The company is expanding its market reach beyond North America, targeting both rural and urban applications [31][90] Company Strategy and Development Direction - The company aims to diversify its customer base and reduce time to market, achieving a significant reduction in the time from customer engagement to deployment [25][64] - The introduction of the DUNE platform for fixed wireless access is designed for dense urban environments, providing a cost-effective solution for WISPs [32][90] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's outlook for 2024, citing an expanding engagement pipeline and renewed customer demand for fixed wireless access [33][60] - The company anticipates revenue growth to resume in Q1 2024, with expectations of double-digit growth for the full year [60] Other Important Information - The company had cash and cash equivalents of approximately $1.6 million as of December 31, 2023, and generated cash flow of approximately $0.9 million during Q4 2023 [13] - The company completed a public offering in February 2024, generating net proceeds of approximately $3.4 million [13] Q&A Session Summary Question: What is the outlook for customer demand and inventory issues? - Management indicated that the current demand is a combination of clearing existing inventory and renewed customer demand for fixed wireless access [75] Question: How long is the typical design cycle for new products? - The company noted that the time to market has significantly improved, now averaging around nine months for new customer engagements [55] Question: Is the company reaching a tipping point for fixed wireless access? - Management expressed optimism about reaching a tipping point, especially in urban environments where traditional Wi-Fi solutions struggle [102] Question: What is the expected mix of memory IC versus millimeter wave sales in Q1? - The guidance indicated that sales will predominantly come from memory ICs, with millimeter wave sales expected to remain flat compared to Q4 [104]

Revenue Performance - Total net revenue for Q4 2023 was $1.8 million, a decrease of 60% from $4.5 million in the prior quarter and 54% from $3.9 million year-over-year[4]. - Product revenue for Q4 2023 was $1.5 million, down 65% from $4.3 million in the prior quarter and 61% from $3.8 million in the same quarter last year[4]. - Total net revenue for the full year 2023 was $13.7 million, down from $14.9 million in 2022, with product revenue decreasing to $12.9 million from $14.2 million[11]. - The company expects total net revenue for Q1 2024 to be in the range of $2.6 million to $2.9 million[15]. - Total net revenue for Q4 2023 was $1,832 million, a decrease of 53.0% compared to $3,887 million in Q4 2022[24]. Profitability and Loss - GAAP gross margin for Q4 2023 was negative 147.3%, compared to 45.4% in the prior quarter and 44.2% in the same quarter last year, primarily due to a $3.0 million inventory write-down[5]. - Non-GAAP net loss for Q4 2023 was $6.1 million, or ($8.52) per share, compared to a net loss of $1.1 million, or ($1.56) per share, in the prior quarter[8]. - GAAP gross margin for 2023 was 13.6%, a significant decline from 40.1% in 2022, attributed to the inventory write-down in Q4 2023[12]. - The net loss for Q4 2023 was $8,938 million, compared to a net loss of $14,593 million in Q4 2022, representing a 38.1% improvement[24]. - Non-GAAP net loss for Q4 2023 was $6,098 million, compared to a non-GAAP net loss of $2,775 million in Q4 2022[28]. Expenses - Total operating expenses on a GAAP basis for 2023 were $22.5 million, down from $38.3 million in 2022[13]. - Research and development expenses for Q4 2023 were $3,359 million, down from $4,130 million in Q4 2022, a decrease of 18.7%[24]. - Total operating expenses for Q4 2023 were $5,533 million, down from $16,248 million in Q4 2022, a decrease of 66.0%[24]. Cash and Assets - Cash, cash equivalents, and investments decreased to $1,583 million in Q4 2023 from $2,906 million in Q4 2022, a decline of 45.5%[26]. - Total assets decreased to $10,714 million in Q4 2023 from $22,486 million in Q4 2022, a reduction of 52.4%[26]. - Total liabilities decreased to $6,631 million in Q4 2023 from $7,229 million in Q4 2022, a decrease of 8.3%[26]. Order Backlog and Financing - The company has a remaining total order backlog of over $12 million for memory IC products, indicating potential revenue growth[2]. - The company completed a public offering resulting in net proceeds of approximately $3.4 million to strengthen its cash position[10].

As filed with the Securities and Exchange Commission on February 5, 2024 Registration No. 333-276247 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 2 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 PERASO INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 3674 77-0291941 (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number) 230 ...

As filed with the Securities and Exchange Commission on January 23, 2024 Registration No. 333-276247 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 PERASO INC. (Exact name of registrant as specified in its charter) | | | (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number) 2309 Bering Dr. San Jo ...

As filed with the Securities and Exchange Commission on December 22, 2023 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 PERASO INC. (Exact name of registrant as specified in its charter) Delaware 3674 77-0291941 (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number) 2309 Bering Dr. San Jose, C ...

Peraso Inc. (NASDAQ:PRSO) Q3 2023 Earnings Call Transcript November 13, 2023 5:00 PM ET Company Participants Jim Sullivan - CFO Ron Glibbery - CEO Conference Call Participants Kevin Liu - K. Liu & Company David Williams - Benchmark Operator Good afternoon and welcome to Peraso Inc.'s Third 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, November 13, 2023. I would now like to t ...

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 September 30, 2023 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) | Delaware | 77-0291941 | | --- | --- | | (State or o ...

Peraso Inc. (NASDAQ:PRSO) Q2 2023 Earnings Conference Call August 14, 2023 5:00 PM ET Company Participants Jim Sullivan – Chief Financial Officer Ron Glibbery – Chief Executive Officer Conference Call Participants Kevin Liu – K. Liu & Company David Williams – Benchmark Operator Good afternoon, and welcome to Peraso Inc.'s Second 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, ...