Peraso(US:PRSO)2022-03-09 00:17Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $1.9 million, down from $5.9 million in Q4 2020. For the full year 2021, total revenue was $5.7 million, compared to $9.1 million in 2020 [43] - Product revenue in Q4 2021 was $1.9 million, a significant increase from $0.3 million in the prior quarter, marking over a 6x increase year-over-year. Full-year product revenue was $4.9 million, up more than 3 times from $1.5 million in 2020 [43][44] - Gross margin for Q4 2021 was 30.4%, down from 89.2% in the prior year quarter. Full-year gross margin was 42.4%, compared to 80.8% in 2020 [46][47] - GAAP operating expenses for Q4 2021 were $5.3 million, up from $3.3 million in the year-ago period. Full-year operating expenses were $18.5 million, compared to $15.5 million in 2020 [50][51] Business Line Data and Key Metrics Changes - The company commenced selling millimeter wave modules in 2021, which contributed to product revenue growth in both Q4 and full-year 2021 [44] - Licensing and other revenue for Q4 2021 was negative $27,000, down from $5.6 million in Q4 2020. Full-year licensing and other revenues were $0.8 million, compared to $7.6 million in 2020 [45] Market Data and Key Metrics Changes - The company is positioned in the millimeter wave technology market, which is expected to grow significantly due to increasing demand for bandwidth driven by video applications and the proliferation of 5G technology [12][14] - The total addressable market (TAM) for 5G millimeter wave for consumer premise and hotspot applications is estimated to be $3 billion over the next three years [12] Company Strategy and Development Direction - The company aims to expand its product line from existing 60-gigahertz mmWave products to include 5G mmWave products, leveraging its established technology and customer relationships [12][20] - Peraso has developed a strategy focused on millimeter wave modules, controlling most aspects of the module IP, which allows for competitive pricing and performance [26][27] Management's Comments on Operating Environment and Future Outlook - Management highlighted the exponential increase in wireless bandwidth demand driven by new users and video traffic, indicating that existing spectrum has capacity limitations [59] - The company believes it is well-positioned for growth in the coming years, particularly with the global expansion of 5G mmWave technology [12][60] Other Important Information - The company completed a business combination with MoSys in December 2021, which has provided additional product lines and revenue visibility [41][38] - Cash, cash equivalents, and investments as of December 31, 2021, were $18.1 million, significantly up from $1.7 million at the end of 2020 [56] Q&A Session Summary Question: Can you discuss the challenges in shipping within the 5G frequency range? - Management indicated that they are currently shipping at 60-gigahertz and are reducing frequency for 5G from 24 to 43-gigahertz, suggesting that their experience is applicable to 5G technology [66] Question: How do you view the adoption cycle for 5G and fixed wireless equipment? - Management noted that Verizon's millimeter wave usage has increased by 856% year-over-year, indicating a positive trend in the adoption of millimeter wave technology [68] Question: What is the outlook for the balance sheet and cash burn rate? - Management expressed confidence that they have adequate cash to support their business plan and continue investing in product development [70] Question: Any surprises from the MoSys combination? - Management reported a positive outlook for the MoSys memory products, with existing design wins and a strong gross margin expected [72]