Peraso(US:PRSO)2025-05-12 21:30Financial 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]