Peraso(US:PRSO)2025-11-10 22:30Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was $3.2 million, up from $2.2 million in the prior quarter and down from $3.8 million in Q3 2024 [19] - GAAP gross margin increased to 56.2% in Q3 2025 from 48.3% in the prior quarter and 47% in the same quarter a year ago [21] - Non-GAAP gross margin for Q3 2025 was also 56.2%, compared to 48.3% in the prior quarter and 61.7% in Q3 2024 [22] - GAAP operating expenses for Q3 2025 were $3 million, down from $4.5 million in Q3 2024 [22] - Non-GAAP net loss for Q3 2025 was $1.7 million or a loss of $0.28 per share, compared to a loss of $2.7 million or $0.98 per share in the prior quarter [23] Business Line Data and Key Metrics Changes - Revenue from millimeter wave products was $3 million in Q3 2025, compared to $2.2 million in the prior quarter and $0.1 million in Q3 2024 [20] - The increase in revenue was primarily driven by a favorable revenue mix of millimeter wave products and solutions [21] Market Data and Key Metrics Changes - The company noted a steady recovery in market demand and customer orders for its 60 GHz wireless solutions, particularly in the fixed wireless access market [6][7] - The company highlighted significant wins in fixed wireless access, including partnerships with Tachyon Networks and WeLink Communications [9][10] Company Strategy and Development Direction - The company is focusing on expanding its millimeter wave solutions into new markets, including tactical communications for military applications [11][12] - The management emphasized the versatility of its technology, which can support high-bandwidth video for edge AI applications [14][15] - The company is committed to disciplined expense management while driving growth in its millimeter wave product lines [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the renewed momentum in the fixed wireless access market [7] - The company expects total net revenue for Q4 2025 to be in the range of $2.8 million to $3.1 million based on current backlog [25] Other Important Information - The company had approximately $1.9 million in cash as of September 30, 2025, compared to $1.8 million as of June 30, 2025 [24] - The strategic review process is ongoing, with no new updates provided during the call [24] Q&A Session Summary Question: Can you provide more details on the new OEM announced? - The new OEM is a significant player in the space, and the company is optimistic about the opportunity, although specifics cannot be disclosed due to confidentiality [26][27] Question: What is the expected timeline for customer production schedules? - The typical engagement to mass production timeline is 9-12 months for fixed wireless, while new markets like military may take 12-15 months [29] Question: How should the market view the increase in inventory and accounts receivable? - The increase in accounts receivable was due to timing of sales, and inventory was built to meet anticipated demand for Q1 and Q2 [30][31] Question: What is the outlook for gross margin going forward? - The company aims to maintain gross margins around 50%, with some fluctuations based on product mix and inventory sales [32][33] Question: How long does it typically take for pre-production customers to contribute to revenue? - Once a customer reaches pre-production, it typically takes about three months before they start contributing meaningfully to revenue [34]