Peraso(US:PRSO)2024-03-18 23:18Financial 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]