Peraso (NASDAQ:PRSO) reported second-quarter revenue that rose sequentially as the company fulfilled a previously delayed shipment to a new fixed wireless access customer, while management said irregular ordering patterns and component constraints continued to limit visibility in its core market.
Total net revenue for the quarter ended June 30 was $1.3 million, up from $1.0 million in the first quarter but down from $2.2 million a year earlier. Product revenue increased to $1.2 million from $700,000 in the prior quarter, driven by higher shipments of millimeter-wave products, Chief Financial Officer James Sullivan said.
“While these current market dynamics are expected to extend into the fourth quarter,” Glibbery said, Peraso believes it can benefit when supply disruptions ease and customer ordering patterns normalize.
Margins Improve, Though Losses Continue
Gross margin was 63.7% in the second quarter, compared with 61.5% in the first quarter and 48.3% in the year-earlier period. Sullivan attributed the sequential improvement primarily to the mix of mmWave products, including greater sales of inventory that had been written down in earlier periods. Lower non-recurring engineering, or NRE, revenue partly offset that improvement.
GAAP operating expenses were $3.1 million, unchanged from the first quarter and up from $2.9 million a year earlier. Non-GAAP operating expenses, excluding stock-based compensation, were $2.9 million, also unchanged sequentially.
The company reported a GAAP net loss of $2.2 million, or 16 cents per share, compared with a loss of $2.5 million, or 22 cents per share, in the first quarter. The year-earlier GAAP loss was $1.8 million, or 31 cents per share. Peraso’s non-GAAP net loss was $2.1 million, or 15 cents per share, versus $2.3 million, or 20 cents per share, in the prior quarter.
Adjusted EBITDA was negative $2.0 million, improving from negative $2.3 million in the prior quarter but widening from negative $1.6 million a year earlier.
Defense, Drones and Edge AI Become Strategic Focus
Management emphasized efforts to diversify beyond fixed wireless access by applying Peraso’s 60 GHz technology to autonomous systems, unmanned aerial vehicles, defense communications and edge artificial intelligence applications.
Glibbery said 60 GHz technology uses highly directional narrow beams, which the company believes can reduce interference and allow multiple high-capacity links to operate in close proximity. In June, Peraso and partner Virewirx completed a simulated drone-network demonstration that achieved a peak aggregate data rate above 50 gigabits per second, according to Glibbery.
The company is also working with defense contractor InTACT on drone identification friend-or-foe, or IFF, systems. Peraso delivered initial limited-production modules earlier this year, and Glibbery said feedback on the jointly developed solution has remained positive.
This week, Peraso introduced the PRM2145, a jam-resistant communications module designed for unmanned aerial vehicles, autonomous systems and defense uses. The module is intended to support command-and-control links, high-definition video, intelligence, surveillance and reconnaissance data transport, IFF communications and drone-to-drone networking. The company expects it to be available for customer evaluation in the fourth quarter.
During the question-and-answer session, Glibbery said Peraso has generated seven-figure revenue from its existing IFF-related customer through engineering work and volume shipments. He said the company expects additional volume from that customer over the next several quarters, with activity shifting from infantry-oriented applications toward drone uses.
He also said Peraso could begin shipping lower volumes for certain ground-based secure communications applications later this year, while more sophisticated drone-swarm applications may be about a year away. The company’s current production capacity is about 30,000 to 50,000 units per month, Glibbery said, adding that management believes it could scale to 100,000 units per month.
Capital Resources and Outlook
Peraso ended the quarter with approximately $3.3 million in cash, up from $2.7 million at March 31. The increase reflected roughly $2.4 million in net proceeds raised through the company’s at-the-market offering program during the second quarter.
On June 30, Peraso entered into a committed equity facility with Roth Principal Investments that permits, but does not require, the company to sell up to $25 million of common stock. Sullivan said the company had not used the Roth facility or its ATM program since June 30, apart from possible ATM trades that settled July 1.
The company continues to explore strategic alternatives, including a merger, sale of assets or similar transactions, as well as other funding sources. Sullivan said Peraso had no update on the broader strategic review.
Management did not provide quarterly guidance, citing insufficient visibility into near-term demand from fixed wireless access customers. Sullivan said the company remains focused on managing costs, pursuing NRE contracts and seeking Canadian government grants tied to its technology development efforts.
About Peraso (NASDAQ:PRSO)
Peraso Technologies Inc is a Canadian semiconductor company specializing in the research, design and development of millimeter wave (mmWave) wireless communication solutions. The company’s core focus lies in the 60 GHz frequency band, where it engineers high-performance integrated circuits and beamforming solutions designed to deliver multi-gigabit wireless connectivity. Peraso’s technology is tailored for applications demanding high data throughput, low latency and reliable short-range wireless links.
The company’s product portfolio includes 60 GHz chipset solutions for wireless local area networking (WiGig), fixed wireless access (FWA), small-cell backhaul and point-to-point communication links.
