Q1 2025 Peraso Inc Earnings Call
Speaker Change: [music].
Operator: How's that?
Operator: And good afternoon, ladies and gentlemen, and thank you for your patience. Your conference will begin shortly. Once again, thank you for your patience. Your conference will begin shortly.
And good afternoon, ladies and gentlemen, and thank you for your patience. Your conference will begin shortly once again. Thank you for your patience Your conference will begin shortly.
[music].
Operator: Good afternoon. Welcome to Peraso Inc.'s first quarter 2025 conference call. At this time, all participants are in a listen-only mode.
Good afternoon, welcome to Perasa Inc's first quarter 'twenty 'twenty five conference call at this time, all participants are in a listen only mode.
Operator: If anyone needs assistance at any time during this conference call, please press the star key followed by zero on your touch tone.
If anyone needs assistance at any time during this conference call. Please press the star key followed by zero on your Touchtone phone.
Operator: As a reminder, this conference call is being recorded today, Monday, May 12, 2025.
As a reminder, this conference call is being recorded today Monday may 12th 2025.
I would now like to turn the call over to your host for today's conference call. Mr. Jim Sullivan. Please go ahead.
Operator: I would now like to turn the call over to your host for today's conference call, Mr. Jim Sullivan. Please go ahead.
Speaker Change: Good afternoon, and thank you for joining today's conference call to discuss process first quarter 2025 financial results.
James Sullivan: Good afternoon, and thank you for joining today's conference call to discuss process first quarter 2025 financial results. I'm Jim Sullivan, CFO of Peraso, and joining me today is Ron Glibbery, our CEO. Today, after the market closed, we issued a press release and related Form 8K, which was filed with the Securities and Exchange Commission. The press release and Form 8K are available on Peraso's website at www.perasoinc.com under the Investor Relations There is also a slide presentation that we will be using in conjunction with today's call that may be accessed through the webcast link on our investor relations website.
Jim Sullivan CFO and.
Ron: And joining me today is Ron <unk> our CEO.
Speaker Change: Today after the market closed we issued a press release and related form 8-K, which was filed with the Securities and Exchange Commission.
Speaker Change: Press release and form 8-K are available on <unk> website at Www Dot <unk> dot com under the Investor Relations section.
Speaker Change: There is also a slide presentation that we will be using in conjunction with today's call that may be accessed through the webcast link on our Investor Relations website.
James Sullivan: As a reminder, comments made during today's conference call may include forward-looking statements. All statements other than the statements of historical fact could be deemed as forward-looking. Peraso advises caution and reliance on forward-looking statements. These statements include, without limitation, any projections of revenue, margins, expenses, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA, non-GAAP net loss, cash flows, or other financial items, including anticipated cost savings. Also, any statements concerning the expected development, performance, and market share, or competitive performance of our products or technology. All forward-looking statements are based on information available to Peraso on the date hereof.
Speaker Change: As a reminder comments made during today's conference call May include forward looking statements all statements other than statements of historical fact could be deemed as forward looking.
We're also advises caution and reliance on forward looking statements. These statements include without limitation any projections of revenue Mark.
Speaker Change: <unk> expenses non-GAAP gross profit non-GAAP gross margin non-GAAP operating expenses adjusted EBITDA non-GAAP net loss cash flows or other financial items, including anticipated cost savings.
Speaker Change: Also any statements concerning the expected development performance in market share or competitive performance of our products or technologies.
Speaker Change: All forward looking statements are based on information available to cross sell on the date hereof. These.
James Sullivan: These statements involve known and unknown risks, uncertainties, and other factors that may cause Peraso's actual results to differ materially from those implied by the forward-looking statements, including unexpected changes in the company's More detailed information about these risk factors, and additional risk factors, are set forth in Peraso's public filings with the Securities and Exchange Commission. Peraso expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
Speaker Change: These statements involve known and unknown risks uncertainties and other factors that may cause process actual results to differ materially from those implied by the forward looking statements, including unexpected changes in the Companys business.
Speaker Change: More detailed information about these risk factors and additional risk factors are set forth in process public filings with the Securities and Exchange Commission.
Speaker Change: <unk> expressly disclaims any obligation to update or alter its forward looking statements, whether as a result of new information future events or otherwise, except as required by applicable law.
James Sullivan: Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in terms of GAAP and non-GAAP. With respect to remarks on today's call involving non-GAAP numbers, unless otherwise indicated, referenced amounts exclude stock-based compensation expense, amortization of intangible assets, severance costs, and the change in fair value of warrant liability. These non-GAAP financial measures, definitions, and the reconciliation of the differences between them and comparable GAAP measures are presented in our press release and related Form 8K, which provide additional details.
Additionally, the company's press release and management statements. During this conference call will include discussions of certain measures and financial information in terms of GAAP and non-GAAP with.
Speaker Change: With respect to remarks on today's call involving non-GAAP numbers, unless otherwise indicated referenced amounts exclude stock based compensation expense amortization of intangible assets severance costs and the change in fair value of warrant liabilities. These non-GAAP financial measures definitions and a reconciliation of the differences between them.
Speaker Change: And comparable GAAP measures are presented in our press release and related form 8-K, which provide additional details.
Operator: For those of you unable to listen to the entire call at this time, a recording will be available on the investor relations page of our website.
Speaker Change: For those of you unable to listen to the entire call at this time, a recording will be available on the Investor Relations page of our website.
Ron: Now I would like to turn the call over to our CEO Ron <unk> for his prepared remarks Ron.
Ronald Glibbery: Now, I would like to turn the call over to our CEO, Ron Glibbery, for his prepared remarks. Thank you, Jim. Good afternoon and welcome to everyone on the phone and webcast. We appreciate you taking the time and joining us on today's conference call. I'm pleased to share that we kicked off 2025 with strong momentum. More specifically, our first quarter results demonstrated continued progress and year-over-year revenue growth as we ramped orders for our MMOA products and completed the final end-of-life shipments for our Memory IC products. As further evidence of our recent momentum, first quarter MMWave revenue exceeded our total MMWave revenue for the full year of 2024.
Speaker Change: Thank you Jim Good afternoon, and welcome to everyone on the phone and webcast. We appreciate you taking the time and joining us on today's conference call.
Speaker Change: I'm pleased to share that we kicked off 2025 with strong momentum more specifically our first quarter results demonstrated continued progress and year over year revenue growth as we ramped orders were minimally products and completed the final end of life shipments for our memory IC products.
Speaker Change: Further evidence of our recent momentum first quarter M. M wave revenue exceeded our total <unk> revenue for the full year of 2024, coupled with our disciplined approach to expense management. We also delivered significant improvement in our bottom line results for the first quarter.
Ronald Glibbery: Coupled with our disciplined approach to expense management, we also delivered significant improvement in our bottom line results for the first quarter. Since the start of the new year, we've achieved a number of notable technology, product and customer milestones that we will cover as part of today's call. Collectively, these achievements not only underscore the growing market opportunities for our mmWave technology, but they also serve as validation and a testament to our team's dedication and effort. Although Peraso initially pioneered the development of mmWave technology more than a decade ago, we believe that we are still in the early innings of realizing the full potential market opportunity for our high-performance mmWave solutions.
Speaker Change: Since the start of the new year, we've achieved a number of notable technology product and customer milestones that we will cover that as part of today's call.
Speaker Change: Collectively these achievements not only underscores the growing market opportunities where M. M wave technology, but they also serve as validation and a testament to our team's dedication and effort. Although perazzo. Initially pioneered the development of an M life technology more than a decade ago. We believe that we're still in the early innings of realizing the full potential market opportunity.
Speaker Change: For our high performance <unk> solutions.
Ronald Glibbery: Turning to slide four, this real-time snapshot of our engagement pipeline as of early April visually captures one of the reasons we believe we've only begun to scratch the surface in terms of the market potential for Peraso's MMI technology. Taking the number of identifying new funnel opportunities at the top, then adding each of the four stages of active engagement, starting with formal hardware evaluation and the progression to pre-production samples, our current pipeline comprises nearly 120 total engagements. Comparing that number against the 10 engagements converted to production since we began sharing these metrics publicly, we believe our existing pipeline represents substantial market potential.
Speaker Change: Turning to slide four this real time snapshot of our engagement pipeline as of early April visually captures one of the reasons. We believe we've only begun to scratch the surface in terms of the market potential for <unk> for US is M M life to the technology.
Speaker Change: Taking the number of identifying new funnel opportunities at the top then adding each of the four stages of active engagement, starting with formal hardware evaluation and the progression to preproduction samples our current pipeline comprising nearly 120 total engagements comparing that number against the 10 engagements convert into production since she began sharing these metrics publicly.
Speaker Change: We believe our existing pipeline represents substantial market potential.
Ronald Glibbery: The other notable comparison on this slide is the meaningful expansion of our total pipeline, including both funnel opportunities and active engagements over the last 12 months. We have grown our total number of identified commercial opportunities by over 25%. Lastly, looking at the right of the slide, I want to quickly highlight our biggest picture progress with respect to market penetration. These are a small sample of customers and products that incorporate Peraso's industry-leading MMOA solutions. Today, our technology is being utilized to enable at least 68 products in commercial production across 14 unique customers.
Speaker Change: The other notable comparison on this slide is a meaningful expansion of our total pipeline, including both funnel opportunities and active engagements over the last 12 months, we have grown our total number of identified commercial opportunities.
Speaker Change: The opportunities by over 25%.
Speaker Change: Lastly, looking at the right of this slide I want to quickly highlight our biggest picture progress with respect to market penetration. These are a small sample of customers and products that incorporate process industry leading.
Speaker Change: <unk> solutions today.
Speaker Change: Our technology is being utilized to enable that at least 68 products in commercial production across 14 unique customers collectively these customer products are currently being deployed across numerous reasons around the world.
Ronald Glibbery: Collectively, these customer products are currently being deployed across numerous regions around the Flipping to slide 5, as a company initially founded with the purpose of pioneering brand new technology, we are always seeking to push the boundaries of MMWave technology and deliver cutting-edge solutions. We also believe that sustainable success in any area of technology requires new innovation. As such, Peraso remains deeply committed to continuous innovation to further expand our portfolio of MMOA solutions as well as adapt our existing MMOA products to address new applications. This slide highlights two recent examples of our ongoing efforts to bring innovative MMOA solutions to the market.
Speaker Change: Flipping to slide five as a company. Initially founded was the purpose of pioneer and brand New technology. We are always seeking to push the boundaries of M. M. We have technology and deliver cutting edge solutions. We also believe that sustainable success in any of their technology with cars new innovation.
Speaker Change: As such PRASM remains deeply committed to continuous innovation to further expand our portfolio M M wave solutions as well as adapt or existing that minimum wage products to address new applications.
Speaker Change: This slide highlights two recent examples of our ongoing efforts to bring innovative solutions to the market.
Speaker Change: First in April we announced a major upgrade to our prospectus product family that increases the number of supported endpoint devices or users per access point from 32 to 48.
Ronald Glibbery: First, in April, we announced a major upgrade to our Prospectus product family that increases the number of supported endpoint devices, or users per access point, from 32 to 48. Our Prospective modules are currently used by wireless internet service providers to provide fixed wireless access service using the unlicensed 60 GHz spectrum. Increasing the number of served end users by 50% for a single access point benefits the broader FWA market, but is particularly valuable in dense urban employment. In addition to reducing the required amount of deployed hardware, it improves the total cost of network ownership versus competing technologies by using less power.
Speaker Change: Respective modules are currently used by wireless Internet service providers to provide fixed wireless access service using the unlicensed spectrum.
Speaker Change: Increasing the number of served end users by 50% for a single access point benefits the broader <unk> market.
Speaker Change: It is particularly valuable in dense urban employments.
Speaker Change: In addition to reducing the required amount of deployed hardware and improves the total cost of network ownership versus competing technologies by using less power and importantly, it also maintains a capability for data rates up to two gigabits per second.
Ronald Glibbery: And importantly, it also maintains the capability for data rates up to 2 gigabits per second. Then, earlier this month, we introduced the latest product addition to our prospective family of mmWave modules, the PRM21481XD. Built around our existing X720 60GHz chipset, this new module integrates a dual polarized antenna array, supports dynamic switching and polarization diversity to deliver reliable and robust connectivity in complex network environments. More specifically, this solution is ideal for overcoming the challenges in high-mobility deployments such as body-mounted applications. Lastly, I also want to briefly mention our recently received notice of allowance from the U.S.
Speaker Change: Then earlier this month, we introduced the latest product addition to our perspective family M. M wave modules. The P. R. M 21, 41, XD built around our existing X 726 years chipset. This new module integrated dual polarized intenerate supports dynamic switching and polarization.
Speaker Change: Diversity to deliver reliable and robust connectivity and complex network environments.
Speaker Change: More specifically this solution is ideal for overcoming the challenges in high mobility deployments such as body mounted applications.
Speaker Change: Lastly, I also wanted to briefly mentioned our recently received notice of allowance from the U S patent and trademark office for a patent application.
Ronald Glibbery: Patent and Trademark Office for a patent application. The newly allowed patent application addresses Peraso's solution for modern wireless local area networks that are frequently served by a large number of access points. In short, our technology enables seamless reintegration of recovered or newly added access points, eliminating the need for a full network reset. We currently expect this patent to be formally issued later this year, and this is merely another example of Peraso's commitment to continuous innovation.
Speaker Change: The newly allowed patent application addresses Brazos solution for modern wireless local area networks that are frequently served by a large number of access points.
Speaker Change: In short our technology enables seamless integration of recovered our newly added access points, eliminating the need for a full network Lisa.
Speaker Change: We currently expect this patent to be formally issued later this year and this is merely another example, perazzo commitment to continuous innovation.
Ronald Glibbery: On slide six, acknowledging that we discussed the innovative capabilities and benefits of Peraso's DUNE platform on previous calls, the continued traction and customer engagement we are seeing for this solution merits brief mention again on today's call. We believe the market is recognizing the core value proposition of DUNE, which is its ability to overcome the challenges associated with delivering reliable and high-speed connectivity in densely populated areas. Together with DUNE's other fundamental benefits such as low-cost deployment, low power, long range and point-to-multipoint capabilities, WISPs are equally attracted to the solution for high-density fixed wireless deployments, whether they be in Los Angeles or a concentrated urban community in Africa.
Speaker Change: On slide six acknowledging though we discuss the innovative capabilities and benefits of prizes doing platform on previous calls the continued traction in customer engagement. We are seeing for this solution merits brief mentioned again on today's call.
Speaker Change: We believe the market is recognizing the core value proposition of dune, which is its ability to overcome the challenges associated with delivering reliable and high speed connectivity in densely populated areas.
Speaker Change: Together with dunes other fundamental benefits such as low cost deployment low power long range and point to Multipoint capabilities, which are equally attractive solution for high density fixed wireless deployments, whether they'd be in Los Angeles or concentrated urban community in Africa.
Speaker Change: More broadly across the fixed wireless access we continue to see indications of demand recovery.
Ronald Glibbery: More broadly across the fixed wireless access, we continue to see indications of demand recovering. As highlighted on our previous conference call, in March we received a $3.6 million purchase order for MMWave devices from a leading fixed wireless access and wireless networking system provider. Shipments in support of this customer are anticipated to commence during the second quarter and be completed over the remainder of 2025. Additionally, today our MMOA and fixed wireless access solutions are continuing to be utilized in ongoing proof of concepts by numerous wireless internet service providers, each of which represent realistic prospects for incremental growth over the coming quarters.
Speaker Change: On our previous conference call in March we received a $3 6 million dollar purchase order for memory devices from a leading fixed wireless access and wireless network and system provider.
Speaker Change: Shipments in support of this customer are anticipated to commence during the second quarter and be completed over the remainder of 2025.
Speaker Change: Additionally, today, our minimally and fixed wireless access solutions are continuing to be utilized in ongoing proof of concepts by numerous wireless internet service providers, each of which represent realistic prospects for incremental growth over the coming quarters.
Ronald Glibbery: With further increased awareness of mmWave technology and its benefits, as well as Peraso's market-leading products and solutions for reliable, multi-gigabit-per-second wireless connectivity in the unlicensed 60GHz spectrum, we expect fixed wireless access to continue to be a large and sustained driver of our future revenue growth.
Speaker Change: With further increase awareness of minimum wave technology, and its benefits as well as prizes market, leading product and solutions for reliable multi gigabit per second wireless connectivity in the unlicensed 60 theatres spectrum, we expect fixed wireless access to continue to be a large and sustained driver of our future revenue growth.
Ronald Glibbery: Moving to slide seven, I want to reiterate the growing market opportunity for MMWave technology in tactical communications and military defense applications. Both the commercial opportunity and real-world positive impact that we can bring to this market are well displayed by our disclosed win in this space. Last month, we announced the execution of a new strategic contract to deliver mission-critical wireless applications to global military and defense forces, opening a significant new revenue opportunity for Peraso. Our collaboration with this leading specialized defense contractor will result in a jointly created and deployable system solutions that provide heightened communications to safeguard both military personnel and noncombatants, such as medics, peacekeepers, and journalists operating in high-risk environments.
Speaker Change: Moving to slide seven I want to reiterate the growing market opportunity for EM EM wave technology in tactical communications and military defense obligations.
Speaker Change: Both the commercial opportunity and real world positive impact that we can bring to this market are well displayed by our disclosed win in this space.
Speaker Change: Last month, we announced the execution of a new strategic contract to deliver mission critical wireless applications to global military and defense forces opening and significant new revenue opportunity for Perazzo. Our collaboration with this leading specialized defense contractor will result in a jointly created and deployable system solutions that provide heightened communications.
Speaker Change: To safeguard both military personnel and non combatants, such as medics peacekeepers and journalists operate in high risk environments.
Ronald Glibbery: This first-of-a-kind system solution leverages the inherently stealthy nature of 60 gigahertz communications which contributes to very low probability of detection on the battlefield as well as strong immunity to jamming.
Speaker Change: This first of a kind system solution leverages, the inherently stealth in Asia as to thinking it hurts communications, which contributes to very low probability of detection on the battlefield as well as strong immunity to jamming.
Ronald Glibbery: We are both proud and excited to be involved with such innovation with the intent of supporting those on the front lines and address critical battlefield challenges. We believe the strategic contract represents a major milestone and also has significant commercial potential with what we believe is a minimum addressable market of at least 3.4 million active military personnel. We currently expect to commence initial production shipments during the second quarter of this year. With MMWave's advanced capabilities, including high data rates, ultra-low latency, and low probability of intercept, we believe that we are increasingly well-positioned to continue gaining market traction with Perasa's leading MMWave technology in tactical communications and defense applications.
Speaker Change: We are both proud and excited to be involved with such innovation with the intent to supporting those on the front lines and address critical battlefield challenges.
Speaker Change: We believe this strategic contract represents a major milestone and also has significant commercial potential with what we believe is a minimum addressable market of at least $3 4 million active military personnel. We currently expect to commence initial production shipments during the second quarter of this year.
Speaker Change: What's the minimum ways advanced capabilities, including high data rates ultra low latency and low probability of intercept we believe that we are increasingly well positioned to continue gaining market traction with browse is leading the EM wave technology in tactical communications and defense applications.
Speaker Change: In summary, we are very pleased with our continued progress.
Ronald Glibbery: In summary, we are very pleased with our continued progress as demonstrated by our first quarter results. Looking ahead, we remain focused on expanding our customer base, growing our future order backlog, and ramping production shipments to an expanding number of customers. Based on recent momentum, including increased demand and purchase orders from our fixed wireless access customers, we expect to deliver sequential revenue growth for our mmWave solutions throughout 2025.
Speaker Change: Demonstrated by our first quarter results looking ahead, we remain focused on expanding our customer base growing our future order backlog and ramping production shipments to an expanding number of customers.
Speaker Change: Based on recent momentum, including increased demand for purchase order. So our fixed wireless access customers, we expect to deliver sequential revenue growth for M. N wave solutions throughout 2025.
James Sullivan: With that, I'll turn the call back to Jim to review the financials, as well as to provide our revenue outlook for the second quarter of 2025. Thank you, Ron. Turning now to the results for the first quarter of 2025, total net revenue for the first quarter was $3.9 million, compared with $3.7 million for the prior quarter and $2.8 million for the first quarter of 2024. Product revenue from the sale of our memory-integrated circuits and millimeter wave products in the first quarter was $3.8 million, compared with $3.7 million in the prior quarter and $2.7 million in the first quarter of 2024.
Jim Sullivan: With that I'll turn the call back to Jim to review the financials as well as to provide our revenue outlook for the second quarter of 2025.
Jim Sullivan: Thank you Ron.
Speaker Change: Turning now to the results for the first quarter of 2025.
Speaker Change: Total net revenue for the first quarter was $3 $9 million compared with $3 7 million for the prior quarter and $2 $8 million for the first quarter of 2024.
Speaker Change: Product revenue from the sale of our memory integrated circuits and millimeter wave products in the first quarter was $3 $8 million compared with $3 $7 million in the prior quarter and $2 $7 million in the first quarter of 2024.
James Sullivan: The increases in product revenues for the first quarter of 2025, compared with the comparable periods of 2024, were primarily attributable to increased shipments of our millimeter wave IC and module. Millimeter Wave product revenues were $1.5 million for the first quarter, compared with $0.2 million in the prior quarter and $0.3 million in the first quarter of 2020. Gap gross margin increased to 69.3 percent in the first quarter from 56.3 percent in the prior quarter and 46.4 percent in the year ago quarter. The increase in GAAP gross margin for the first quarter of 2025 was primarily attributable to reduced amortization expense recorded to cost of goods sold related to intangible assets fully amortized in 2024, combined with favorable revenue mix across shipments and millimeter wave products.
Speaker Change: The increases in product revenues for the first quarter of 2025 compared to the comparable periods of 2024 were primarily attributable to increased shipments of our millimeter wave IC and module products.
Speaker Change: Millimeter wave product revenues were $1 $5 million for the first quarter compared with zero point $2 million in the prior quarter and zero point $3 million in the first quarter of 2024.
Speaker Change: GAAP gross margin increased to 69, 3% in the first quarter from 56, 3% in the prior quarter and 46, 4% in the year ago quarter. The.
Speaker Change: The increase in GAAP gross margin for the first quarter of 2025 was primarily attributable to reduced amortization expense.
Speaker Change: The cost of goods sold related to intangible assets fully amortized in 2024, combined with favorable revenue mix across shipments and millimeter wave products.
James Sullivan: On a non-GAAP basis, gross margin for the first quarter was also 69.3%, compared with 71.6% in the prior quarter, and compared with 66.4% in the first quarter of 2024. GAAP operating expenses for the first quarter of 2025 were $3.2 million compared with $3.7 million in the prior quarter and $4.9 million in the first quarter of 2025. The sequential and year-over-year decrease in operating expenses on a gap basis was primarily attributable to reduced stock-based compensation expense and amortization expense related to intangible assets fully amortized in 2024. Non-GAAP operating expenses, which excludes stock-based compensation and amortization of intangible assets, were $3.1 million in the first quarter, compared with $3.2 million in the prior quarter and $3.5 million in the first quarter of 2024.
Speaker Change: On a non-GAAP basis gross margin for the first quarter was also 69, 3% compared with 71, 6% in the prior quarter and compared with 66, 4% in the first quarter of 2024.
GAAP operating expenses for the first quarter of 2025 or $3 $2 million compared with $3 $7 million in the prior quarter and $4 9 million in the first quarter of 2024.
Speaker Change: The sequential and year over year decrease in operating expenses on a GAAP basis was primarily attributable to reduced stock based compensation expense and amortization expense related to intangible assets fully amortized in 2024.
Speaker Change: non-GAAP operating expenses, which excludes stock based compensation and amortization of intangible assets were $3 $1 million in the first quarter compared with $3 $2 million in the prior quarter and $3 $5 million in the first quarter of 2020 for the.
James Sullivan: The year-over-year decrease in operating expenses on a non-GAAP basis was primarily attributable to a combination of previously implemented cost reductions and ongoing cost containment initiatives. Gap net loss for the first quarter of 2025 was $0.5 million, or a loss of $0.10 per share, compared with a net loss of $1.6 million, or a loss of $0.37 per share in the prior quarter, and compared with a net loss of $2 million, or a loss of $1.07 per share in the same quarter a year ago. On a non-GAAP basis, which excludes stock-based compensation, amortization of intangible assets, and change in fair value of warrant liabilities, net loss for the first quarter of 2025 was $0.4 million, or a loss of $0.08 per share.
Speaker Change: The year over year decrease in operating expenses on a non-GAAP basis was primarily attributable to a combination of previously implemented cost reductions and ongoing cost containment initiatives.
Speaker Change: GAAP net loss for the first quarter of 2025 was zero point $5 million or a loss of 10 cents per share compared with a net loss of $1 $6 million or a loss of <unk> 37 per share in the prior quarter and compared with a net loss of $2 million or a loss of $1 <unk> per share in the same quarter a year ago.
Speaker Change: On a non-GAAP basis, which excludes stock based compensation amortization of intangible assets and change in fair value of warrant liabilities net loss for the first quarter of 2025 was zero point $4 million or a loss of eight cents per share.
James Sullivan: This compared with a non-GAAP net loss of $0.5 million, or a loss of $0.13 per share in the prior quarter and a net loss of $1.6 million, or a loss per share of $0.83 per share in the same quarter a year ago. The weighted average number of basic and diluted shares outstanding for the purposes of calculating both GAAP and non-GAAP EPS for the first quarter of 2025 was approximately 4.8 million shares.
Speaker Change: This compared with a non-GAAP net loss of <unk> $5 million or loss of <unk> 13 per share in the prior quarter and a net loss of $1 $6 million or a loss per share of <unk> 83 per share in the same quarter a year ago.
Speaker Change: The weighted average number of basic and diluted shares outstanding for the purposes of calculating both GAAP and non-GAAP EPS for the first quarter of 2025 was approximately $4 8 million shares.
Speaker Change: Adjusted EBITDA, which we define as GAAP net income or losses reported excluding stock based compensation amortization of intangible assets change in fair value of warrant liabilities interest expense depreciation and amortization and the provision for income taxes was negative zero point $3 million in the first quarter of 2000.
James Sullivan: Adjusted EBITDA, which we define as gap net income or losses reported, excluding stock-based compensation, amortization of intangible assets, change in fair value of warrant liabilities, interest expense, depreciation and amortization, and the provision for income taxes, was negative 0.3 million dollars in the first quarter of 2025, compared with negative 0.4 million dollars in the With regard to the balance sheet, as of March 31, 2025, the company had $2.8 million of cash in equivalents compared with $3.3 million at December 31, 2024. The sequential decrease primarily reflects operating cash burn of approximately $0.9 million, partially offset by approximately $0.4 million generated from sales into the company's aftermarket offering program during the first quarter of 2025.
Speaker Change: <unk> 25, compared with negative zero point $4 million in the prior quarter and negative $1 $4 million for the first quarter of 2024.
Speaker Change: With regard to the balance sheet as of March 31, 2025, the company had $2 $8 million of cash and equivalents compared with $3 $3 million at December 31, 2020 for.
Speaker Change: The sequential decrease primarily reflects operating cash burn of approximately zero point $9 million, partially offset by approximately zero point $4 million generated from sales into the company's aftermarket offering program during the first quarter of 2025.
James Sullivan: As of today's call, the company has approximately 5.1 million total shares of common stock and exchangeable shares outstanding.
Speaker Change: As of today's call. The company has approximately $5 1 million total shares of common stock and exchangeable shares outstanding.
Speaker Change: Now turning to our outlook as Ron previously mentioned, we're continuing to see positive momentum for our millimeter wave solutions.
James Sullivan: Now, turning to our outlook. As Ron previously mentioned, we are continuing to see positive momentum for our millimeter wave solution.
James Sullivan: Although total revenue for the second quarter will reflect the anticipated roll-off of end-of-life memory IC shipments. We expect solid double-digit sequential growth in millimeter wave revenue for the second quarter. Based on the current backlog, the company expects total net revenue for the second quarter of 2025 to be in the range of $1.8 million to $2 million.
Speaker Change: Although total revenue for the second quarter will reflect the anticipated roll off of end of life memory IC shipments, we expect solid double digit sequential growth in millimeter wave revenue for the second quarter.
Speaker Change: Based on the current backlog the company expects total net revenue for the second quarter of 2025 to be in the range of $1 8 million to $2 million.
Operator: This concludes our prepared remarks, and we thank you for your time this afternoon.
Speaker Change: This concludes our prepared remarks and we thank you for your time. This afternoon operator, please commence the Q&A session.
Operator: Operator, please commence the Q&A session. Certainly. The floor is now open for questions.
Speaker Change: Certainly the floor is now opened for questions.
Operator: If you have any questions or comments, please press star 1 on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide optimum sound quality. Please hold just a few moments while we poll for questions.
Speaker Change: Have any questions or comments. Please press star one on your phone at this time.
Speaker Change: So while posing a question you. Please pickup your handset FL. This thing on a speaker phone to provide the optimum sound quality. Please hold just a few moments while we poll for questions.
Speaker Change: Okay. Your first question is coming from Kevin Liu with K Liu Company. Please pose your question your line is live.
Kevin Liu: Okay, your first question is coming from Kevin Liu with K Liu Company. Please post your question. Your line is live. Hi, good afternoon guys and congrats on the strong start to the year. Thanks, Kevin.
Kevin Liu: Hi, good afternoon, guys and congrats on a strong start to the year.
Kevin Liu: Thanks, Kevin Thanks, Kevin.
James Sullivan: Maybe if we could start with just kind of the millimeter wave side of the business. Obviously, good to hear that you guys expect sequential revenue growth there throughout the year. Can you talk about the level of visibility you already have from some of the deals you've announced previously, as well as anything exciting that you expect to contribute further to that as we make our way through the year?
Speaker Change: Maybe if we could start with just kind of the millimeter wave side of the business. Obviously good to hear that you guys expect sequential revenue growth there throughout the year can you talk about the level of visibility you already have some of the deals you've announced previously.
Speaker Change: Anything exciting that you expect to contribute further to that as we make our way through the year.
Jim Sullivan: You want to start with that Jim.
James Sullivan: You want to start with that, Jim? with regard to the existing, you know, existing business, we have, you know, backlog, you know, obviously we're comfortable, you know, almost halfway through May here with Q2. But we have, you know, I would say so far this year, much better visibility with backlog on the existing, you know, existing customers, including, you know, one in South Africa, and then, you know, we'll make the initial shipments as Ron talked about, with the defense application this quarter. Obviously, we also have the ubiquity, you know, purchase order that we announced back in our, you know, Q4, I think just prior to our Q4 call, which we have kind of shipping, you know, we started shipping on that, and that will continue through the end of the year.
Jim Sullivan: With regard to the.
Jim Sullivan: The existing existing business, we have backlog, obviously, we're comfortable almost halfway through may here with Q2, but.
Jim Sullivan: But we have I would say so far this year much better visibility with backlog on existing existing customers, including one in South Africa, and then we'll make the initial shipments as Ron talked about with the defense application. This quarter. Obviously, we also have the ubiquity.
Jim Sullivan: This order that we announced.
Jim Sullivan: Back at all or no.
Speaker Change: Q4, I think just part of our Q4 call, which.
Jim Sullivan: We have kind of shipping we started shipping on that and that will continue through the.
Jim Sullivan: Through the end of the year, so yes definitely.
James Sullivan: So, yeah, definitely pleased with the, you know, the visibility, you know, still have more to put on the backlog for, you know, Q3 and Q4, but, you know, much better than we've historically been in that note.
Jim Sullivan: I'm pleased with the.
Speaker Change: Yeah, but visibility still have more to put on the backlog for Q.
Speaker Change: Q3, and Q4, but much better than we have historically been in that low.
Speaker Change: That's great to hear and then maybe another question on tariffs I think that's the topic of the day, but just any sort of impact that you see from tariffs on either your cost of goods or are in terms of how your customers are reacting to the to them potentially.
James Sullivan: That's great to hear, and then maybe an obligatory question on terrorists, since that's the topic of the day, but just any sort of impact that you see from terrorists on either your cost of goods or in terms of how your customers are reacting to them potentially. Yeah, we have not had any impact. You know, given we don't generally, you know, our shipments into the United States are limited. And most of our production is done in Asia or locally in Canada or in Europe. So, so far, we haven't seen the impact. I don't think anyone, you know, won't be surprised if that changes.
Speaker Change: Yeah, we have not had any impact.
Speaker Change: No game, when we don't generally our shipments into the United States are limited.
Speaker Change: And most of our production is done and we are in Asia are locally.
Speaker Change: In Canada or in Europe, So so far we haven't seen the impact.
Speaker Change: I don't think anyone.
Speaker Change: I won't be surprised if that changes.
Speaker Change: It seems to be constantly moving but so far we haven't had to have those discussions with our customers.
James Sullivan: It seems to be constantly moving, but so far we haven't had to have those discussions with our Great.
Speaker Change: Great and then just in terms of some of the innovation that you've just announced that in the past couple of months here.
James Sullivan: And then just in terms of some of the innovation that you've just announced in the past couple months here, for the upgraded Prospectus modules for fixed wireless access, I'm just wondering, you know, how quickly you think those can be deployed by your existing customers, you know, is the upgrade cycle more so kind of next year, or could you even see some potential revenue early this year? Oh, no, Kevin, it's a software upgrade, so, you know, we can see the benefit of that pretty, pretty immediately, but it really is more so from our, of course, from our customers perspective, because now they can deploy more.
Speaker Change: For the upgraded prospectus logos for fixed wireless access I am just wondering you know how quickly you think those can be deployed.
Speaker Change: Deployed by your existing customers is the upgrade cycle and more so kind of next year or could you even see some potential revenue early this year.
Speaker Change: I don't know Kevin it's it's a software upgrade so you know we can see the benefit of that pretty pretty immediately.
Speaker Change: But it really is more so from a of course from a customer's perspective, because now they can deploy more.
Speaker Change: No more end points for cell towers. So it's a it's just generally like a good feature for our customers to have and it's something they can take it literally take advantage of it this quarter or even right. So it's so what would be good.
James Sullivan: You know, more endpoints per cell tower. So it's just generally a good feature for our customers to have. And it's something they can literally take advantage of this quarter even, right? So the effect will be immediate. All right, great.
Speaker Change: The effect will be immediately immediate.
Speaker Change: Alright, great. Thanks, so much for taking the question.
Operator: Thanks so much for taking the questions. Our pleasure. Once again, if you do have any questions or comments, please press star 1 on your phone at this time. Please hold just a moment for any additional questions.
Speaker Change: Pleasure.
Speaker Change: Once again, if you do have any questions or comments. Please press star one on your phone at this time. Please hold just a moment for any additional questions.
Speaker Change: Your next question is coming from David Williams with benchmark. Please pose your question your line is live.
David Williams: Your next question is coming from David Williams with Benchmark. Please pose your question. Your line is live. Hey, good afternoon. Can you guys hear me? Okay. We can, David. Yes, sir. Good, good. Well, forgive me.
David Williams: Hey, good afternoon can you guys hear me okay.
Speaker Change: We can David yes, Sir.
Speaker Change: Well forgive me I am jumping on a little bit late here, but yeah. If these have already been asked but just kind of curious I know that you've mentioned the defense beginning to ship, but just generally speaking we've talked about before how the.
Ronald Glibbery: I'm jumping on a little bit late here, but if these have already been asked, but just kind of curious, I know that you'd mentioned the defense beginning to ship, but just generally speaking, you know, we've talked about before how the capability of that brings, and it seems like that could be something adopted more, maybe more broadly. Are you seeing more interest, I guess, from the military side of defense? And just how do you see that segment maybe picking up through the next several quarters?
Speaker Change: The available or the.
Speaker Change: The capabilities that brings and it seems like that could be something adopted more maybe more broadly are you seeing more interest I guess from the military side or defense and just how do you see that that segment, maybe picking up through the next several quarters.
Ronald Glibbery: Sure, I can speak to that. So basically, just to reiterate, David, the core value proposition there is a couple of things. Because we use this beamforming technology, it makes it very difficult to detect the technology on the battlefield. So that's really the core value. Not just to detect it, but also to jam it. So either way, it's both good features to have for the military.
Speaker Change: Sure I can speak to that so yeah.
Speaker Change: Basically just to reiterate David the core value proposition. There is a couple of things because we use is being plumbing technology.
Speaker Change: Makes it very difficult to peg exactly their technology on the battlefield, so that smooth carve out not just detect it but also the damage so either ways.
Speaker Change: Oh good good features to happen in the military.
Ronald Glibbery: So that's the core value proposition. And from our perspective, to be quite frank, on the fixed wire side of things, I would say we're really the dominant player in that market. And that market is almost becoming self-fulfilling now. It's like we got our design wins, we're getting new design wins, there's new customers. But from a technology perspective, we're really starting to focus more on the military side of things, because there is that core interest based on the stealth capability of our technology. So we're gonna be shipping some believe it or not, our first volume this quarter, and that was very, very quickly into an application that hopefully over the course of the next few weeks and months we can shed more light on.
Speaker Change: So that's a core value proposition from our perspective.
Speaker Change: It can be quite frankly, I'm, a fitzwater's other things I would say, where you really the dominant player in that market and that market is almost becoming self fulfilling now its like we got a design wins, we're getting new design wins with new customers, but from a technology perspective, we're really starting to focus more on the military side of things because there is a core interest based on this.
Speaker Change: Self capability of our technology, So we're gonna be shipping some.
Speaker Change: Believe it or not like our first volume this quarter and that was very very quickly and into an application that will hopefully over the course of the next few weeks and months, we can shed more light on.
Speaker Change: But generally it's really you know we thought we were sort of in tactical communications. So this is the idea on the battlefield.
Ronald Glibbery: But generally, we refer to it as tactical communications. So this is the idea. On the battlefield, our allies can speak to each other wirelessly but without detection by the enemy. That's the core value proposition. And this can be from a drone to the ground, it can be from the ground to a drone, it can be between Humvees on the battlefield, it can be soldiers to soldiers. So many, many scenarios where you want battlefield communications to be stealth. So obviously sometimes it takes longer with the military. Luckily, we've got one account that's coming to first in this quarter, so there's really a mix.
Speaker Change: The allies can speak to each other.
Speaker Change: Wirelessly, but without detection by the enemy that's the core value proposition and then it can be from a drone to the ground and commute from the ground to a drone. It can be between you know humvees on the battlefield that can be sold as soldiers. So many many scenarios, where you wanted battlefield communications to be self so obviously.
Speaker Change: Sometimes it takes longer with the military Luckily we've got one account that's coming to fruition this quarter.
Speaker Change: So it was really a mix, but that's really the next generation for surprises, but as battlefield communications.
Ronald Glibbery: But that's really the next generation for Peraso is battlefield communications. Great, and have you seen more interest, I guess, this is still relatively early on, but when would you expect that you might see other, either agencies or countries that could have an interest in this type of application? Oh, we're already seeing it. I mean, we announced a contract, well, I guess going over a year ago, where we had an application of soldiers to their personal vehicles. And we are quoting on other opportunities, like, you know, hopefully this quarter or the next quarter. So we're starting to see not just...
Speaker Change: Great and have you seen have you seen more interest I guess, it's still relatively early on but when would you expect that you might see other either agencies or or countries that could have an interest in this type of application.
Speaker Change: <unk> already seen it I mean, we announced a contract long has gone over a year ago, where we had a and application of the soldiers to their personal vehicles.
Speaker Change: And what we are quoting on some other opportunities like you know hopefully this quarter or next quarter. So we're starting to see not just.
Ronald Glibbery: You know, not just America, but in Europe and Middle East and even in Asia. So we're seeing kind of a global interest in this technology. And it's all but it's all for the same reason. It's our ability to be be stealth, provide stealth communications in a battlefield environment. Okay, great.
Speaker Change: You know not just America, but in Europe, and Middle Eastern Union and in Asia. So, we're seeing kind of a global interest.
Speaker Change: Interest in this technology and its all but it's all for the same reason.
Speaker Change: Our ability to be stealth provides stealth communications Inc.
Speaker Change: Battlefield environment.
Speaker Change: Okay, Great and then maybe just lastly on the beef funding and maybe some of the art off are you seeing anything there that are just kind of given that it's more of a net neutral kind of approach. There in terms of technology are you are you seeing interest maybe inbound from customers that they may have an interest in deploying fixed wireless access where it before they they.
Ronald Glibbery: And then maybe just lastly on the BEAD funding and maybe some of the ARDOF, are you seeing anything there that, just kind of given that it's more of a net-neutral kind of approach there in terms of the technology, are you seeing interest maybe inbound from customers that may have an interest in deploying fixed wireless access, whereas before they maybe were looking at fiber or other technologies? Well, that's a great question. I mean, I would say, I think there's more of a top-down sentiment at this point, and we are very optimistic that we're going to see progress there.
Speaker Change: We're looking at fiber or other technologies.
Speaker Change: Well, that's a great question I mean, I would say I'm using the Moody's.
Speaker Change: It's more of a top down sentiment at this point and we are very optimistic that we're going to see progress there.
Ronald Glibbery: But it takes a while to trickle through the marketplace, if you will. So, you know, as Jim mentioned, we saw a very large order from Ubiquiti. They're one of the main suppliers in the rural environment in America. So, you know, we don't really know if that's why they provided this order, but we absolutely believe that over the course of the next 12 months, the bead will have a very positive impact on our business. But, you know, it takes a little bit of time for the ship to turn, if you will, right? So, we haven't seen that direct.
Speaker Change: But it takes a while to trickle through the marketplace. It would be well so as Jim mentioned, we saw a very large order from ubiquity. There one of the main suppliers in the rural environment and in America. So you know, we don't really know why they they provide disorder, but we absolutely believe that over the course of the next 12 months the beetle.
Speaker Change: Have a very positive impact on our business, but you know it takes a little bit of time for the ship to turn if you will right. So we haven't seen a direct we don't believe the very direct benefit yet, but we expect in the second half of you should have seen some better direct benefit from the improved bead terms if you will.
Ronald Glibbery: We don't believe a very direct benefit yet, but we expect in the second half of this year to see some very direct benefit from improved bead terms, if you will.
Speaker Change: Yes.
Speaker Change: Sure. Thanks, so much I certainly appreciate your time and best of luck on the quarter.
Operator: Thanks so much. I certainly appreciate the time and best of luck on the quarter. Our pleasure, Dave.
Speaker Change: Our pleasure Dave.
Speaker Change: I show there are no further questions in queue. At this time that will conclude today's conference call. Thank you all my session and you may disconnect.
Operator: I show there are no further questions in queue at this time.
Operator: That will conclude today's conference call. Thank you all for your participation and you may disconnect.