SAN JOSE - Peraso Inc. (NASDAQ:PRSO), known for its mmWave technology for 60 GHz unlicensed and 5G licensed networks, has reported preliminary second-quarter revenues that surpass its earlier projections. The company, on Monday, announced that its net revenue for the quarter ending June 30, 2024, is expected to be around $4.2 million, which is above the previously forecasted range of $3.7 million to $4.0 million.
The increase in revenue is attributed to a significant rise in shipments of the company's end-of-life memory IC products and a new volume production order for its mmWave antenna modules.
This order supports the initial deployment of Peraso's DUNE platform by a service provider in South Africa. CEO Ron Glibbery expressed optimism about the company's performance, noting over 50% sequential growth and a 70% increase compared to the same period last year.
Glibbery also mentioned the company's anticipation of additional orders from the same customer in future quarters and growing engagements with other customers for applications in dense urban environments.
He indicated that the ramp-up in mmWave shipments and the fulfillment of backlogged orders for memory products provide confidence in the company's growth prospects for the latter half of 2024.
The information in this article is based on a press release statement from Peraso Inc. It is important to note that forward
In other recent news, semiconductor company Peraso Inc. announced a private stock sale to board member Ian McWalter, generating $127,000 in proceeds. The sale involved 100,000 shares of common stock at $1.27 per share, sold under restrictions of Rule 144 of the Securities Act of 1933.
The company has stated that the proceeds will be utilized for general corporate purposes such as research and development activities and working capital needs.
In financial developments, Peraso reported a sequential rise in revenue for Q1 2024, exceeding its previous guidance. This positive trend was attributed to increased customer demand and heightened product shipments.
Despite a GAAP net loss of $2 million and a non-GAAP net loss of $1.6 million for Q1 2024, the company's financial results also revealed an improved gross margin and a reduction in net loss. The company expects continued revenue growth and high gross margins in future quarters.
Peraso also secured new engagements and design wins, including Panasonic (OTC:PCRFY)'s adoption of their X710 mmWave chipset. The company optimistically anticipates Q2 2024 total net revenue to fall between $3.7 million and $4 million.
InvestingPro Insights
As Peraso Inc. (NASDAQ:PRSO) makes strides with its mmWave technology and reports preliminary revenues that beat its previous estimates, investors and industry watchers are keen to understand the financial health and future prospects of the company. According to real-time data from InvestingPro, Peraso holds a market capitalization of $4.4 million USD, a reflection of the market's current valuation of the company. Despite the positive news on revenue, it's notable that the company's revenue for the last twelve months as of Q1 2024 has contracted by 30.1%, showcasing the challenges Peraso is facing in maintaining growth momentum.
InvestingPro Tips highlight that Peraso is trading at a low revenue valuation multiple, which could indicate that the market is undervaluing the company's sales relative to its peers. This might be an opportunity for investors who believe in the company's technology and market potential. Additionally, Peraso's balance sheet strength is underscored by the fact that it holds more cash than debt, which is a positive sign for its financial stability.
However, the company is not without its challenges. Peraso has been quickly burning through cash and suffers from weak gross profit margins, at just 10.85% for the last twelve months as of Q1 2024. This indicates that despite increasing sales, the cost of goods sold is taking a significant bite out of revenue. Moreover, the company's stock price has seen a substantial decline over the past year, with a 91.33% drop in its one-year total price return as of the latest data.
For those interested in a deeper dive into Peraso's financials and future outlook, there are additional InvestingPro Tips available, which can be accessed by visiting: https://www.investing.com/pro/PRSO. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to a wealth of investment insights. With 13 more InvestingPro Tips listed for Peraso, investors can equip themselves with a comprehensive understanding of the company's financial position and performance metrics.
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