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01/10 05:51
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed picture: strong MMWave revenue growth and a solid customer engagement pipeline are positive, but declining gross margins and a significant GAAP net loss raise concerns. The Q&A reveals optimism in military applications and NRE deals, yet management's vague responses on acquisition offers and BEAD funding impact add uncertainty. Given these factors, the stock's reaction is likely to be muted, resulting in a neutral sentiment.
Total Net Revenue $2.2 million for Q2 2025, compared to $3.9 million in the prior quarter and $4.2 million in Q2 2024. The decrease was due to the completion of EOL shipments of memory IC products during Q1 2025.
Product Revenue $2.2 million for Q2 2025, compared to $3.8 million in the prior quarter and $4.1 million in Q2 2024. The decline was attributed to the completion of EOL shipments of memory IC products.
Millimeter-Wave Product Revenue $2.2 million for Q2 2025, compared to $1.5 million in the prior quarter and $0.7 million in Q2 2024. This represents a significant increase due to ramped shipments to an expanding customer base.
GAAP Gross Margin 48.3% for Q2 2025, compared to 69.3% in the prior quarter and 55.5% in Q2 2024. The decrease was primarily due to revenue being entirely comprised of millimeter-wave products.
Non-GAAP Gross Margin 48.3% for Q2 2025, compared to 69.3% in the prior quarter and 68.8% in Q2 2024. The decline was for the same reasons as GAAP gross margin.
GAAP Operating Expenses $2.9 million for Q2 2025, compared to $3.2 million in the prior quarter and $6.8 million in Q2 2024. The year-over-year decrease was due to reduced stock-based compensation, amortization expenses, and severance costs.
Non-GAAP Operating Expenses $2.7 million for Q2 2025, compared to $3.1 million in the prior quarter and $5 million in Q2 2024. The decrease was due to cost reductions and ongoing cost containment initiatives.
GAAP Net Loss $1.8 million or $0.31 per share for Q2 2025, compared to $0.5 million or $0.08 per share in the prior quarter and $4.4 million or $1.88 per share in Q2 2024. The improvement year-over-year was due to reduced operating expenses.
Non-GAAP Net Loss $1.7 million or $0.28 per share for Q2 2025, compared to $0.4 million or $0.07 per share in the prior quarter and $2.1 million or $0.88 per share in Q2 2024. The improvement year-over-year was due to cost containment initiatives.
Adjusted EBITDA Negative $1.6 million for Q2 2025, compared to negative $0.3 million in the prior quarter and negative $1.9 million in Q2 2024. The year-over-year improvement was due to reduced operating expenses.
Cash and Equivalents $1.8 million as of June 30, 2025, with a net change of $1 million during the quarter, including $1.1 million of net proceeds from the company's at-the-market offering program.
mmWave product revenue growth: Revenue from mmWave products increased 45% sequentially and over 200% year-over-year, surpassing 2 million cumulative shipments.
Fixed wireless access solutions: Tachyon Networks selected Peraso's mmWave modules for its 60 GHz fixed wireless solution, offering gigabit connectivity with over 3-kilometer range and supporting up to 48 client connections per sector.
Tactical defense applications: Delivered initial production shipments of 60 GHz wireless solutions for a tactical defense application, enhancing communication and situational awareness in high-risk environments.
Education market entry: Shipped 60 GHz wireless solutions for a classroom video system, marking the first production shipment tailored for education.
Customer base expansion: Doubled the number of customers in production from 7 to 14 over 18 months, with 7 additional engagements in preproduction.
Pipeline growth: Increased customer SKUs in production by 90% over 18 months, reflecting a more diversified product base.
Cost management: Reduced GAAP operating expenses to $2.9 million, down from $6.8 million a year ago, through cost containment initiatives.
Revenue outlook: Anticipates record revenue of $2.8 million to $3.1 million for Q3 2025, supported by a strong backlog.
Strategic alternatives exploration: Board of Directors is exploring potential strategic alternatives, including mergers, asset sales, or additional capital sources.
Revenue Decline: Total net revenue for Q2 2025 decreased to $2.2 million from $3.9 million in the prior quarter and $4.2 million in Q2 2024, primarily due to the completion of EOL shipments of memory IC products.
Gross Margin Reduction: GAAP gross margin dropped to 48.3% in Q2 2025 from 69.3% in the prior quarter and 55.5% in Q2 2024, attributed to revenue being entirely from millimeter-wave products.
Cash Position: The company had only $1.8 million in cash and equivalents as of June 30, 2025, raising concerns about liquidity and financial sustainability.
Strategic Alternatives Exploration: The Board of Directors is exploring strategic alternatives, including a merger or sale of assets, indicating potential financial or operational challenges.
Customer Diversification Challenges: While the customer base has expanded, the process of acquiring and advancing customer engagements remains time and resource-intensive, potentially limiting rapid growth.
Dependence on mmWave Products: Revenue is heavily reliant on mmWave products, which could pose risks if market demand or competitive dynamics shift.
Operating Losses: GAAP net loss for Q2 2025 was $1.8 million, compared to $0.5 million in the prior quarter, highlighting ongoing financial challenges.
Market Competition: The company faces competitive pressures in the fixed wireless access and tactical defense markets, which could impact its ability to maintain or grow market share.
Revenue Expectations: The company expects total net revenue for the third quarter of 2025 to be in the range of $2.8 million to $3.1 million, driven by record revenue contribution from millimeter-wave solutions.
Market Trends and Growth: Peraso anticipates continued sequential growth in its millimeter-wave solutions, supported by a healthy pipeline of customer engagements and an expanding customer base. The company expects sustained growth in 2026 and beyond.
Fixed Wireless Access Market: The company sees fixed wireless access as the largest and fastest-growing market opportunity for millimeter-wave technology, with expectations of continued recovery in market demand and customer orders.
Tactical Communications and Defense Applications: Peraso is committed to expanding its market presence in tactical defense communications, with increasing interest in its millimeter-wave technology for mission-critical applications, including drone-related uses.
Adjacent Markets: The company is exploring incremental growth opportunities in adjacent markets such as transportation and professional video delivery, with recent production shipments supporting new applications like wireless video systems for education.
The selected topic was not discussed during the call.
The earnings call highlights strong growth in mmWave product revenue and an increase in gross margins, despite a slight year-over-year revenue decrease. The Q&A section reveals positive sentiment towards the company's OEM partnerships and fixed wireless access market potential. The company's strategic focus on expanding its market presence and managing working capital efficiently further supports a positive outlook. Although some management responses were vague, the overall sentiment remains positive, with optimistic guidance and strategic market expansion efforts likely to boost the stock price.
The earnings call presents a mixed picture: strong MMWave revenue growth and a solid customer engagement pipeline are positive, but declining gross margins and a significant GAAP net loss raise concerns. The Q&A reveals optimism in military applications and NRE deals, yet management's vague responses on acquisition offers and BEAD funding impact add uncertainty. Given these factors, the stock's reaction is likely to be muted, resulting in a neutral sentiment.
The earnings call reveals strong financial performance with record revenue growth, a significant increase in gross margin, and improved net loss figures. The Q&A section highlighted positive sentiment from analysts, especially regarding military and global interest in mmWave technology. Despite some uncertainties in regulatory and cash flow risks, the optimistic guidance for mmWave revenue growth, increased demand, and government funding support suggest a positive stock price movement. The lack of a share repurchase program is a minor negative but does not outweigh the overall positive outlook.
The earnings call highlights strong financial performance with a 39% revenue increase and a 400% growth in mmWave product revenue. Positive market dynamics, increased demand in military applications, and significant cost reductions further support a positive outlook. While the Q&A section reveals some uncertainties, such as the impact of tariffs and BEAD funding, the overall sentiment remains optimistic. The lack of share repurchase program is neutral, but improved margins and reduced losses bolster confidence. Given these factors, the stock is likely to experience a positive movement over the next two weeks.
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