Wed, Nov 13, 1:03 PM (238 days ago)
Peraso Inc. (PRSO) reported a challenging third quarter for 2024, concluding with net revenues of $3.84 million, down 14% from $4.48 million in Q3 2023. The decline was primarily attributed to reduced shipments of mmWave ICs and antenna modules, partially offset by increased memory IC shipments as part of an ongoing end-of-life (EOL) transition. The company incurred a net loss of $2.71 million for the quarter, compared to a loss of $0.62 million in the prior year, leading to a cumulative deficit of approximately $175.56 million. Operating expenses decreased by 19% year-over-year, reflecting cost-cutting measures, including layoffs. However, ongoing cash burn raised concerns about liquidity, with cash and equivalents at $1.32 million. The company anticipates needing substantial revenue growth to sustain operations without further capital raises, amid uncertainties regarding future sales and market conditions. Management highlighted the impact of TSMC's discontinuation of wafer production for memory ICs, which will significantly affect future revenues. The company is pursuing additional financing options to address liquidity and operational needs, underscoring significant risks to its going concern status.