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| Statement |
|---|
| As Ron mentioned, since year-end, we have begun to see indications of improving customer demand and order patterns while also having a solid backlog of non-cancelable purchase orders for our memory IC products |
| As we continue to execute on our strategic efforts to grow the customer base from our mmWave products, we believe there is a large opportunity to realize growth over the coming quarters and beyond |
| It's important to understand part of what is driving the expanded market opportunity in urban applications, although, there are shared challenges and needs between rural and urban fixed wireless applications, mmWave offers a unique value proposition for solving a series of challenges encountered in dense urban environments |
| Of the core of our solutions, the newest addition to our prospective series mmWave modules, the PRM2144X incorporates a 128 element phased array antenna that provides high gain and narrow beam width, which coupled with excellent power efficiency, make it ideal for achieving reliable connectivity investment environments |
| In closing, with our expanding engagement pipeline for mmWave solutions across an increasingly diverse customer base and market applications, as well as initial indications of renewed customer demand for fixed wireless access, we're very optimistic about the company's outlook for 2024 |
| If you go to the chat sites, you can see for yourself that the people are really now believing that this technology works very well |
| Our team's ongoing engagement efforts are continuing to drive tangible results contributing to a steady funnel of new opportunities and expanded number of active engagements |
| As previously discussed on our last conference call, we anticipate these collective end-of-life orders and shipments from memory IC products to contribute significant revenue and cash flow throughout 2024 |
| So a part of this is bleeding that off certainly, but we feel certainly the feedback from our lead customer and other customers is that, there is strong demand for fixed wireless access, as we all know, right? So it's really a combination of both |
| So as that bleeds off, I think what we're going to end up is somewhere like obviously, better than 2023, but maybe not as strong as 2022, but somewhere in between is what we're kind of seeing from the existing customers |
| First, you mentioned the backlog from your larger customer and that inventory, you're starting to see some improving order flow there |
| We anticipate revenue growth to resume in the current quarter ending March 31, and also expect double-digit growth for the full year |
| Building on the positive initial feedback from WISP following our introduction of the PRM2144X |
| Although, still a relatively new end market for Peraso, we continue to see expanded opportunities for our mmWave technology in various military defense applications |
| So that's a real improvement |
| Leveraging the inherent advantages of mmWave, Peraso technology provides a proven solution to WISPs, targeting deployments in these dense urban environments |
| Keeping in mind that early tracks for mmWave solutions were primarily in rural fixed wireless applications in North America, this really highlights our accelerating expansion into urban market applications as well |
| In addition to mmWave's ability to support multi-gigabit connectivity with low latency as well as utilize unlicensed unused frequency bands, our advanced integrated antenna technology allows for communication using unique -- uniquely narrow and focus beams |
| The biggest thing we've done over the last year is really, really expanded our customer base |
| One of our key strategic initiatives continues to be building a larger and more diversified customer base for Peraso's mmWave technology |
| We believe the value proposition of our 60 gigahertz mmWave solutions for fixed wireless access is continuing to resonate across an expanding number of equipment manufacturers as well as directly with WISPs or wireless internet service providers |
| Designed specifically for dense urban environments, this integrated hardware and software platform provides WISP with a cost-effective turnkey solution |
| However, they serve as evidence that defense applications represent an incremental future market opportunity |
| One was to diversify our customer base, which we feel we've achieved and is ongoing and continuing |
| So when we do find either a WISP or an OEM that wants to get to market quickly, we've got a very experienced manufacturers who can bring products to market very quickly |
| So we're optimistic in terms of whether we hit that tipping point or not |
| Consistent with the past, we continue to view our engagement pipeline as a leading indicator to measure our progress towards expanded reach and a more diversified business |
| And obviously, that's more of a -- historically been a rural cell for us, but the real -- we think the real growth over the next few years is, again, in more dense urban environments where traditional Wi-Fi solutions just are two -- cannot handle the congestion |
| So I would say six months was very fast |
| Sounds good |
| Statement |
|---|
| Consistent with our prior expectations, multiple headwinds contributed to lower revenue for the quarter |
| The negative gross margin for the fourth quarter of 2023, primarily reflected inventory write-downs for the company's millimeter wave and memory IC products |
| GAAP gross margin was a negative -- was negative 147.3% in the fourth quarter, compared with positive 45.4% in the prior quarter and 44.2% in the year ago quarter |
| Revenue was lower in the fourth quarter due to the timing of production and shipment schedules |
| Shipments against backlog orders slowed in the fourth quarter, primarily due to the manufacturing lead times required by foundry partners to fabricate additional wafers in these memory products |
| But just given the lack of visibility again, the follower accounting policies and apply conservatism took some write-downs there |
| For the full year 2023, adjusted EBITDA was negative $11.2 million compared with negative $13.7 million in the prior year |
| In addition to significant upfront infrastructure and deployment costs, Wi-Fi technology, for example, struggles with the wireless congestion and interference resulted from high numbers of – and density connected devices |
| On a non-GAAP basis, excluding amortization of acquired intangible assets, gross margin for the fourth quarter was negative 116.6% compared with positive 58% in the prior quarter and positive 53.4% in the fourth quarter of 2022 |
| I know that's been an area that's had some pretty steep inventory issues in the past |
| In our mmWave business, our customer demand reflected the continued impact of the industry-wide inventory correction |
| I mean that was really one of our -- we think one of our main limitations was just the vulnerability to having two customers that you kind of live with by |
| Based on this initial return of orders and customer demand, we believe the prolonged inventory correction in fixed wireless is clearing |
| Since the beginning of the new year, both of these headwinds have begun to moderate |
| The write-down of our memory inventory represented existing inventory for our Bandwidth Engine 3 (ph) product for which expected EOL orders have not yet been received to date |
| Adjusted EBITDA, which we define as GAAP net income or losses reported, excluding stock-based compensation, amortization of acquired intangibles, impairment of goodwill and change in fair value of warrant liabilities, interest expense, depreciation and amortization and the provision for income taxes was negative $5.9 million in the fourth quarter compared with negative $0.9 million in the prior quarter and negative $2.5 million in the prior year period |
| 5G space is kind of exploded over the last couple of years |
| This compared with a non-GAAP net loss of $1.1 million or $1.56 per [indiscernible] and a net loss of $2.8 million or a loss per share of $5.41 per share in the same quarter a year ago |
| I mean, for us, what -- the issue was, if you really recall back even in 2022, when the lead times were like pushing 12 plus months, customers ordered -- over ordered, I would say and so that was part of the inventory buildup |
| Full year 2023 non-GAAP net loss was $12.2 million or a loss of $18.90 per share compared with a net loss of $14.7 million or $29.17 per share in the prior year |
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