Peraso Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue and an increase in net losses compared to the previous fiscal period. The company, which specializes in millimeter wave (mmWave) wireless technology, generated net revenue of $3.841 million for the three months ended September 30, 2024, down from $4.481 million in the same period of 2023, marking an 11% decrease. For the nine months, revenue decreased to $10.895 million from $11.916 million, a 7% decline. The decrease in revenue was attributed to reduced shipments of mmWave integrated circuits (ICs) and antenna modules, although this was partially offset by increased shipments of memory IC products due to end-of-life (EOL) shipments.

Gross profit for the third quarter was $1.807 million, down from $2.036 million year-over-year, while gross profit for the nine months increased to $5.464 million from $4.570 million, reflecting improved margins despite lower sales. Total operating expenses decreased to $4.507 million for the third quarter from $5.596 million in 2023, and for the nine months, they fell to $16.270 million from $16.963 million. The company reported a loss from operations of $(2.700 million) for the third quarter, an improvement from $(3.560 million) in the prior year, but a net loss of $(2.712 million) for the quarter compared to $(623,000) in 2023.

Peraso's accumulated deficit reached approximately $175.6 million as of September 30, 2024. The company has primarily financed its operations through equity offerings and convertible notes, and it completed a public offering in February 2024, raising net proceeds of $3.4 million. However, the company continues to face significant liquidity challenges, with cash and cash equivalents decreasing to $1.317 million from $1.583 million at the end of 2023.

Strategically, Peraso has initiated a discontinuation of its memory IC products due to TSMC's cessation of wafer production, which previously accounted for a significant portion of its revenue. The company also implemented cost reduction measures, including layoffs affecting 16 employees in November 2023, and recorded severance charges of approximately $446,000 during the first half of 2024.

Looking ahead, Peraso anticipates that operating losses will continue as it seeks to increase revenues and invest in product commercialization. The company has a non-cancelable purchase order backlog of approximately $5.7 million for memory IC products, expected to be fulfilled by March 31, 2025, and is exploring additional financing options to support its operations.