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Peraso Reports Lower Revenue due to Inventory Correction

March 20, 2024 | by stockcoin.net

peraso-reports-lower-revenue-due-to-inventory-correction

Peraso Inc. (PRSO) recently held its Q4 2023 earnings conference call on March 18, 2024, where it reported a decrease in revenue for the quarter. This decline was attributed to an industry-wide inventory correction and the timing of production and shipment schedules. However, Peraso remains optimistic about the future and anticipates a resumption in revenue growth in the current quarter, with expectations of achieving double-digit growth for the full year. To further support this growth, the company has received price orders totaling $14 million for its end-of-life memory IC products and expects shipments to increase again in the first quarter of 2024. Peraso’s strategic focus is to build a larger and more diversified customer base for its mmWave technology. With an increase in active engagements and expansion beyond North America, Peraso’s 60 gigahertz mmWave solutions are gaining traction among wireless internet service providers (WISPs) and equipment manufacturers in both rural and urban markets. The company’s solutions offer a unique value proposition, addressing challenges in dense urban environments such as wireless congestion and limited electricity supply. Peraso’s introduction of the DUNE platform for fixed wireless access has already resulted in its first commercial win and the engagement of multiple additional service providers.

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Peraso’s Q4 2023 Earnings

Peraso Inc. (PRSO) recently held its Q4 2023 earnings conference call on March 18, 2024, where they reported lower revenue for the quarter. This decline in revenue can be attributed to industry-wide inventory correction and timing issues with production and shipment schedules. However, despite these challenges, Peraso remains optimistic about the future and anticipates a resumption of revenue growth in the current quarter.

Industry-Wide Inventory Correction

The lower revenue reported by Peraso in Q4 2023 can be largely attributed to an industry-wide inventory correction. This correction refers to a market adjustment in response to an imbalance between supply and demand for certain products. In this case, it appears that there was excess inventory of Peraso’s products in the market, leading to lower sales and revenue.

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Furthermore, the timing of production and shipment schedules also affected Peraso’s revenue in Q4 2023. Delays or disruptions in the production process can have a significant impact on a company’s ability to deliver products to customers and generate revenue. It seems that Peraso experienced some challenges in this area, resulting in lower revenue for the quarter.

Revenue Growth Outlook

Despite the challenges faced in Q4 2023, Peraso is optimistic about the future and expects a resumption of revenue growth. The company believes that the industry-wide inventory correction is a temporary phenomenon and that demand for their products will pick up again in the coming quarters.

Looking ahead to the full year, Peraso has set high expectations for double-digit revenue growth. This indicates their confidence in their ability to overcome the current challenges and capture market opportunities. By focusing on their core strengths and leveraging their technological expertise, Peraso aims to achieve sustained growth and deliver value to their stakeholders.

Price Orders for End-of-Life Memory IC Products

One positive development for Peraso is the receipt of price orders totaling $14 million for their end-of-life memory IC products. These orders indicate continued demand for Peraso’s products, even in a challenging market environment. The company expects shipments to ramp up in the first quarter of 2024, which will contribute to their revenue growth.

This success in securing price orders demonstrates Peraso’s ability to effectively serve their customers and meet their needs. By offering innovative and reliable solutions, Peraso has positioned themselves as a trusted provider in the market for end-of-life memory IC products.

Strategic Initiative for mmWave Technology

Peraso has a strategic initiative focused on mmWave technology. Their objective is to build a larger and more diversified customer base for this technology, expanding beyond their current reach. This initiative aligns with their long-term growth strategy and reflects their commitment to staying at the forefront of technological advancements.

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In pursuit of this objective, Peraso has increased their active engagements from 18 to 25 in the past six months. This indicates growing interest and demand for their mmWave solutions. Additionally, they are expanding their reach outside of North America, targeting new markets and customers worldwide.

Gaining Traction with 60 GHz mmWave Solutions

Peraso’s 60 gigahertz mmWave solutions are gaining traction in the market, particularly among wireless internet service providers (WISPs) and equipment manufacturers. These solutions offer unique advantages in both rural and urban market applications.

In rural areas, Peraso’s mmWave solutions provide an effective way to deliver high-speed internet access to underserved communities. By utilizing the 60 GHz spectrum, which offers high capacity and low interference, Peraso enables WISPs to provide reliable and fast internet connections in these areas.

In urban environments, Peraso’s mmWave solutions address the challenges of wireless congestion and limited electricity supply. With the increasing demand for data and connectivity in densely populated areas, traditional wireless technologies often face limitations. Peraso’s mmWave solutions provide a unique value proposition by offering higher capacity and faster speeds, overcoming these challenges and enhancing the user experience.

Introduction of the DUNE Platform

Peraso recently introduced the DUNE platform for fixed wireless access. This platform offers cost-effective multi-gigabit connectivity and network isolation, making it an ideal solution for dense urban environments. Through successful deployments in such environments, Peraso has demonstrated the capabilities and benefits of the DUNE platform.

The DUNE platform has already achieved its first commercial win, marking a significant milestone for Peraso. This initial success validates the effectiveness and competitiveness of the platform in the market. Additionally, Peraso is engaging with multiple additional service providers, signaling the potential for further adoption and growth.

In summary, despite the lower revenue reported in Q4 2023, Peraso remains optimistic about the future. They attribute the decline to industry-wide inventory correction and timing issues with production and shipment schedules. However, they anticipate a resumption of revenue growth in the current quarter and expect double-digit growth for the full year. Through strategic initiatives, such as expanding their mmWave technology offerings and introducing the DUNE platform, Peraso aims to capture market opportunities and deliver value to their customers and stakeholders.

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