SAN JOSE, CA - Peraso Inc. (NASDAQ:PRSO), a key player in mmWave wireless technology, has announced a $1.4 million follow-on purchase order from a notable South African wireless Internet service provider (WISP). This new order follows an initial production order that was completed and delivered in the second quarter of 2024.
The company's CEO, Ron Glibbery, expressed confidence in the repeat order as validation of Peraso's mmWave technology's effectiveness in providing connectivity solutions, especially in densely populated urban areas. The technology, which operates in the unlicensed 60 GHz band, is designed to overcome interference issues commonly faced by devices in the 5 GHz/6 GHz licensed spectrum.
In South Africa, where consistent internet connectivity is a critical component of economic and social development, Peraso's technology is seen as a significant advancement. Its low-power consumption feature is particularly beneficial in regions where power outages necessitate reliable battery backup systems.
Peraso's technology utilizes real-time, phased array beamforming and the DUNE protocol, which the company believes is well-suited for urban environments with high user density. This technology is part of Peraso's broader offerings, which include chipsets, modules, software, and intellectual property, aimed at accelerating data intelligence and multi-access edge computing across various applications.
The announcement comes amid a rapidly growing internet user base in Africa, presenting a unique opportunity to address the digital divide. However, the company cautions that forward-looking statements in the press release are subject to risks and uncertainties, and actual results may differ materially from projections.
Peraso's solutions cater to a range of applications, including fixed wireless access, military uses, immersive video, and factory automation. The company's efforts are directed towards providing end-to-end solutions extending from the edge of networks to the core and into the cloud.
This press release statement is the source of the information reported here.
In other recent news, Peraso Inc. has reported robust Q2 2024 results, with revenues surpassing expectations at $4.2 million, marking over 50% sequential growth and over 70% year-over-year growth. The company has also extended the expiration date for its Series B warrants, formalized through an amendment with Equiniti Trust Company, LLC. On the analyst front, Benchmark maintained its Speculative Buy rating for Peraso, reflecting confidence in the company's business strategy and market position.
In terms of partnerships, Peraso has secured a significant purchase order from a Kenyan wireless Internet service provider for its DUNE platform, marking a key advancement in the deployment of 60GHz technology on the African continent. The company has also secured a purchase order for its High-Velocity Roaming (HVR) technology aimed at enhancing internet connectivity on moving trains and subways in Korea.
These recent developments indicate Peraso's consistent commitment to expanding its market reach and enhancing its product offerings. Despite reporting net losses on both GAAP and non-GAAP bases, the company maintains a significant backlog of non-cancelable purchase orders and a growing pipeline of customer engagements for millimeter-wave solutions.
InvestingPro Insights
Peraso Inc.'s recent $1.4 million follow-on order highlights the company's potential in the growing wireless technology market, particularly in emerging economies. However, investors should consider both the opportunities and challenges facing the company.
According to InvestingPro data, Peraso's market capitalization stands at a modest $5.24 million, reflecting its current position as a small-cap technology player. The company's revenue for the last twelve months as of Q2 2024 was $13.37 million, with a notable quarterly revenue growth of 76.36% in Q2 2024. This growth aligns with the company's recent order announcements and suggests increasing market traction.
However, it's important to note that Peraso is currently not profitable, with a negative operating income margin of -133.43% over the last twelve months. This is reflected in an InvestingPro Tip stating that the company is "quickly burning through cash." Despite this, another InvestingPro Tip indicates that Peraso "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it pursues growth opportunities like the South African market expansion.
The stock has shown strong recent performance, with InvestingPro data reporting a 32.14% return over the last month and a 39.1% return over the last six months. This aligns with an InvestingPro Tip noting a "significant return over the last week." However, long-term investors should be aware that the stock price "has fallen significantly over the last year" and "has performed poorly over the last decade," according to additional InvestingPro Tips.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Peraso Inc., providing a more comprehensive view of the company's financial health and market position.
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