Peraso Inc. Q2 FY2025 earnings call

• Fixed Wireless Access: Revenue from mmWave products increased 45% sequentially and over 200% year-over-year. Surpassed 2 million cumulative shipments of mmWave devices. Secured a win with Tachyon Networks for outdoor 60 GHz fixed wireless solution, enabling gigabit connectivity and up to 48 client connections per sector. Engaged with numerous wireless ISPs in proof of concepts for future deployments.
• Tactical Communications and Military Defense: Demonstrated commercial proof point with a defense contractor, delivered initial production shipments of advanced 60 GHz wireless solutions for tactical defense. mmWave technology's attributes are well-matched to solve critical communication challenges in tactical defense environments.
• Adjacent Markets: mmWave technology used in adjacent markets like transportation and professional video delivery. First production shipment in education for classroom wireless video systems, expanding the addressable market.
• Customer Base and Pipeline: Pipeline slide shows progress in expanding customer base, doubling production customers from 7 to 14 in 18 months. Increased number of SKUs in production by 90% over 18 months, with 7 preproduction engagements.

The mmWave products segment saw revenue of $2.2 million in Q2 2025, up from $1.5 million in the prior quarter and $0.7 million in Q2 2024. It contributed significantly to total revenue. Fixed wireless access is the largest and fastest-growing market for mmWave technology, with revenue from mmWave products increasing 45% sequentially and over 200% year-over-year, and surpassing 2 million cumulative shipments of mmWave devices. In tactical communications and military defense, mmWave technology's attributes like ultra-low latency, high reliability, and stealthy data transmission are well-suited for applications. Adjacent markets such as transportation and professional video delivery have incremental growth with mmWave technology, e.g., first production shipment in education for classroom wireless video systems, expanding the addressable market. The pipeline slide shows progress in expanding the customer base, doubling production customers from 7 to 14 in 18 months, and increasing the number of SKUs in production by 90% over 18 months with 7 preproduction engagements.

• Third Quarter 2025: Expect total net revenue in the range of $2.8 million to $3.1 million, driven by continued ramp of mmWave shipments and existing backlog.
• Future Growth: Confident in sustained growth from converting proof of concepts to production orders, and opportunities in tactical communications and adjacent markets.

• Forward-Looking Statements: Risks associated with actual results differing from forward-looking statements, including unknown risks, uncertainties, and factors in public filings with the SEC.
• Regulatory and Market: Changes in regulatory environments, market adoption rates, and competition could impact performance.

Q: David Williams from Benchmark asked about drone opportunities in military space and details on engagements.

A: Ronald Glibbery mentioned stealth capabilities and beamforming used in battlefield and drone applications, with a customer engaging on both ground and drone uses.

Q: David Williams asked about the acquisition proposal and balance sheet.

A: James W. Sullivan confirmed a valid proposal, extended cash runway with ATM program, and pursuing capital-raising opportunities non-dilutively.

Q: Kevin Liu from K. Liu & Company asked about preproduction wins and backlog visibility.

A: Ronald Glibbery and James W. Sullivan discussed fixed wireless and military as main growth areas, strong backlog visibility for Q3, and nonrecurring engineering deals contributing to revenue and R&D.

Q: David Williams asked about BEAD funding and regulatory impacts.

A: Ronald Glibbery noted BEAD changes benefit fixed wireless, and recent bill changes regarding unlicensed spectrum are positive for mmWave technology.