S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
SAN JOSE, CA - Peraso Inc. (NASDAQ:PRSO), known for its wireless technology solutions, has secured a purchase order for its High-Velocity Roaming (HVR) technology aimed at enhancing internet connectivity on moving trains and subways, particularly within the Korean public transportation system. The company announced Monday that the initial order will be utilized to demonstrate the capabilities of 60GHz HVR technology in high-speed environments.
The HVR system by Peraso is engineered to provide continuous high-speed internet to passengers on fast-moving trains, ensuring seamless connectivity as users switch between access points, which are placed approximately every kilometer. This uninterrupted service is crucial in maintaining quality for commuters, especially where traditional connectivity solutions may be inadequate.
Peraso's CEO, Ron Glibbery, expressed enthusiasm about the company's technology being recognized and evaluated in one of the busiest subway systems in the world. He also mentioned that the company is concurrently pursuing a similar deployment project for the rail system in China, reflecting Peraso's strategic goal to improve global connectivity solutions in urban transit systems.
Peraso specializes in 60 GHz unlicensed and 5G mmWave wireless technology, providing a range of products including chipsets, modules, software, and intellectual property that support various applications from fixed wireless access to immersive video and factory automation. The company's focus extends to data and telecom networks, emphasizing Accelerating Data Intelligence and Multi-Access Edge Computing.
The announcement contains forward-looking statements regarding expected performance and market acceptance of Peraso's products and technology, as well as the anticipated use of mmWave technology in transit and rail systems. There are risks and uncertainties that could cause actual results to differ from those projected, such as the availability and performance of Peraso's products, reliance on manufacturing partners, and the level of intellectual property protection.
This news is based on a press release statement from Peraso Inc. and reflects the company's current expectations and projections about future events within the technology and transportation sectors.
In other recent news, Peraso Inc. has reported robust Q2 2024 results, surpassing revenue expectations with a total of $4.2 million. This significant increase marks over 50% sequential growth and over 70% year-over-year growth. The company's financial performance was driven by increased shipments of end-of-life memory IC products and a new volume production order for millimeter-wave antenna modules. Despite higher operating expenses due to certain charges, gross margins expanded, and the company remains optimistic about fulfilling its backlog and advancing its millimeter-wave products and platform solutions. Looking ahead, Peraso anticipates third-quarter IC memory product shipments to be in line with the second quarter and is focused on converting customer engagements into production orders for its millimeter-wave products. Despite reporting net losses on both GAAP and non-GAAP bases, the company has a significant backlog of non-cancelable purchase orders and a growing pipeline of customer engagements for millimeter-wave solutions. These are the recent developments in the company's operations.
InvestingPro Insights
Peraso Inc. (NASDAQ:PRSO) has recently made headlines with its innovative High-Velocity Roaming technology, but what do the financial metrics indicate about the company's current standing? According to InvestingPro data, Peraso holds a market capitalization of $3.97 million, which is relatively modest in the tech industry. This could suggest that the company, while innovative, is still in the early stages of growth or facing challenges in scaling its operations.
InvestingPro Tips highlight that Peraso is trading at a low revenue valuation multiple, with a price-to-book ratio as of the last twelve months ending Q2 2024 standing at 1.11. This could potentially make it an attractive investment for those who believe in the company's technology and market potential, despite the risks involved. The company's revenue growth shows a quarterly spike, with a substantial increase of 76.36% in Q2 2024, indicating a possible turning point in its financial trajectory. However, the last twelve months also reveal a negative overall revenue growth of -8.55%, which could be a point of concern for potential investors.
Another critical metric to consider is the gross profit margin, which at 22.4% demonstrates the company's ability to manage its cost of goods sold relative to its revenue. While this is a positive indicator, it is essential to note that Peraso has not been profitable over the last twelve months, with a considerable operating income margin deficit of -133.43%.
InvestingPro Tips also caution that analysts do not anticipate Peraso will be profitable this year, and the company has been quickly burning through cash. This information is crucial for investors who prioritize financial stability and profitability in their investment decisions.
For those interested in further insights, InvestingPro offers additional tips on Peraso Inc., which can be accessed at https://www.investing.com/pro/PRSO. These tips may provide a deeper understanding of the company's financial health and market position, helping investors make more informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.