SAN JOSE, CA - Peraso Inc. (NASDAQ:PRSO), known for its mmWave technology, has received an additional $2.88 million purchase order as part of its end-of-life (EOL) program for memory integrated circuit products. This latest non-cancelable order contributes to a total of approximately $16.9 million in EOL orders, most of which are still pending fulfillment. The company anticipates the completion of these orders to stretch into 2025.
Mark Lunsford, CRO of Peraso, expressed satisfaction with the additional purchase order and anticipates it will bolster the company's revenue and cash flow through 2024 and into the following year. Lunsford also noted that the order underscores the ongoing confidence in Peraso's legacy products and will aid in the company's efforts to introduce its leading mmWave solutions to new markets.
Peraso, listed on the NASDAQ, specializes in high-performance 60 GHz unlicensed and 5G mmWave wireless technology, including chipsets, antenna modules, software, and intellectual property. The company's solutions are geared toward a range of applications, from fixed wireless access to immersive video and factory automation. Peraso's focus extends to Accelerating Data Intelligence and Multi-Access Edge Computing, aiming to provide comprehensive solutions from the network edge to the cloud.
This press release is based on a statement from Peraso Inc. and does not include subjective assessments, but rather presents the facts as described by the company. The information herein is intended to provide an unbiased overview of Peraso Inc.'s recent business developments.
InvestingPro Insights
In the wake of Peraso Inc.'s recent $2.88 million purchase order, which contributes to a substantial backlog of end-of-life product orders, an analysis of the company's financial health and market performance is crucial. According to InvestingPro data, Peraso holds a market capitalization of $1.14 million and has demonstrated a Price / Book ratio as of Q4 2023 of 0.27, indicating that the stock may be trading at a low valuation relative to the company's book value. This could be an attractive point for investors seeking undervalued stocks.
Despite the positive outlook on order fulfillment extending into 2025, Peraso's recent performance metrics suggest some areas of concern. The company's revenue for the last twelve months as of Q4 2023 stands at $13.75 million, with a notable decline of 7.53% during the same period. Moreover, Peraso's gross profit margin is reported at 13.62%, which reflects the challenges in maintaining profitability and could be a point of interest for those closely monitoring cost management and profitability metrics.
InvestingPro Tips for Peraso highlight several key points that investors should consider. The company is currently trading at a low revenue valuation multiple and is quickly burning through cash, which may raise questions about its long-term financial sustainability. Additionally, the stock has experienced significant price volatility, with a 14.2% decline over the last week and a 20.57% drop over the past month, underscoring the high-risk nature of the investment.
For those interested in a deeper dive into Peraso's financials and market performance, InvestingPro offers additional insights. There are currently 17 more InvestingPro Tips available for Peraso, which can be accessed at https://www.investing.com/pro/PRSO. To enrich your investment strategy with comprehensive analytics, consider using the promo code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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