Peraso Inc.

I would now like to turn the call over to Parasso CFO, Jim Sullivan. Please go ahead.

Good afternoon, and thank you for joining today's conference call to discuss Perasso's first quarter 2022 financial results. I'm Jim Sullivan, CFO of Perasso, and joining me today is Ron Glibury, our CEO. This afternoon, we issued a press release and related Form 8K, which was filed with the SEC. The press release and Form 8K are available on Perasso's website at www.perassoinc.com under the Investor Relations section. There is also a slide presentation that we will be using in conjunction with today's call that may be accessed through the webcast link on our IR website. As a reminder, comments made during today's conference call may include forward-looking statements. All statements other than statements of historical fact could be deemed as forward-looking. PRASO advises caution and reliance on forward-looking statements. These statements include, without limitation, any projections of revenue, margins, expenses, non-GAAP operating expenses, adjusted EBITDA, non-GAAP net income or loss, cash flows, or other financial items. Also, any statements concerning the expected development, performance, market share, or competitive performance relating to our products or technologies. All forward-looking statements are based on information available to PRASO on the date hereof. These statements involve known and unknown risks, uncertainties, and other factors that may cause PRASO's actual results to differ materially from those implied by the forward-looking statement, including unexpected changes in the company's business. More detailed information about these risk factors and additional risk factors are set forth in PRASO's public filings with the SEC. PRASO expressly disclaims any obligation to update or alter its forward-looking statements. whether as a result of new information, future events, or otherwise, except as required by applicable law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in terms of GAAP and non-GAAP. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. For those of you unable to listen to the entire call at this time, a recording will be available in the investor relations section of Paras' website. Now I would like to turn the call over to our CEO, Ron Glibury, for his prepared remarks. Ron?

Thank you, Jim. Good afternoon and welcome to everyone joining us over the phone and via webcast. I look forward to providing an update on our business and highlighting a few of the milestones that we've achieved since our last conference call. With the first full quarter of combined operations completed following the close of the transaction between Peraza and MOSIS in December, I'm very pleased with the team's execution and our results. Significant integration activity has been completed, and we continue to evaluate potential cost synergies to maximize overall operational efficiencies. In terms of our results, revenue in the quarter increased over 200% year over year, and we continue to experience increased adoption of our millimeter wave solutions for fixed wireless access. Before getting into more detail on our progress during the quarter, let me first provide a brief overview of the company for those that may still be new to the story. Although new to the public markets, Perazzo has been in the millimeter wave business for over 12 years and has been an industry leader in the development of 5G millimeter wave silicon and modules. 5G millimeter wave is a revolutionary cellular technology providing access to significant additional bandwidth and capacity and frequency bands between 24 and 100 gigahertz. Once deemed impossible by skeptics, 5G millimeter wave is now embraced by the wireless ecosystem as a critical enabling technology that continues to gain momentum globally. What differentiates us from other companies that talk about millimeter wave technology is that our high-performance phased array solutions have been field proven, and we've been shipping in volume for several years. In fact, today, our 60 gigahertz products are shipping to multiple tier one customers, and we have a growing pipeline of design wins. and ongoing engagements with additional Tier 1 customers that span multiple end-user market applications. The overall demand for wireless bandwidth is growing exponentially. On our previous call, I highlighted several of the macro trends driving this growth, such as one, the increasing number of connected users' devices on global networks, and two, the profound bandwidth consumption from video applications and streaming, especially with the expanding availability of HD and 4K content. This is driving significant growth of wireless Internet revenue, with the number of users expected to double every five years. Today, there are approximately 6.7 million wireless ISP subscribers in the U.S., and that number is forecast to reach 12.7 million subscribers in 2025. Significant investments are being made in this market. Multiple wireless ISP companies have raised hundreds of millions of dollars to support this expansion. There's also tailwind from the U.S. government funding to promote universal broadband access, highlighted by the rural digital opportunity funds allocation of more than $20 billion to build out broadband networks. Peraza has an established leadership position in the fixed wireless access market with field-proven technology proving achieving 10x performance advantages. Additionally, our customer-deployed solutions provide connectivity at distances approaching 30 kilometers nearly 10 times farther than their competitive offerings. In Q1 2022, we took a major step to extend our leadership in this market with the introduction of our Prospectus product family of millimeter-wave modules for the fixed wireless market. Perazzo's Prospectus FWA modules enable rapid development of low-cost network equipment, which we believe solidifies our position as the premier supplier of millimeter-wave silicon to the wireless ISP ecosystem. In addition to multi-gigabit access, our integrated prospectus modules feature enhanced software that enables point-to-multipoint capability that supports up to 32 endpoints, which significantly improved the total cost of our new customer acquisition for wireless internet service providers. Today, we have existing engagement with six wireless access customers, and we identified three additional customer opportunities in the first quarter of 2020-2022. We expect our pipeline of engagements to continue to grow throughout 2022. Another key market dynamic is the emerging role of fixed wireless access in rollout of 5G by global carriers. Deloitte Global recently issued a report that predicts the number of fixed wireless connections will grow from roughly 60 million in 2020 to over 88 million in 2022, and then nearly doubled to 160 million connections by 2026. 5G fixed wireless access is expected to represent almost 7% of the total in 2022, growing to 39% in 2026. Many network operators worldwide view 5G fixed wireless as a way to expand revenue opportunities and help monetize investments in 5G and wireless spectrum. In fact, fixed wireless access is emerging as one of the leading use cases for 5G. For example, leading U.S. mobile carriers like Verizon and T-Mobile as well as a number of cable carriers, are looking at ways to combine C-band and millimeter wave to potentially exceed gigabit connectivity, with millimeter wave providing significant new upload capability. Verizon alone has stated that it expects to have 4 to 5 million fixed wireless subscribers by 2025. As further evidence of the growing momentum, fixed wireless access represented more than half of broadband net additions in the first quarter of 2022 across the top six providers in the U.S., Recognizing the substantial SAM expansion opportunity, earlier this month, we introduced our 5G millimeter wave beamformer IC, initially targeting customer premise equipment in the 5G carrier market. In addition to being Perazzo's first 5G millimeter wave product, we believe that our solution is the world's most highly integrated 5G beamformer, which include Perazzo's advanced 5G antenna technology. This provides support for frequency bands from 24 to 43 gigahertz, and optimized architecture that integrates 16 dual polarized antenna elements. This Perazzo patented and optimized architecture with our dual polarized 5G millimeter wave antenna technology enables 32 dual band channels to provide uniquely superior performance in a single device that's more cost effective for carriers to deploy. Third party research forecast that the market for end devices, which includes CPE, hotspots, laptops, and tablets, could be over 180 million units in 2023 and grow to 316 million units by 2026. The introduction of our 5G millimeter wave product now allows us to target the end device market, further expanding Peraza's TAM by an estimated 1.5 billion in 2025. Bringing all this together, we believe that millimeter wave technology is fundamental to providing the necessary bandwidth capacity for future generations of connectivity. and Perrazzo is well positioned to capitalize on the secular growth trend. With our expanding product portfolio, highlighted by the recent introduction of the 5G beamformer product and our prospectus modules, we now have a broader portfolio of integrated millimeter wave solutions that span both the licensed and the unlicensed spectrum for the fixed wireless access market. As we continue to extend our leadership and momentum in the wireless ISP market to the 5G carrier market, We believe our new beamformer product will establish new price performance benchmarks for 5G mmWave fixed wireless access. We anticipate increased adoption across both markets and growing product volume shipments in support of new customers' engagements and design needs throughout 2020-22 and beyond. With that, I'd like to hand the call back to our CFO, Jim Sullivan.