Peraso Inc.

Good afternoon. Welcome to Perasso Inc.' 's first quarter 2025 conference call. At this time, all participants are in a listen-only mode. If anyone needs assistance at any time during this conference call, please press the star key followed by zero on your touchtone phone. As a reminder, this conference call is being recorded today, Monday, May 12, 2025. I would now like to turn the call over to your host for today's conference call, Mr. Jim Sullivan. Please go ahead.

Good afternoon, and thank you for joining today's conference call to discuss Perasso's first quarter 2025 financial results. I'm Jim Sullivan, CFO of Perasso, and joining me today is Ron Glibury, our CEO. Today, after the market closed, we issued a press release and related Form 8K, which was filed with the Securities and Exchange Commission. The press release and Form 8K are available on Parasso's website at www.parassoinc.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 Investor Relations 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. Barrasso advises caution and reliance on forward-looking statements. These statements include, without limitation, any projections of revenue, margins, expenses, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA, non-GAAP net loss, cash flows, or other financial items, including anticipated cost savings. Also, any statements concerning the expected development, performance, and market share of or competitive performance of 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 statements, including unexpected changes in the company's business. More detailed information about these risk factors and additional risk factors are set forth and process public filings with the Securities and Exchange Commission. Parasso 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. With respect to remarks on today's call involving non-GAAP numbers, unless otherwise indicated, referenced amounts exclude stock-based compensation expense, amortization of intangible assets, severance costs, and the change in fair value of warrant liabilities. These non-GAAP financial measures, definitions, and the reconciliation of the differences between them and comparable GAAP measures are presented in our press release and related Form 8-K, which provide additional details. For those of you unable to listen to the entire call at this time, a recording will be available on the investor relations page of our 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 on the phone and webcast. We appreciate you taking the time and joining us on today's conference call. I'm pleased to share that we kicked off 2025 with strong momentum. More specifically, our first quarter results demonstrated continued progress and year-over-year revenue growth as we ramped orders for our MMWave products and completed the final end-of-life shipments for our MemoryIC products. As further evidence of our recent momentum, first quarter MMWave revenue exceeded our total MMWave revenue for the full year of 2024. Coupled with our disciplined approach to expense management, we also delivered significant improvement in our bottom-line results for the first quarter. Since the start of the new year, we've achieved a number of notable technology, product, and customer milestones that we will cover as part of today's call. Collectively, these achievements not only underscore the growing market opportunities for our MMWave technology, but they also serve as validation and a testament to our team's dedication and effort. Although Perazzo initially pioneered the development of MMWave technology more than a decade ago, we believe that we're still in the early innings of realizing the full potential market opportunity for our high-performance MMOA solutions. Turning to slide four, this real-time snapshot of our engagement pipeline as of early April visually captures one of the reasons we believe we've only begun to scratch the surface in terms of the market potential for Peraza's MMOA technology. Taking the number of identified new funnel opportunities at the top, then adding each of the four stages of active engagement, starting with formal hardware evaluation and the progression to pre-production samples, Our current pipeline comprises nearly 120 total engagements. Comparing that number against the 10 engagements converted to production since we began sharing these metrics publicly, we believe our existing pipeline represents substantial market potential. The other notable comparison on this slide is the meaningful expansion of our total pipeline, including both funnel opportunities and active engagements over the last 12 months. We have grown our total number of identified commercial opportunities by over 25%. Lastly, looking at the right of the slide, I want to quickly highlight our biggest picture progress with respect to market penetration. These are a small sample of customers and products that incorporate Peraza's industry-leading MMOA solutions. Today, our technology is being utilized to enable at least 68 products in commercial production across 14 unique customers. Collectively, these customer products are currently being deployed across numerous regions around the world. Flipping to slide five. As a company initially founded with the purpose of pioneering brand new technology, we are always seeking to push the boundaries of MMWave technology and deliver cutting-edge solutions. We also believe that sustainable success in any area of technology requires new innovation. As such, Perazzo remains deeply committed to continuous innovation to further expand our portfolio of MMWave solutions, as well as adapt our existing MMWave products to address new applications. This slide highlights two recent examples of our ongoing efforts to bring innovative MMOA solutions to the market. First, in April, we announced a major upgrade to our Prospectus product family that increases the number of supported endpoint devices or users per access point from 32 to 48. Our Prospectus modules are currently used by wireless internet service providers to provide fixed wireless access service using the unlicensed 60 gigahertz spectrum. Increasing the number of served end users by 50% for a single access point benefits the broader FWA market, but is particularly valuable in dense urban employments. In addition to reducing the required amount of deployed hardware, it improves the total cost of network ownership versus competing technologies by using less power. And importantly, it also maintains the capability for data rates up to 2 gigabits per second. Then, earlier this month, we introduced the latest product addition to our prospective family of MMWave modules, the PRM21481XD. Built around our existing X720 60GHz chipset, this new module integrates a dual polarized antenna array, supports dynamic switching and polarization diversity to deliver reliable and robust connectivity in complex network environments. More specifically, this solution is ideal for overcoming the challenges in high-mobility deployments such as body-mounted applications. Lastly, I also want to briefly mention our recently received Notice of Allowance from the U.S. Patent and Trademark Office for a patent application. The newly allowed patent application addresses Peraza's solution for modern wireless local area networks that are frequently served by a large number of access points. In short, our technology enables seamless reintegration of recovered or newly added access points, eliminating the need for a full network reset. We currently expect this patent to be formally issued later this year, and this is merely another example of Peraza's commitment to continuous innovation. On slide 6, acknowledging that we discussed the innovative capabilities and benefits of Peraza's DUNE platform on previous calls, The continued traction and customer engagement we are seeing for this solution merits brief mention again on today's call. We believe the market is recognizing the core value proposition of DUNE, which is its ability to overcome the challenges associated with delivering reliable and high-speed connectivity in densely populated areas. Together with DUNE's other fundamental benefits, such as low-cost deployment, low power, long range, and point-to-multipoint capabilities, WISPs are equally attracted to the solution for high-density fixed wireless deployments, whether they be in Los Angeles or a concentrated urban community in Africa. More broadly across the fixed wireless access, we continue to see indications of demand recovering. As highlighted on our previous conference call, in March we received a $3.6 million purchase order for MMWave devices from a leading fixed wireless access and wireless networking system provider. Shipments in support of this customer are anticipated to commence during the second quarter and be completed over the remainder of 2025. Additionally, today our MMWave fixed wireless access solutions are continuing to be utilized in ongoing proof of concepts by numerous wireless internet service providers, each of which represent realistic prospects for incremental growth over the coming quarters. With further increased awareness of MMWave technology and its benefits, as well as Peraza's market-leading products and solutions for reliable, multi-gigabit-per-second wireless connectivity in the unlicensed 60 GHz spectrum, we expect fixed wireless access to continue to be a large and sustained driver of where future revenue grows. Moving to slide 7, I want to reiterate the growing market opportunity for MMWave technology in tactical communications and military defense applications. Both the commercial opportunity and real-world positive impact that we can bring to this market are well displayed by our disclosed win in this space. Last month, we announced the execution of a new strategic contract to deliver mission-critical wireless applications to global military and defense forces, opening a significant new revenue opportunity for Perazzo. Our collaboration with this leading specialized defense contractor will result in jointly created and deployable system solutions that provide heightened communications, to safeguard both military personnel and non-combatants, such as medics, peacekeepers, and journalists operating in high-risk environments. This first-of-a-kind system solution leverages the inherently stealthy nature of 60 GHz communications, which contributes to very low probability of detection on the battlefield, as well as strong immunity to jamming. We are both proud and excited to be involved with such innovation with the intent of supporting those on the front lines and address critical battlefield challenges. We believe this strategic contract represents a major milestone and also has significant commercial potential with what we believe is a minimum addressable market of at least 3.4 million active military personnel. We currently expect to commence initial production shipments during the second quarter of this year. With MMOA's advanced capabilities, including high data rates, ultra-low latency, and low probability of intercept, we believe that we are increasingly well positioned to continue gaining market traction with Prowse's leading MMWave technology in tactical communications and defense applications. In summary, we are very pleased with our continued progress as demonstrated by our first quarter results. Looking ahead, we remain focused on expanding our customer base, growing our future order backlog, and ramping production shipments to an expanding number of customers. Based on recent momentum, including increased demand and purchase orders from our fixed wireless access customers, we expect to deliver sequential revenue growth for our MMOA solutions throughout 2025. With that, I'll turn the call back to Jim to review the financials, as well as to provide our revenue outlook for the second quarter of 2025.