Peraso Receives Additional EOL Purchase Order Totaling $2.88 Million
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The recent purchase order received by Peraso Inc. is significant for several reasons. Firstly, it indicates that there's a sustained demand for the company's legacy memory IC products, even as they approach end-of-life status. This kind of demand often suggests a robust niche market or a customer base that is reliant on the specific technology for their products and it's not ready to transition to newer alternatives yet.
From a market perspective, the incremental last-time buys provide a predictable revenue stream, which is important for financial planning and stability, especially for tech companies that are subject to rapid market changes. It's also noteworthy that the order is non-cancelable, which adds a degree of certainty to the company's revenue forecasts. The ability to accurately predict cash flow is a key advantage for any business, particularly one that operates in the fast-paced tech sector.
Looking at the broader industry, the transition from legacy technologies to newer ones, such as 5G, is a common trend. However, it's important to recognize the balance companies must strike between innovating and supporting existing products. Peraso's ability to manage this transition while securing additional revenue from EOL products could serve as a model for other companies in similar situations.
Peraso's announcement of the additional $2.88 million purchase order for its EOL memory IC products contributes to a total of approximately $16.9 million in EOL orders. This is a substantial figure that investors should not overlook. The majority of these orders still being in backlog implies that the company will have a steady inflow of cash over the next few years, which is particularly beneficial for their financial health.
The impact on the stock market could be positive, as this news could be interpreted as a sign of strong operational management. Moreover, the company's ability to secure such orders and project revenue into 2025 may boost investor confidence. It demonstrates foresight in capitalizing on end-of-life products while transitioning to new market segments.
It's also essential to consider the margins on these EOL products. If the margins are high, it could significantly impact the bottom line. However, investors should also be wary of potential risks, such as reliance on EOL product revenue which may not be sustainable in the long term. As the company moves towards new markets with its mmWave solutions, it's important to monitor how the transition is managed and how quickly new revenue streams can replace the old ones.
SAN JOSE, CA / ACCESSWIRE / April 4, 2024 / Peraso Inc. (NASDAQ:PRSO) ("Peraso" or the "Company"), a leader in mmWave technology for 60GHz license-free and 5G licensed networks, today announced the Company received an additional purchase order totaling
"We are pleased to receive this additional purchase order and expect to realize continued revenue and cash flow from our EOL program throughout 2024 and into 2025," said Mark Lunsford, CRO of Peraso. "In addition to highlighting the faith in Peraso's legacy products and solutions, this order will provide additional meaningful cash flow, as we continue to bring our market-leading mmWave solutions to new markets.
About Peraso Inc.
Peraso Inc. (NASDAQ:PRSO) is a pioneer in high-performance 60 GHz unlicensed and 5G mmWave wireless technology, offering chipsets, antenna modules, software, and IP. Peraso supports a variety of applications, including fixed wireless access, immersive video, and factory automation. In addition, Peraso's solutions for data and telecom networks focus on Accelerating Data Intelligence and Multi-Access Edge Computing, providing end-to-end solutions from the edge to the centralized core and into the cloud. For additional information, please visit www.perasoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the "safe harbor" created by those sections. All statements in this release that are not based on historical fact are "forward-looking statements." These statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "strategy," "goal," or "planned," "seeks," "may," "might", "will," "expects," "intends," "believes," "should," and similar expressions, or the negative versions thereof, and which also may be identified by their context. All statements that address customer relationships, as well as availability, operating performance, cost benefits, and advantages of the products of Peraso, market acceptance of our products, and anticipated acceptance and use of mmWave technology, that are not otherwise historical facts, are forward-looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Actual results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors. These factors include, but are not limited to: receipt and fulfillment of customer orders associated with our memory EOL program, our ability to fund inventory in support of the EOL orders, anticipated use of mmWave by our customers and intended users of our products; the availability and performance of Peraso's products and solutions; the successful integration of Peraso's products and technology with customer and third-party semiconductor; antenna and system solutions, reliance on manufacturing partners to assist successfully with the fabrication of our ICs and antenna modules; availability of quantities of ICs supplied by our manufacturing partners at a competitive cost; level of intellectual property protection provided by our patents, vigor and growth of markets served by our customers and our operations; and other risks included in our Securities and Exchange Commission filings. Peraso undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.
Peraso and the Peraso logo are registered trademarks of Peraso Inc. in the U.S. and/or other countries.
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Media Contact
Tyler Weiland
Shelton Group
+1-972-571-7834
tweiland@sheltongroup.com
Peraso Contact
Mark Lunsford
CRO
mlunsford@perasoinc.com
SOURCE: Peraso, Inc.
View the original press release on accesswire.com
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