I'm getting over a cold, so my voice is a little hoarse this morning. I'll do my best. My name is Ron Glibbery. I'm the CEO of Peraso, and I'm here with my colleague Jim Sullivan, who's our CFO. Peraso is actually a Toronto company. Our office is about a mile from here at Frampton University. We were incorporated in 2008 and went public through a merger with Jim's company in December of 2021. Our business focus is to establish a semiconductor company, so same business model as NVIDIA. We design and sell chips, but we manufacture them at TSMC. Our focus is on high-speed wireless, and specifically we focus on a technology called mmWave. That's very high frequency. We're a global leader in the development of these semiconductor devices, as well as antenna modules.
We have a very strong patent portfolio with 60 issued and pending patents in the field. We even have nine essential claim patents in a standard called IEEE 802.11ay. We have ongoing design wins in four major markets that I'm going to talk about today, including fixed wireless access, which is high-speed internet, tactical communications, which is military, kind of an emerging market for us, which is high-speed bandwidth for edge AI applications and transportation. If we move on to the next slide, you can see I'm going to have one technical slide. Basically on this slide, what we mmWave, which is where our focus is, we refer to the frequency band above 24 GHz. Basically, traditional wireless is typically under 7 GHz. This frequency band presents some unique challenges. Because it's very high frequency, it's very easy to make mistakes.
One thing about our company is we did incorporate in 2008. It took us about a decade to really get it right. Most people don't, most companies don't get it right. In our space, we're really the last man standing because the technology is so difficult to execute on. As I mentioned in the first slide, we have shipped over 2 million chips worldwide. We really know what we're doing from a production perspective and are one of the few players that have executed in this space. One quick note I want to make. I wish I had a, oh, do we have a pointer? Maybe not. You look at these, we call these, we call this beamforming, and that's where we concentrate the RF energy into narrow beams. This confers several advantages to our customer. One is, and the main advantage is that it can go a long distance.
For example, some of our customers are actually sending their signals over 25 km at very high data rates. That's a key advantage. Another advantage is that we have very low interference. In high-density environments and, you know, very dense urban environments, for example, we operate very well. Another advantage that we have, certainly in the military, is that these beams are very undetectable. We call them stealthy. In a military environment, they're virtually impossible to detect. What we found from the Ukraine war and the war in Gaza is that the enemy is actually triangulating on traditional wireless signals. Our ability to be stealthy in that environment confers a very strong advantage to military environments as well. The millimeter wave forecast is one of the highest growth rates for opportunities in communications. Here we're showing two important snapshots.
The first is the overall market growth from $5 billion this year to about $30 billion in 2023, which represents an annual growth rate of about 25%. The second chart underscores the opportunity for millimeter wave, specifically in the military. This goes back to the stealthy nature of our technology through the beamforming. This is the advantage that confers the military environment. In defense, the projected growth rate is actually 42% with mmW ave technology. I'm going to talk a little bit about our business. The first market that I talked about is what we call fixed wireless access. This is providing high-speed internet. Just to clarify the supply chain, we're a semiconductor supplier. We get our chips from TSMC, and we sell to original equipment manufacturers. OEMs make equipment who sell into service providers. Our first customer, excuse me, and our lead customer is a company called Ubiquiti.
Ubiquiti is a $40 billion company listed on New York Stock Exchange. They're really the pioneer in this space. They've got eight products in the market based on our chips. The idea here is that they normally cater to what we call rural customers. This is where the, you know, the large telcos don't really operate because of the low densities. Ubiquiti took up that challenge and now become a $40 billion company. The issue there is that this is for farms and for ranches and so on. Very, very low density. From a technical perspective, it's kind of an easy problem to solve. The other side of the coin is for us, it's pretty low volume. It was a good start to really clean out our process, but we really look for more higher volume opportunities.
About two years ago, what we discovered is that because of that beamforming technology, we operate very well in dense urban environments. Basically, what that means is that as opposed to having farmers every two miles, now you've got homes every 10 ft or 20 ft. That's a much more difficult problem to solve. The good news is that it confers much more volume on our business. We introduced a platform called DUNE. DUNE stands for Dense Urban Network Environment. The idea there is we use our beamforming technology to really address these very dense urban environments. We've got documented design wins around the world. About two months ago, we did a press release with our partner WeLink, who has deployed in Los Angeles. We're actually deploying in the townships in South Africa. This is actually quite fascinating.
This is millions and millions of customers who have very, very terrible internet access today. We're actually addressing that market. We've got some very strong customers in South Africa. Over the last few months, we've actually started deploying in many places, but one of the more notable is Kenya, for example. We're really kind of leveraging this ability to work in dense urban environments. A nice update for our business in the States anyway is a program called BEAD. This is a $45 billion program with the mandate to provide every and make sure every American has strong internet access. BEAD stands for Broadband Equity Access and Deployment. The idea here is to make sure and to subsidize carriers so that they can provide every American with high-speed internet access.
One of the developments over the last year is that this program has now become what they refer to as tech neutral. The idea here is it can be fiber, it can be licensed wireless, it can be unlicensed wireless, it can even be satellite. Clearly, Elon Musk is in the mix here. State-by-state applications are underway. We really see this having a very positive effect on our business starting in 2026. BEAD was a very, very important development for underscoring and subsidizing high-speed internet across America. An opportunity that's really arisen over the last, I guess, couple of years is also in the military. This goes back to our ability to operate in a stealth environment. The idea here is very, very important. Now you can actually have battlefield communications without detection on the battlefield. Usually, we are doing demos with the U.S.
government and also with other governments around the world. Our most important design win, we announced this in the second quarter, was with a Middle East company that actually uses our technology. One of the main problems in the Middle East environment is what they refer to as friendly fire. This is the idea that you actually shoot your own soldiers. The casualty rate, standard casualty rate, is about 25%- 30%, if you can believe it, of military shooting their own soldiers. In July, that number was actually 50%. This is a real problem in a military environment. Using the traditional wireless technology to solve that problem doesn't really solve the problem because now the enemy can detect where you are and they can attack you. The militaries in the Middle East are trying to solve this problem using our technology.
We've shipped several thousand parts in June, and we have ongoing trials for the next year in the Middle East. The idea here is that basically as an infantryman, if you see a target downstream, downfield, you can actually test and make sure that's not your own guy. It's actually kind of a game changer in terms of people have been trying to solve this for decades, actually. We think we've got the solution for that problem. That's just one example. Other markets in the military that we're going after are things like drones, for example. You could even use the same concept on a drone. If you're on a drone and you look at a target, you can actually do friendly fire detection from the drone. They're using it on tanks. We can apply this across military personnel in a battlefield environment.
We see the military and tactical communications as a very important part of our business moving forward. A couple more examples in terms of our market opportunities. This one is actually, in my opinion, quite interesting and timely. We call it high bandwidth video for edge AI. We actually have done high bandwidth video for years, but primarily focused on VR. VR is an application, of course, everybody knows you need high-speed video link and you can do gaming and so on. Now what we're finding is that we're dealing with customers who want to use our chips for edge AI. The idea here is that at the edge, there's a lot of information. For example, self-driving cars, factory automation, drones, robotics use video. What the company, what our customers want to do is process that video in AI and send it back to their edge devices.
The problem is the video is extremely high bandwidth. You cannot solve this problem with traditional wireless. Now these companies, large companies in the States, are coming to us to try to solve this problem. The idea is that we have several gigabits of data rate and traditional Wi-Fi can't even come to one-tenth of the bandwidth they need to solve this problem. We really feel that the market to address high bandwidth video for edge AI is a very important market for us moving forward. A final market I'll talk about is basically transportation. We're actually mostly in Asia, particularly in Asia. Right now we're doing trials in Japan, Korea, China, and India, whereby the opportunity is to provide internet access on moving trains. The idea here is that it kind of works today, but the problem is it's very sketchy, it's very low bandwidth.
With our technology, we're really trying to solve that problem. We're literally in trials in all of those countries in Asia. To summarize, the four markets that we're going after are fixed wireless access, which is our main primary market today, military because of our stealth capability, edge AI because of our high bandwidth of video, and transportation. Diving down a little bit, there are two slides I want to show you, which I think are important because, basically, after 15 years, you could say, is your business growing? We really started growing, I would say, around the COVID timeframe. Maybe something I should clarify, this technology was very hard to implement and to execute. It took us a long time. The good news about that is that that's all water under the bridge now. Very difficult to execute on, but we did it.
We are really the only player in this space. In Q3 of 2020 or Q4 of 2023, we had seven customers. Now we have 14. It doesn't seem like a lot, but we're in the OEM business. OEMs have thousands of customers. Just to keep in mind, that's kind of the nature of our business. We sell to manufacturers and they sell into their marketplace. That was where we got to from Q3 of 2020 or Q4 of 2023. If you look at this slide, this is actually the products in the marketplace. We actually have almost, today I would say it's more than 60 individual products in the marketplace. If you Google 60 GHz and you kind of do a web search on the products that are available in the marketplace, a lot of products based on our chips will come up for you.
I always like to show this slide because I think it always adds credibility to our business in terms of what we're actually shipping in. What we have to keep in mind for these customers is that these guys have to go through a lot of trouble to get a product in the marketplace. They have to put engineering resources, they have to do designs, they have to test it, they have to manufacture it, and they have to get all the regulatory approvals. Getting 60 products in the marketplace took a lot of effort on their part. Obviously, from our perspective, it's a very good opportunity. Our pipeline has doubled over the last 18 months. We continue to see that growth in all of the markets that I specified today.
I'm going to do one more slide, then I'm going to have Jim come up and do some financial effort. Basically, from an investment summary, we are the premier supplier of this technology in the marketplace. I would say premier to almost monopolistic. There's very few other suppliers. We kind of own this space. We're shipping into high growth markets. We have over 100 distinct customer engagements. Besides the ones I showed you, there's other customers who are in various aspects of our pipeline. Our original business thesis was we're going to run out of spectrum. That's exactly what's happening. In every single case, if you look at where we're seeing high volume business, it's because traditional technology can't handle the densities because it's crowding itself out. We solve that problem. That's really the core value proposition of our technology.
On that note, I'll leave it and I'll pass it on to Mr. Sullivan.
Thanks, Ron. I'll try to be very succinct here so we can leave some time for questions. I think the last point I'd just like to add on Ron's thesis is some commentary, rather, is an announcement here in the last, I think, 10 days or so where Verizon acquired a company called Starry. Starry is a fixed wireless access provider using mmWave. As you can imagine, we got a ton of inbound after that acquisition happened. We were certainly pleased to see that as a validation of one of the largest carriers in the world acquiring a fixed wireless access service provider using mmWave. How do I scroll down here, Ron? Thank you. Okay, so I'll be pretty succinct. Fiscal 2024, we did about $14.5 million in revenue. The key there is about 90% of it was from a legacy memory product line. When we put Peraso
together with Legacy Moses, the NASDAQ company, just almost four years ago, our plan always was to cash cow the memory business and allow mmWave time to grow. We didn't anticipate the post-COVID inventory correction, having our two largest mmWave customers basically say no mas and stop taking product. We finally saw the pump getting primed in 2024. Now Ubiquiti is back online, and we've seen other customers come back on. I think the key stat is we did about $1.5 million in mmWave revenue in all of 2024. We beat that number in the first quarter of 2025 and year to date have 2.5x that at $3.8 million. Our guidance for the next quarter is $2.8 million -$3 million. You can see that we're on a trajectory to do somewhere around $10 million in mmWave revenue, up from $1.5 million. We still have some memory shipments going out.
The memory stuff is a high, kind of close to 70% gross margin products. We're just shipping inventory that's left on the shelf. The mmWave, we're targeting kind of a 50% gross margin. We hit about 48% in the second quarter. Now that we've got some scale, we see an ability to ramp that to 55%. From a financial standpoint, we're not profitable, burning cash. Our non-GAAP OpEx is about $3 million a quarter. Obviously, to 50% gross margin, we need about $6 million to hit break even. We see the ability to do that kind of by mid-2026. You know, from a cash perspective, at June 30th, we reported $1.8 million. We have an ATM in place where NASDAQ listed. We also did a warrant inducement in September that will extend our runway, you know, certainly into mid-2026 at this point.
We have no debt, about 7.6 million shares outstanding, TSO about 18.8 million fully diluted. I'm probably out of time, so I'm going to stop there. Thank you all very much for the time and attention this morning.
Other people aren't rising the bulk of that revenue today. Who are the big boys in the market?
The market kind of has two segments. There's what we call licensed. That's in certain frequencies, and that's for the carriers. The unlicensed is what we focus on. In licensed, the key suppliers there are Qualcomm, certainly, and a company called MediaTek. In unlicensed, we're the lone wolf. On that TAM, unlicensed constitutes a large chunk of it. Our chunk of it is really sole supplier. I would say Qualcomm and MediaTek are the large suppliers.
You're in the, your SAM, if you will, correct me if I'm wrong. Your SAM is really in the unlicensed.
Yes, it absolutely is.
What do you think the unlicensed is in terms of the market right now?
Our revenue is not a billion, so it's not a billion today. I think our view would be about half a billion dollars in terms of our total opportunity.
Yes, just in a nutshell, what's holding this business back?
It is just, I would say right now, it's just people getting used to this. Like it's kind of a new technology. For us, certainly in fixed wireless, it took at least three years for people to get used to it. Once the big traditionally used to standard Wi-Fi, which was kind of easy. Now the problem is, again, the capacity issues and the density issues are rendering Wi-Fi inoperable. People like to use what they traditionally use. From our perspective, what we see are people getting used to this technology. They're not used to this high-frequency millimeter wave. For example, in the military, certainly, they weren't using it. Now they're starting to use it. It takes them some time. We just think as people get used to the kind of the issues with millimeter wave and they get used to it, we'll see that growth materialize.
Okay, it's a sales cycle as well.
Yeah.
Which is obviously not ever easy.
Never easy, but we, I don't know if we didn't dive into the details, but we've actually put our, one of the products I mentioned is called an antenna module. We use a technology called a phased array antenna, which we control internally. Basically, we built that into kind of a, like a PCB device. We sell really an integrated module. Oh, five minutes left. When we did our Ubiquiti deal, it took us two years to get into production because of all the complexities of millimeter wave. We've tried to encapsulate that in terms of a new product. Really, it's about 12 to maybe 15 months now to get into production with our latest version of our product. Yeah, it's not overnight. Any other questions?
Do any customers currently use military contract with this?
No, unfortunately not. We're trying, but we haven't really had any success so far. Good question. I think our first try would be for the drone. I think we have a real shot at drones, like communication with drones, radar with drones, and also a friendly fire application with drones. I think drones would be our first foray into the marketplace.
Did I read correctly several press releases ago? Someone's trying to acquire you or is going to go hostile or something like that? Is that true for everything I've read?
No, no, no, no. Mobix Labs has been very vocal in the press about its desire to acquire the company. Their current offer is at $1.30 a share. We're trading around $1.60. Everything between us and Mobix generally gets announced within a day. They have communicated an intent to go hostile. They refused to sign an NDA and enter our process because after this, we received the inbound from Mobix. Our board said, okay, given this, we should, as a former CEO said, pop off the manhole cover, take a look around. They refused to engage in our process, sign an NDA. Right now their price is kind of below market and we obviously, their stock is under a dollar. Their balance sheet is, not that we live in a glass house, but we have some questions there. The saga continues, but it's all pretty much reported in the press.
Certainly, for microcap companies, particularly in the semiconductor space, which is a land of giants, consolidation makes a lot of sense. Scale, cut out the G&A, other costs, et cetera. That's obviously something why the board said, hey, we should start a process, which we're working with Craig-Hallum on. I think we're out of time. Thank you all so much for attending. We appreciate it and look forward to seeing you on one-on-ones.