00:06 Good afternoon, everyone, and thank you for participating in today's conference call to discuss the financial results of Peraso, Inc. for the Fourth Quarter and Full-Year of 2021. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference call is being recorded. 0:35 I would now like to turn the conference over to Jim Sullivan, CFO of Peraso, Inc.

00:42 Good afternoon and thank you for joining today's conference call to discuss Peraso’s fourth quarter and full-year 2021 financial results. I'm Jim Sullivan, CFO of Peraso, and joining me today is Ron Glibbery, our CEO. 0:55 This afternoon we issued a press release and related Form 8-K, which was filed with the United States Securities and Exchange Commission or the SEC. The press release and Form 8-K are available on Peraso’s website at www.perasoinc.com under the Investor Relations section. There was also a slide presentation that we will be using in conjunction with today's call that may be accessed through the webcast link on Peraso’s IR website. 1:21 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. Peraso advises caution in 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, cash flows or other financial items. 1:48 Also any statements concerning the expected development, performance and market share, or competitive performance relating to our products or technologies. All forward-looking statements are based on information available to Peraso on the date hereof. These statements involve known and unknown risks, uncertainties and other factors that may cause Peraso’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 in Peraso’s public filings with the SEC. Peraso 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. 2:34 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 on the Investor Relations section of Peraso’s website. 3:00 Now, I would like to turn the call over to our CEO, Ron Glibbery for his prepared remarks. Ron?

3:07 Thank you, Jim, and thank you all for joining us on today's call. Good afternoon, I'm pleased to be joining you today from our first earnings call as a public company following the completion of our business combination with MoSys in December. To tell you a bit about Peraso, the company has been in the millimeter wave or mmWave business for over 12-years. mmWave is a technology, which utilizes a specific portion of the radio spectrum in the 24 to 100 gigahertz frequency range. 3:35 What we believe differentiate Peraso for many mmWave suppliers or others, who have attempted to do develop an mmWave technology is we've been shipping in volume, whereas many have failed to commercially scale this technology. mmWave is very complex and the shift from development in the lab to customer deployment is a significant learning experience. Today, we're shipping 60-gigahertz products to multiple Tier 1 customers and have an expanding pipeline of opportunities in a variety of end-user market applications. 4:09 We are also actively working to expand Peraso’s product line from our existing 60-gigahertz mmWave products to include 5G mmWave products. Over the next three years, 5G millimeter wave for consumer premise and hotspot applications is estimated to represent a $3 billion TAM and we believe we're well positioned for growth in the coming years. With the global expansion of 5G mmWave technology. 4:38 The central theme underpinning mmWave technology is that the existing wireless spectrum simply cannot provide the necessary bandwidth to satisfy increasing user demand. This was driven by a couple of fundamental factors. First, the number of users on global networks continues to increase, an additional driver of user demand is video applications such as TikTok, Netflix and Twitch are having a profound impact on global wireless demand. In fact Facebook…

19:08 Thank you, Ron. Hello, everyone, it’s great to be speaking with you today. During my comments, I will make several references to non-GAAP numbers, unless otherwise indicated, each reference will be to an amount that excludes stock-based compensation expense, amortization of reported intangible assets arising from acquired assets, business combination transaction costs, and the change in fair value of warrant liability. 19:31 These non-GAAP financial measures and the reconciliation of the differences between them and comparable GAAP measures are presented in our press release and related current report on Form 8-K, which was filed with the SEC today and can be found at the Investor Relations section of our website or on the SEC's website. 19:47 As Ron noted in his remarks, Peraso Technologies, Inc a Canadian private company and MoSys, Inc. a NASDAQ listed company completed the business combination in December 2021. The resulting company was renamed Peraso, Inc. and began trading under the ticker symbol PRSO and is headquartered in San Jose. 20:07 From an accounting perspective Peraso Technologies was the accounting acquirer and historical financial statements of Peraso, Inc. represent those of Peraso Technologies. The statement of operations for the three and 12-month periods ended December 31, 2021 are those of Peraso Technologies and only include the operating results of MoSys for the period from December 17 to December 31, 2021. The balance sheet as of December 31, 2021, reflects the combined companies. 20:36 Now for our fourth quarter 2021 results, total revenue equaled $1.9 million, compared with $5.9 million in the fourth quarter of 2020. For the full-year 2021, total revenue was $5.7 million, compared with $9.1 million for the full-year 2020. Product revenue from the sale of our integrated circuits and modules was $1.9 million in the fourth quarter, primarily representing shipments of our…

27:32 Thanks, Tim. To summarize, wireless bandwidth demand is increasing exponentially, driven by a combination of new users and proliferation of video traffic. Global carriers are spending billions of dollars to keep up with consumer video demand, but inevitably existing spectrum has definitive capacity limitations. 27:52 Millimeter wave technology has been built into the 5G specification and is viewed by industry participants as the path forward to resolve spectrum shortages. In fact, even early research into 6G networks has identified millimeter wave as the incumbent solution for resolving future frequency shortfalls. Peraso has been working on mmWave technologies 2008 and as a leader in mmWave solutions having invested millions of dollars and numerous years developing mmWave technology, we believe we've established meaningful barriers to entry for our competitors. Peraso is shipping mmWave technology in volume today and is engaged with customers across a variety of applications, including fixed wireless, secure, private networks, consumer electronics and Metaverse applications like AR/VR. 28:43 I am pleased with the execution of the team in 2021 and the successful completion of the business combination with MoSys. We believe Peraso represents an excellent opportunity to participate in a broad adoption of millimeter wave technology and is poised for significant future growth. 28:59 Thank you for your participation in today's call and we would now like to open up the call for any questions. Operator?

29:07 [Operator Instructions] Our first question comes from the line of David Williams of Benchmark. Your line is open.

29:29 Hey, good afternoon. Thanks for taking the question, I certainly appreciate it, and congrats on the closure of the combination and just the progress you've made.

29:40 Thanks, David.

29:42 Thanks, David. Appreciate it.

29:43 Yes. So just wanted to ask maybe quickly, Ron, I believe you had previously noted about the -- that you guys can address that 28% to 39% gigahertz range or where we are in that 5G, kind of, the -- for these mobile space. Have you talked about shipping [audio gap] today. I'm just kind of curious if you could maybe walk us through the challenges between where you are currently shipping? And then what are the real, I guess the technological hurdles to get to that, maybe for the mobile side? Or for that more 5G frequency range?

30:17 Sure, Dave, thanks for joining the call today. Well, we current -- so we define millimeter wave is 24 to 100-gigahertz, so today we’re shipping 60-gigahertz. We're actually reducing the frequency for 5G from -- some 24 to 43-gigahertz, so actually from a technology perspective, this is in our wheelhouse. So we actually think our experience in 60-gig, actually it's a little more challenging than what we're seeing in the 5G space. So I think from a technology perspective, it's in the same ballpark of what we're doing today. But certainly our experience that we've amassed over the last 12-years is completely applicable to everything we're doing in 5G.

31:05 Okay, fantastic. And I think it's kind of interesting, but today I think Apple released a new lower-end handset, kind of, the lower end of the market for 5G and we're just starting to see that real proliferation of 5G handsets. I'm just kind of curious how you're thinking about the landscape and the development of the adoption cycle? And do you think we're in kind of that, I guess that precipice of really tipping over, where you start to see a lot more design activity on the [CPE] (ph) equipment that’s in the fixed wireless that you talked about?

31:35 I don’t if you -- yes, that's a good question. I mean, I don't know if you saw Verizon’s announcement last week, but their millimeter wave usage is up 856% year-over-year. So my two sense is people are getting used to the benefits of millimeter wave and 5G. I think specifically the carriers have talked about this 10x performance. Millimeter wave is the way you get to 10x performance and I believe the more people use millimeter wave and get used to millimeter wave will really help that proliferation amongst the carriers. So I think we're starting to see that trend. I was really impressed to see that 856% growth in millimeter wave usage from Verizon last week. So that was very encouraging for us.

32:21 Fabulous, fantastic, I have not seen that, thanks for pointing it out. And then maybe just one quick last one for Jim, but just kind of thinking about the balance sheet and your ability to really pursue a lot of the opportunities that are in front of you. How do you think about maybe where the balance sheet is and your burn rate about $3.5 million? Do you think you have the flexibility to develop and really drop the resources that you need? And what are the puts and takes there? How should we think about that balance sheet over the next 12 to 18 months?

32:50 Yes, sure, David. We believe that we have adequate cash on hand to support our current business plan. We are obviously have a suite of products on the millimeter wave side, as well as the product line, the memory product line that came along with MoSys, so we have kind of a full set of products to sell. Obviously, it's with the market expanding the way it is for 5G, we want to make sure we continue to invest. But given the current market conditions et cetera, we want to make sure we can get quite far with the cash we have and get us to where we need to go.

33:31 Okay, fantastic. One more quick one, if I can real quick. But just, kind of, curious now, if you close the combination. Has there been any surprises either to the positive or the negative side in terms of what MoSys could intervene?

33:45 I'll start off and then let Ron comment. From the MoSys most side, as I pointed out the results here for the quarter included a very minimal amount two weeks of revenue from MoSys, call it somewhere around a quarter of a million dollars for that two week period. Right now based on our backlog and visibility we're pleased with the outlook for the MoSys -- in MoSys memory products. What we've seen from some customers have put on our backlog. In addition, there is a couple of new design wins that those turning on or beyond our control, but we're keeping a close eye and we've shipped some initial pre-production quantities. 34:30 A key point here is that those, we have the existing products we've been selling them, we have the design wins in the customers and they carry 60% plus gross margin. So I don't want to speak for Ron. But I'm pleased for the outlook for that product line to contribute nicely in 2222. Ron?

34:52 Yes, just to expand on that, I mean, I wouldn't say there's any surprises. But it's definitely a pleasant surprise on the upside, right, on the memory business for 2022. So obviously very positive.

35:09 Thanks so much, really appreciate the time and best of luck on the quarter.

35:13 Thanks, David.

35:14 Thanks, David.

35:16 [Operator Instructions] And there are no further questions in queue. At this time, I'd like to conclude today's conference call. Thank you for participating. You may now disconnect.