BrainChip Holdings [ASX:BRN] continued to burn cash in the September quarter, citing adverse market conditions in the tech sector ‘have created a headwind for our prospective and current customers.’
BRN shares were down 20% late on Friday (28/10/2022) and are down 30% in the past six months:
Source: Tradingview.com
BrainChip: customers facing a headwind
BrainChip said it is ‘seeing the greatest amount of sales activity and engagement in the Company’s history.’
However, in the September quarter, BrainChip’s customer receipts fell 90% quarter-on-quarter to US$118,000.
Cash burn from operating activities was US$3.8 million for the quarter and US$11.8 million for the year to date (nine months).
If this cash burn rate persists, BrainChip would have about six more quarters of funding left.
BrainChip addressed the sales slump by pointing to the global technology market:
‘We are seeing the greatest amount of sales activity and engagement in the Company’s history.
‘However, the current global technology market has created economic dynamics that have extended evaluations, decreased budgets, and delayed introduction of new technology.
‘These conditions have created a headwind for our prospective and current customers. We anticipate these conditions to eventually calm. We remain positive on future market penetration and broad adoption of BrainChip’s technology.’
BRN said it will now focus on ‘key sales targets and converting technical evaluations into paid licences.’
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