The Brainchip Holdings Ltd (ASX: BRN) share price is tumbling on Monday.
In morning trade, the semiconductor company's shares are down 3% to 63.5 cents.
Brainchip share price tumbles on quarterly update
Investors have been selling down the Brainchip share price again on Monday following the release of another disappointing quarterly update.
For the three months ended 31 December, the $1.2 billion company reported cash receipts from customers of only US$1.164 million. This brought its cash receipts for the 12 months to US$2.7 million.
This is despite its CEO, Sean Hehir, stating that Brainchip was "seeing the greatest amount of sales activity and engagement in the Company's history" at the end of the third quarter.
It is also worth noting that in its half year update, Brainchip reported trade receivables of US$2.5 million. It highlighted that these funds were expected to be received between 30 to 90 days. However, seven months later, the company has reported cash receipts of approximately half of this sum. No explanation has been provided for this discrepancy.
Brainchip also continues to operate at a loss, reporting a cash outflow of US$1.9 million for the quarter and US$13.7 million for the 12 months. It ended the period with a cash balance of US$23.1 million.
Management commentary
Hehir revealed that Brainchip has been boosting its sales team and remains optimistic on the future. He said:
BrainChip added two North American and one Korean sales executive towards the tail end of the quarter and has launched formal searches for sales talent in Germany and Japan as we aggressively pursue engagements globally. BrainChip also appointed a new Chief Marketing Officer, Mr Nandan Nayampally, to lead our marketing efforts.
In the coming quarter, the Company will focus on key sales targets and converting technical evaluations into paid licenses. In addition, the Company is accelerating development of nextgeneration Akida IP and products to extend our technological lead and market opportunity. We remain positive on future market penetration and broad adoption of BrainChip's technology.
The Brainchip share price is now down over 55% since this time last year.
