The Brainchip Holdings Ltd (ASX: BRN) share price has taken a tumble on Monday.
In morning trade, the struggling semiconductor company’s shares are down 4% to 36 cents.
This latest decline means the Brainchip share price is now down 69% over the last 12 months.
Why is the Brainchip share price falling again on Monday?
Investors have been selling down Brainchip shares today after the company released yet another underwhelming quarterly update.
For the three months ended 30 June, the $660 million semiconductor company reported cash receipts of just US$0.8 million.
This continues to be far less than the company spends on its operating activities, which led to an operating cash outflow of US$4.1 million.
But thanks to its ongoing quasi-capital raising arrangement with LDA Capital, which pulled in US$8.1 million while further diluting shareholders, Brainchip finished the period with a cash balance of US$21.8 million. This is up from US$17.7 million at the end of March.
What happened during the quarter?
Not much! There was a lot of style but no real substance during the three months.
Nevertheless, in his CEO statement, Brainchip leader Sean Hehir sounded as positive as ever on the future. He said:
The Company is currently experiencing its highest ever level of commercial engagements, the volume and quality of which are improving rapidly as a larger number of customers learn about BrainChip and our 2nd Generation technology which will be available in late Q3.
However, it is worth highlighting that this sort of statement has been thrown around a lot in the past by Hehir. And we all saw how that turned out with respect to sales.
The company also highlights the hard work it has been doing on its podcasts. Brainchip now has two podcasts receiving hundreds of listens each month.
Overall, not a lot to report on this quarter. But with its new tech released shortly, investors will soon find out if the second generation Akida platform is a success or a flop like the first generation offering.
