shulz Overview My recommendation for Credo Technology (NASDAQ:CRDO) is a buy rating, as I have become more confident that growth will accelerate in the coming years. CRDO is also gradually diversifying its customer base, which is great as it reduces the volatility of growth. Given this positive outlook, I have shifted my view that CRDO’s valuation multiple would see a mean reversion to sustaining at a premium multiple. Note that I previously rated the buy rating for CRDO as the growth outlook remains po ...

Keysight co-developed the industry’s first working 1.6 terabit Ethernet test and measurement system in a testbed with Credo Semiconductor. Running at full line rate, it can transmit and process more than a billion packets per second over a 2-meter active electrical cable – an unprecedented rate of speed. (Photo: Business Wire)Keysight co-developed the industry’s first working 1.6 terabit Ethernet test and measurement system in a testbed with Credo Semiconductor. Running at full line rate, it can transmit an ...

Jacob Wackerhausen/iStock via Getty Images Credo Technology (NASDAQ:CRDO) is a company providing high-speed connectivity solutions, such as integrated circuits / ICs, Active Electrical Cables / AECs, and Serializer and Deserializaer / SerDes Chiplets. Share performance has been relatively strong since going public in 2022 at the price of $11 per share. Despite the demand shock from a major customer in 2023 that caused the stock to reach an all-time low of $8, CRDO has had a strong rebound since. Over the pa ...

Investment Rating - The report maintains a "Buy" rating for the company [9][25]. Core Insights - The company's AEC products are being continuously adopted, with significant revenue contributions expected from major clients like Amazon and other North American cloud providers [2][4]. - The company anticipates a turning point in AEC revenue growth in FY25H2 due to new client onboarding and increased demand from existing clients [2]. - The gross margin is expected to improve, with projections of reaching 63% to 65% over the next two years [2][4]. Financial Performance - For FY24Q3, the company reported revenue of $53.1 million, a 20% increase quarter-over-quarter but a 2% decrease year-over-year [4]. - The GAAP gross margin for FY24Q3 was 61.4%, reflecting a 2.1 percentage point increase from the previous quarter and a 2.5 percentage point increase year-over-year [4]. - The company achieved a GAAP net profit of $400,000, a turnaround from a loss of $6.6 million in FY24Q2 [4]. Revenue and Profit Forecast - Revenue projections for FY24E, FY25E, and FY26E are $106.48 million, $184.19 million, and $188.15 million respectively, with expected growth rates of 2.1%, 57.0%, and 33.1% [8]. - The forecasted GAAP net profits for FY24E, FY25E, and FY26E are -$8.85 million, $6.60 million, and $28.22 million respectively, indicating a significant recovery in profitability [8][9].

SAN JOSE, Calif., March 04, 2024 (GLOBE NEWSWIRE) -- Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved energy efficiency as data rates and corresponding bandwidth requirements increase throughout the data infrastructure market, today announced that Bill Brennan, President and CEO, and Dan Fleming, CFO, are scheduled to present at the following upcoming investor conference. Conference: 36th Annual Roth Conferen ...

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $53.1 million, which is up 20% sequentially but down 2% year-over-year [11] - Non-GAAP gross margin for the product business was 62.2%, an increase of 235 basis points sequentially [82] - Non-GAAP net income for Q3 was $6.3 million, compared to $1.2 million in the previous quarter [13] - The company expects Q4 revenue to be between $59 million and $62 million, representing a 14% sequential increase at the midpoint [14] Business Line Data and Key Metrics Changes - The IP business generated $1.3 million in Q3, down 83% sequentially and down 90% year-over-year [11] - The product business generated $51.8 million in revenue in Q3, up 41% sequentially and up 24% year-over-year [82] - Non-GAAP operating income was $2.4 million in Q3, compared to a non-GAAP operating loss of $0.7 million last quarter [83] Market Data and Key Metrics Changes - The company anticipates that U.S. hyperscalers will continue to dominate AEC demand in the foreseeable future [70] - The optical DSP market is gaining traction, with production shipments to multiple global hyperscale end customers [77] - The company is engaged with five U.S. hyperscalers and other global hyperscalers for various applications [70] Company Strategy and Development Direction - The company is focused on innovation in its SerDes technology, which is critical for high-speed connectivity solutions [74] - There is an emphasis on developing AEC solutions for both front-end and back-end networks, with expectations for significant revenue growth [76] - The company is also working on 400-gig and 800-gig AEC solutions, which are expected to yield significant future revenue [76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the increasing market demand for high-speed connectivity driven by AI applications [69] - The company expects an inflection point in the second half of fiscal '25, indicating a positive outlook for future revenue growth [16] - Management noted that the visibility into customer projects has improved, leading to greater confidence in revenue forecasts [100] Other Important Information - The company ended the quarter with cash and equivalents of $409.1 million, an increase of $168.6 million from the previous quarter [112] - Total non-GAAP operating expenses in Q3 were $30.6 million, up 13% sequentially and up 19% year-over-year [111] - The company is well-capitalized to continue investing in growth opportunities while maintaining a substantial cash buffer [112] Q&A Session Summary Question: What is the outlook for the AEC market? - Management indicated that the AEC market is heating up, with increasing interest from customers and expectations for broader adoption in the future [47][62] Question: How does the company view the competitive landscape in the optical DSP market? - Management noted that they are agnostic to customer preferences and are focused on delivering the right connectivity solutions for each hyperscale customer [28] Question: Can you provide insights on the chiplet business? - The chiplet business is expanding, with multiple customers engaging for designs, although it is still dominated by a single customer at this point [92] Question: What are the expectations for revenue visibility moving forward? - Management expressed increased confidence in revenue visibility due to a diversified customer base and product offerings [100][150]

Credo Technology Group Holding Ltd. (CRDO) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced earnings of $0.01, delivering no surprise.Over the last four quarters, t ...

Credo Technology Group Holding Ltd Notes to Unaudited Condensed Consolidated Financial Statements | --- | --- | --- | --- | --- | |---------------------------------------------------------|-------|---------------------------------|-------|-----------------------------| | Computer equipment and software | $ | January 27, 2024 \n18,217 | $ | April 29, 2023 \n13,942 | | Laboratory equipment | | 17,720 | | 15,577 | | Production equipment | | 24,718 | | 19,783 | | Leasehold improvements | | 2,009 | | 2,005 | | O ...

Financial Performance - Revenue for the third quarter of fiscal year 2024 was $53.1 million, representing a 20% increase quarter over quarter[16] - GAAP gross margin was 61.4%, while non-GAAP gross margin was 62.2%[16] - GAAP operating expenses totaled $38.5 million, with non-GAAP operating expenses at $30.6 million[16] - GAAP net income was $0.4 million, and non-GAAP net income was $6.3 million[16] - GAAP diluted net income per share was $0.00, and non-GAAP diluted net income per share was $0.04[16] - Total revenue for the three months ended January 27, 2024, was $53.058 million, an increase from $44.035 million for the same period last year, representing a growth of 20.0%[25] - Product sales reached $39.975 million, up from $34.247 million year-over-year, indicating a growth of 16.0%[25] - Gross profit for the quarter was $32.558 million, compared to $26.117 million in the prior year, reflecting a gross margin improvement[25] - Operating loss for the quarter was $(5.911) million, an improvement from $(8.875) million in the same quarter last year[25] - Net income for the quarter was $428 thousand, a significant recovery from a net loss of $(6.623) million in the prior year[25] Future Guidance - Revenue guidance for the next quarter is projected between $59.0 million and $62.0 million[16] - Expected GAAP gross margin for the next quarter is between 63.2% and 65.2%, while non-GAAP gross margin is expected to be between 64.0% and 66.0%[16] - Anticipated GAAP operating expenses for the next quarter are between $44.0 million and $46.0 million, with non-GAAP operating expenses expected to be between $33.0 million and $35.0 million[16] Investment and Growth - The company attributes growth to the increasing demand for high-speed and energy-efficient connectivity solutions in the data infrastructure market[16] - Research and development expenses increased to $24.236 million from $21.736 million year-over-year, highlighting continued investment in innovation[25] - Selling, general and administrative expenses rose to $14.233 million, compared to $13.256 million in the same period last year[25] - The company reported a total operating expense of $38.469 million, up from $34.992 million year-over-year[25] - Credo's product families include integrated circuits, Active Electrical Cables, and SerDes Chiplets, optimized for high-speed connectivity solutions[23] - The company anticipates continued growth in the optical and electrical Ethernet applications market, targeting emerging 1.6T port markets[23]

SAN JOSE, Calif., Feb. 12, 2024 (GLOBE NEWSWIRE) -- Credo Technology Group Holding Ltd ("Credo") (NASDAQ:CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved power efficiency, today announced it will hold a conference call on Tuesday, February 27, 2024, at 2:00 p.m. Pacific Time to discuss its financial results for the fiscal third quarter ended January 27, 2024. The news release announcing the third quarter fiscal year 2024 financial results will be disseminated ...