Taxes - Provision for income taxes increased by $1.2 million to $622 thousand for the three months ended August 3, 2024, compared to a benefit of $537 thousand in the same period of fiscal year 2023, representing a 215.8% change[90] Cash and Cash Equivalents - Cash and cash equivalents increased to $103.9 million as of August 3, 2024, up from $66.9 million as of April 27, 2024, while working capital decreased slightly to $472.9 million from $485.6 million[91] - The company believes its existing cash and cash equivalents, along with other working capital components, will be sufficient to meet its needs for at least the next 12 months[92] Operating Activities - Net cash used in operating activities was $7.2 million for the three months ended August 3, 2024, primarily due to $21.5 million in working capital outflows and $9.5 million in net loss, partially offset by $23.8 million in non-cash items[94] Investing Activities - Net cash provided by investing activities was $42.5 million for the three months ended August 3, 2024, driven by $162.1 million in maturities of certificates of deposit, offset by $113.7 million in purchases of certificates of deposit and $5.9 million in property and equipment purchases[97] Financing Activities - Net cash provided by financing activities was $1.6 million for the three months ended August 3, 2024, primarily due to $2.4 million from employee share option exercises and ESPP issuances, offset by $0.8 million in payments for long-term technology license obligations[99] Accounts Receivable - Accounts receivable increased by $12.2 million for the three months ended August 3, 2024, primarily due to large customer billings not yet due[94] Inventory - Inventory increased by $5.4 million for the three months ended August 3, 2024, to support unfulfilled backlog and new product ramps[94] Contract Assets - Contract assets increased by $2.8 million for the three months ended August 3, 2024, due to unmet billing milestones in product engineering services and IP licensing arrangements[95] Accounts Payable - Accounts payable increased by $5.8 million for the three months ended August 3, 2024, due to higher external consultation fees for general and administrative services and R&D[95]

Credo 业绩简评 2024 年 9 月 5 日公司披露 FY25Q1（2024.5~2024.7）业绩，公司 FY25Q1 营收为 5971 万美元，同比增长 70%，GAAP 毛利率为 62.4%， 同比+3.2pcts,环比-3.4pcts，GAAP 净利润为-954 万美元， Non-GAAP毛利率为62.9%，同比+3.1pcts，环比-3.2pcts，Non-GAAP 净利润为 704 万美元，同比实现扭亏。 公司指引 FY25Q2 营收为 6500~6800 万美元，GAAP 毛利率为 61.3%~63.3%，Non-GAAP 毛利率为 62.0%~64.0%。公司预计 FY25H2 环比增速将加速。 经营分析 公司 AEC 产品持续放量，有望实现更多大客户导入。公司本财季 营收占比超 10%的客户有两家，其中首个 AEC 大型云厂商客户营收 占比 10%，第二家 AEC 大型云厂商客户营收占比为 52%，公司预计 该客户 AEC 需求在 FY25 年将有较大爬坡。公司预计 FY25Q2 将有 一个新的客户营收占比超过 10%。目前公司来自微软的收入已经回 到历史水平，公司预计亚马逊将成为公司 ...

Financial Data and Key Metrics Changes - For Q1 fiscal 2025, Credo reported revenue of $59.7 million, down 2% sequentially but up 70% year-over-year [13] - Non-GAAP gross margin was 62.9%, down 323 basis points sequentially due to lower IP contribution [14] - Non-GAAP operating income was $2.2 million, compared to $7.5 million in the previous quarter [15] - Non-GAAP net income was $7 million, down from $11.8 million in the last quarter [15] - Cash flow used in operations was $7.2 million, primarily due to changes in working capital [16] - Ending cash and equivalents were $398.6 million, a decrease of $11.4 million from the previous quarter [16] Business Line Data and Key Metrics Changes - Product revenues reached $57.3 million, up 30% sequentially and 77% year-over-year, establishing a new quarterly record [14] - The AEC product line continued to be the main source of revenue, expected to drive growth in fiscal 2025 and beyond [5][6] - The Optical DSP business is projected to contribute at least 10% of fiscal 2025 revenue, with ongoing customer engagements [7][8] - Line Card PHY business contributed significantly to overall product revenue growth, driven by strong demand for 400 gig and 800 gig solutions [10] - SerDes licensing and chiplet businesses are expected to see growth opportunities, although quarterly variability is anticipated [11] Market Data and Key Metrics Changes - The data center market is evolving rapidly, with increased spending observed from emerging hyperscalers [4][5] - Credo is targeting both leading hyperscalers and the next tier of data center operators, indicating a broadening market focus [4] - The company plans to enter the 64 gig PAM4 PCIe Gen 6 market, optimizing for signal integrity and cost-effectiveness [5] Company Strategy and Development Direction - Credo aims to extend its reach into new markets as data rates rise, particularly in AI deployments [5][12] - The company is focused on maintaining a competitive edge through system-level products that blend customized hardware and software [6] - Future growth is anticipated in the Optical DSP category, with innovations like Linear Receive Optics (LRO) being adopted [8][9] - The company is committed to advancing its range of solutions to meet the growing demand for high-speed connectivity driven by AI [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects of the AEC business, driven by increasing rack power densities and liquid cooling migrations [7] - The company expects an inflection point in the second half of fiscal 2025, supported by existing and new customer engagements [12] - Management highlighted the importance of network quality and reliability in driving customer preferences towards AEC solutions [19][53] Other Important Information - The company ended Q1 with an inventory of $31.6 million, up $5.7 million sequentially [16] - Credo's strategy includes a focus on energy efficiency and power optimization in its product offerings [9][12] Q&A Session All Questions and Answers Question: What are the key drivers for the acceleration in growth in the AEC business? - Management noted broad adoption of AECs, with potential expansion into rack-to-rack connectivity as rack densities increase, leading to a shift towards high reliability solutions [19] Question: What are the market share aspirations for the Optical DSP business? - Management indicated that they are on track to achieve at least 10% of revenue from Optical DSPs in fiscal 2025, with significant growth expected in fiscal 2026 and beyond [21] Question: Can you elaborate on the timing of entering the PCIe market? - Management explained that entering the PCIe Gen 6 market allows them to deliver compelling benefits similar to those in Ethernet, with plans to accelerate to Gen 7 [26] Question: How does the company view the licensing revenue for fiscal 2025? - Management reaffirmed expectations for licensing revenue to be in the long-term range of 10% to 15% for the full year, despite variability in quarterly contributions [35] Question: Can you clarify the contributions from the two 10% customers? - Management confirmed that the first AEC hyperscale customer remained at 10% of revenue, while the second AEC hyperscale customer contributed 62% [50]

Credo Technology Group Holding Ltd. (CRDO) came out with quarterly earnings of $0.04 per share, in line with the Zacks Consensus Estimate. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.07, delivering a surprise of 40%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Credo Technolog ...

Exhibit 99.1 Credo Technology Group Holding Ltd Reports First Quarter of Fiscal Year 2025 Financial Results San Jose, Calif. (September 4, 2024) - Credo Technology Group Holding Ltd (Nasdaq: CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved energy efficiency as data rates and corresponding bandwidth requirements increase through the data infrastructure market, today reported financial results for the first quarter of fiscal year 2025, ended August 3, 2024. Firs ...

SAN JOSE, Calif., Aug. 21, 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: Goldman Sachs Communacopia ...

Erik Isakson Credo Technology (NASDAQ:CRDO) is a leading player in the high-performance connectivity market, with rapid business growth driven by AI and data center expansions. I anticipate that Credo will significantly grow its comprehensive Ethernet connectivity solutions in the near future., doubling its AI related revenue by FY25. I am initiating with a 'Buy' rating with a one-year price target of $35 per share. Leadership in High-Speed Connectivity Market Credo Technology is a pure play in the connecti ...

Revenue and Gross Margin - Revenue for fiscal 2024 increased by $8.8 million primarily due to increases in product engineering services revenue of $9.1 million[534] - Product sales revenue growth was driven by Chiplet and Optical products, offset by a modest decline in AEC products, resulting in a more diverse product mix in fiscal 2024[535] - Gross margin increased by 4.2 percentage points in fiscal 2024, driven by higher product engineering services revenue and improved product sales gross margin from 46.9% to 51.4%[536][537] - Total cost of revenue decreased by 5.7% to $73.5 million in fiscal 2024 compared to $78.0 million in fiscal 2023[565] - Gross profit increased by 12.5% to $119.4 million in fiscal 2024, with gross margin improving to 61.9% from 57.7% in fiscal 2023[565] Expenses - Research and development expenses increased by $18.8 million in fiscal 2024, primarily due to $7.0 million in personnel costs and $8.0 million in share-based compensation[538] - Selling, general and administrative expenses increased by $11.9 million in fiscal 2024, driven by $2.6 million in personnel costs and $7.0 million in share-based compensation[539] - Research and development expenses increased by 24.4% to $95.5 million in fiscal 2024, representing 49.5% of total revenue[565] - Impairment charges decreased by 68.2% to $765,000 in fiscal 2024, representing 0.4% of total revenue[567] - Provision for income taxes increased by $7.0 million in fiscal 2024 due to a full valuation allowance for U.S. deferred tax assets[568] Cash Flow and Financing - Net cash used in investing activities was $130.9 million in fiscal 2023, primarily due to $21.7 million in property and equipment purchases and $159.2 million in certificates of deposit investments[544] - Net cash provided by financing activities was $4.9 million in fiscal 2023, mainly from $5.5 million in proceeds from employee share options and share purchase plans[546] - Net cash used in operating activities was $24.6 million in fiscal 2023, driven by a $16.5 million net loss and $50.4 million in working capital outflows[571] - Net cash used in investing activities was $249.5 million in fiscal 2024, primarily due to $169.8 million in investments in certificates of deposit and $15.7 million in property and equipment purchases[572] - Net cash provided by financing activities was $175.3 million in fiscal 2024, mainly from $173.4 million in proceeds from a follow-on public offering[573] - The company maintains sufficient cash and cash equivalents to meet its needs for at least the next 12 months[569] Inventory and Assets - Inventory totaled $25.9 million as of April 27, 2024, representing 4.3% of total assets, valued at the lower of cost and net realizable value[563] Foreign Exchange and Risk Management - Foreign exchange sensitivity analysis showed that a 10% weakening of the U.S. dollar would increase operating expenses by approximately 2% in fiscal 2024[554] - The company may enter into foreign currency derivatives in the future to hedge against foreign exchange risks[581] Customer Concentration - Two customers accounted for 39% and 15% of total revenue in fiscal 2024, with the top 10 customers representing approximately 86% of total revenue[117]

Financial Data and Key Metrics Changes - In fiscal Q4, the company reported record revenue of $60.8 million, up 15% sequentially and up 89% year-over-year [23][50] - For fiscal year 2024, total revenue reached $193 million, a 5% increase year-over-year, with product revenue growing by 8% [49] - Non-GAAP gross margin for Q4 was 66.1%, exceeding guidance and up 391 basis points sequentially [53] - Non-GAAP operating income was a record $7.5 million in Q4, with an operating margin of 12.3%, a sequential increase of 771 basis points [55] Business Line Data and Key Metrics Changes - The AEC product line continued to lead the market, with significant customer engagement and a transition from concept to a de facto solution in many data centers [24][27] - The Optical DSP products achieved material production revenue, with significant wins at hyperscalers [28] - The SerDes licensing business performed well, with solid results driven by speed and power efficiency [35] Market Data and Key Metrics Changes - Approximately three-quarters of total revenue in Q4 was driven by AI workloads, indicating a strong market demand for high bandwidth and energy-efficient connectivity solutions [20][60] - The company expects AI revenue to double year-over-year from Q4 fiscal 2024 to Q4 fiscal 2025 [60] Company Strategy and Development Direction - The company aims to increase product margins and operating leverage as it scales, focusing on innovative, low-power, customer-centric connectivity solutions [22][38] - The strategy includes deepening customer relationships and enhancing speed-to-market for customized solutions [25][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for AI-related products and the company's ability to capitalize on this trend [37][60] - The company anticipates an inflection point in AEC revenue growth during the second half of fiscal 2025, driven by customer feedback and forecasts [27] Other Important Information - The company ended Q4 with cash and equivalents of $410 million, maintaining a strong capital position for future investments [57] - Non-GAAP operating expenses in Q4 were $32.7 million, reflecting a 7% sequential increase due to R&D and SG&A investments [54] Q&A Session Summary Question: Can you provide details on the revenue mix from your largest customers? - The company had four customers contributing over 10% of revenue in Q4, including two AEC hyperscalers and a large consumer company [64][65] Question: What is the status of the third hyperscaler customer? - The third hyperscaler is engaged in a switch rack program at 50 gig per lane, with additional programs for AI appliance racks at 100 gig per lane expected to ramp in the second half of the fiscal year [70] Question: How is AI revenue expected to grow in the next fiscal year? - AI revenue is expected to double year-over-year, with significant contributions from production scale programs across multiple customers [60][75] Question: What is the outlook for non-AI revenue? - Non-AI revenue is expected to see modest year-over-year growth, with AI programs driving the majority of growth in fiscal 2025 [74] Question: How is the company addressing competition in the AEC market? - The company has not seen significant changes in the competitive environment and continues to focus on being first to deliver and qualify products [45]

What's Next for Credo Technology Group? While Credo Technology Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Credo Technology Group Holding Ltd. (CRDO) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 40%. ...