Workflow
Credo Technology (CRDO) - 2025 Q1 - Quarterly Report
CRDOCredo Technology (CRDO)2024-09-05 21:03
Transcript

Taxes - Provision for income taxes increased by 1.2millionto1.2 million to 622 thousand for the three months ended August 3, 2024, compared to a benefit of 537thousandinthesameperiodoffiscalyear2023,representinga215.8537 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 66.9millionasofApril27,2024,whileworkingcapitaldecreasedslightlyto66.9 million as of April 27, 2024, while working capital decreased slightly to 472.9 million from 485.6million[91]−Thecompanybelievesitsexistingcashandcashequivalents,alongwithotherworkingcapitalcomponents,willbesufficienttomeetitsneedsforatleastthenext12months[92]OperatingActivities−Netcashusedinoperatingactivitieswas485.6 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 21.5millioninworkingcapitaloutflowsand21.5 million in working capital outflows and 9.5 million in net loss, partially offset by 23.8millioninnon−cashitems[94]InvestingActivities−Netcashprovidedbyinvestingactivitieswas23.8 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 162.1millioninmaturitiesofcertificatesofdeposit,offsetby162.1 million in maturities of certificates of deposit, offset by 113.7 million in purchases of certificates of deposit and 5.9millioninpropertyandequipmentpurchases[97]FinancingActivities−Netcashprovidedbyfinancingactivitieswas5.9 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 2.4millionfromemployeeshareoptionexercisesandESPPissuances,offsetby2.4 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 12.2millionforthethreemonthsendedAugust3,2024,primarilyduetolargecustomerbillingsnotyetdue[94]Inventory−Inventoryincreasedby12.2 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 2.8millionforthethreemonthsendedAugust3,2024,duetounmetbillingmilestonesinproductengineeringservicesandIPlicensingarrangements[95]AccountsPayable−Accountspayableincreasedby2.8 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]