Credo Technology (US:CRDO)2024-06-24 21:13Revenue 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]