Credo Technology (CRDO) - 2025 Q1 - Quarterly Report

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]