Credo Technology (CRDO) - 2025 Q3 - Quarterly Results

Financial Performance - Credo reported revenue of $135.0 million for Q3 FY2025, representing an 87% increase sequentially and a 154% increase year over year[3]. - GAAP net income for the quarter was $29.4 million, with a GAAP diluted net income per share of $0.16[5]. - Credo's total revenue for the nine months ended February 1, 2025, was $266.8 million, compared to $132.2 million for the same period last year[17]. - GAAP net income for the three months ended February 1, 2025, was $29.360 million, a significant recovery from a net loss of $4.225 million in the previous quarter[22]. - Non-GAAP net income for the same period was $45.378 million, compared to $12.255 million in the previous quarter, showing an increase of 270.5%[22]. Revenue Projections - The company expects Q4 FY2025 revenue to be between $155.0 million and $165.0 million[6]. - The company anticipates continued growth across its product lines and customer base due to increasing market demand for connectivity solutions[3]. Margins and Profitability - GAAP gross margin was 63.6%, while non-GAAP gross margin was 63.8% for the same period[5]. - Projected GAAP gross margin for Q4 FY2025 is expected to range from 62.7% to 64.7%[6]. - GAAP gross profit for the three months ended February 1, 2025, was $85.926 million, up from $45.512 million in the previous quarter, indicating an increase of 88.8%[22]. - Non-GAAP gross profit for the same period was $86.152 million, compared to $45.843 million, reflecting a growth of 88.0%[22]. - GAAP operating income margin improved to 19.4% from a loss margin of 11.7% in the previous quarter[22]. Expenses - Research and development expenses for Q3 FY2025 were $36.3 million, contributing to total operating expenses of $59.7 million[17]. - Non-GAAP operating expenses for the three months ended February 1, 2025, were $43.768 million, compared to $37.587 million in the previous quarter, reflecting a rise of 16.0%[22]. Balance Sheet - Ending cash and short-term investment balance was $379.2 million as of February 1, 2025[5]. - Total assets increased to $719.916 million from $601.932 million, representing a growth of 19.6% year-over-year[20]. - Total current liabilities increased to $80.733 million from $44.620 million, a rise of 80.9% year-over-year[20]. - Total shareholders' equity rose to $618.226 million from $540.198 million, marking an increase of 14.4%[20]. Product Performance - Credo's product line, particularly the AEC products, was a significant driver of revenue growth during the quarter[3].