Credo Technology (CRDO) - 2024 Q3 - Quarterly Results

Financial Performance - Revenue for the third quarter of fiscal year 2024 was $53.1 million, representing a 20% increase quarter over quarter[16] - GAAP gross margin was 61.4%, while non-GAAP gross margin was 62.2%[16] - GAAP operating expenses totaled $38.5 million, with non-GAAP operating expenses at $30.6 million[16] - GAAP net income was $0.4 million, and non-GAAP net income was $6.3 million[16] - GAAP diluted net income per share was $0.00, and non-GAAP diluted net income per share was $0.04[16] - Total revenue for the three months ended January 27, 2024, was $53.058 million, an increase from $44.035 million for the same period last year, representing a growth of 20.0%[25] - Product sales reached $39.975 million, up from $34.247 million year-over-year, indicating a growth of 16.0%[25] - Gross profit for the quarter was $32.558 million, compared to $26.117 million in the prior year, reflecting a gross margin improvement[25] - Operating loss for the quarter was $(5.911) million, an improvement from $(8.875) million in the same quarter last year[25] - Net income for the quarter was $428 thousand, a significant recovery from a net loss of $(6.623) million in the prior year[25] Future Guidance - Revenue guidance for the next quarter is projected between $59.0 million and $62.0 million[16] - Expected GAAP gross margin for the next quarter is between 63.2% and 65.2%, while non-GAAP gross margin is expected to be between 64.0% and 66.0%[16] - Anticipated GAAP operating expenses for the next quarter are between $44.0 million and $46.0 million, with non-GAAP operating expenses expected to be between $33.0 million and $35.0 million[16] Investment and Growth - The company attributes growth to the increasing demand for high-speed and energy-efficient connectivity solutions in the data infrastructure market[16] - Research and development expenses increased to $24.236 million from $21.736 million year-over-year, highlighting continued investment in innovation[25] - Selling, general and administrative expenses rose to $14.233 million, compared to $13.256 million in the same period last year[25] - The company reported a total operating expense of $38.469 million, up from $34.992 million year-over-year[25] - Credo's product families include integrated circuits, Active Electrical Cables, and SerDes Chiplets, optimized for high-speed connectivity solutions[23] - The company anticipates continued growth in the optical and electrical Ethernet applications market, targeting emerging 1.6T port markets[23]