Investor Relations Contact: Dan O’NeilIR@credosemi.com Credo Technology Group Holding Ltd Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three Months Ended Six Months Ended November 2,2024 August 3,2024 October 28,2023 November 2,2024 October 28,2023Revenue: Product sales$64,443 $53,839 $34,247 $118,282 $64,275 Product engineering services 4,632 3,486 2,434 8,118 4,727 IP license 2,959 2,389 7,354 5,348 10,128 Total revenue 72,034 59,714 44,035 131,748 79,130 Cost of revenue: Cost of product sales revenue 25,883 21,884 17,346 47,767 31,214 Cost of product engineering services revenue 571 452 171 1,023 464 Cost of IP license revenue 68 95 401 163 545 Total cost of revenue 26,522 22,431 17,918 48,953 32,223 Gross profit 45,512 37,283 26,117 82,795 46,907 Operating expenses: Research and development 31,742 30,409 21,736 62,151 44,374 Selling, general and administrative 22,177 21,325 13,256 43,502 25,799 Total operating expenses 53,919 51,734 34,992 105,653 70,173 Operating loss (8,407) (14,451) (8,875) (22,858) (23,266)Other income, net 4,474 5,533 2,702 10,007 4,859 Loss before income taxes (3,933) (8,918) (6,173) (12,851) (18,407)Provision (benefit) for income taxes 292 622 450 914 (87)Net loss$(4,225) $(9,540) $(6,623) $(13,765) $(18,320)Net loss per share: Basic and diluted$(0.03) $(0.06) $(0.04) $(0.08) $(0.12)Weighted-average shares used in computing net loss per share: Basic and diluted 166,487 165,140 150,232 165,789 149,755 Credo Technology Group Holding Ltd Condensed Consolidated Balance Sheets (Unaudited) (In thousands) November 2,2024 April 27,2024AssetsCurrent assets: Cash and cash equivalents$239,237 $66,942 Short-term investments 143,716 343,061 Accounts receivable 81,776 59,662 Inventories 36,313 25,907 Contract assets 19,977 21,562 Prepaid expenses and other current assets 17,233 13,131 Total current assets 538,252 530,265 Property and equipment, net 68,226 43,665 Right of use assets 15,190 13,077 Other non-current assets 16,883 14,925 Total assets$638,551 $601,932 Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable$13,026 $13,417 Accrued compensation and benefits 9,182 9,000 Accrued expenses and other current liabilities 25,390 18,301 Deferred revenue 2,047 3,902 Total current liabilities 49,645 44,620 Non-current operating lease liabilities 12,945 11,133 Other non-current liabilities 8,054 5,981 Total liabilities 70,644 61,734 Shareholders' equity: Ordinary shares 8 8 Additional paid in capital 717,319 676,054 Accumulated other comprehensive loss (310) (519)Accumulated deficit (149,110) (135,345)Total shareholders' equity 567,907 540,198 Total liabilities and shareholders' equity$638,551 $601,932 Credo Technology Group Holding Ltd Reconciliations from GAAP to Non-GAAP (Unaudited) (In thousands, except percentages and per share amounts) Three Months Ended Six Months Ended November 2,2024 August 3,2024 October 28,2023 November 2,2024 October 28,2023GAAP gross profit$45,512 $37,283 $26,117 $82,795 $46,907 Reconciling item: Share-based compensation 331 281 250 612 439 Total reconciling item: 331 281 250 612 439 Non-GAAP gross profit (A)$45,843 $37,564 $26,367 $83,407 $47,346 GAAP gross margin 63.2% 62.4% 59.3% 62.8% 59.3%Non-GAAP gross margin 63.6% 62.9% 59.9% 63.3% 59.8% Total GAAP operating expenses$53,919 $51,734 $34,992 $105,653 $70,173 Reconciling item: Share-based compensation (16,332) (16,359) (7,894) (32,691) (15,673)Total reconciling item: (16,332) (16,359) (7,894) (32,691) (15,673)Total Non-GAAP operating expenses (B)$37,587 $35,375 $27,098 $72,962 $54,500 GAAP operating loss$(8,407) $(14,451) $(8,875) $(22,858) $(23,266)Non-GAAP operating income (loss) (A-B)$8,256 $2,189 $(731) $10,445 $(7,154) GAAP operating loss margin(11.7)% (24.2)% (20.2)% (17.3)% (29.4)%Non-GAAP operating income (loss) margin 11.5% 3.7% (1.7)% 7.9% (9.0)% GAAP net loss$(4,225) $(9,540) $(6,623) $(13,765) $(18,320)Reconciling items: Share-based compensation 16,663 16,640 8,144 33,303 16,112 Pre-tax total reconciling item 16,663 16,640 8,144 33,303 16,112 Other income tax effects and adjustments (183) (61) (358) (244) (1,350)Non-GAAP net income (loss)$12,255 $7,039 $1,163 $19,294 $(3,558) GAAP weighted-average shares - basic 166,487 165,140 150,232 165,789 149,755 GAAP weighted-average shares - diluted 166,487 165,140 150,232 165,789 149,755 Non-GAAP adjustment 15,769 15,894 14,664 16,087 — Non-GAAP weighted-average shares - diluted 182,256 181,034 164,896 181,876 149,755 GAAP diluted net income (loss) per share$(0.03) $(0.06) $(0.04) $(0.08) $(0.12)Non-GAAP diluted net income (loss) per share$0.07 $0.04 $0.01 $0.11 $(0.02) Credo Technology Group Holding Ltd Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates(In millions, except percentages) Outlook for Three MonthsEnding February 1, 2025 Low High GAAP gross margin 60.6% 62.6%Reconciling item: Share-based compensation 0.4% 0.4%Total reconciling item: 0.4% 0.4%Non-GAAP gross margin 61.0% 63.0% Total GAAP operating expenses$58.6 $60.6 Reconciling item: Share-based compensation 16.6 16.6 Total reconciling item: 16.6 16.6 Total Non-GAAP operating expenses$42.0 $44.
Second Quarter of Fiscal Year 2025 Financial Highlights Revenue of $72.0 million, grew by 20.6% quarter over quarter and 63.6% year over yearGAAP gross margin of 63.2% and non-GAAP gross margin of 63.6% GAAP operating expenses of $53.9 million and non-GAAP operating expenses of $37.6 millionGAAP net loss of $(4.2) million and non-GAAP net income of $12.3 millionGAAP diluted net loss per share of $(0.03) and non-GAAP diluted net income per share of $0.07Ending cash and short-term investment balance of $383.0 million Management Commentary Bill Brennan, Credo’s President and Chief Executive Officer, stated, "In the fiscal second quarter ended November 2, 2024 Credo generated record revenue of $72.0 million, up 21% sequentially and 64% year over year.
A live webcast of the conference call will be available on Credo’s Investor Relations website at A replay of the webcast will be available via the web at Discussion of Non-GAAP Financial Measures This press release contains references to the non-GAAP financial measures of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating income (loss) margin, non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share.
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Author / Journalist: Credo Technology Group Holding Ltd
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