Latest news with #BillBrennan
Business Wire
6 days ago
- Business
- Business Wire
Credo to Present at 2025 Mizuho Technology Conference
SAN JOSE, Calif.--(BUSINESS WIRE)--Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved reliability and energy efficiency, today announced that Bill Brennan, President and CEO, and Dan Fleming, CFO, are scheduled to present at the following upcoming investor conference. Conference: 2025 Mizuho Technology Conference Time: 1:20 p.m. ET Location: New York City, New York The presentation will be webcast live on Credo's IR website at The webcast replay will be available as soon as possible following the event on Credo's IR website. About Credo Credo's mission is to advance high-speed connectivity solutions that deliver optimized performance, reliability, energy efficiency, and security for the next generation of AI driven applications, cloud computing, and hyperscale networks. Optimized for both optical and electrical applications, our solutions support port speeds up to 1.6Tb. At the core of our technology is our proprietary Serializer/Deserializer (SerDes) IP. Our diverse solutions portfolio includes system-level products such as Active Electrical Cables (AECs), a range of Integrated Circuits, including Retimers, Optical DSPs, SerDes chiplets, and SerDes IP Licensing. For more information, please visit Follow Credo on LinkedIn.
Globe and Mail
7 days ago
- Business
- Globe and Mail
Why Credo Technology Stock Exploded Higher Today
Shares of San Jose-based high-speed connectivity solutions provider Credo Technology Group (NASDAQ: CRDO) stock jumped 24.5% through 10:10 a.m. ET this morning after beating analyst forecasts last night. Heading into its fiscal fourth quarter of 2025, analysts forecast Credo would earn only $0.27 per share on less than $160 million in sales. In fact, Credo reported last night, it earned $0.35 per share, adjusted for one-time items, and sales were $170 million, for the period ended May 3. Credo's Q4 earnings Not all the news is good. Sales surged nearly 180% year over year, which is great. Earnings as calculated according to generally accepted accounting principles (GAAP) were up only 25%, however, despite the impressive "adjusted" earnings beat. Actual GAAP profits for the quarter were only $0.20 -- not $0.35. Still, CEO Bill Brennan said he was "proud" of the company's achievements in 2025. For the full year, sales grew 126%, while cost of revenue grew only 109%, improving the company's gross profit margin. And operating costs grew only 57%, improving the company's operating profit margin even more. For both the quarter and the year, Credo flipped from operating and net losses to operating and net profits. GAAP profit for the year was $0.29 per share. Is Credo stock a buy? So no wonder investors are pleased. And it didn't hurt that Credo guided investors to expect further sales growth (about $190 million, triple last year's Q1 sales) and a further improved gross margin (about 64.5%) in fiscal Q1 2026, currently underway. At a valuation of more than 260 times trailing earnings, Credo stock is anything but a cheap stock. But if it keeps growing sales at its current pace, and expanding profit margins besides, this stock could still be a good growth stock -- and a buy. Should you invest $1,000 in Credo Technology Group right now? Before you buy stock in Credo Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Credo Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor 's total average return is987% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Yahoo
7 days ago
- Business
- Yahoo
Why Credo Technology Stock Exploded Higher Today
Credo Technology nearly tripled its sales last quarter, crushing earnings forecasts. Sales are growing, and costs are growing slower, yielding improved profit margins. 10 stocks we like better than Credo Technology Group › Shares of San Jose-based high-speed connectivity solutions provider Credo Technology Group (NASDAQ: CRDO) stock jumped 24.5% through 10:10 a.m. ET this morning after beating analyst forecasts last night. Heading into its fiscal fourth quarter of 2025, analysts forecast Credo would earn only $0.27 per share on less than $160 million in sales. In fact, Credo reported last night, it earned $0.35 per share, adjusted for one-time items, and sales were $170 million, for the period ended May 3. Not all the news is good. Sales surged nearly 180% year over year, which is great. Earnings as calculated according to generally accepted accounting principles (GAAP) were up only 25%, however, despite the impressive "adjusted" earnings beat. Actual GAAP profits for the quarter were only $0.20 -- not $0.35. Still, CEO Bill Brennan said he was "proud" of the company's achievements in 2025. For the full year, sales grew 126%, while cost of revenue grew only 109%, improving the company's gross profit margin. And operating costs grew only 57%, improving the company's operating profit margin even more. For both the quarter and the year, Credo flipped from operating and net losses to operating and net profits. GAAP profit for the year was $0.29 per share. So no wonder investors are pleased. And it didn't hurt that Credo guided investors to expect further sales growth (about $190 million, triple last year's Q1 sales) and a further improved gross margin (about 64.5%) in fiscal Q1 2026, currently underway. At a valuation of more than 260 times trailing earnings, Credo stock is anything but a cheap stock. But if it keeps growing sales at its current pace, and expanding profit margins besides, this stock could still be a good growth stock -- and a buy. Before you buy stock in Credo Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Credo Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Credo Technology Stock Exploded Higher Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
Credo Technology Group Holding Ltd Reports Fourth Quarter and Fiscal Year 2025 Financial Results
SAN JOSE, Calif., June 02, 2025--(BUSINESS WIRE)--Credo Technology Group Holding Ltd (Nasdaq: CRDO) ("Credo"), an innovator in providing secure, high-speed connectivity solutions that deliver improved reliability and energy efficiency as data rates and corresponding bandwidth requirements increase throughout the data infrastructure market, today reported financial results for the fourth quarter and full fiscal year 2025, ended May 3, 2025. Fourth Quarter of Fiscal Year 2025 Financial Highlights Revenue of $170.0 million grew by 25.9% quarter over quarter and 179.7% year over year GAAP gross margin of 67.2% and non-GAAP gross margin of 67.4% GAAP operating expenses of $80.4 million and non-GAAP operating expenses of $52.0 million GAAP net income of $36.6 million and non-GAAP net income of $65.3 million GAAP diluted net income per share of $0.20 and non-GAAP diluted net income per share of $0.35 Ending cash and short-term investment balance of $431.3 million Management Commentary Bill Brennan, Credo's President and Chief Executive Officer, stated, "I'm proud of Credo's achievements in fiscal 2025. For the year, the Company delivered record-breaking financial results, with revenue up 126% year over year to $436.8 million. The Company's results were fueled by surging demand for our innovative, reliable, and energy-efficient high-performance connectivity solutions. We continue to see growing demand for our solutions across hyperscaler customers to power advanced AI services, a trend we believe will persist for the foreseeable future." First Quarter of Fiscal Year 2026 Financial Outlook Revenue is expected to be between $185.0 million and $195.0 million GAAP gross margin is expected to be between 63.4% and 65.4%, and non-GAAP gross margin is expected to be between 64.0% and 66.0% GAAP operating expenses are expected to be between $88.3 million and $90.3 million, and non-GAAP operating expenses are expected to be between $54.0 million and $56.0 million Webcast and Conference Call Information Credo will conduct a conference call on Monday, June 2, 2025, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter and fiscal year 2025, ended May 3, 2025. Interested parties may join the conference call by dialing 888-596-4144 (toll-free) or +1 646-968-2525 (international). The conference ID for the call is 5251802. It is recommended that participants register and dial in for the call at least 10 minutes before the start of the call. 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. Reconciliation of these non-GAAP measures to their comparable GAAP measures is included below. This non-GAAP information should not be construed as an alternative to the reported results determined in accordance with GAAP. Non-GAAP financial measures exclude the effect of share-based compensation expenses, asset impairment and related charges (if applicable), and the related tax effect adjustment to the provision for income taxes. Credo uses a full-year non-GAAP tax rate to compute the non-GAAP tax provision. This full-year non-GAAP tax rate is based on Credo's annual GAAP income, adjusted to exclude non-GAAP items, as well as the effects of significant non-recurring and period-specific tax items which vary in size and frequency. Credo's non-GAAP tax rate is determined on an annual basis and may be adjusted during the year to take into account events that may materially affect the non-GAAP tax rate, such as tax law changes, significant changes in Credo's geographic mix of revenue and expenses or changes to Credo's corporate structure. GAAP diluted net income (loss) per share is calculated using basic weighted average shares outstanding when there is a GAAP net loss, and calculated using diluted weighted average shares outstanding when there is a GAAP net income. Non-GAAP diluted net income (loss) per share is calculated using basic weighted average shares outstanding when there is a non-GAAP net loss, and calculated using non-GAAP diluted weighted average shares outstanding when there is a non-GAAP net income. Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of share-based compensation expenses expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. Credo believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Credo's financial condition and results of operations. While Credo uses non-GAAP financial measures as a tool to enhance its understanding of certain aspects of its financial performance, Credo does not consider these measures to be a substitute for, or superior to, financial measures calculated in accordance with GAAP. Consistent with this approach, Credo believes that disclosing non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance. Externally, management believes that investors may find Credo's non-GAAP financial measures useful in their assessment of Credo's operating performance and the valuation of Credo. Internally, Credo's non-GAAP financial measures are used in the following areas: Management's evaluation of Credo's operating performance; Management's establishment of internal operating budgets; and Management's performance comparisons with internal forecasts and targeted business models. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of Credo's business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of Credo's results as reported under GAAP. The exclusion of the above items from our GAAP financial metrics does not necessarily mean that these costs are unusual or infrequent. Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to, any statements regarding: launches of new or expansion of existing products or services; technology developments and innovation; our plans, strategies or objectives with respect to future operations; financial outlook; future financial results; expectations regarding the markets and industries in which Credo conducts business; and assumptions underlying any of the foregoing. Words such as "anticipates," "expects," "intends," "plans," "projects," "believes," "seeks," "estimates," "can," "may," "will," "would," "outlook," "forecast," "targets" and similar expressions, or their negatives, may identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that may cause actual events or results to differ materially from those described in this press release. Readers are encouraged to review risk factors and all other disclosures appearing in Credo's Annual Report on Form 10-K as filed with the Securities and Exchange Commission (SEC) on June 24, 2024, as well as Credo's other filings with the SEC, for further information on risks and uncertainties that could affect Credo's business, financial condition and results of operation. Copies of these filings are available from the SEC, Credo's website or Credo's investor relations department. Forward-looking statements speak only as of the date they are made. Credo assumes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date herein. About Credo At Credo, our mission is to redefine high-speed connectivity by delivering breakthrough solutions that enable the next generation of AI-driven applications. We are committed to enabling faster, more reliable, more energy-efficient, and scalable solutions that support the ever-expanding demands of AI, cloud computing, and hyperscale networks. Our connectivity solutions are optimized for optical and electrical Ethernet applications, including the 100G (or Gigabits per second), 200G, 400G, 800G and emerging 1.6T (or Terabits per second) port markets. Our products are based on our proprietary Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. Our product families include integrated circuits (ICs), Active Electrical Cables (AECs) and SerDes Chiplets. Our intellectual property (IP) solutions consist primarily of SerDes IP licensing. For more information, please visit Follow Credo on LinkedIn. Credo and the Credo logo are registered trademarks of Credo Technology Group Limited in the United States and other jurisdictions. All other trademarks referenced herein are the property of their respective owners. Credo Technology Group Holding Ltd Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three Months Ended Year Ended May 3,2025 February 1,2025 April 27,2024 May 3,2025 April 27,2024 Revenue: Product sales $ 164,524 $ 129,371 $ 40,798 $ 412,177 $ 145,048 Product engineering services 1,337 2,667 3,341 12,122 19,898 IP license 4,164 2,964 16,643 12,476 28,024 Total revenue 170,025 135,002 60,782 436,775 192,970 Cost of revenue: Cost of product sales revenue 55,779 48,835 20,372 152,381 70,498 Cost of product engineering services revenue 58 233 290 1,314 2,225 Cost of IP license revenue — 8 154 171 816 Total cost of revenue 55,837 49,076 20,816 153,866 73,539 Gross profit 114,188 85,926 39,966 282,909 119,431 Operating expenses: Research and development 47,582 36,261 26,921 145,994 95,531 Selling, general and administrative 31,945 23,471 20,161 98,918 60,193 Impairment charges 873 — 765 873 765 Total operating expenses 80,400 59,732 47,847 245,785 156,489 Operating income (loss) 33,788 26,194 (7,881 ) 37,124 (37,058 ) Other income, net 3,821 3,918 5,163 17,746 14,313 Income (loss) before income taxes 37,609 30,112 (2,718 ) 54,870 (22,745 ) Provision for income taxes 1,021 752 7,759 2,687 5,624 Net income (loss) $ 36,588 $ 29,360 $ (10,477 ) $ 52,183 $ (28,369 ) Net income (loss) per share: Basic $ 0.21 $ 0.17 $ (0.06 ) $ 0.31 $ (0.18 ) Diluted $ 0.20 $ 0.16 $ (0.06 ) $ 0.29 $ (0.18 ) Weighted average shares used in computing net income (loss) per share: Basic 170,405 168,167 163,677 167,505 155,091 Diluted 182,119 182,464 163,677 181,158 155,091 Credo Technology Group Holding Ltd Condensed Consolidated Balance Sheets (Unaudited) (In thousands) May 3, 2025 April 27, 2024 Assets Current assets: Cash and cash equivalents $ 236,328 $ 66,942 Short-term investments 195,010 343,061 Accounts receivable 162,144 59,662 Inventories 90,029 25,907 Other current assets 30,023 34,693 Total current assets 713,534 530,265 Property and equipment, net 63,631 43,665 Right-of-use assets 15,234 13,077 Other non-current assets 16,858 14,925 Total assets $ 809,257 $ 601,932 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 56,158 $ 13,417 Accrued compensation and benefits 16,097 9,000 Other current liabilities 35,456 22,203 Total current liabilities 107,711 44,620 Non-current operating lease liabilities 12,693 11,133 Other non-current liabilities 7,271 5,981 Total liabilities 127,675 61,734 Shareholders' equity: Ordinary shares 8 8 Additional paid-in capital 765,173 676,054 Accumulated other comprehensive loss (437 ) (519 ) Accumulated deficit (83,162 ) (135,345 ) Total shareholders' equity 681,582 540,198 Total liabilities and shareholders' equity $ 809,257 $ 601,932 Credo Technology Group Holding Ltd Reconciliations from GAAP to Non-GAAP Results (Unaudited) (In thousands, except percentages and per share amounts) Three Months Ended Year Ended May 3,2025 February 1,2025 April 27,2024 May 3,2025 April 27,2024 GAAP gross profit $ 114,188 $ 85,926 $ 39,966 $ 282,909 $ 119,431 Reconciling item: Share-based compensation 356 226 234 1,194 1,131 Total reconciling item 356 226 234 1,194 1,131 Non-GAAP gross profit (A) $ 114,544 $ 86,152 $ 40,200 $ 284,103 $ 120,562 GAAP gross margin 67.2 % 63.6 % 65.8 % 64.8 % 61.9 % Non-GAAP gross margin 67.4 % 63.8 % 66.1 % 65.0 % 62.5 % Total GAAP operating expenses $ 80,400 $ 59,732 $ 47,847 $ 245,785 $ 156,489 Reconciling items: Share-based compensation (27,506 ) (15,964 ) (14,344 ) (76,161 ) (37,891 ) Impairment and related charges (873 ) — (765 ) (873 ) (765 ) Total reconciling items (28,379 ) (15,964 ) (15,109 ) (77,034 ) (38,656 ) Total Non-GAAP operating expenses (B) $ 52,021 $ 43,768 $ 32,738 $ 168,751 $ 117,833 GAAP operating income (loss) $ 33,788 $ 26,194 $ (7,881 ) $ 37,124 $ (37,058 ) Non-GAAP operating income (A-B) $ 62,523 $ 42,384 $ 7,462 $ 115,352 $ 2,729 GAAP operating income (loss) margin 19.9 % 19.4 % (13.0 )% 8.5 % (19.2 )% Non-GAAP operating income margin 36.8 % 31.4 % 12.3 % 26.4 % 1.4 % GAAP net income (loss) $ 36,588 $ 29,360 $ (10,477 ) $ 52,183 $ (28,369 ) Reconciling items: Share-based compensation 27,862 16,190 14,578 77,355 39,022 Impairment and related charges 873 — 765 873 765 Pre-tax total reconciling items 28,735 16,190 15,343 78,228 39,787 Other income tax effects and adjustments (69 ) (172 ) 6,940 (485 ) 3,152 Non-GAAP net income $ 65,254 $ 45,378 $ 11,806 $ 129,926 $ 14,570 GAAP weighted average shares - basic 170,405 168,167 163,677 167,505 155,091 GAAP weighted average shares - diluted 182,119 182,464 163,677 181,158 155,091 Non-GAAP adjustment 4,824 2,028 15,463 3,486 15,053 Non-GAAP weighted average shares - diluted 186,943 184,492 179,140 184,644 170,143 GAAP diluted net income (loss) per share $ 0.20 $ 0.16 $ (0.06 ) $ 0.29 $ (0.18 ) Non-GAAP diluted net income per share $ 0.35 $ 0.25 $ 0.07 $ 0.70 $ 0.09 Credo Technology Group Holding Ltd Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates (In millions, except percentages) Three Months EndedAugust 2, 2025 Low High GAAP gross margin 63.4 % 65.4 % Reconciling item: Share-based compensation 0.6 % 0.6 % Total reconciling item 0.6 % 0.6 % Non-GAAP gross margin 64.0 % 66.0 % Total GAAP operating expenses $ 88.3 $ 90.3 Reconciling item: Share-based compensation 34.3 34.3 Total reconciling item 34.3 34.3 Total non-GAAP operating expenses $ 54.0 $ 56.0 View source version on Contacts Investor Contact: Dan O' Media Contact: Diane Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
02-06-2025
- Business
- Business Wire
Credo Technology Group Holding Ltd Reports Fourth Quarter and Fiscal Year 2025 Financial Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Credo Technology Group Holding Ltd (Nasdaq: CRDO) ('Credo'), an innovator in providing secure, high-speed connectivity solutions that deliver improved reliability and energy efficiency as data rates and corresponding bandwidth requirements increase throughout the data infrastructure market, today reported financial results for the fourth quarter and full fiscal year 2025, ended May 3, 2025. Fourth Quarter of Fiscal Year 2025 Financial Highlights Revenue of $170.0 million grew by 25.9% quarter over quarter and 179.7% year over year GAAP gross margin of 67.2% and non-GAAP gross margin of 67.4% GAAP operating expenses of $80.4 million and non-GAAP operating expenses of $52.0 million GAAP net income of $36.6 million and non-GAAP net income of $65.3 million GAAP diluted net income per share of $0.20 and non-GAAP diluted net income per share of $0.35 Ending cash and short-term investment balance of $431.3 million Management Commentary Bill Brennan, Credo's President and Chief Executive Officer, stated, 'I'm proud of Credo's achievements in fiscal 2025. For the year, the Company delivered record-breaking financial results, with revenue up 126% year over year to $436.8 million. The Company's results were fueled by surging demand for our innovative, reliable, and energy-efficient high-performance connectivity solutions. We continue to see growing demand for our solutions across hyperscaler customers to power advanced AI services, a trend we believe will persist for the foreseeable future.' First Quarter of Fiscal Year 2026 Financial Outlook Revenue is expected to be between $185.0 million and $195.0 million GAAP gross margin is expected to be between 63.4% and 65.4%, and non-GAAP gross margin is expected to be between 64.0% and 66.0% GAAP operating expenses are expected to be between $88.3 million and $90.3 million, and non-GAAP operating expenses are expected to be between $54.0 million and $56.0 million Webcast and Conference Call Information Credo will conduct a conference call on Monday, June 2, 2025, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter and fiscal year 2025, ended May 3, 2025. Interested parties may join the conference call by dialing 888-596-4144 (toll-free) or +1 646-968-2525 (international). The conference ID for the call is 5251802. It is recommended that participants register and dial in for the call at least 10 minutes before the start of the call. 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. Reconciliation of these non-GAAP measures to their comparable GAAP measures is included below. This non-GAAP information should not be construed as an alternative to the reported results determined in accordance with GAAP. Non-GAAP financial measures exclude the effect of share-based compensation expenses, asset impairment and related charges (if applicable), and the related tax effect adjustment to the provision for income taxes. Credo uses a full-year non-GAAP tax rate to compute the non-GAAP tax provision. This full-year non-GAAP tax rate is based on Credo's annual GAAP income, adjusted to exclude non-GAAP items, as well as the effects of significant non-recurring and period-specific tax items which vary in size and frequency. Credo's non-GAAP tax rate is determined on an annual basis and may be adjusted during the year to take into account events that may materially affect the non-GAAP tax rate, such as tax law changes, significant changes in Credo's geographic mix of revenue and expenses or changes to Credo's corporate structure. GAAP diluted net income (loss) per share is calculated using basic weighted average shares outstanding when there is a GAAP net loss, and calculated using diluted weighted average shares outstanding when there is a GAAP net income. Non-GAAP diluted net income (loss) per share is calculated using basic weighted average shares outstanding when there is a non-GAAP net loss, and calculated using non-GAAP diluted weighted average shares outstanding when there is a non-GAAP net income. Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of share-based compensation expenses expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. Credo believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Credo's financial condition and results of operations. While Credo uses non-GAAP financial measures as a tool to enhance its understanding of certain aspects of its financial performance, Credo does not consider these measures to be a substitute for, or superior to, financial measures calculated in accordance with GAAP. Consistent with this approach, Credo believes that disclosing non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance. Externally, management believes that investors may find Credo's non-GAAP financial measures useful in their assessment of Credo's operating performance and the valuation of Credo. Internally, Credo's non-GAAP financial measures are used in the following areas: Management's evaluation of Credo's operating performance; Management's establishment of internal operating budgets; and Management's performance comparisons with internal forecasts and targeted business models. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of Credo's business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of Credo's results as reported under GAAP. The exclusion of the above items from our GAAP financial metrics does not necessarily mean that these costs are unusual or infrequent. Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to, any statements regarding: launches of new or expansion of existing products or services; technology developments and innovation; our plans, strategies or objectives with respect to future operations; financial outlook; future financial results; expectations regarding the markets and industries in which Credo conducts business; and assumptions underlying any of the foregoing. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'projects,' 'believes,' 'seeks,' 'estimates,' 'can,' 'may,' 'will,' 'would,' 'outlook,' 'forecast,' 'targets' and similar expressions, or their negatives, may identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that may cause actual events or results to differ materially from those described in this press release. Readers are encouraged to review risk factors and all other disclosures appearing in Credo's Annual Report on Form 10-K as filed with the Securities and Exchange Commission (SEC) on June 24, 2024, as well as Credo's other filings with the SEC, for further information on risks and uncertainties that could affect Credo's business, financial condition and results of operation. Copies of these filings are available from the SEC, Credo's website or Credo's investor relations department. Forward-looking statements speak only as of the date they are made. Credo assumes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date herein. About Credo At Credo, our mission is to redefine high-speed connectivity by delivering breakthrough solutions that enable the next generation of AI-driven applications. We are committed to enabling faster, more reliable, more energy-efficient, and scalable solutions that support the ever-expanding demands of AI, cloud computing, and hyperscale networks. Our connectivity solutions are optimized for optical and electrical Ethernet applications, including the 100G (or Gigabits per second), 200G, 400G, 800G and emerging 1.6T (or Terabits per second) port markets. Our products are based on our proprietary Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. Our product families include integrated circuits (ICs), Active Electrical Cables (AECs) and SerDes Chiplets. Our intellectual property (IP) solutions consist primarily of SerDes IP licensing. For more information, please visit Follow Credo on LinkedIn. Credo and the Credo logo are registered trademarks of Credo Technology Group Limited in the United States and other jurisdictions. All other trademarks referenced herein are the property of their respective owners. Credo Technology Group Holding Ltd Condensed Consolidated Balance Sheets (Unaudited) (In thousands) May 3, 2025 April 27, 2024 Assets Current assets: Cash and cash equivalents $ 236,328 $ 66,942 Short-term investments 195,010 343,061 Accounts receivable 162,144 59,662 Inventories 90,029 25,907 Other current assets 30,023 34,693 Total current assets 713,534 530,265 Property and equipment, net 63,631 43,665 Right-of-use assets 15,234 13,077 Other non-current assets 16,858 14,925 Total assets $ 809,257 $ 601,932 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 56,158 $ 13,417 Accrued compensation and benefits 16,097 9,000 Other current liabilities 35,456 22,203 Total current liabilities 107,711 44,620 Non-current operating lease liabilities 12,693 11,133 Other non-current liabilities 7,271 5,981 Total liabilities 127,675 61,734 Shareholders' equity: Ordinary shares 8 8 Additional paid-in capital 765,173 676,054 Accumulated other comprehensive loss (437 ) (519 ) Accumulated deficit (83,162 ) (135,345 ) Total shareholders' equity 681,582 540,198 Total liabilities and shareholders' equity $ 809,257 $ 601,932 Expand Credo Technology Group Holding Ltd (In thousands, except percentages and per share amounts) Three Months Ended Year Ended May 3, 2025 February 1, 2025 April 27, 2024 May 3, 2025 April 27, 2024 GAAP gross profit $ 114,188 $ 85,926 $ 39,966 $ 282,909 $ 119,431 Reconciling item: Share-based compensation 356 226 234 1,194 1,131 Total reconciling item 356 226 234 1,194 1,131 Non-GAAP gross profit (A) $ 114,544 $ 86,152 $ 40,200 $ 284,103 $ 120,562 GAAP gross margin 67.2 % 63.6 % 65.8 % 64.8 % 61.9 % Non-GAAP gross margin 67.4 % 63.8 % 66.1 % 65.0 % 62.5 % Total GAAP operating expenses $ 80,400 $ 59,732 $ 47,847 $ 245,785 $ 156,489 Reconciling items: Share-based compensation (27,506 ) (15,964 ) (14,344 ) (76,161 ) (37,891 ) Impairment and related charges (873 ) — (765 ) (873 ) (765 ) Total reconciling items (28,379 ) (15,964 ) (15,109 ) (77,034 ) (38,656 ) Total Non-GAAP operating expenses (B) $ 52,021 $ 43,768 $ 32,738 $ 168,751 $ 117,833 GAAP operating income (loss) $ 33,788 $ 26,194 $ (7,881 ) $ 37,124 $ (37,058 ) Non-GAAP operating income (A-B) $ 62,523 $ 42,384 $ 7,462 $ 115,352 $ 2,729 GAAP operating income (loss) margin 19.9 % 19.4 % (13.0 )% 8.5 % (19.2 )% Non-GAAP operating income margin 36.8 % 31.4 % 12.3 % 26.4 % 1.4 % GAAP net income (loss) $ 36,588 $ 29,360 $ (10,477 ) $ 52,183 $ (28,369 ) Reconciling items: Share-based compensation 27,862 16,190 14,578 77,355 39,022 Impairment and related charges 873 — 765 873 765 Pre-tax total reconciling items 28,735 16,190 15,343 78,228 39,787 Other income tax effects and adjustments (69 ) (172 ) 6,940 (485 ) 3,152 Non-GAAP net income $ 65,254 $ 45,378 $ 11,806 $ 129,926 $ 14,570 GAAP weighted average shares - basic 170,405 168,167 163,677 167,505 155,091 GAAP weighted average shares - diluted 182,119 182,464 163,677 181,158 155,091 Non-GAAP adjustment 4,824 2,028 15,463 3,486 15,053 Non-GAAP weighted average shares - diluted 186,943 184,492 179,140 184,644 170,143 GAAP diluted net income (loss) per share $ 0.20 $ 0.16 $ (0.06 ) $ 0.29 $ (0.18 ) Non-GAAP diluted net income per share $ 0.35 $ 0.25 $ 0.07 $ 0.70 $ 0.09 Expand Three Months Ended Low High GAAP gross margin 63.4 % 65.4 % Reconciling item: Share-based compensation 0.6 % 0.6 % Total reconciling item 0.6 % 0.6 % Non-GAAP gross margin 64.0 % 66.0 % Total GAAP operating expenses $ 88.3 $ 90.3 Reconciling item: Share-based compensation 34.3 34.3 Total reconciling item 34.3 34.3 Total non-GAAP operating expenses $ 54.0 $ 56.0 Expand
