Credo Technology Group Holding Ltd (NASDAQ: CRDO) has reported its financial results for the first quarter of fiscal year 2025, ended August 3, 2024. The company's revenue stood at $59.7 million, marking a significant 70% increase year over year. Notably, the GAAP gross margin was reported at 62.4%, while the non-GAAP gross margin was slightly higher at 62.9%.
In terms of operating expenses, the GAAP figure amounted to $51.7 million, while the non-GAAP operating expenses were notably lower at $35.4 million. The company reported a GAAP net loss of $(9.5) million, but on a non-GAAP basis, it achieved a net income of $7.0 million. This translated to a GAAP diluted net loss per share of $(0.06), whereas the non-GAAP diluted net income per share was $0.04.
Credo's ending cash and short-term investment balance stood at $398.6 million, indicating a solid financial position.
Looking ahead, the company provided its financial outlook for the second quarter of fiscal 2025, expecting revenue to be between $65.0 million and $68.0 million. The projected GAAP gross margin is set to range between 61.3% and 63.3%, with non-GAAP gross margin anticipated to be between 62.0% and 64.0%. Moreover, the estimated GAAP operating expenses are between $51.3 million and $53.3 million, whereas non-GAAP operating expenses are expected to range from $36.0 million to $38.0 million.
Credo's president and chief executive officer, Bill Brennan, attributed the strong performance to the record product revenues of $57.3 million, representing a 30% increase compared to the prior quarter. He emphasized the pivotal role of customers’ AI infrastructure deployments in driving the company's recent and anticipated growth.
Following these announcements, the company's shares moved -1.0%, and are now trading at a price of $31.3. For the full picture, make sure to review Credo Technology's 8-K report.
