Credo Technology Group Holding Ltd has recently released its 10-Q report, providing an insight into its financial performance for the quarter ended August 3, 2024. The company, based in Grand Cayman, Cayman Islands, specializes in providing high-speed connectivity solutions for optical and electrical Ethernet applications in various markets, including the United States, Taiwan, Mainland China, and Hong Kong. Its product range includes HiWire active electrical cables, optical digital signal processors, low-power line card PHY, serializer/deserializer (SerDes) chiplets, and SerDes IP, as well as integrated circuits and active electrical cables. Additionally, the company offers intellectual property solutions, primarily SerDes IP licensing.
In the 10-Q report, Credo Technology reported total revenue of $59.7 million for the quarter, a significant increase from $35.1 million in the same period last year. The company's gross profit stood at $37.3 million, reflecting a healthy margin despite the challenges posed by operating expenses, which amounted to $51.7 million. The operating loss for the quarter was reported at $14.5 million, compared to an operating loss of $14.4 million in the prior-year period.
The company's financial position as of August 3, 2024, showed total assets of $644.9 million, with current assets amounting to $542.4 million. This included cash and cash equivalents of $103.9 million and short-term investments of $294.7 million. Credo Technology reported liabilities of $91.8 million, with total shareholders' equity amounting to $553.1 million.
The 10-Q report also highlighted the company's cash flows from operating, investing, and financing activities. Notably, the net cash used in operating activities was reported at $7.2 million. The company also provided information on its significant accounting policies, including the use of estimates and reclassifications of certain prior period balances to conform to the current presentation.
The report also mentioned recent accounting pronouncements not yet adopted, such as ASU 2023-07, which pertains to improvements in reportable segment disclosures. This standard is effective for fiscal years, indicating the company's commitment to compliance with evolving accounting regulations.
As a result of these announcements, the company's shares have moved -14.9% on the market, and are now trading at a price of $26.65. If you want to know more, read the company's complete 10-Q report here.
