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Credo Technology Group Holding Ltd (CRDO+5.72%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $72.0 million from $44.0 million in the same quarter the previous year. The increase is attributed to higher product sales and product engineering services revenue.
Product sales revenue increased significantly to $64.4 million, driven by a rise in unit shipments of Active Electrical Cables and Optical products. This increase was primarily due to new design wins and a more diverse customer base.
The company reported a gross profit of $45.5 million for the quarter, compared to $26.1 million in the previous year, with the gross margin improving to 63.2% from 59.3%.
Research and development expenses rose to $31.7 million from $21.7 million, due to increased share-based compensation, personnel costs, and design activities.
Selling, general, and administrative expenses increased to $22.2 million from $13.3 million, primarily due to higher share-based compensation and personnel costs.
Net loss for the quarter was $4.2 million, compared to $6.6 million in the previous year. The loss was primarily due to increased operating expenses.
Cash provided by operating activities was $3.0 million, while cash provided by investing activities was $171.5 million, mainly due to maturities of certificates of deposit.
Credo had a working capital of $488.6 million as of November 2, 2024. The company expects its existing cash and cash equivalents to be sufficient to meet its needs for at least the next 12 months.
The filing also details the adoption of an Executive Change in Control Severance Plan, which provides severance payments and benefits for executive officers in the event of a qualifying termination of employment in connection with a change in control.
Credo continues to focus on expanding its market presence with its high-speed connectivity solutions and anticipates continued revenue growth driven by increased demand for its products.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Credo Technology Group Holding Ltd quarterly 10-Q report dated December 3, 2024. To report an error, please email earnings@qz.com.