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Credo Technology Group Holding Ltd (CRDO+6.58%) has submitted its 10-Q filing for the quarterly period ended February 1, 2025.
The filing includes financial statements for the quarter, showing an increase in total revenue to $135,002,000 from $53,058,000 in the same quarter the previous year. The increase is attributed primarily to a rise in product sales revenue.
Cost of revenue for the quarter was $49,076,000, representing 36.4% of sales, compared to 38.6% in the same quarter of the previous year. This decrease in cost ratio is due to improved economies of scale in product sales.
The company reported a gross profit of $85,926,000 for the quarter, compared to $32,558,000 in the previous year, with the increase attributed to higher product sales.
Research and development expenses increased to $36,261,000 from $24,236,000, primarily due to increased personnel costs and higher engineering activities.
Selling, general, and administrative expenses increased to $23,471,000 from $14,233,000, primarily due to higher personnel costs and external consultation fees.
Net income for the quarter was $29,360,000, up from $428,000 in the previous year. The increase is attributed to higher revenue and improved gross margin.
Cash provided by operating activities was $7,261,000, while cash provided by investing activities was $230,655,000, primarily due to maturities of certificates of deposit.
Credo had a working capital of $538,417,000 as of February 1, 2025. The company anticipates its existing cash and cash equivalents will be sufficient to meet its needs for at least the next 12 months.
The filing also details various financial metrics, including a significant increase in accounts receivable and inventory to support new product ramps.
Credo does not anticipate any material changes to its risk factors as previously disclosed in its Annual Report on Form 10-K for the fiscal year ended April 27, 2024.
The company continues to focus on expanding its customer base and increasing its market presence in the high-speed connectivity solutions sector.
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 March 10, 2025. To report an error, please email earnings@qz.com.