Summary by Futu AI
Credo Technology reported strong financial results for Q2 FY2025 ended November 2, 2024, with total revenue increasing 64% year-over-year to $72.0 million. Product sales revenue grew 88% to $64.4 million, driven by significant volume increases in AEC and Optical products. Gross margin improved to 63.2% from 59.3% in the prior year quarter.The company reported a net loss of $4.2 million, narrowing from $6.6 million in Q2 FY2024, despite higher operating expenses. Research and development expenses increased 46% to $31.7 million, while selling, general and administrative costs rose 67% to $22.2 million, primarily due to increased share-based compensation and personnel costs to support growth initiatives.As of November 2, 2024, Credo maintained a strong financial position with $239.2 million in cash and cash equivalents, up from $66.9 million at fiscal year-end. The company's working capital stood at $488.6 million, with management expressing confidence in having sufficient resources to fund operations and growth initiatives for at least the next 12 months.
