Credo Technology reported strong financial results for Q2 FY2025 ended November 2, 2024. Revenue increased 63.6% year-over-year to $72.0 million, driven by an 88.2% jump in product sales to $64.4 million. Gross margin improved to 63.2% from 59.3% in Q2 FY2024. The company narrowed its net loss to $4.2 million from $6.6 million a year ago.Product sales growth was primarily attributed to higher shipments of Active Electrical Cables (AEC) and Optical products, which accounted for over 95% of the increase. This was driven by new design wins and increased customer diversification. However, IP license revenue declined 59.8% to $3.0 million due to fewer contracts signed in the quarter.Research and development expenses rose 46.0% to $31.7 million, reflecting increased investments in new product development. Selling, general and administrative costs grew 67.3% to $22.2 million. As of November 2, 2024, Credo had $239.2 million in cash and cash equivalents. Management believes current liquidity is sufficient to fund operations for at least the next 12 months as the company continues to invest in growth initiatives.

Credo Technology reported strong financial results for Q2 FY2025 ended November 2, 2024. Revenue increased 63.6% year-over-year to $72.0 million, driven by an 88.2% jump in product sales to $64.4 million. Gross margin improved to 63.2% from 59.3% in Q2 FY2024. The company narrowed its net loss to $4.2 million from $6.6 million a year ago.Product sales growth was primarily attributed to higher shipments of Active Electrical Cables (AEC) and Optical products, which accounted for over 95% of the increase. This was driven by new design wins and increased customer diversification. However, IP license revenue declined 59.8% to $3.0 million due to fewer contracts signed in the quarter.Research and development expenses rose 46.0% to $31.7 million, reflecting increased investments in new product development. Selling, general and administrative costs grew 67.3% to $22.2 million. As of November 2, 2024, Credo had $239.2 million in cash and cash equivalents. Management believes current liquidity is sufficient to fund operations for at least the next 12 months as the company continues to invest in growth initiatives.