Credo Technology Posts Record $407M Q3 Revenue, Two Customers Drive 71%

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Credo Technology posted record fiscal Q3 revenue of $407 million and non-GAAP EPS of $1.07 while reporting $1.3 billion in cash reserves. CFO Daniel Fleming revealed two customers accounted for 71% of Q3 revenue, highlighting ongoing concentration risk.

1. Record Q3 Financial Results

Credo Technology posted record fiscal third quarter revenue of $407 million and non-GAAP diluted EPS of $1.07, highlighting strong demand for its AI connectivity solutions.

2. $1.3 Billion Cash Reserves

The company reported a $1.3 billion cash hoard, reinforcing the balance sheet and providing flexibility for strategic investments or acquisitions.

3. High Customer Concentration

CFO Daniel Fleming revealed that two customers accounted for 71% of quarterly revenue and three accounted for 88%, underlining significant revenue concentration risk.

4. Stock Volatility Post-Earnings

Shares swung sharply in after-hours trading following the earnings release as investors reevaluated growth prospects against concentration concerns.

Sources

ZF