Overview
- Credo reported fiscal Q3 revenue of $407 million and net income of $157 million, with non‑GAAP gross margin at 68.6%.
- Guidance calls for Q4 revenue of $425 million to $435 million and non‑GAAP gross margin of 64% to 66%, with a long‑term margin view of 63% to 65%.
- Customer concentration was stark as the top two buyers made up 71% of revenue and the top three 88%, which management said will not quickly diversify.
- The company ended the quarter with about $1.3 billion in cash, funded by an at‑the‑market offering and strong free cash flow to support AEC and ZeroFlap optics ramps.
- Shares have been volatile, including a roughly 12% rally to $114.74, as JPMorgan kept an Overweight rating and Needham reiterated Buy with higher out‑year forecasts.