Credo Stock Tumbles After Q1 Revenue and EPS Beat

Credo Technology Group beat Q1 revenue and non-GAAP EPS, reporting $479M in revenue (up 114.7% YoY) and non-GAAP diluted EPS of $1.20; GAAP EPS was $0.67. GAAP gross margin declined to 64.5% while non-GAAP gross margin rose to 68.0%. GAAP operating expenses rose to $188.4M; GAAP operating income $120.7M, margin 25.2%. Share-based compensation jumped to $88.0M; cash and short-term investments totaled $764.3M. For Q2, Credo guided revenue to $525–$535M with GAAP gross margin of 62.9–64.9% and GAAP Opex of $199–$204M; stock fell about 11% premarket. CEO Bill Brennan said the portfolio spans optics to copper connectivity.