US Market News
1月前
Credo Technology Group Holding Ltd Reports Fourth Quarter and Fiscal Year 2026 Financial ResultsJune 1, 2026 4:05 PM
Business Wire Credo Technology Group Holding Ltd (Nasdaq: CRDO) (“Credo”), an innovator in providing connectivity at scale through fast, reliable, and energy-efficient system solutions, today reported financial results for the fourth quarter and full fiscal year 2026, ended May 2, 2026. Fourth Quarter of Fiscal Year 2026 Financial Highlights Revenue of $437.0 million grew by 7.4% quarter over quarter and 157.0% year over year GAAP gross margin of 68.2% and non-GAAP gross margin of 68.3% GAAP operating expenses of $142.2 million and non-GAAP operating expenses of $81.7 million GAAP net income of $169.1 million and non-GAAP net income of $226.7 million GAAP diluted net income per share of $0.88 and non-GAAP diluted net income per share of $1.16 Ending cash and short-term investment balance of $1.4 billion Management Commentary Bill Brennan, Credo’s President and Chief Executive Officer, stated, “Fiscal 2026 marked another defining year for Credo. For the year, revenue more than tripled to $1.3 billion, and non-GAAP net income increased more than five times to $662 million. As we enter into fiscal 2027, Credo expects to achieve continued strong financial performance with our innovative and vertically integrated approach that enables customers to accelerate cluster time-to-stability, maximize GPU utilization, improve network reliability, and reduce overall infrastructure power and operating costs.” First Quarter of Fiscal Year 2027 Financial Outlook Revenue is expected to be between $465.0 million and $475.0 million GAAP gross margin is expected to be between 66.9% and 68.9%, and non-GAAP gross margin is expected to be between 67.0% and 69.0% GAAP operating expenses are expected to be between $167.6 million and $171.6 million, and non-GAAP operating expenses are expected to be between $86.0 million and $90.0 million Webcast and Conference Call Information Credo will conduct a conference call on Monday, June 1, 2026, at 2:00 p.m. Pacific Time to discuss its financial results for the fourth quarter and fiscal year 2026, ended May 2, 2026. Interested parties may join the conference call by dialing 833-461-5787 (toll-free) or +1 585-542-9983 (international). The conference ID for the call is 721028678. It is recommended that participants register and dial in for the call at least 10 minutes before the start of the call. A live webcast of the conference call will be available on Credo’s Investor Relations website at http://investors.credosemi.com/. A replay of the webcast will be available via the web at http://investors.credosemi.com/. Discussion of Non-GAAP Financial Measures This press release contains references to the non-GAAP financial measures of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating income (loss) margin, non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share. Reconciliation of these non-GAAP measures to their comparable GAAP measures is included below. This non-GAAP information should not be construed as an alternative to the reported results determined in accordance with GAAP. The non-GAAP financial measures that Credo presents may not be comparable to similarly titled measures of other companies and other companies may not calculate such measures in the same manner as we do. Non-GAAP financial measures exclude the effect of share-based compensation expenses, acquisition and integration related costs, amortization of acquired intangible assets, asset impairment and related charges (if applicable), and the related tax effect adjustment to the provision for income taxes. Credo uses a full-year non-GAAP tax rate to compute the non-GAAP tax provision. This full-year non-GAAP tax rate is based on Credo’s annual GAAP income, adjusted to exclude non-GAAP items, as well as the effects of significant non-recurring and period-specific tax items which vary in size and frequency. Credo’s non-GAAP tax rate is determined on an annual basis and may be adjusted during the year to take into account events that may materially affect the non-GAAP tax rate, such as tax law changes, significant changes in Credo’s geographic mix of revenue and expenses or changes to Credo’s corporate structure. GAAP diluted net income (loss) per share is calculated using basic weighted average shares outstanding when there is a GAAP net loss, and calculated using diluted weighted average shares outstanding when there is a GAAP net income. Non-GAAP diluted net income (loss) per share is calculated using basic weighted average shares outstanding when there is a non-GAAP net loss, and calculated using non-GAAP diluted weighted average shares outstanding when there is a non-GAAP net income. Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of share-based compensation expenses expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. Credo believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Credo’s financial condition and results of operations. While Credo uses non-GAAP financial measures as a tool to enhance its understanding of certain aspects of its financial performance, Credo does not consider these measures to be a substitute for, or superior to, financial measures calculated in accordance with GAAP. Consistent with this approach, Credo believes that disclosing non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance. Externally, management believes that investors may find Credo’s non-GAAP financial measures useful in their assessment of Credo's operating performance and the valuation of Credo. Internally, Credo's non-GAAP financial measures are used in the following areas: Management’s evaluation of Credo’s operating performance; Management’s establishment of internal operating budgets; and Management’s performance comparisons with internal forecasts and targeted business models. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of Credo’s business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of Credo’s results as reported under GAAP. The exclusion of the above items from our GAAP financial metrics does not necessarily mean that these costs are unusual or infrequent. Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to, any statements regarding: launches of new or expansion of existing products or services; technology developments and innovation; our plans, strategies or objectives with respect to future operations; financial outlook; future financial results; expectations regarding the markets and industries in which Credo conducts business; and assumptions underlying any of the foregoing. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,” “can,” “may,” “will,” “would,” “outlook,” “forecast,” “targets” and similar expressions, or their negatives, may identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that may cause actual events or results to differ materially from those described in this press release. Readers are encouraged to review risk factors and all other disclosures appearing in Credo’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (SEC) on July 2, 2025, as well as Credo’s other filings with the SEC, for further information on risks and uncertainties that could affect Credo’s business, financial condition and results of operation. Copies of these filings are available from the SEC, Credo’s website or Credo’s investor relations department. Forward-looking statements speak only as of the date they are made. Credo assumes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date herein. About Credo Credo’s mission is to transform connectivity at scale through fast, reliable and energy-efficient system solutions. Our high-speed copper and optical interconnect products deliver industry-leading power and performance at up to 1.6T to meet the ever-expanding data infrastructure demands of AI. Our product portfolio includes ZeroFlap (ZF) Active Electrical Cables (AECs) and ZF optical transceivers, OmniConnect memory solutions, and a suite of retimers and DSPs for optical and copper Ethernet and PCIe, all leveraging the PILOT diagnostic and analytics software platform. Credo innovations enable our customers to connect the systems that connect the world. For more information, please visit https://www.credosemi.com. Credo and the Credo logo are registered trademarks of Credo Technology Group Limited in the United States and other jurisdictions. All other trademarks referenced herein are the property of their respective owners. Credo Technology Group Holding Ltd Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three Months Ended Year Ended May 2, 2026 January 31, 2026 May 3, 2025 May 2, 2026 May 3, 2025 Revenue 437,003 407,012 170,025 1,335,116 436,775 Cost of revenue 138,936 128,144 55,837 426,767 153,866 Gross profit 298,067 278,868 114,188 908,349 282,909 Operating expenses: Research and development 90,534 78,483 48,455 279,381 146,867 Selling, general and administrative 51,688 50,763 31,945 183,963 98,918 Total operating expenses 142,222 129,246 80,400 463,344 245,785 Operating income 155,845 149,622 33,788 445,005 37,124 Other income, net 12,136 9,459 3,821 30,430 17,746 Income before income taxes 167,981 159,081 37,609 475,435 54,870 Provision (benefits) for income taxes (1,121 ) 1,939 1,021 3,156 2,687 Net income $ 169,102 $ 157,142 $ 36,588 $ 472,279 $ 52,183 Net income per share: Basic $ 0.92 $ 0.86 $ 0.21 $ 2.65 $ 0.31 Diluted $ 0.88 $ 0.82 $ 0.20 $ 2.51 $ 0.29 Weighted average shares used in computing net income per share: Basic 184,683 182,222 170,405 178,538 167,505 Diluted 192,681 192,023 182,119 188,232 181,158 Credo Technology Group Holding Ltd Condensed Consolidated Balance Sheets (Unaudited) (In thousands) May 2, 2026 May 3, 2025 Assets Current assets: Cash and cash equivalents $ 1,164,952 $ 236,328 Short-term investments 278,334 195,010 Accounts receivable 233,377 162,144 Inventories 250,831 90,029 Other current assets 73,576 30,023 Total current assets 2,001,070 713,534 Property and equipment, net 101,605 63,631 Right-of-use assets 24,640 15,234 Goodwill 92,798 — Intangible assets, net 29,262 — Other non-current assets 46,244 16,858 Total assets $ 2,295,619 $ 809,257 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 107,345 $ 56,158 Accrued compensation and benefits 21,626 16,097 Other current liabilities 68,120 35,456 Total current liabilities 197,091 107,711 Non-current operating lease liabilities 20,617 12,693 Other non-current liabilities 14,299 7,271 Total liabilities 232,007 127,675 Shareholders' equity: Ordinary shares 9 8 Additional paid-in capital 1,672,060 765,173 Accumulated other comprehensive income (loss) 2,426 (437 ) Retained earnings (accumulated deficit) 389,117 (83,162 ) Total shareholders' equity 2,063,612 681,582 Total liabilities and shareholders' equity $ 2,295,619 $ 809,257 Credo Technology Group Holding Ltd Reconciliations from GAAP to Non-GAAP Results (Unaudited) (In thousands, except percentages and per share amounts) Three Months Ended Year Ended May 2, 2026 January 31, 2026 May 3, 2025 May 2, 2026 May 3, 2025 GAAP gross profit $ 298,067 $ 278,868 $ 114,188 $ 908,349 $ 282,909 Reconciling item: Share-based compensation 354 354 356 1,418 1,194 Total reconciling item 354 354 356 1,418 1,194 Non-GAAP gross profit $ 298,421 $ 279,222 $ 114,544 $ 909,767 $ 284,103 GAAP gross margin 68.2 % 68.5 % 67.2 % 68.0 % 64.8 % Non-GAAP gross margin 68.3 % 68.6 % 67.4 % 68.1 % 65.0 % Total GAAP operating expenses $ 142,222 $ 129,246 $ 80,400 $ 463,344 $ 245,785 Reconciling items: Share-based compensation (49,344 ) (51,806 ) (27,506 ) (181,220 ) (76,161 ) Acquisition and integration related costs (9,279 ) — — (9,279 ) — Amortization of acquired intangible assets (400 ) — — (400 ) — Impairment and related charges (1,500 ) — (873 ) (1,500 ) (873 ) Total reconciling items (60,523 ) (51,806 ) (28,379 ) (192,399 ) (77,034 ) Total Non-GAAP operating expenses $ 81,699 $ 77,440 $ 52,021 $ 270,945 $ 168,751 GAAP operating income $ 155,845 $ 149,622 $ 33,788 $ 445,005 $ 37,124 Non-GAAP operating income $ 216,722 $ 201,782 $ 62,523 $ 638,822 $ 115,352 GAAP operating income margin 35.7 % 36.8 % 19.9 % 33.3 % 8.5 % Non-GAAP operating income margin 49.6 % 49.6 % 36.8 % 47.8 % 26.4 % GAAP net income $ 169,102 $ 157,142 $ 36,588 $ 472,279 $ 52,183 Reconciling items: Share-based compensation 49,698 52,160 27,862 182,638 77,355 Acquisition and integration related costs 9,279 — — 9,279 — Amortization of acquired intangible assets 400 — — 400 — Impairment and related charges 1,500 — 873 1,500 873 Pre-tax total reconciling items 60,877 52,160 28,735 193,817 78,228 Other income tax effects and adjustments (3,299 ) (509 ) (69 ) (4,553 ) (485 ) Non-GAAP net income $ 226,680 $ 208,793 $ 65,254 $ 661,543 $ 129,926 GAAP net income margin 38.7 % 38.6 % 21.5 % 35.4 % 11.9 % Non-GAAP net income margin 51.9 % 51.3 % 38.4 % 49.5 % 29.7 % GAAP weighted average shares - basic 184,683 182,222 170,405 178,538 167,505 GAAP weighted average shares - diluted 192,681 192,023 182,119 188,232 181,158 Non-GAAP adjustment 3,255 2,878 4,824 3,024 3,486 Non-GAAP weighted average shares - diluted 195,936 194,901 186,943 191,256 184,644 GAAP diluted net income per share $ 0.88 $ 0.82 $ 0.20 $ 2.51 $ 0.29 Non-GAAP diluted net income per share $ 1.16 $ 1.07 $ 0.35 $ 3.46 $ 0.70 Credo Technology Group Holding Ltd Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates (In millions, except percentages) Three Months Ended August 1, 2026 Low High GAAP gross margin 66.9 % 68.9 % Reconciling item: Share-based compensation 0.1 % 0.1 % Total reconciling item 0.1 % 0.1 % Non-GAAP gross margin 67.0 % 69.0 % Total GAAP operating expenses $ 167.6 $ 171.6 Reconciling item: Share-based compensation 70.0 70.0 Acquisition and integration related costs 11.0 11.0 Amortization of acquired intangible assets 0.6 0.6 Total reconciling item 81.6 81.6 Total non-GAAP operating expenses $ 86.0 $ 90.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20260601641616/en/ Investor Contact:
Dan O’Neil
dan.oneil@credosemi.com Media Contact:
Kristin Hehir
kristin.hehir@credosemi.com Original: Credo Technology Group Holding Ltd Reports Fourth Quarter and Fiscal Year 2026 Financial Results
US Market News
1月前
Credo Completes Acquisition of DustPhotonicsMay 28, 2026 9:21 AM
Business Wire Expands Optical Connectivity Portfolio to Include Silicon Photonics Photonic Integrated Circuits Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing connectivity at scale through fast, reliable, and energy-efficient system solutions, today announced that it has completed its acquisition of DustPhotonics. DustPhotonics brings industry-leading silicon photonics photonic integrated circuit (SiPho PIC) technology for optical connectivity, deepening Credo’s optical interconnect portfolio across 800G, 1.6T, and 3.2T near-packaged optics (NPO) and co-packaged optics (CPO). With this technology, Credo is now positioned with a vertically integrated connectivity stack spanning SerDes, digital signal processing (DSP), silicon photonics, and system integration for scale-out and scale-up networks — addressing both electrical and optical interconnects across the full AI infrastructure buildout. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260527239270/en/Credo announced that it has completed its acquisition of DustPhotonics. DustPhotonics brings industry-leading silicon photonics photonic integrated circuit (SiPho PIC) technology for optical connectivity, deepening Credo’s optical interconnect portfolio across 800G, 1.6T, and 3.2T near-packaged optics (NPO) and co-packaged optics (CPO). With this technology, Credo is now positioned with a vertically integrated connectivity stack spanning SerDes, digital signal processing (DSP), silicon photonics, and system integration for scale-out and scale-up networks — addressing both electrical and optical interconnects across the full AI infrastructure buildout. With the addition of DustPhotonics, the company expects its combined portfolio of ZeroFlap optical transceivers, optical DSPs, and silicon photonics products to become a significant growth driver in fiscal 2027, reflecting strong customer traction and expanding adoption across hyperscale AI deployments. “I am thrilled to officially welcome the talented team from DustPhotonics to Credo,” said Bill Brennan, President and CEO, Credo. “Today marks an important milestone as we join two deeply skilled organizations united by a shared commitment to innovation, execution, and customer impact. Together, we will continue to advance a powerful, end-to-end optical connectivity solution platform with reliability and power efficiency at its core, helping our customers scale AI infrastructure.” “Today we celebrate that DustPhotonics is now a part of Credo,” said Ronnen Lovinger, Vice President, Silicon Photonics, Credo. “I am extremely proud of the silicon photonics advancements we pioneered as a team, and am excited to work alongside our new colleagues to accelerate our vision for optical interconnect. Silicon photonics will increasingly become the foundational technology for AI-driven optical connectivity—enabling the bandwidth, efficiency, and scale that next-generation infrastructure demands.” About Credo Credo’s mission is to transform connectivity at scale through fast, reliable, and energy-efficient system solutions. Our high-speed copper and optical interconnect products deliver industry-leading power and performance at up to 1.6T to meet the ever-expanding data infrastructure demands of AI. Our product portfolio includes ZeroFlap (ZF) Active Electrical Cables (AECs) and ZF optical transceivers, OmniConnect memory solutions, and a suite of retimers and DSPs for optical and copper Ethernet and PCIe, all leveraging the PILOT diagnostic and analytics software platform. Credo innovations enable our customers to connect the systems that connect the world. For more information, please visit https://www.credosemi.com. Follow Credo on LinkedIn. Credo, the Credo logo and the color purple when associated with AECs are registered trademarks of Credo Technology Group Limited in the United States and other jurisdictions. All other trademarks referenced herein are the property of their respective owners. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to, any statements regarding launches of new or expansion of existing products or services; technology developments and innovation; our plans, strategies or objectives with respect to future operations; financial outlook; future financial results; expectations regarding the markets and industries in which Credo conducts business; and assumptions underlying any of the foregoing. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,” “can,” “may,” “will,” “would,” “outlook,” “forecast,” “targets” and similar expressions, or their negatives, may identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that may cause actual events or results to differ materially from those described in this press release, including but not limited to: the ability to successfully integrate DustPhotonics' operations and technology; the ability to achieve the financial milestones underlying the earnout consideration; competitive developments in the optical interconnect market; and general macroeconomic and semiconductor industry conditions. Readers are encouraged to review risk factors and all other disclosures appearing in Credo’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (SEC) on July 2, 2025, as well as Credo’s other filings with the SEC, for further information on risks and uncertainties that could affect Credo’s business, financial condition and results of operation. Copies of these filings are available from the SEC, Credo’s website or Credo’s investor relations department. Forward-looking statements speak only as of the date they are made. Credo undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. View source version on businesswire.com: https://www.businesswire.com/news/home/20260527239270/en/ Media Contact:
Diane Vanasse
diane.vanasse@credosemi.com Investor Contact:
Dan O’Neil
dan.oneil@credosemi.com Original: Credo Completes Acquisition of DustPhotonics
US Market News
1月前
Credo and Rebellions Work Together to Maximize Operational Efficiency in Enterprise AI FactoriesMay 20, 2026 9:10 AM
Business Wire Collaboration Enables Reliable Scaling of AI Inference Workloads and Faster Time to First Token Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing connectivity at scale through fast, reliable, and energy-efficient system solutions, and Rebellions, a global leader in AI inference infrastructure, are working together to bring turnkey, scalable AI factories to enterprises around the world. The collaboration integrates Credo’s ZeroFlap active electrical cables (AECs)—designed to deliver consistent, link flap-free connectivity—into the production-ready, high-performance Rebellions RebelPOD™. By integrating Credo’s ZeroFlap AECs, Rebellions helps enterprises accelerate time to first token and unlock AI cluster productivity. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260520676790/en/Credo’s ZeroFlap active electrical cables (AECs)—designed to deliver consistent, link flap-free connectivity—are integrated into the production-ready, high-performance Rebellions RebelPOD™. [Photo of the Rebellions RebelPOD™ courtesy of Rebellions.] Inference workloads must deliver immediate responsiveness, predictable latency, and continuous availability, often across large, distributed clusters operating at high utilization. Even brief connectivity instability or component failures can delay inference requests, increase queue times, and degrade user experience. Credo’s ZeroFlap AECs virtually eliminate intermittent link disruptions, reduce operational troubleshooting, and simplify maintenance, enabling AI infrastructure to remain online and performant as it scales. With Credo’s renowned plug-and-play purple AECs integrated into the Rebellions RebelPOD architecture, enterprises can deploy AI inference capacity faster while maintaining operational stability over time. “AI inference infrastructure must be designed not only for performance, but also for continuous operation at scale,” said Bill Brennan, President and CEO, Credo. “The integration of Credo’s ZeroFlap AECs in the Rebellions RebelPOD architecture enables enterprises to deploy AI factories that deliver exceptional uptime, reliability, and serviceability—key requirements for delivering fast time to stability and revenue.” “Rebellions is focused on making AI inference infrastructure practical, efficient and accessible for enterprises and organizations worldwide,” said Sunghyun Park, Co-Founder and CEO, Rebellions. “In collaboration with Credo, we are streamlining AI adoption at scale—from development to deployment—and minimizing infrastructure complexity so customers can utilize AI inference faster, with lower operational risk.” Credo’s award-winning ZeroFlap AECs are known for delivering highly reliable interconnect for AI backend networks, operating without link flaps for billions of field operating hours. Credo ZeroFlap AECs are the interconnects for the Rebellions RebelPOD, a high-performance AI cluster with rack-to-rack scalability and RDMA networking, built for large-scale AI inference and designed for distributed workloads. About Rebellions Rebellions builds what the AI era needs: purpose-built inference accelerators delivering the performance, efficiency, and supply chain resilience that enterprises and nations demand. Its flagship Rebel100™ delivers the best performance per dollar per watt – built for inference from the ground up, not retrofitted from training – with full-stack software built entirely on open source and open standards. With proven commercial deployments already live across enterprises and governments, and a chiplet architecture built for the most demanding AI workloads, Rebellions gives every organization and nation the ability to own and control their AI, not just access it. Backed by Aramco, Arm, Kindred Ventures, KT, Mirae Asset Group, Samsung, SK Hynix, and SK Telecom, Rebellions is headquartered in South Korea with operations in the United States. Learn more by visiting www.rebellions.ai, on LinkedIn at www.linkedin.com/company/rebellions-ai, and on X at twitter.com/rebellions_inc. About Credo Credo’s mission is to transform connectivity at scale through fast, reliable, and energy-efficient system solutions. Our high-speed copper and optical interconnect products deliver industry-leading power and performance at up to 1.6T to meet the ever-expanding data infrastructure demands of AI. Our product portfolio includes ZeroFlap (ZF) Active Electrical Cables (AECs) and ZF optical transceivers, OmniConnect memory solutions, and a suite of retimers and DSPs for optical and copper Ethernet and PCIe, all leveraging the PILOT diagnostic and analytics software platform. Credo innovations enable our customers to connect the systems that connect the world. For more information, please visit https://www.credosemi.com. Follow Credo on LinkedIn. Credo, the Credo logo and the color purple when associated with AECs are registered trademarks of Credo Technology Group Limited in the United States and other jurisdictions. All other trademarks referenced herein are the property of their respective owners. View source version on businesswire.com: https://www.businesswire.com/news/home/20260520676790/en/ Media Contact:
Kristin Hehir
kristin.hehir@credosemi.com Investor Contact:
Dan O’Neil
dan.oneil@credosemi.com Original: Credo and Rebellions Work Together to Maximize Operational Efficiency in Enterprise AI Factories
US Market News
3月前
Credo Agrees to Acquire DustPhotonics, Accelerating Expansion into Silicon Photonics and Next Generation Optical ConnectivityApril 13, 2026 4:05 PM
Business Wire
Acquisition will bring industry-leading Silicon Photonics PIC technology in-house, expanding Credo's addressable market and deepening its optical interconnect portfolio across 800G, 1.6T, and 3.2T NPO and CPO
Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved reliability and energy efficiency for the next generation of AI-driven applications, cloud computing, and hyperscale networks, today announced it has entered into a definitive agreement to acquire DustPhotonics, a leading developer of Silicon Photonics Photonic Integrated Circuit (SiPho PIC) technology for optical transceivers. The acquisition will position Credo with a vertically integrated connectivity stack spanning SerDes, Digital Signal Processing (DSP), Silicon Photonics and system integration for scale out and scale up networks — addressing both electrical and optical interconnects across the full AI infrastructure buildout.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260413933103/en/Credo Agrees to Acquire DustPhotonics, Accelerating Expansion into Silicon Photonics and Next Generation Optical Connectivity
Strategic Rationale
The acquisition of DustPhotonics directly accelerates Credo's optical interconnect roadmap and significantly expands its served addressable market in the global optical industry. DustPhotonics has developed a differentiated portfolio of SiPho PICs spanning 400G, 800G, and 1.6T, with a roadmap extending to 3.2T, that integrates key optical functions onto a single chip, reducing component complexity, improving manufacturing yields, and enabling meaningfully lower cost at scale as port speeds advance beyond 800G. In combination, these factors improve AI cluster reliability, a critical factor for data center operators. These SiPho PICs are deployed in transceivers at leading hyperscale AI clusters and are also in design for leading Near Port Optics (NPO) and Co-Packaged Optics (CPO) applications. According to LightCounting1 and Credo estimates, the SiPho PIC market is expected to grow to $6 billion by 2030.
Critically, SiPho PIC technology is a foundational component of Credo's ZeroFlap (ZF) Optical Transceiver platform. Bringing this capability in-house mitigates external supply dependencies, accelerates product development cycles, and creates a pathway to substantial cost structure improvement at volume. Combined with Credo's industry-leading SerDes and DSP intellectual property and products, the acquisition creates an end-to-end optical connectivity solution platform.
Credo believes it has reached an inflection point in its optical business. With the addition of DustPhotonics, the company expects its combined portfolio of ZeroFlap Optical Transceivers, Optical DSPs, and Silicon Photonics products to generate greater than $500 million in optical revenue in fiscal 2027, reflecting strong customer traction and expanding adoption across hyperscale AI deployments.
Quotes
William Brennan, Chairman, President and Chief Executive Officer, Credo Technology:
“Combining forces with DustPhotonics marks a defining step in Credo’s strategy to lead across the full spectrum of AI connectivity. We’ve built a strong position in high-speed electrical solutions, and this move decisively expands that leadership into Silicon Photonics with best-in-class PIC technology that complements our ZeroFlap Optical Transceivers and DSP portfolio.
This combination positions us at an inflection point in optical. As adoption accelerates across hyperscale AI infrastructure, we expect our optical business to scale into a meaningful and rapidly growing contributor by fiscal 2027.
More importantly, we are building a vertically integrated connectivity platform that spans from copper to optical and from chip to cluster—allowing us to solve for the two constraints that matter most at scale: reliability and power efficiency, while deepening our role as a strategic partner to our customers.”
Ronnen Lovinger, Chief Executive Officer, DustPhotonics:
"Joining Credo is the natural next step for DustPhotonics. We built this company with a clear conviction that Silicon Photonics would become the structural foundation of high-speed optical connectivity as AI infrastructure scales. Credo shares that conviction and brings the SerDes IP, the hyperscaler relationships, and the operational scale to turn that vision into reality far faster than we could independently. This is an exceptional outcome for our team, our customers, and the broader industry."
Gavin Baker, DustPhotonics Investor; Managing Partner and Chief Investment Officer of Atreides Management, LP.:
“We believe DustPhotonics' Silicon Photonic ICs and engines are a natural extension to Credo's existing capabilities in optical connectivity, building on strong momentum across Credo’s DSP, ZF Optical Transceiver platform, and future Active LED Cable (ALC) product lines. As a key element in any silicon photonic optical link, DustPhotonics’ products and technologies enable high-speed optical connectivity at lower power and cost compared to traditional pluggable transceivers. In combination, the companies further strengthen Credo’s current foundation for more scalable, reliable, and energy-efficient scale-out and scale-up AI connectivity."
Avigdor Willenz, Chairman of DustPhotonics:
“Silicon photonics is becoming a critical building block for AI infrastructure, and DustPhotonics has built a truly differentiated technology platform in this space. We have been disciplined in focusing on the right architecture and execution, and the results are evident in both the product and customer traction. Combining with Credo creates a powerful platform with the scale, integration, and customer access required to fully capture the opportunity ahead."
Transaction Details
Credo will acquire DustPhotonics for upfront consideration of $750 million cash and approximately 0.92 million shares of Credo common stock, subject to the terms and conditions of the definitive agreement. In addition, Credo may pay incremental contingent consideration of up to approximately 3.21 million shares based on the achievement of certain financial milestones, subject to the terms of the definitive agreement. Credo expects the transaction will be accretive to non-GAAP earnings per share in Credo’s fiscal 2027. The transaction is expected to close in the second quarter of calendar 2026, subject to customary closing conditions and regulatory approvals.
Conference Call
Credo will conduct a conference call on Tuesday, April 14, 2026, at 10:00 a.m. Pacific Time to discuss its proposed acquisition of DustPhotonics. Interested parties may join the conference call beginning at 10:00 a.m. Pacific Time on Tuesday, April 14, 2026, by dialing (800) 715-9871 (toll-free) or +1 (646) 307-1963 (international). The conference ID for the call is 5273210. It is recommended that participants dial in to the call at least 10 minutes before the start of the call. A live webcast of the conference call will be available on Credo’s Investor Relations website at http://investors.credosemi.com. A replay of the webcast will be available via the web at http://investors.credosemi.com.
About DustPhotonics
DustPhotonics is a fabless semiconductor company developing SiPho PICs for high-speed optical transceivers. Founded in 2017 and headquartered in Israel, DustPhotonics has developed a differentiated PIC portfolio spanning 400G, 800G, and 1.6T, with a roadmap that extends to 3.2T, and with integrated and external laser configurations.
DustPhotonics has assembled a team of approximately seventy employees with deep expertise in photonic integration. The company operates a fabless model and has secured design wins with leading hyperscale cloud customers, providing a platform for expansion.
About Credo
Credo’s mission is to transform connectivity at scale through fast, reliable, and energy-efficient system solutions. Our high-speed copper and optical interconnect products deliver industry-leading power and performance at up to 1.6T to meet the ever-expanding data infrastructure demands of AI.
Our product portfolio includes ZeroFlap Active Electrical Cables (AECs), ZF Optical Transceivers, OmniConnect memory solutions, and a suite of retimers and DSPs for optical and copper Ethernet and PCIe, all leveraging the PILOT diagnostic and analytics software platform. Credo innovations enable our customers to connect the systems that connect the world.
For more information, please visit https://www.credosemi.com. Follow Credo on LinkedIn.
Credo and the Credo logo are registered trademarks of Credo Technology Group Limited in the United States and other jurisdictions. All other trademarks referenced herein are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to, any statements regarding our acquisition of DustPhotonics, launches of new or expansion of existing products or services; technology developments and innovation; our plans, strategies or objectives with respect to future operations; financial outlook; future financial results; expectations regarding the markets and industries in which Credo conducts business; and assumptions underlying any of the foregoing. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,” “can,” “may,” “will,” “would,” “outlook,” “forecast,” “targets” and similar expressions, or their negatives, may identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that may cause actual events or results to differ materially from those described in this press release, including but not limited to: the ability to complete the acquisition on the expected timeline or at all; the ability to successfully integrate DustPhotonics' operations and technology; the ability to achieve the financial milestones underlying the earnout consideration; competitive developments in the optical interconnect market; and general macroeconomic and semiconductor industry conditions. Readers are encouraged to review risk factors and all other disclosures appearing in Credo’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (SEC) on July 2, 2025, as well as Credo’s other filings with the SEC, for further information on risks and uncertainties that could affect Credo’s business, financial condition and results of operation. Copies of these filings are available from the SEC, Credo’s website or Credo’s investor relations department. Forward-looking statements speak only as of the date they are made. Credo undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
1 According to unit data from the LightCounting’s Silicon Photonics, Linear Drive Pluggable and Co-packaged Optics published November 21, 2025.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260413933103/en/
Media Contact:
Diane Vanasse
diane.vanasse@credosemi.com
Investor Contact:
Dan O’Neil
dan.oneil@credosemi.com
Original: Credo Agrees to Acquire DustPhotonics, Accelerating Expansion into Silicon Photonics and Next Generation Optical Connectivity
US Market News
4月前
Credo Technology Group Holding Ltd Reports Third Quarter of Fiscal Year 2026 Financial ResultsMarch 2, 2026 4:05 PM
Business Wire
Credo Technology Group Holding Ltd (Credo) (Nasdaq: CRDO), an innovator in providing connectivity at scale through fast, reliable, and energy-efficient system solutions, today reported financial results for the third quarter of fiscal year 2026, ended January 31, 2026.
Third Quarter of Fiscal Year 2026 Financial Highlights
Revenue of $407.0 million, grew by 51.9% quarter over quarter and 201.5% year over year
GAAP gross margin of 68.5% and non-GAAP gross margin of 68.6%
GAAP operating expenses of $129.2 million and non-GAAP operating expenses of $77.4 million
GAAP net income of $157.1 million and non-GAAP net income of $208.8 million
GAAP diluted net income per share of $0.82 and non-GAAP diluted net income per share of $1.07
Ending cash and short-term investment balance of $1.3 billion
Management Commentary
Bill Brennan, Credo’s President and Chief Executive Officer, stated, “In the third quarter Credo once again delivered record results with revenue of $407.0 million, an increase of more than 50% sequentially and 200% year over year. With continued growth in AECs and ICs and the announcement of three new multi-billion dollar TAM expansions through ZeroFlap optics, ALCs, and OmniConnect, we remain confident in our ability to innovate and grow in the expanding AI infrastructure landscape.”
Fourth Quarter of Fiscal 2026 Financial Outlook
Revenue is expected to be between $425.0 million and $435.0 million
GAAP gross margin is expected to be between 63.9% and 65.9%, and non-GAAP gross margin is expected to be between 64.0% and 66.0%
GAAP operating expenses are expected to be between 125.5 million and 129.5 million, and non-GAAP operating expenses are expected to be between $76.0 million and $80.0 million
Conference Call
Credo will conduct a conference call on Monday, March 2, 2026, at 2:00 p.m. Pacific Time to discuss its financial results for the third quarter of fiscal year 2026, ended January 31, 2026. Interested parties may join the conference call beginning at 2:00 p.m. Pacific Time on Monday, March 2, 2026, by dialing (800) 715-9871 (toll-free) or +1 (646) 307-1963 (international). The conference ID for the call is 5251802. It is recommended that participants dial in to the call at least 10 minutes before the start of the call. A live webcast of the conference call will be available on Credo’s Investor Relations website at http://investors.credosemi.com. A replay of the webcast will be available via the web at http://investors.credosemi.com.
Discussion of Non-GAAP Financial Measures
This press release contains references to the non-GAAP financial measures of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating income (loss) margin, non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share. Reconciliation of these non-GAAP measures to their comparable GAAP measures is included below. This non-GAAP information should not be construed as an alternative to the reported results determined in accordance with GAAP. The non-GAAP financial measures that Credo presents may not be comparable to similarly titled measures of other companies and other companies may not calculate such measures in the same manner as we do.
Non-GAAP financial measures exclude the effect of share-based compensation expenses, asset impairment and related charges (if applicable), and the related tax effect adjustment to the provision for income taxes.
Credo uses a full-year non-GAAP tax rate to compute the non-GAAP tax provision. This full-year non-GAAP tax rate is based on Credo’s annual GAAP income, adjusted to exclude non-GAAP items, as well as the effects of significant non-recurring and period-specific tax items which vary in size and frequency. Credo’s non-GAAP tax rate is determined on an annual basis and may be adjusted during the year to take into account events that may materially affect the non-GAAP tax rate, such as tax law changes, significant changes in Credo’s geographic mix of revenue and expenses or changes to Credo’s corporate structure.
GAAP diluted net income (loss) per share is calculated using basic weighted average shares outstanding when there is a GAAP net loss, and calculated using diluted weighted average shares outstanding when there is a GAAP net income. Non-GAAP diluted net income (loss) per share is calculated using basic weighted average shares outstanding when there is a non-GAAP net loss, and calculated using non-GAAP diluted weighted average shares outstanding when there is a non-GAAP net income. Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of share-based compensation expenses expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method.
Credo believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Credo’s financial condition and results of operations. While Credo uses non-GAAP financial measures as a tool to enhance its understanding of certain aspects of its financial performance, Credo does not consider these measures to be a substitute for, or superior to, financial measures calculated in accordance with GAAP. Consistent with this approach, Credo believes that disclosing non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance.
Externally, management believes that investors may find Credo’s non-GAAP financial measures useful in their assessment of Credo's operating performance and the valuation of Credo. Internally, Credo's non-GAAP financial measures are used in the following areas:
Management’s evaluation of Credo’s ongoing operating performance;
Management’s establishment of internal operating budgets; and
Management’s performance comparisons with internal forecasts and targeted business models.
Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of Credo’s business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of Credo’s results as reported under GAAP. The exclusion of the above items from our GAAP financial metrics does not necessarily mean that these costs are unusual or infrequent.
Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to, any statements regarding: launches of new or expansion of existing products or services; technology developments and innovation; our plans, strategies or objectives with respect to future operations; financial outlook; future financial results; expectations regarding the markets and industries in which Credo conducts business; and assumptions underlying any of the foregoing. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,” “can,” “may,” “will,” “would,” “outlook,” “forecast,” “targets” and similar expressions, or their negatives, may identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that may cause actual events or results to differ materially from those described in this press release. Readers are encouraged to review risk factors and all other disclosures appearing in Credo’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (SEC) on July 2, 2025, as well as Credo’s other filings with the SEC, for further information on risks and uncertainties that could affect Credo’s business, financial condition and results of operation. Copies of these filings are available from the SEC, Credo’s website or Credo’s investor relations department. Forward-looking statements speak only as of the date they are made. Credo assumes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date herein.
About Credo
Credo’s mission is to transform connectivity at scale through fast, reliable and energy-efficient system solutions. Our high-speed copper and optical interconnect products deliver industry-leading power and performance at up to 1.6T to meet the ever-expanding data infrastructure demands of AI.
Our product portfolio includes ZeroFlap (ZF) Active Electrical Cables (AECs) and ZF optical transceivers, OmniConnect memory solutions, and a suite of retimers and DSPs for optical and copper Ethernet and PCIe, all leveraging the PILOT diagnostic and analytics software platform. Credo innovations enable our customers to connect the systems that connect the world.
For more information, please visit https://www.credosemi.com.
Credo and the Credo logo are registered trademarks of Credo Technology Group Limited in the United States and other jurisdictions. All other trademarks referenced herein are the property of their respective owners.
Credo Technology Group Holding Ltd
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)
Three Months Ended
Nine Months Ended
January 31, 2026
November 1, 2025
February 1, 2025
January 31, 2026
February 1, 2025
Revenue
407,012
268,027
135,002
898,113
266,750
Cost of revenue
128,144
86,981
49,076
287,831
98,029
Gross profit
278,868
181,046
85,926
610,282
168,721
Operating expenses:
Research and development
78,483
57,916
36,261
188,847
98,412
Selling, general and administrative
50,763
44,334
23,471
132,275
66,973
Total operating expenses
129,246
102,250
59,732
321,122
165,385
Operating income
149,622
78,796
26,194
289,160
3,336
Other income, net
9,459
4,889
3,918
18,294
13,925
Income before income taxes
159,081
83,685
30,112
307,454
17,261
Provision for income taxes
1,939
1,049
752
4,277
1,666
Net income
$
157,142
$
82,636
$
29,360
$
303,177
$
15,595
Net income per share:
Basic
$
0.86
$
0.47
$
0.17
$
1.72
$
0.09
Diluted
$
0.82
$
0.44
$
0.16
$
1.62
$
0.09
Weighted-average shares used in computing net income per share:
Basic
182,222
175,307
168,167
176,490
166,562
Diluted
192,023
187,659
182,464
186,598
180,495
Credo Technology Group Holding Ltd
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
January 31, 2026
May 3, 2025
Assets
Current assets:
Cash and cash equivalents
$
1,220,464
$
236,328
Short-term investments
81,000
195,010
Accounts receivable
243,213
162,144
Inventories
207,958
90,029
Other current assets
33,958
30,023
Total current assets
1,786,593
713,534
Property and equipment, net
105,989
63,631
Right-of-use assets
15,517
15,234
Goodwill
70,859
—
Intangible asset
17,624
—
Other non-current assets
40,757
16,858
Total assets
$
2,037,339
$
809,257
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
$
93,822
$
56,158
Accrued compensation and benefits
14,419
16,097
Other current liabilities
56,951
35,456
Total current liabilities
165,192
107,711
Non-current operating lease liabilities
12,616
12,693
Other non-current liabilities
10,645
7,271
Total liabilities
188,453
127,675
Shareholders' equity:
Ordinary shares
9
8
Additional paid in capital
1,626,787
765,173
Accumulated other comprehensive income (loss)
2,075
(437
)
Retained earnings (accumulated deficit)
220,015
(83,162
)
Total shareholders' equity
1,848,886
681,582
Total liabilities and shareholders' equity
$
2,037,339
$
809,257
Credo Technology Group Holding Ltd
Reconciliations from GAAP to Non-GAAP (Unaudited)
(In thousands, except percentages and per share amounts)
Three Months Ended
Nine Months Ended
January 31, 2026
November 1, 2025
February 1, 2025
January 31, 2026
February 1, 2025
GAAP gross profit
$
278,868
$
181,046
$
85,926
$
610,282
$
168,721
Reconciling item:
Share-based compensation
354
354
226
1,064
838
Total reconciling item:
354
354
226
1,064
838
Non-GAAP gross profit (A)
$
279,222
$
181,400
$
86,152
$
611,346
$
169,559
GAAP gross margin
68.5
%
67.5
%
63.6
%
68.0
%
63.3
%
Non-GAAP gross margin
68.6
%
67.7
%
63.8
%
68.1
%
63.6
%
Total GAAP operating expenses
$
129,246
$
102,250
$
59,732
$
321,122
$
165,385
Reconciling item:
Share-based compensation
(51,806
)
(44,970
)
(15,964
)
(131,875
)
(48,655
)
Total reconciling item:
(51,806
)
(44,970
)
(15,964
)
(131,875
)
(48,655
)
Total Non-GAAP operating expenses (B)
$
77,440
$
57,280
$
43,768
$
189,247
$
116,730
GAAP operating income
$
149,622
$
78,796
$
26,194
$
289,160
$
3,336
Non-GAAP operating income (A-B)
$
201,782
$
124,120
$
42,384
$
422,099
$
52,829
GAAP operating income margin
36.8
%
29.4
%
19.4
%
32.2
%
1.3
%
Non-GAAP operating income margin
49.6
%
46.3
%
31.4
%
47.0
%
19.8
%
GAAP net income
$
157,142
$
82,636
$
29,360
$
303,177
$
15,595
Reconciling items:
Share-based compensation
52,160
45,324
16,190
132,939
49,493
Pre-tax total reconciling item
52,160
45,324
16,190
132,939
49,493
Other income tax effects and adjustments
(509
)
(172
)
(172
)
(1,254
)
(416
)
Non-GAAP net income
$
208,793
$
127,788
$
45,378
$
434,862
$
64,672
GAAP net income margin
38.6
%
30.8
%
21.7
%
33.8
%
5.8
%
Non-GAAP net income margin
51.3
%
47.7
%
33.6
%
48.4
%
24.2
%
GAAP weighted-average shares - basic
182,222
175,307
168,167
176,490
166,562
GAAP weighted-average shares - diluted
192,023
187,659
182,464
186,598
180,495
Non-GAAP adjustment
2,878
2,896
2,028
3,103
3,335
Non-GAAP weighted-average shares - diluted
194,901
190,555
184,492
189,701
183,830
GAAP diluted net income per share
$
0.82
$
0.44
$
0.16
$
1.62
$
0.09
Non-GAAP diluted net income per share
$
1.07
$
0.67
$
0.25
$
2.29
$
0.35
Credo Technology Group Holding Ltd
Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates
(In millions, except percentages)
Outlook for Three Months Ending May 2, 2026
Low
High
GAAP gross margin
63.9
%
65.9
%
Reconciling item:
Share-based compensation
0.1
%
0.1
%
Total reconciling item:
0.1
%
0.1
%
Non-GAAP gross margin
64.0
%
66.0
%
Total GAAP operating expenses
$
125.5
$
129.5
Reconciling item:
Share-based compensation
49.5
49.5
Total reconciling item:
49.5
49.5
Total Non-GAAP operating expenses
$
76.0
$
80.0
View source version on businesswire.com: https://www.businesswire.com/news/home/20260302499009/en/
Investor Contact:
Dan O’Neil
IR@credosemi.com
Original: Credo Technology Group Holding Ltd Reports Third Quarter of Fiscal Year 2026 Financial Results
SteveSchiets
4年前
On AEC cables; These analysts will (BoA, GS) soon know there is also something like ACC cables. Credo expecting a product mix of 50% AEC revenues in the near future. That pretty big news for Spectra7 also, imo.
Vijay Rakesh
Yes. Hi, Bill and Dan. Great quarter and guide.
Just a quick question on the mix of revenues on the product side, when you look at the 4Q and 1Q, if you can use the split of AEC versus optical and Line Card?
Dan Fleming
Yes, thanks Vijay.
So, we don't -- unfortunately, we don't disclose specifics when it comes to our product line mix, but from our from a long-term perspective, the expectations that we've set out where we're trending toward those amounts, which longer term, we would expect AEC to be nearly half of our revenue. Again, IP, right now, we're not quite at the long-term model, of course, so we're slightly above the 10% to 15%. And then the Line Card business has been a very, very strong business for us, and it continues its strength and is growing. Longer term, it'll probably be in the 15% range. And then the balance, optical will be a significant contributor this year, especially towards the end of the year and then even more so next year.
So, hopefully, that gives you just kind of broad strokes, the direction that we're headed.
Vijay Rakesh
Got it. And on the AEC side, I know you guys have a pretty broad portfolio of MACsec and phase shift, and speed-shift and Nick-to-ToR, et cetera. I'm just wondering when you look at the company landscape and given your broad breadth of portfolio and you're qualified many of the enterprise hyperscale guys, what is the competitive moat? I mean, you guys think you have a 12 to 24-month or even longer lead-time when you compare -- when you look at the competition, who I would say, most of them are still trying to get their product in place, but if you can give some color on how you look at that space?
Bill Brennan
Yes, great question.
I think that -- first of all, I'll say that we're very happy that we see competitors validating the AEC product category. We feel like we do have a significant bleat [ph] in a sense that we've been working on this product category for -- going on four years. The approach that we've taken, I think, is unique in a sense that we have built an organization internally at Credo that's responsible for the design, the development, and ultimately, the delivery of the AEC System Solution. That means that at the end of the day, we're responsible for the entire AEC System Solution with a single throat to choke in a sense when we're dealing with customers.
Our manufacturing partners do a great job in what they do well. We had started by thinking that we could sell chips to copper cable companies, and it just simply was very clear very quickly that our approach is going to be more effective if we owned the entire system design from the firmware -- to the holes from the firmware, on the copper, to the test program development to the actual tester design and development. We felt that that was a much stronger approach than trying to rely on others to put all this together.
So, I do think that as we look at our business now, it's really taken shape in a sense that it's different than our original thinking, which was, hey, we'll just put together a 400-gig on each end of the cable -- 400-gig connector on each of the cable. The solutions we're delivering in volume right now are unique. These are truly system level solutions that are -- I think would be -- could be classified as the most advanced connectivity solution -- cable connectivity solutions ever delivered to the data center.
If you think about what we're shipping currently to our first hyperscalar, they were successful in deploying a dual tour architecture in a single rack, because of the intelligence in our cable, we've got the ability to sense when the ToR port is failing, our cable makes the decision to switch the data flow to the second port.
So, this is a level of intelligence in the cable that has never been delivered as a DAC never been delivered as an AEC or other optical connection.
And so this is the direction that our business has taken as a result of us owning and really building the capability internally. I can tell you that the second solution that we're developing is also very unique. It's not just a straight cable.
And so we expect that more and more innovation will be requested by our customer base, as they see this is now a category where they can think about systems solutions that they haven't even thought of before. There will be business, especially, in the switching and routing layer that is leading edge 800-gig ports, where you have 800-gig connectors on each end of the cable. That's going to be a robust business as well. But generally, we think that the approach we took is paying off right now, as you see us taking off as a clear leader in the space. But I will say that having competition is always a great thing.
So, we appreciate that multiple people are now investing and that it seems that the market is accepting AEC as really a de facto solution for short connections, meaning three meters and less.
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