Super Micro Computer issued stronger-than-expected guidance after its revenue surged last quarter, sending shares up 6.9% in after-hours trading.
Net sales were US$12.68 billion, up from $5.68 billion year-over-year and passing Zacks estimates by 21.4%. Earnings per share were $0.69, rising from $0.61 and above estimates of $0.49.
“With our leading AI server and storage technology foundation, strong customer engagements, and expanding global manufacturing footprint, we are scaling rapidly to support large AI and enterprise deployments while continuing to strengthen our operational and financial execution,” said Supermicro CEO Charles Liang.
“Our DCBBS, Data Center Building Block Solutions, enable customers to scale faster, greener, and at lower cost, Supermicro is well positioned to capture the next wave of AI and IT infrastructure demand.”
Supermicro projects net sales of at least $12.3 billion and earnings per share of at least $0.60 for the quarter ending in March. Zacks estimates include $10.28 billion in sales and $0.61 in earnings per share.
Operating expenses rose from $301.40 million to $324.27 million, driven by increases in research & development and general & administrative spending. Income from operations was $474.30 million, up from $368.62 million.
Its gross margin was 6.3%, falling from 9.3% in the September quarter and below the 6.5% it had projected in November. “Expedited transportation costs, ongoing components shortage, and their volatile pricing, among which tariffs, have impacted our short-term gross margin,” said Liang on today’s earnings call.
The company’s preliminary sales results in the September quarter were around $1.5 billion below consensus estimates, with Supermicro saying design win upgrades moved some previously expected revenue to the December quarter.
Supermicro (NASDAQ: SMCI) shares closed 0.1% lower, before surging 6.9% after-hours. Its market capitalisation is $17.71 billion.
