Super Micro Computer missed sales estimates last quarter amid customer readiness issues, though its shares spiked 18% due to strong earnings guidance.
Net sales were US$10.24 billion, up from $4.60 billion one year ago but under LSEG consensus estimates of $12.33 billion. Earnings per share were $0.84, rising from $0.31 and passing estimates of $0.62.
“Supermicro's transformation into a total datacenter infrastructure provider is accelerating,” said CEO and president Charles Liang.
“Our margin recovery and the rapid growth of our DCBBS [Data Center Building Block Solutions] business demonstrate that our business remains robust. With the addition of our new U.S. manufacturing facilities in Silicon Valley, we are exceptionally well-positioned to meet the massive demand for various AI and enterprise verticals.”
Supermicro’s weaker-than-forecast sales were impacted by customers’ readiness issues, Liang said on an earnings call, as some sites had not yet installed the required power and networking capacity. The company expects to receive this revenue in the coming quarters.
Income from operations was $625.87 million, soaring from $146.78 million one year ago. Operating expenses grew from $293.44 million to $392.81 million.
The company’s guidance for the next quarter includes sales of $11.0-12.5 billion, with earnings per share of $0.65-0.79. This is in line with LSEG sales forecasts of $11.07 billion and well above earnings per share estimates of $0.55.
In March, the U.S. Attorney’s Office for the Southern District of New York charged Supermicro co-founder Wally Liaw with violations of export control laws. Liaw and his associates allegedly conspired to divert billions of dollars of an unnamed U.S. company’s computer servers to China, per the indictment.
Liaw is no longer linked to Supermicro, Liang said in March. CFO David Weigand said today that the company is “fully cooperating with the U.S. government to address this situation”, and its directors have retained law and forensic firms to conduct an independent investigation.
“Most customers feel very solid to continue our business and continue to grow together”, even amid the investigation, Liang said on the earnings call.
Shares in Supermicro (NASDAQ: SMCI) closed 0.3% lower, but surged 18% in -after-hours trading following the earnings release. Its market capitalisation is $16.71 billion.
