Core Viewpoint - Super Micro Computer's fourth-quarter revenue guidance significantly underperformed analyst expectations, indicating potential obstacles in the AI infrastructure boom [4][5]. Financial Performance - For the third quarter, Super Micro reported revenue of $4.6 billion, below the expected $5.42 billion, with adjusted earnings per share of $0.31, also lower than the anticipated $0.50 [3][4]. - The net profit per share dropped to $0.17, a substantial decline from $0.66 in the same period last year [4]. - The fourth-quarter revenue guidance is set between $5.6 billion and $6.4 billion, which is far below the market expectation of $6.82 billion [5][6]. - The full-year revenue forecast for fiscal 2025 has been revised down from $23.5-25 billion to $21.8-22.6 billion [8]. Market and Economic Context - CEO Charles Liang noted that customer hesitation between current Hopper and upcoming Blackwell GPUs has led to delayed purchasing decisions [6]. - Economic uncertainty and the impact of Trump's tariffs are beginning to manifest, contributing to the company's cautious outlook [6]. Company Challenges - The past year has been tumultuous for Super Micro, with significant stock price fluctuations and scrutiny over accounting practices following a report from Hindenburg Research alleging "accounting manipulation" [10]. - The resignation of Ernst & Young as the company's auditor raised concerns about financial reporting and internal controls [10]. Future Outlook - Despite short-term challenges, Super Micro's positioning as an AI infrastructure supplier remains attractive, utilizing chips from Nvidia and AMD [12]. - Analysts express caution regarding the company's ability to regain growth momentum amid procurement cycles, competitive pressures, and macroeconomic uncertainties [15].

Fiscal Q3 2025 Results May 6, 2025 Better Faster Greener © 2025 Supermicro DISCLOSURES Cautionary Statement Regarding Forward Looking Statements Statements contained in this press release that are not historical fact may be 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. These forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "co ...

This quarterly report represents an earnings surprise of 3.33%. A quarter ago, it was expected that this server technology company would post earnings of $0.60 per share when it actually produced earnings of $0.61, delivering a surprise of 1.67%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Super Micro, which belongs to the Zacks Computer- Storage Devices industry, posted revenues of $4.6 billion for the quarter ended March 2025, surpassing the Zacks Consensus Es ...

Financial Data and Key Metrics Changes - The company's Q3 net revenue was $4.6 billion, down 19% quarter over quarter but up 19% year over year [19][7] - Non-GAAP EPS for Q3 was $0.31, a decline from $0.66 in the previous year, primarily due to inventory write-downs [9][24] - Non-GAAP gross margin for Q3 was 9.7%, down 220 basis points from 11.9% in Q2, attributed to higher inventory reserves and lower volumes [22][23] Business Line Data and Key Metrics Changes - AI GPU platforms accounted for over 70% of revenues, with significant contributions from both enterprise and cloud service provider markets [19] - The enterprise channel vertical generated $1.9 billion, representing 42% of revenues, up from 25% in the previous quarter [20] - OEM appliance and large data center vertical revenues were $2.6 billion, down from 75% in the last quarter to 57% in Q3 [21] Market Data and Key Metrics Changes - The US represented 60% of Q3 revenues, with Asia at 30%, Europe at 6%, and the rest of the world at 4% [22] - Year-over-year, US revenues increased by 3%, while Asia saw a 77% increase [22] - China continued to represent less than 1% of sales in Q3 [22] Company Strategy and Development Direction - The company is focused on expanding its market share in IT and AI despite macroeconomic challenges [8] - Introduction of the DCBBS (Data Center Building Block Solutions) aims to streamline data center deployment and reduce costs [12][16] - The company is committed to enhancing its direct liquid cooling (DLC) technology, aiming to double the volume of AI racks shipped in the coming year [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting long-term growth targets despite near-term macroeconomic uncertainties [17] - Anticipated Q4 revenue is projected to be at least $6 billion, with a cautious outlook on gross margins around 10% [17][28] - The company expects to navigate financial challenges while strengthening its leadership in product and technology innovation [16] Other Important Information - The company raised $700 million in gross proceeds from a new convertible note to strengthen working capital and support R&D investments [26] - Q3 cash flow from operations was $627 million, a significant improvement from a cash flow usage of $240 million in the previous quarter [25] Q&A Session Summary Question: Customer order trends amid macroeconomic uncertainty - Management noted that while tariffs and macroeconomic concerns are present, they still see strong orders and anticipate a strong June quarter [34][35] Question: Changes in gross margin expectations - Management indicated that the cautious guidance on margins is due to tariff concerns and the transition from older technology platforms to newer ones [36][38] Question: Midterm demand outlook and revenue targets - Management remains confident in achieving the $40 billion revenue target for fiscal 2026, citing strong demand for new products [41][42] Question: Differences in demand between product lines - Management observed strong demand for both GB 200 MVL 72 and liquid cooling solutions, although some customers are delaying decisions [44][45] Question: Impact of tariffs on U.S. manufacturing - Management emphasized the advantages of U.S. domestic manufacturing in responding quickly to new technologies and mitigating tariff impacts [82][83] Question: Supplier allocations for new products - Management acknowledged ongoing allocation issues but noted improvements compared to previous periods [86] Question: Clarification on inventory reserves - Management explained that inventory reserves impacted margins significantly in Q3, but they expect a reduction in reserves for the upcoming quarters [72][74]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net revenue of $4.6 billion, a decrease of 19% quarter over quarter but an increase of 19% year over year [21][24] - Non-GAAP EPS for Q3 was $0.31, down from $0.66 in the previous year, primarily due to an inventory write-down of older generation GPUs [10][26] - Non-GAAP gross margin for Q3 was 9.7%, down 220 basis points from 11.9% in Q2, attributed to higher inventory reserves and lower volumes [24][25] Business Line Data and Key Metrics Changes - AI GPU platforms accounted for over 70% of revenues, with enterprise and cloud service provider markets driving demand [21] - Revenue from the enterprise channel was $1.9 billion, representing 42% of total revenues, up from 25% in the previous quarter [22] - OEM appliance and large data center vertical revenues were $2.6 billion, representing 57% of Q3 revenues, down from 75% in the last quarter [23] Market Data and Key Metrics Changes - By geography, the US represented 60% of Q3 revenues, Asia 30%, Europe 6%, and the rest of the world 4% [24] - Year over year, US revenues increased by 3%, Asia by 77%, while Europe decreased by 3% [24] - China continued to represent less than 1% of sales in Q3 [24] Company Strategy and Development Direction - The company is focused on expanding its market share in IT and AI despite macroeconomic challenges and tariff impacts [9] - Introduction of the DCBBS (Data Center Building Block Solutions) aims to streamline data center deployment and reduce costs [12][13] - The company is committed to enhancing its domestic manufacturing capacity and expanding operations in Malaysia, Taiwan, and Europe [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting long-term growth targets despite near-term macroeconomic uncertainties [19] - For Q4, the company anticipates revenues of at least $6 billion, with expectations for strong growth driven by new product launches [19][30] - Management noted that while there are concerns regarding tariffs and macroeconomic conditions, they see strong order momentum [35][36] Other Important Information - The company recorded a net cash position of $44 million, a significant improvement from a negative net cash position of $479 million in the previous quarter [27] - The company expects Q4 GAAP diluted EPS to be in the range of $0.30 to $0.40, and non-GAAP diluted EPS to be $0.40 to $0.50 [29][30] Q&A Session Summary Question: Are customers pulling back orders due to macroeconomic conditions? - Management noted that while there are concerns, they see strong orders and expect a strong quarter in June [35][36] Question: What is the outlook for gross margins? - Management indicated that gross margins are impacted by tariffs and the transition to new technology platforms, leading to a more cautious outlook [38][39] Question: Is the $40 billion revenue target for fiscal 2026 still in place? - Management remains confident in long-term growth but did not provide specific guidance for fiscal 2026 at this time [42][45] Question: How is the demand for different product lines? - There is strong demand for both GB 200 MVL 72 and liquid cooling solutions, but some customers are delaying decisions [46][47] Question: What is the impact of tariffs on operations? - Management is closely monitoring the tariff situation and adjusting logistics to minimize impact [88] Question: What is the status of the CFO search? - The company is actively looking for a new CFO to support its growth [104]

Financial Data and Key Metrics Changes - For Q3 2025, the company's net revenue was $4.6 billion, which represents a 19% increase year-over-year but a 19% decrease quarter-over-quarter [18][7] - Non-GAAP EPS for Q3 was $0.31, down from $0.66 in the previous year, primarily due to an inventory write-down of older generation GPUs [8][23] - Non-GAAP gross margin for Q3 was 9.7%, down 220 basis points from 11.9% in Q2, attributed to higher inventory reserves and lower volume [21][22] Business Line Data and Key Metrics Changes - AI GPU platforms accounted for over 70% of revenues, with significant contributions from both enterprise and cloud service provider markets [18] - The enterprise channel vertical generated $1.9 billion, representing 42% of revenues, up from 25% in the previous quarter [19] - OEM appliance and large data center vertical revenues were $2.6 billion, representing 57% of Q3 revenues, down from 75% in the last quarter [20] Market Data and Key Metrics Changes - By geography, the US accounted for 60% of Q3 revenues, Asia 30%, Europe 6%, and the rest of the world 4% [21] - Year-over-year, US revenues increased by 3%, Asia by 77%, while Europe decreased by 3% [21] - China represented less than 1% of sales in Q3 [21] Company Strategy and Development Direction - The company is focused on expanding its market share in IT and AI despite macroeconomic challenges and tariff impacts [7] - The introduction of the DCBBS (Data Center Building Block Solutions) aims to streamline data center deployment and reduce costs [10][11] - The company is committed to enhancing its domestic manufacturing capacity and expanding operations in Malaysia, Taiwan, and Europe [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting long-term growth targets despite near-term macroeconomic uncertainties [16] - For Q4, the company anticipates revenues of at least $6 billion, with expectations for continued growth driven by new product launches [16][25] - Management noted that customer order trends remain strong, with expectations for a robust June quarter [31][32] Other Important Information - The company recorded a net expense of $31.7 million in other income and expenses for Q3, primarily due to interest expenses and foreign exchange impacts [22] - Cash flow generated from operations for Q3 was $627 million, a significant improvement from a cash flow usage of $240 million in the previous quarter [23][24] - The company amended the terms of its existing convertible notes and raised $700 million in gross proceeds from a new convertible note offering [24] Q&A Session Summary Question: Customer order trends in light of macroeconomic conditions - Management indicated that while tariffs and macroeconomic uncertainties concern some customers, they still see strong orders and expect a strong June quarter [31][32] Question: Changes in gross margin expectations - Management noted that gross margin expectations are impacted by tariff concerns and the transition from older technology platforms to newer ones [35][36] Question: Midterm demand outlook and revenue targets - Management remains confident in midterm growth and demand, particularly for new products like Blackwell and DCBBS solutions [40][42] Question: Differences in demand between product lines - Management observed strong demand for both GB 200 MVL 72 and liquid cooling solutions, but noted some delays in customer decision-making [45][46] Question: Impact of inventory reserves on margins - Management clarified that inventory reserves significantly impacted margins in Q3, but they expect lower reserves in Q4 [77][79] Question: Platform decisions affecting customer orders - Management confirmed that customers are transitioning to newer platforms, which has influenced order timing and inventory reserves [81][84] Question: U.S. domestic manufacturing advantages - Management emphasized the benefits of U.S. manufacturing in responding quickly to new technologies and mitigating tariff impacts [87][88] Question: Supplier allocations and GPU availability - Management acknowledged ongoing allocation challenges but noted improvements compared to previous periods [93] Question: Capacity and CapEx reconciliation - Management confirmed that capacity remains robust, with ongoing investments in expanding production capabilities [96][98]

Charles Liang, CEO of Super Micro, speaks at the HumanX AI conference at in Las Vegas on March 10, 2025.Super Micro issued disappointing guidance on Tuesday, a week after the server maker provided preliminary results for the latest quarter that fell far shy of Wall Street's expectations. The stock slid about 4% in extended trading. Here's what the company reported in comparison with LSEG consensus:Earnings per share: 31 cents adjusted vs. 50 cents expectedRevenue: $4.60 billion vs. $5.42 billion expectedWhi ...

Financial Results Announcement - Super Micro Computer, Inc. announced preliminary unaudited financial results for the quarter ended March 31, 2025[5]. - The report was filed on April 29, 2025, indicating timely compliance with SEC regulations[2]. - The press release detailing financial results is attached as Exhibit 99.1[7]. - No specific financial figures or performance metrics were disclosed in the provided content[5]. Company Information - The company is listed on the NASDAQ Global Select Market under the symbol SMCI[3]. - The company operates from its headquarters located at 980 Rock Avenue, San Jose, California[2]. - The report was signed by Charles Liang, the President and CEO, affirming the authenticity of the information[11]. Compliance and Reporting - The company has not elected to use the extended transition period for new financial accounting standards[4]. - The financial results will not be deemed "filed" under the Exchange Act, ensuring clarity in reporting[6]. - The filing does not indicate any emerging growth company status[4].

Core Viewpoint - Super Micro Computer Inc. (SMCI) is set to report its third-quarter 2025 earnings, with Wall Street anticipating earnings per share of 50 cents on revenue of $5.42 billion, although investor confidence remains low due to significant stock declines and past issues [1][2]. Financial Performance - The stock has decreased by 60.99% over the past year and is down 1.85% in the last month, despite a year-to-date gain of 7.79% [1]. - Allegations of accounting irregularities and delayed financials have led to a loss of over 80% of its market cap from peak levels [2]. Technical Analysis - SMCI stock is currently priced at $32.33, below all major moving averages, indicating a bearish trend [3]. - The eight-day simple moving average is $34.07, the 20-day is $33.33, the 50-day is $36.55, and the 200-day is $41.03, all suggesting downward momentum [3]. - The Moving Average Convergence Divergence (MACD) is at a negative 0.82, and the Relative Strength Index (RSI) is at 45.38, indicating a lack of bullish conviction [4]. Analyst Ratings - Recent ratings from Barclays, JPMorgan, and Mizuho suggest a consensus price target of $34.67, representing a 7.49% upside from current levels, with a "Neutral" consensus rating due to governance concerns and margin pressures [5].

Market Overview - US stock index futures are all down, with Dow futures down 0.77%, S&P 500 futures down 0.93%, and Nasdaq futures down 1.21% [1] - European indices also show declines, with Germany's DAX down 0.89%, UK's FTSE 100 down 0.22%, France's CAC40 down 0.52%, and the Euro Stoxx 50 down 0.70% [2] - WTI crude oil increased by 2.15% to $58.36 per barrel, while Brent crude rose by 2.06% to $61.47 per barrel [2] Company News - Goldman Sachs indicates that recent earnings reports from major tech companies in the AI sector have boosted investor confidence, suggesting that recent pullbacks present a buying opportunity [3] - DoorDash reported Q1 revenue growth of 20.7% to $3.03 billion, with adjusted EBITDA of $590 million, exceeding market expectations [4] - Philips lowered its annual profit forecast due to the impact of US tariffs, estimating a net effect of €250 million to €300 million (approximately $283 million to $340 million) [5] - Palantir's Q1 revenue surged 39% to $884 million, leading to an upward revision of its 2025 revenue forecast to approximately $3.9 billion, a 36% year-over-year increase [5] - Ford's Q1 revenue fell 5% to $40.7 billion but exceeded analyst expectations, while the company withdrew its full-year profit guidance [6] - Apple is expected to launch AI features in China with support from Alibaba and Baidu, integrating local compliance mechanisms [7] - WeRide expanded its strategic partnership with Uber to deploy autonomous Robotaxi services in 15 cities over the next five years [8] - The US Department of Justice is pushing for the forced divestiture of Google's online advertising business, citing illegal monopoly practices [9]