Financial Data and Key Metrics - Preliminary fiscal Q1 net revenue was in the range of $5.9 to $6 billion, up 181% year-on-year, driven by strong AI demand [3] - Preliminary non-GAAP gross margin was approximately 13.3%, and non-GAAP operating margin was approximately 9.9%, both higher than the previous quarter [3] - Q1 GAAP net income estimated at $433 to $443 million, and non-GAAP net income at $483 to $493 million [6] - Q1 operating cash flow was approximately $407 million, an improvement of $1 billion quarter-over-quarter [7] - Q1 closing inventory was approximately $5 billion, with CapEx for Q1 at $42 million and positive free cash flow of $365 million [7] Business Line Data and Key Metrics - AI contributed over 70% of revenues across enterprise and cloud service provider markets [6] - The company deployed the world's largest DLC AI super cluster with 100,000 NVIDIA GPUs, reflecting strong engineering and logistics capabilities [3] - The DLC liquid cooling market share is expected to be at least 10 times more than last year due to product maturity and rapid AI growth [4] Market Data and Key Metrics - The company expects 15% to 30% of new data centers to adopt liquid-cooled infrastructure in the next 12 months [4] - The company is expanding its production facilities in Silicon Valley, Malaysia, Taiwan, and Europe, with plans to scale up further [5] Company Strategy and Industry Competition - The company is leveraging its data center building block solution (DCBPS) to reduce time-to-delivery and time-to-online for customers, significantly improving efficiency [4] - The company is focusing on liquid-cooled data centers, with its new SuperCloud Composer (SCC) providing end-to-end management from chip level to data center cooling towers [4] - The company is expanding its global manufacturing capacity, including a new Malaysia campus, to support future growth [5] Management Commentary on Operating Environment and Future Outlook - Management remains confident in the company's ability to service customers and partners despite recent challenges, with strong growth driven by the AI revolution [3] - The company is optimistic about future growth, particularly with the upcoming availability of new GPU chips like Blackwell, which are expected to drive market share and revenue growth [9] - Management highlighted the importance of the company's liquid cooling solutions, which are gaining traction due to their energy efficiency and performance benefits [5] Other Important Information - The company is working diligently to select a new independent auditor and complete its fiscal year 2024 audit [8] - The special committee has completed its investigation and found no evidence of fraud or misconduct, recommending remedial measures to strengthen internal governance [2] Q&A Session Summary Question: Revenue came in at the lower end of guidance. Is this due to market share losses or delayed financial filings? - Answer: The lower revenue was primarily due to customers waiting for the new Blackwell chip, with the company's liquid cooling solutions fully ready for deployment once the chips are available [9] Question: Gross margins were robust but are expected to decline. Is the target of 14-17% gross margin still achievable? - Answer: The company expects gross margins to improve as new GPU chips become available and with the help of its data center building block solution and SuperCloud Composer [10] Question: What is the expected revenue contribution from Blackwell in Q1 and Q2? - Answer: The company did not provide specific revenue guidance for Blackwell but expects strong growth once the chips are available [19] Question: Are there any risks to supply or allocations from NVIDIA due to the auditor and filing issues? - Answer: The company maintains a strong relationship with NVIDIA and does not expect any negative impact on allocations [19] Question: How is the company managing its working capital and access to capital? - Answer: The company has raised $4 billion in working capital through equity and convertible debt, leaving it in a strong position to meet its needs [14] Question: What is the status of the company's liquid cooling production capacity and supply chain efficiency? - Answer: The company has shipped over 2,000 liquid-cooled racks and is focused on further improving efficiency and capacity, with plans to expand production facilities globally [20] Question: What is the company's relationship with NVIDIA, and are there any changes to allocations? - Answer: The company has a deep, long-standing relationship with NVIDIA and has confirmed that there are no changes to allocations [23]

Tuesday, November 5, 2024Well, it’s still Election Day, but what appears somewhat different this afternoon compared to this morning and the past week or two is that market participants look ready to deal with whichever candidate wins the White House. This is especially true as odds seem to be getting better that an election this close will not produce a clean-sweep in either party direction. The market hates uncertainty, but it loves political gridlock.The Dow gathered +402 points for the session, +1.02%, w ...

Charles Liang, chief executive officer of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on Wednesday, June 5, 2024. The trade show runs through June 7.Super Micro, the embattled server maker that's late in releasing annual financials and at risk of being delisted by the Nasdaq, reported unaudited first-quarter results on Tuesday.The stock dropped 12% in extended trading after the company's revenue trailed estimates, guidance came in weaker than expected, and Super Micro said i ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Financial Information - Super Micro Computer, Inc. announced preliminary financial information for the quarter ended September 30, 2024[5]. - The press release regarding the financial results is dated November 5, 2024[7]. Company Obligations - The company prepaid in full and terminated its obligations under the Term Loan Credit Agreement dated July 19, 2024[4]. - The company has not elected to use the extended transition period for complying with new financial accounting standards[4]. - The report is not deemed "filed" under the Securities Exchange Act of 1934[6]. - The company is not classified as an emerging growth company[4]. Company Information - The company is listed on the NASDAQ Global Select Market under the trading symbol SMCI[3]. - The address of the principal executive offices is 980 Rock Avenue, San Jose, California 95131[2]. - The company's IRS Employer Identification Number is 77-0353939[2]. - Charles Liang serves as the President, CEO, and Chairman of the Board[9].

Key TakeawaysSuper Micro Computer reports earnings after the bell Tuesday, with its stock nearly 80% below its highest point in March.The few analysts covering the stock mostly have a cautious view of its outlook, but expect it will regain some of the value it has lost in recent months.Concerns with the company's accounting practices have sent the stock lower amid a report from a short seller, delayed filings, and the recent resignation of EY as its auditor. Super Micro Computer (SMCI) is set to report earn ...

The resignation of its auditor sent Supermicro shares plummeting.The saga around Super Micro Computer (SMCI -0.08%) continued with the stock plunging on news that its auditor has resigned. The stock has bounced around like a ping-pong ball this year, with a number of extreme moves to both the upside and downside. Now the stock is down 9% year to date.Let's take a closer look at some of recent drama around the stock and see if we can determine whether the stock is a buy or if it best to just stay away.Questi ...

The Super Micro Computer stock (NASDAQ: SMCI ) has traded down by more than 40% after Ernst & Young (EY) resigned from the audit engagement on October 30. The stock has lost more than 40% of its value over the pastAnalyst’s Disclosure: I/we have a beneficial short position in the shares of SMCI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business ...

Results from Super Micro Computer Inc (NASDAQ:SMCI) are due on Wednesday but the performance of the server manufacturers and Nvidia's third-largest customer is likely to "take a back seat" to other concerns, analysts say.   Shares in Super Micro lost over 45% of their value last week after Ernst and Young resigned as its auditor, taking the decline in the shares to almost 70% over six months, following a Wall Street Journal report about the launch of a Department of Justice investigation, a warning in Septe ...

Core Viewpoint - Semiconductor companies, particularly Nvidia, have experienced significant stock performance due to the rise of AI adoption, but concerns about valuations and potential corrections loom [1]. Group 1: Nvidia's Performance and Market Position - Nvidia's year-to-date returns stand at 188.08%, with current shares trading at $138.76, reflecting a 3.61% loss over the past week [1]. - The company's market capitalization is approximately 12% of the United States GDP, raising concerns about overvaluation and the possibility of a market correction if AI is in a bubble [1]. Group 2: Risks from Super Micro Computer (SMCI) - SMCI, a key customer for Nvidia, faces potential delisting due to regulatory noncompliance, which could trigger a selloff of Nvidia shares [2]. - Nvidia's revenue is highly concentrated, with 46% coming from just four customers, and SMCI is estimated to account for nearly 9% of Nvidia's revenue [3][4]. Group 3: SMCI's Recent Troubles - SMCI's stock plummeted by 30% following allegations of accounting fraud and the resignation of its auditor, Ernst & Young [5]. - The company is at risk of being delisted on November 16, coinciding with Nvidia's Q3 2025 earnings report, which could negatively impact investor sentiment regarding AI spending [6]. Group 4: Nvidia's Strategic Response - Nvidia is reportedly shifting orders away from SMCI to other customers, mitigating the impact of SMCI's potential downfall [7]. - Demand for Nvidia's latest Blackwell architecture chips is extremely high, with products sold out for the next 12 months, suggesting that Nvidia can compensate for any revenue loss from SMCI [8].