Embattled server maker Super Micro Computer (SMCI) has reported disappointing financial results and offered weak forward guidance.
The Silicon Valley-based company reported fiscal third-quarter earnings per share (EPS) of $0.31 U.S., which was well below the $0.50 U.S. forecast on Wall Street.
Revenue in the period totaled $4.60 billion U.S., which missed analysts’ consensus estimate of $5.42 billion U.S.
The results come after Super Micro Computer issued preliminary earnings on April 29 and said that it expected fiscal third-quarter sales of $4.50 billion U.S. to $4.60 billion U.S., along with earnings of $0.29 U.S. to $0.31 U.S.
The company’s net income declined 66% from a year ago. Management said that their gross margin decreased to 9.6% from 11.8% in the previous quarter.
The company also updated its guidance for fiscal 2025, saying it now expects revenue of $21.80 billion U.S. to $22.60 billion U.S.
That’s down from a previous forecast that called for sales of $23.50 billion U.S. to $25 billion U.S.
For the current quarter, Super Micro Computer estimates sales of $5.60 billion U.S. to $6.40 billion U.S. and EPS of $0.40 U.S. to $0.50 U.S.
The fiscal fourth-quarter guidance fell short of Wall Street estimates of $0.66 U.S. in earnings and revenue of $6.65 billion U.S.
Heading into these earnings, Super Micro Computer faced numerous challenges, including delaying its financial results and replacing its auditor last year amid an accounting scandal.
Initially a winner of the artificial intelligence (A.I.) trade, the company’s stock has declined 60% over the past 12 months as analysts and investors abandoned the company.
Super Micro Computer’s shares are currently trading at $31.25 U.S. each.
