Super Micro Computer Inc on Tuesday reported improved margins and gave a profit forecast that suggested it is controlling the costs of getting powerful artificial intelligence (AI) servers into customers’ hands.
Earnings, excluding some items, would be US$0.65 to US$0.79 a share in the period ending June 30, while quarterly revenue would be US$11 billion to US$12.5 billion, Super Micro said in a statement.
Analysts polled by Bloomberg projected, on average, profit of US$0.57 a share on sales of US$11.2 billion.
Photo: Bloomberg
The sale of the company’s servers fitted with Nvidia Corp chips have surged as customers seek to expand their ability to train and run AI tasks. As new versions of Nvidia’s processors roll out, Super Micro and its competitors, such as Dell Technologies Inc and Hewlett Packard Enterprise Co, are spending to win contracts and to speed new products to clients.
A recent legal cloud had also raised the specter that Super Micro’s clients might switch to other vendors. The forecast indicates that so far demand remains positive in a market where supply is constrained, limiting buying options.
The company also reported adjusted gross margin of 10.1 percent last quarter, which ended on March 31. That topped analysts’ estimates of 6.75 percent.
Adjusted profit was US$0.84 a share, compared with analysts’ average estimate of US$0.63.
“Our margin recovery and the rapid growth of our DCBBS [Data Center Building Block Solutions] business demonstrate that our business remains robust,” Super Micro CEO Charles Liang (梁見後) said in the statement, referring to the company’s unit selling combined hardware, software and services offerings.
“With the addition of our new US manufacturing facilities in Silicon Valley, we are exceptionally well-positioned to meet the massive demand,” he said.
The DCBBS, unit offers products that blend multiple types of equipment such as chips, networking and cooling, as well as software for managing backup batteries and controlling large numbers of server racks.
The offerings are helping Super Micro sell more to clients and generate more profit, Liang said during a conference call with analysts after the results were released.
DCBBS “will soon contribute more than 25 percent of our total profit in the coming few years.” he said.
In March, US prosecutors charged Super Micro cofounder Liaw Yih-shyan (廖益賢) with illegally diverting billions of US dollars in Nvidia-powered servers to China, in contravention of US export controls. Super Micro is not named as a defendant.
The San Jose, California-based company has said it is cooperating with authorities and put Liaw, who stepped down from the board, on administrative leave.
The company also named DeAnna Luna as chief compliance officer. Prior to joining the company in 2024, she oversaw export licensing at Intel Corp.
“I am personally shocked and saddened by these alleged actions,” Liang said on the call.
Revenue from last quarter more than doubled to US$10.2 billion, compared with analysts’ average estimate of US$12.4 billion.
Sales were hurt by delays at some clients, Liang said on the call, without naming them.
“This is purely a short-term delay,” he said. “Several customer sites were not yet equipped with the power and networking required for their cloud deployment, and we expect to capture this revenue in the coming quarters.”
Sales would be US$38.9 billion to US$40.4 billion in the current fiscal year, Super Micro said.
The company had previously said it would generate US$40 billion in annual revenue.
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