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SAN JOSE, Calif. - Super Micro Computer Inc. (NASDAQ: SMCI), a prominent player in the Technology Hardware industry with a market capitalization of $21.4 billion, has released its unaudited preliminary financial results for the third quarter of fiscal year 2025, which ended on March 31, 2025. According to InvestingPro analysis, the company is currently trading below its Fair Value, despite showing impressive revenue growth of 125% over the last twelve months. The company reported an expected range of net sales between $4.5 billion and $4.6 billion, falling short of its prior guidance of $5.0 billion to $6.0 billion. This performance comes amid challenging market conditions, though InvestingPro data shows the company maintains strong fundamentals with a healthy current ratio of 6.38 and operates with a moderate debt-to-equity ratio of 0.31.
The company’s GAAP diluted net income per common share is anticipated to be between $0.16 and $0.17, a decrease from the previously guided range of $0.36 to $0.53. The non-GAAP diluted net income per common share is expected to be between $0.29 and $0.31, also lower than the forecasted $0.46 to $0.62.
Super Micro cited several factors for the lower-than-expected preliminary results, including robust new generation product design wins and some delayed customer platform decisions that have pushed sales into the fourth quarter. Additionally, the GAAP and non-GAAP gross margin for the third quarter was 220 basis points lower than the second quarter, primarily due to higher inventory reserves for older generation products and expedite costs associated with bringing new products to market. This aligns with InvestingPro’s analysis, which identifies weak gross profit margins (currently at 12.44%) as one of the company’s challenges. For deeper insights into SMCI’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, investors can access the full Pro Research Report on InvestingPro.
The company’s financial information is based on preliminary results and management’s estimates and is subject to change following the completion of financial closing procedures and finalization of the financial statements for the third quarter of fiscal year 2025. Super Micro will host a conference call and live audio webcast to review its third-quarter results on Tuesday, May 6, 2025, at 5:00 p.m. ET / 2:00 p.m. PT.
Super Micro has cautioned that statements in this press release that are not historical facts may be forward-looking and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. These statements include projections about net sales, gross margins, and diluted net income per common share.
The company’s use of non-GAAP financial measures, such as non-GAAP diluted net income per common share, is intended to provide additional insight for analysts and investors. However, these measures have limitations and are not intended to be an alternative to financial measures prepared in accordance with GAAP.
This article is based on a press release statement from Super Micro Computer, Inc. and does not include any marketing promotion or endorsement.
In other recent news, Super Micro Computer, Inc. has announced significant advancements in its AI systems, achieving top performance on MLPerf Inference v5.0 benchmarks with its new NVIDIA HGX B200 8-GPU systems. These systems, available in both liquid-cooled and air-cooled versions, have demonstrated substantial increases in efficiency for AI tasks, delivering over 129,000 tokens per second on specific benchmarks. In another development, Supermicro has introduced a new lineup of single-socket servers designed to rival traditional dual-socket servers, offering improvements in high-speed networking and GPU capacity. These servers, built to support Intel Xeon 6 processors, aim to provide cost savings and energy efficiency. Meanwhile, Defiance ETFs has launched the Defiance Daily Target 2X Short SMCI ETF, offering investors inverse exposure to Supermicro’s market performance. Additionally, Supermicro has bolstered its leadership team by appointing Scott Angel as an independent director and promoting Yitai Hu to General Counsel & Senior Vice President. These strategic enhancements are expected to contribute to the company’s growth, according to CEO Charles Liang.
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