Super Micro Computer (SMCI) Releases Mixed Preliminary Financial Results for Fiscal Q2 2025, Plans Imminent Filing of Pending Financial Statements, and Issues $700 Million in New Notes

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Super Micro Computer Reports Mixed Earnings in Key Quarter

Super Micro Computer (NASDAQ: SMCI), a prominent player in the server and AI rack market, recently released its preliminary earnings for fiscal Q2 2025, a period critical for the company’s trajectory. The results came in mixed, reflecting both challenges and areas of resilience.

During this recent quarter, Super Micro reported a revenue of $5.65 billion, which fell short of analyst projections that anticipated $5.89 billion, based on the LSEG consensus estimate.

Financial Guidance and Earnings Overview

In its previous earnings call related to the fiscal Q1 2025 results announced in late 2024, Super Micro provided guidance for Q2, which included:

“The Company expects net sales in a range of $5.5 billion to $6.1 billion for the second quarter of the fiscal year 2025 ending December 31, 2024, with GAAP net income per diluted share projected between $0.48 to $0.58 and non-GAAP net income per diluted share between $0.56 to $0.65.”

In terms of profitability, Super Micro reported a non-GAAP Earnings Per Share (EPS) of $0.59, which exceeded the consensus estimate of $0.54, illustrating a level of strength in its operational performance despite the revenue shortfall.

Future Projections for Q3

Looking ahead, Super Micro has provided guidance for Q3 2025:

“The Company expects net sales in the range of $5.0 billion to $6.0 billion for the third quarter of the fiscal year, concluding March 31, 2025. GAAP net income per diluted share is projected between $0.36 to $0.53, and non-GAAP net income per diluted share between $0.46 to $0.62.”

Regulatory Compliance and Future Filings

Super Micro is also focused on meeting the Nasdaq exchange’s regulatory requirements. The company is working towards filing its Annual Report on Form 10-K for the fiscal year ending June 30, 2024, alongside its Quarterly Report on Form 10-Q for the period ending September 30, 2024. The current target date for these filings is February 25, 2025.

“Supermicro continues to work diligently toward the filing of its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and its Quarterly Report on Form 10-Q for the period ended September 30, 2024. Based on information currently available, the Company believes it will make such filings by February 25, 2025.”

Recent Developments and Job Openings

Speculation surrounding Super Micro’s potential resolution of its delisting threats was fueled by a recent job opening for a “Senior Manager, SEC Reporting.”This position highlights the company’s need for improved compliance in SEC reporting, indicating a strategic move towards re-establishing financial transparency.

Since August 2024, Super Micro has refrained from filing necessary financial documents with the SEC due to serious allegations of accounting irregularities made by Hindenburg Research. This situation was compounded by the resignation of their auditor, Ernst & Young, amidst governance concerns in October.

Technological Leadership and Expansion Plans

Despite these challenges, Super Micro continues to demonstrate technological leadership, particularly in liquid cooling solutions. According to a recent evaluation by Lynx Equity, the company leads the way in liquid-cooled technology, enhancing the deployment efficiency of demanding servers while achieving better economies of scale.

Currently, Super Micro has the capacity to deploy 5, 000 server racks monthly, with 2, 000 of these being liquid-cooled units. The company’s expansion plans at a significant factory in Malaysia are expected to double this capacity to 10, 000 racks per month.

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