Super Micro Computer reported a surging profit and sales nearly doubling in the fiscal fourth quarter, with the company saying its customer and product mix is translating into better margins.
The server company on Tuesday reported a gross margin of 17.5%, after forecasting higher-than-expected gross margins between 15% and 17% last month. Chief Executive Officer Charles Liang said the improved profitability was driven in part by expanded product lines and efforts to grow the company's customer base.
"Our focus on profitability is yielding clear results," Liang told analysts on a Tuesday call. "This margin expansion mainly came from our strategic focus on balancing customer mix and product mix while having few one-time positive contributions for the quarter."
Super Micro reported a profit of $1.17 billion, or $1.62 a share, in the quarter ended June 30. That compares with a profit of $195.2 million, or 31 cents a share, in the year-ago period.
Stripping out certain one-time items, adjusted earnings were $1.70 a share. Analysts polled by FactSet were expecting 92 cents a share.
Net sales rose to $11.12 billion from $5.76 billion. Analysts were expecting $11.6 billion, and the company had guided for revenue between $11 billion and $12.5 billion.
Sales came in at the lower end of guidance because of some customer delays in power, cooling, and networking, Liang said. The company said it expects to recognize delayed revenue in future quarters.
Shares of Super Micro jumped 8.6% to $34.33 in after-hours trading on Tuesday, after closing up 0.5% at $31.60.
"Our Total AI/IT Solutions strategy continues to deliver strong results, we added several hundred enterprise and other customers in the past year, generated more than $60 billion in new orders, and booked record backlog entering fiscal 2027," Liang said.
Super Micro forecast fiscal year 2027 net sales of between $65 billion and $72 billion. Analysts currently expect $52.99 billion.
The company also forecast first-quarter gross margin between 10.4% and 10.8%.
For the current fiscal fourth quarter, the company is projecting adjusted earnings between $1.01 and $1.10 a share on net sales between $14.5 billion and $15.5 billion.
Analysts are expecting first-quarter adjusted earnings of 72 cents a share on $11.82 billion in net sales.
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