Super Micro Computer Issues Long-Term Outlook, Misses Q2 Expectations

Super Micro Computer Inc. (SMCI) has projected a robust long-term revenue outlook while acknowledging its efforts to meet a critical Nasdaq deadline for audited financial submissions.

Long-Term Sales Forecast

The company anticipates sales of $40 billion for the fiscal year ending June 2026, significantly surpassing analysts' average estimate of $30.7 billion. The bullish outlook reflects the surging demand for high-powered servers used in artificial intelligence applications. Super Micro has recently announced full production availability for products featuring Nvidia's Blackwell B200 chips.

Near-Term Results

However, the near-term forecast and reported results fell short of expectations. Super Micro revised its revenue outlook for the current fiscal year ending June to $24.3 billion from $28 billion. Q2 sales and adjusted profit missed average estimates.

Market Reaction

Despite the tempered near-term outlook, Super Micro's shares gained over 6% in premarket trading on Wednesday. The stock has appreciated 27% year-to-date.

Nasdaq Compliance

Super Micro faces potential delisting for failing to meet the August 2024 deadline for filing its annual financial report. The company's auditor, Ernst & Young LLP, resigned, citing governance and transparency concerns. Super Micro is also under investigation by the US Department of Justice.

Nasdaq has extended Super Micro's deadline to February 25th to file its delayed submissions. The company expects to meet this deadline based on current information.

Financial Reporting Progress

Investors were keen to hear updates on Super Micro's progress in filing its delayed financial information. The company stated that it continues to work on the filings and is "diligently working to provide all required information to Nasdaq."

Q2 Preliminary Results

For the fiscal second quarter, Super Micro reported preliminary sales of $5.6 billion to $5.7 billion, slightly below analysts' estimates of $5.81 billion. Excluding certain items, profit was approximately 59 cents per share versus Wall Street's forecast of 64 cents.