Super Micro forecasts quarterly revenue above estimates on strong AI server demand (updated)
UPDATE 2-Super Micro forecasts quarterly revenue above estimates on strong AI server demand Adds CFO comment and updates share move
By Prathik Jayaprakash
Nov 3 (Reuters) - Super Micro Computer SMCI.O forecast second-quarter revenue above Wall Street estimates on Tuesday as strong demand for its AI-optimized servers boosted sales, sending the company's shares up more than 9% in extended trading.
The San Jose, California-based server maker has been a key beneficiary of the AI infrastructure boom, with strong demand for its Nvidia-powered systems as cloud providers and technology companies continue to expand data-center capacity.
Here are more details:
Super Micro Computer appointed former Western Digital executive Mark Long as CFO last month, nearly two years after launching a search for the role amid concerns over its financial and accounting practices
Super Micro reported first-quarter revenue of $19.95 billion, above analysts' average estimate of $16.39 billion, according to data compiled by LSEG
It earned $1.81 per share on an adjusted basis for the quarter ended September 30, compared with estimates of $1.23
Gross margins for the quarter stood at 12.7%, ahead of preliminary estimate of 12.0% to 12.5%
The company expects second-quarter revenue in the range of $19.5 billion to $21.5 billion, above analysts' estimate of $17.14 billion
It also forecast fiscal 2027 revenue of $72.0 billion to $82.0 billion, compared with its prior forecast of $65.0 billion to $72.0 billion and the Street's estimate of $69.17 billion
The company has faced scrutiny after a contractor pleaded guilty last month to charges related to illegally exporting servers containing advanced Nvidia AI chips to China
The company is embedding compliance into its culture and expanding resources to ensure robust internal controls, Long told Reuters
(Reporting by Prathik Jayaprakash in Bengaluru; Editing by Shailesh Kuber)
((Prathik.Jayaprakash@thomsonreuters.com; +91 9916364306))