Supermicro predicted incredible revenue growth, but then

Supermicro announced preliminary financial results for its fiscal 2025 second quarter, ending December 31, 2024. The figures are not yet final because the company has not had the opportunity to conduct a full audit after Ernst & Young LLP declined to further review its statements last November.

Supermicro said it expects second-quarter revenue to be between $5.6 billion and $5.7 billion, up 54% year over year on average but below the previous forecast of $5.4 billion to $6.1 billion and the Wall Street consensus of $5.8 billion.

Net income (GAAP) per diluted common share is in the range of $0.50 to $0.52. Adjusted net income (non-GAAP) per common share is in the range of $0.58 to $0.60, reflecting a 5% increase year over year but below Wall Street’s target of $0.61. The company cautioned that the unaudited interim financial information provided in its press release is preliminary. Final financial results for the period may also differ from these figures.

Supermicro expects third fiscal quarter revenue in the range of $5.0 billion to $6.0 billion, GAAP diluted earnings per share of $0.36 to $0.53, and adjusted non-GAAP diluted earnings per share of $0.46 to $0.62 for its fiscal quarter ending March 31, 2025. The company also updated its fiscal 2025 revenue guidance to be in the range of $23.5 billion to $25 billion, below its previous guidance of $26 billion to $30 billion and roughly in line with Wall Street’s expectations of $24.5 billion.

Supermicro founder, president and CEO Charles Liang said the company’s revenue will grow to $40 billion in fiscal 2026, which ends midway through next calendar year, which he called a “relatively conservative estimate.” That’s well above the $29.18 billion Wall Street analysts had been expecting. The company’s shares have since risen 9%, the first in a long period of decline.

Liang cited the increased adoption of Supermicro’s direct liquid cooling (DLC) technology in data centers as a growth driver, which he said will be adopted by 30% of new data centers in the next 12 months. Supermicro is well positioned to grow AI infrastructure projects based on NVIDIA Blackwell and other solutions, Liang said, adding that the company has begun volume shipping of the NVIDIA HGX B200 air-cooled (10U) and liquid-cooled (4U) accelerators. The GB200 NVL72 is also fully operational, but delays in receiving the Blackwell accelerators have reduced Supermicro’s revenue range.

Liang said Supermicro’s product line continues to grow, noting that the company has “a product line that meets industry standards, plus a lot of chipsets,” including some “confidential products in development.” He said Supermicro already has a customer working with the company on these products, according to DataCenter Dynamics.

Liang also said that Supermicro’s financial team and its new auditor, BDO, are “fully engaged in completing the audit process,” and he is “confident” that the report will be filed with the U.S. Securities and Exchange Commission (SEC) by the Feb. 25 deadline. Failure to do so could result in the company being delisted from the Nasdaq stock exchange.

Supermicro shares have gained 59% in the past five days and 40% year-to-date, compared to just 2% on the Nasdaq, SiliconANGLE reports. However, the company’s shares have fallen 48% over the past 12 months, and it dropped out of the Nasdaq 100 at the end of 2024.