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Market Mover | Super Micro Computer Shares Slump 14% As Q4 Margins Decline

Moomoo News ·  Aug 7 06:24  · Movers

August 7, 2024 - $SMCI.US$ shares slumped 14.37% to $528.26 in pre-market trading on Wednesday. The company has announced fourth quarter and full-year financial results for fiscal year 2024 ended June 30, 2024.

Fourth Quarter of Fiscal Year 2024 Highlights

  • Net sales of $5.31 billion versus $3.85 billion in the third quarter of fiscal year 2024 and $2.18 billion in the same quarter of last year.

  • Gross margin of 11.2% versus 15.5% in the third quarter of fiscal year 2024 and 17.0% in the same quarter of last year.

  • Operating margin for Q4 was reported at 7.8%, impacted by a higher mix of hyperscale datacenter business and expedited costs for DLC liquid cooling components.

  • Net income of $353 million versus $402 million in the third quarter of fiscal year 2024 and $194 million in the same quarter of last year.

  • Diluted net income per common share of $5.51 versus $6.56 in the third quarter of fiscal year 2024 and $3.43 in the same quarter of last year.

  • The Company’s Board of Directors has authorized a 10-for-1 forward split of its common stock and we expect trading to commence on a split-adjusted basis on October 1, 2024.

“Supermicro continues to experience record demand of new AI infrastructures propelling fiscal 2024 revenue up 110% year over year to $14.9 billion and non-GAAP earnings per share up 87% to $22.09,” said Charles Liang, President and CEO of Supermicro, “We are well positioned to become the largest IT infrastructure company, driven by our technology leadership including rack-scale DLC liquid cooling and business values of our new Datacenter Building Block Solutions. The investments in Malaysia and Silicon Valley expansions will further strengthen our supply chain, security, and economies of scale necessary for the growing AI revolution.”

Q1 Outlook

  • The company expects net sales of $6.0 billion to $7.0 billion.

  • GAAP net income per diluted share of $5.97 to $7.66.

  • Non-GAAP net income per diluted share of $6.69 to $8.27.

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