Super Micro Computer (NASDAQ: SMCI) shares plunged as much as 10% in extended trading on Tuesday after the server maker issued weaker-than-expected results for the fiscal first quarter.
Earnings per share proved to be 35 cents adjusted vs. 40 cents expected, on revenue of $5.02 billion vs. $6 billion expected
Revenue fell 15% from $5.94 billion a year ago, according to a company statement. The report comes about two weeks after Super Micro issued preliminary earnings and said it expected revenue of $5 billion for the quarter, down from prior guidance of $6 billion to $7 billion.
Net income fell by more than half to $168.3 million, or 26 cents a share, from $424.3 million, or 67 cents a share, a year earlier.
In its partial report last month, Super Micro said “design win upgrades” pushed some expected first-quarter revenue to the second quarter. The company said it now expects sales of $10 billion to $11 billion in the current quarter, above the $7.83 billion average estimate.
Super Micro has been a big beneficiary of the artificial intelligence boom, as its servers come packed with graphics processing units from Nvidia (NASDAQ:NVDA). But after growth soared from late 2023 through last year, the business has flatlined, with some analysts saying that Dell (NYSE:DELL) has taken market share.
Prior to Tuesday’s report, the stock was up 55% for the year. Shares opened Wednesday down $1.19, or 2.6%, to $46.22.
