Supermicro’s Preliminary Financial Overview for Fiscal Q2 2025
Super Micro Computer, Inc. has released its initial financial results for the second quarter of fiscal year 2025, which concluded on December 31, 2024. The company anticipates significant growth in net sales and profit margins, marking a pivotal moment as it capitalizes on advancements in AI infrastructure technology.
Financial Projections
The key financial estimates for the quarter ending December 31, 2024, include:
- Projected net sales between $5.6 billion and $5.7 billion, translating to a year-over-year increase of 54% at the midpoint.
- Expected GAAP and non-GAAP gross margins in the range of 11.8% to 11.9%.
- GAAP diluted net income per share forecasted between $0.50 and $0.52, consistent with year-ago figures.
- Non-GAAP diluted net income per share anticipated between $0.58 and $0.60, reflecting a 5% year-over-year growth.
The non-GAAP measures account for stock-based compensation expenses totaling approximately $63.0 million, adjusted by related tax effects around $19.1 million.
Cash and Debt Overview
As of December 31, 2024, Supermicro expects to report:
- Total cash and cash equivalents near $1.4 billion.
- Total debt approximating $1.9 billion, which includes $0.2 billion in bank debt and about $1.7 billion in convertible notes.
Market Position and Strategic Growth
CEO Charles Liang emphasized Supermicro’s strong positioning with its direct-liquid cooling (DLC) technology, predicting that over 30% of new data centers will adopt this technology within the next year. He highlighted that this development, coupled with high-quality product offerings in the AI infrastructure space, positions the company for substantial revenue growth, projecting fiscal year 2025 revenues between $23.5 billion and $25 billion, with aspirations of reaching $40 billion in fiscal year 2026.
Outlook for Fiscal Q3 2025
Looking ahead, Supermicro forecasts net sales between $5.0 billion and $6.0 billion for the third quarter of fiscal year 2025, which concludes on March 31, 2025. Expected GAAP net income per diluted share ranges from $0.36 to $0.53, while non-GAAP net income per diluted share is anticipated to be between $0.46 and $0.62. These projections assume effective tax rates of approximately 10.7% for GAAP and 12.7% for non-GAAP, with diluted share counts of 642 million and 653 million respectively.
Revised Fiscal Year 2025 Revenue Guidance
The company has amended its revenue guidance for fiscal year 2025, now estimating a range of $23.5 billion to $25 billion, down from the previous forecast of $26 billion to $30 billion.
Preliminary Financial Data Disclaimer
The financial results disclosed here are provisional and subject to final auditing processes. The mentioned figures represent preliminary estimates and may differ from the final outcomes following thorough financial closing procedures and the completion of independent audits.
Corporate Announcements and Compliance
Supermicro is working on timely filings for its Annual Report on Form 10-K and Quarterly Report on Form 10-Q, aiming for submission by February 25, 2025. The company has also announced a private placement of $700 million in new 2.25% Convertible Senior Notes due in 2028, along with amendments to existing notes due in 2029.
Legal Matters
In late 2024, the company received subpoenas from the Department of Justice and the SEC related to a short-seller report published in August 2024. Supermicro is cooperating with these requests; additionally, securities litigation suits have been filed against the company, which management feels are without merit.
Adjustments to Financial Reporting
Supermicro reconfirms that no current financial statements will require restatement. Some adjustments were made for the fourth quarter of fiscal year 2024, affecting net sales and costs due to an inventory reserve charge related to a market value decline. These adjustments lead to a minor downward adjustment in previously reported diluted net income per common share for fiscal year 2024, affecting results but not necessitating a restatement of financials.
