Tue, Feb 25, 9:48 PM (60 days ago)
Super Micro Computer, Inc. (SMCI) reported its quarterly results for the three months ended September 30, 2024. Net sales increased to approximately $5,937K (in 000s) from about $2,120K in the prior year quarter, driven by heightened demand for GPU servers, HPC, and rack-scale solutions. Gross profit rose to roughly $776K though gross margin declined to 13.1% from 16.7%, reflecting increased costs and competitive pricing pressures. Operating expenses grew by 47% due to higher R&D, sales, and G&A expenses, including stock-based compensation. Net income improved significantly from around $157K to $424K, with basic EPS at $0.72. Operating cash flows increased to about $409K, despite higher capital expenditures for property and equipment. The filing also details a 10-for-1 forward stock split effective September 30, 2024, amendments to debt facilities and convertible notes, and ongoing legal and governance reviews following audit firm changes. Management highlighted AI-driven market expansion while noting exposure to macroeconomic uncertainties and supply chain risks that may impact future operations.