01—Abstract
Summary
Summary of the 8-K filed April 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Super Micro Computer, Inc. (Nasdaq: SMCI) furnished an 8-K on April 29, 2025 reporting a business update and unaudited preliminary financial results for its third quarter of fiscal 2025, ended March 31, 2025.
The company said its new generation product design wins are robust, but that some delayed customer platform decisions moved sales into the fourth quarter. The results are preliminary and may differ materially from final figures once financial closing procedures are complete. The company expects Q3 net sales of $4.5 billion to $4.6 billiona, against prior guidance of $5.0 billion to $6.0 billion.
Expected GAAP diluted net income per share is $0.16 to $0.17b, versus prior guidance of $0.36 to $0.53, and non-GAAP diluted net income per share is $0.29 to $0.31, versus prior guidance of $0.46 to $0.62. GAAP and non-GAAP gross margin for Q3 were 220 basis points lower than Q2, driven mainly by higher inventory reserves on older-generation products and expedite costs to bring new products to market. The reconciliation to non-GAAP results adds back approximately $85 million of stock-based compensation and approximately $30 million of debt extinguishment expenses, less a related tax benefit of approximately $30 million.
The company will hold a conference call to review the quarter on May 6, 2025, at 5:00 p.m. ET.
02—Key points
Key Highlights
- Expected Q3 fiscal 2025 net sales of $4.5 billion to $4.6 billion, below prior guidance of $5.0 billion to $6.0 billion
- Expected GAAP diluted EPS of $0.16 to $0.17 versus prior guidance of $0.36 to $0.53
- Expected non-GAAP diluted EPS of $0.29 to $0.31 versus prior guidance of $0.46 to $0.62
- GAAP and non-GAAP gross margin 220 basis points lower than Q2, due to higher inventory reserves on older-generation products and expedite costs for new products
- Some delayed customer platform decisions moved sales from Q3 into Q4; new generation product design wins described as robust
- Non-GAAP adjustments include about $85 million of stock-based compensation and about $30 million of debt extinguishment expenses, less a roughly $30 million tax benefit
- Projections assume a GAAP tax rate of about 5.1% and non-GAAP tax rate of about 15.5%, with 621.8 million GAAP and 635.9 million non-GAAP fully diluted shares
03—Questions
Frequently Asked Questions
Are the Q3 fiscal 2025 results final?
No. The figures are unaudited preliminary results based on management's estimates and remain subject to revision during financial closing procedures and finalization of the quarter's financial statements. Actual results may differ materially.
Why did the company's expected revenue fall short of prior guidance?
The company said some delayed customer platform decisions moved sales into Q4 fiscal 2025. Expected Q3 net sales are $4.5 billion to $4.6 billion, compared with prior guidance of $5.0 billion to $6.0 billion.
What drove the lower gross margin?
Gross margin, on both GAAP and non-GAAP bases, was 220 basis points lower than Q2, primarily due to higher inventory reserves for older-generation products and expedite costs to enable time-to-market for new products.
When will the company discuss these results in more detail?
Supermicro will host a live audio webcast conference call on Tuesday, May 6, 2025, at 5:00 p.m. ET / 2:00 p.m. PT, with a replay available afterward for one year.
What is the difference between the GAAP and non-GAAP EPS figures?
Non-GAAP diluted net income per share adds back stock-based compensation expense adjusted for its tax effect. The reconciliation includes about $85 million of stock-based compensation and about $30 million of debt extinguishment expenses, less a related tax benefit of about $30 million.
04—Continue