In addition to beating FQ1 estimates, Super Micro (SMCI +12.3%) has guided for FQ2 revenue of $440M-$480M and EPS of $0.44-$0.50, largely above a consensus of $449.4M and $0.44.
Sales of value-added "server solutions," which include systems based on Super Micro's storage, HPC accelerator, network switch, Twin rack-mounted server, and MicroCloud modular server offerings accounted for 57.7% of revenue, up from 55.2% in FQ4 and 46.4% a year ago.
Gross margin rose 10 bps Q/Q and 50 bps Y/Y to 15.7%. GAAP opex rose 8% Y/Y to $37.6M (much less than rev. growth of 43%).
On the CC (transcript), the company noted cloud and Internet data center sales made up 13.7% of revenue, down from 17.8% in FQ4 and up from 8.3% a year ago.
Roth has launched coverage on Super Micro (SMCI +2.3%) with a Buy and $35 target.
The server vendor is within striking distance of an all-time high of $29.65 (set on Sep. 18). It has bucked a weak server market by rapidly growing sales to Web data centers (+150% Y/Y in the June quarter, and 17.8% of revenue).
Following an encouraging talk with CFO Howard Hideshima, Sifel has upgraded Super Micro (SMCI +6.1%) to Buy, and set a $23 PT.
Super Micro's shares took off last month in response to a strong FQ3 beat and healthy FQ4 guidance. The company has been bucking weak server industry demand in part by ramping sales of modular/rack-optimized servers for Internet data centers (growing quickly as a % of industry revenue).
Super Micro Computers (SMCI -6.8%) says FQ2 earnings will miss estimates due to ongoing supply chain issues stemming from the flooding in Thailand. Earning are now expected to come in at or below $0.25 per share, below its previous projections of $0.27 and missing analysts' estimates of $0.29.