Super Micro Computer raises sales estimate to US$18.5B to US$19.5B
Preliminary gross margin of 12 to 12.5 per cent tops prior guidance, with final September-quarter results due Nov. 3.
Julian Okafor
Higher AI-platform demand has lifted a quarterly revenue estimate about US$4 billion above the previous forecast at its midpoint. Super Micro Computer, Inc. NASDAQSMCI, the San Jose server and data-centre systems manufacturer, said Oct. 20 it expects sales of US$18.5 billion to US$19.5 billion.
The company estimates gross margin of 12 to 12.5 per cent for the quarter ended Sept. 30. Its previous range was 10.4 to 10.8 per cent, with the improvement attributed to customer and product mix.
Analysts expected revenue of US$15.23 billion, according to LSEG data reported by Reuters on Tuesday. Their average gross-margin estimate was 10.15 per cent, putting both measures below the company's preliminary ranges.
Shares closed Tuesday at US$32.47 on Nasdaq, up 1.2 per cent, according to NASDAQSMCI, timestamped 4:00 p.m. EDT. Management will present the September-quarter results on Nov. 3.
The Revenue Midpoint Rises By US$4 Billion
Supermicro's Aug. 11 outlook put September-quarter sales at US$14.5 billion to US$15.5 billion. The new midpoint is about 27 per cent higher, calculated from the two ranges.
The raised margin estimate still sits below the 17.5 per cent Supermicro reported for the June quarter in those preliminary results. Its gross margin for the full fiscal year ended June 30 was 10.8 per cent.
That June quarter produced US$11.1 billion in sales, according to the Aug. 11 release. Supermicro's latest revenue range therefore points to a larger September-quarter business alongside a lower gross margin than the preceding quarter.
The Aug. 11 release said Supermicro had generated more than US$60 billion in new orders and entered fiscal 2027 with a record backlog. The Oct. 20 revenue upgrade provides an updated sales estimate without quantifying how much of that backlog was delivered.
The Oct. 20 update separates the drivers of the two revisions: increased AI-platform demand for revenue, and customer and product mix for gross margin. It provides no updated earnings-per-share estimate, cash-flow figure or customer-level revenue breakdown.
Supermicro's Aug. 11 forecast also called for annual sales of US$65 billion to US$72 billion in fiscal 2027. The Oct. 20 update addresses the September quarter without providing a replacement annual range.
Dell Reports A US$95 Billion AI-Server Backlog
Dell Technologies Inc. NYSEDELL, the Texas supplier of computers, servers and storage systems, reported Sept. 1 that quarterly AI-server revenue reached US$16.4 billion. That was double the year-earlier level for its quarter ended July 31.
Dell also reported US$60.9 billion in AI-server orders and a US$95 billion backlog in its Sept. 1 release. It raised its fiscal 2027 AI-server revenue expectation to US$74 billion from US$60 billion.
Those Dell figures distinguish orders awaiting delivery from revenue already recognized. Supermicro's Oct. 20 update supplies a total-company revenue estimate rather than a separate AI-server sales figure, so the two suppliers' headline numbers do not measure the same business.
Preliminary Results Face A Nov. 3 Test
Supermicro explicitly cautioned that the Oct. 20 figures remain subject to its financial closing procedures. Its independent accounting firm had not audited, reviewed, compiled or performed procedures on the preliminary revenue and gross-margin figures.
"Actual results for the first quarter of fiscal year 2027 may differ materially from these preliminary unaudited financial results," Supermicro said in the Oct. 20 release.
The reporting cycle also follows a finance leadership change. An Oct. 15 securities filing records Mark Long's appointment as chief financial officer effective Oct. 14, replacing David Weigand.
Mugglehead's Oct. 16 coverage of the CFO appointment set out the transition and Long's employment terms. The new preliminary update gives the incoming finance chief a higher revenue estimate to finalize for the September quarter.
Read more: Super Micro Computer names Mark Long CFO after nearly two-year search
The June 30 balance sheet in the Aug. 11 preliminary results carried US$7.5 billion in cash and equivalents against US$8.7 billion in bank debt and convertible notes. The June quarter generated US$747 million in operating cash flow, according to the Aug. 11 release. Capital expenditures and investments were US$25 million for that period. The Oct. 20 update does not provide September balances or operating cash flow.
Supermicro's results webcast is scheduled for Nov. 3. The final September-quarter revenue and gross margin will test the preliminary ranges, while the associated financial statements will show how the larger sales base translated into earnings and cash.
