Super Micro Computer, Inc. Q2 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Preliminary revenue of $5.6 billion to $5.7 billion, up 54% year-over-year from the December 2023 quarter.
  • Non-GAAP EPS of $0.58 to $0.60 versus $0.56 in the prior-year period, a 5% year-over-year improvement.
  • Non-GAAP gross margin of 11.9%, down from 13.1% in fiscal Q1 2025 due to customer/product mix and 10-K delay impacts.
  • Non-GAAP operating margin of 7.9% versus 9.7% last quarter, reflecting lower gross margins and elevated R&D spending.
  • AI platforms represented more than 70% of revenue, driven by both air-cooled and liquid-cooled GPU systems.
  • Inventory fell to $3.6 billion from $4.9 billion last quarter, supporting cash generation despite operational disruptions.
  • Ended December quarter with $1.4 billion in cash; reached approximately $2 billion in cash at January 31, 2025.

Guidance & Outlook

  • Fiscal Q3 2025 revenue expected between $5 billion and $6 billion.
  • Gross margin expected at approximately 12% for Q3.
  • Non-GAAP EPS guidance of $0.46 to $0.62.
  • Full-year fiscal 2025 revenue guidance reduced from $26–30 billion to $23.5–25 billion due to technology-cycle delays and 10-K filing disruptions.
  • CEO Charles Liang reiterated confidence in achieving at least $40 billion in revenue in fiscal 2026, implying ~65% growth from fiscal 2025 levels.

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Operator: Thank you for standing by. Founder, President and Chief Executive Officer, David Weigand, CFO, and Michael Staiger, Senior Vice President of Corporate Development. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-[Operator Instructions] Thank you. Michael Staiger : Good afternoon and thank you for attending Supermicro's Second Quarter Fiscal 2025 Business Update Conference Call for the second quarter, which ended December 31st, 2024. With me today are Charles Liang, Founder, Chairman and Chief Executive Officer, and David Weigand, Chief Financial Officer. At the end of today's prepared remarks, we will have a Q&A session for sell-side analysts. Additionally, the Company will not address any questions regarding the delay in the filing of the Company’s fiscal year 2024 10-K and 10-Qs due thereafter. During today's conference call, Supermicro will address business and market trends from the second quarter of fiscal 2025, including our financial outlook and operations, our strategy, technology and its advantages, our current and new product offerings, and competitive industry and economic trends We will discuss estimated financial results, but reference to any financial results are preliminary and subject to change based on finalized results contained in future filings with the SEC. By now, you should have received a copy of today's news release that was issued after close of market and is post

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