Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Super Micro Computer Inc (SMCI, Financial) reported fiscal Q3 2025 revenues of $4.6 billion, up 19% year over year.
• The company achieved a volume shipment of new AI platforms, indicating strong demand and market leadership.
• Super Micro Computer Inc (SMCI) is expanding its global operations, including new facilities in Malaysia, Taiwan, and Europe.
• The company is launching its Data Center Building Block Solution (DCBBS), which promises to reduce power consumption and optimize space.
• Super Micro Computer Inc (SMCI) maintains a strong cash position with $2.54 billion in cash and a net cash position of $44 million.

Negative Points

• Fiscal Q3 net revenue of $4.6 billion was lower than the original forecast due to delayed customer commitments.
• Non-GAAP EPS for fiscal Q3 was $0.31 per share, down from $0.66 last year, impacted by inventory write-downs.
• The company's gross margin decreased to 9.7%, down from 11.9% in the previous quarter, due to higher inventory reserves and lower volume.
• Super Micro Computer Inc (SMCI) faces macroeconomic challenges and tariff impacts, creating uncertainty in forecasting.
• The company experienced a 19% quarter-over-quarter revenue decline, attributed to delayed platform decisions by customers.

Q & A Highlights

Q: Are customers pulling back orders due to macroeconomic conditions, and how does this affect the June quarter outlook? A: Charles Liang, CEO, stated that despite macroeconomic uncertainties, they see strong orders and expect a robust June quarter. The September quarter is anticipated to be even stronger with the full production of new products like Blackwell.

Q: What factors are influencing the cautious gross margin guidance despite new product ramps? A: David Weigand, CFO, explained that concerns about tariffs and the transition from older platforms like Hopper to new ones like Blackwell are impacting margins. This transition involves more price competition and delayed decisions, contributing to a conservative margin outlook.

Q: Is the company still confident in achieving the $40 billion revenue target for fiscal 2026? A: Charles Liang, CEO, expressed confidence in mid- and long-term growth, particularly with strong demand for Blackwell and the Data Center Building Block Solution (DCBBS). However, due to macroeconomic uncertainties, they are not providing specific guidance for fiscal 2026 at this time.

Q: How is Super Micro positioned in terms of US domestic manufacturing amid rising tariffs? A: Charles Liang, CEO, highlighted that as a US-based manufacturer, Super Micro can respond quickly to new technologies and optimize logistics to mitigate tariff impacts. They have operations in the US, Taiwan, and Malaysia, providing flexibility to adapt to tariff changes.

Q: What is the status of the CFO search and how is the company addressing manpower needs? A: Charles Liang, CEO, mentioned that as the company continues to grow, they are actively seeking more talent, including for the CFO position, to support their expanding operations.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.