Super Micro Computer, Inc. reported preliminary first-quarter sales of $19.9 billion, topping its revised forecast, while a sharp sequential drop in gross margin and operating cash use shaped the quarter.
The fiscal quarter ended Sept. 30. Gross margin was 12.7%, down from 17.5% in the preceding quarter but above 9.3% a year earlier. Revenue had been $5 billion in the year-earlier period. Net income rose to $1.594 billion from $168 million, and GAAP diluted earnings per share came to $1.75, compared with 26 cents.
Operating activities consumed $434 million in cash. At quarter-end, Supermicro held $6.9 billion in cash and cash equivalents, against $8.6 billion in bank debt and convertible notes.
The company had raised its sales estimate to $18.5 billion to $19.5 billion from $14.5 billion to $15.5 billion, citing stronger demand for AI platforms. That October sales outlook increase put the top of its range below the preliminary result. Supermicro said the figures remain subject to change while its quarter-end close and review are underway.
For the fiscal second quarter ending Dec. 31, Supermicro projects sales of $19.5 billion to $21.5 billion. It expects diluted earnings per share of $1.59 to $1.83 under GAAP and $1.66 to $1.90 on a non-GAAP basis. Its fiscal 2027 sales forecast is $72 billion to $82 billion.
