Super Micro preliminary results top estimates, shares jump 12%

[SEATTLE] Super Micro Computer jumped in late trading after reporting preliminary quarterly results that topped analysts’ estimates.

The server maker said sales will be US$18.5 billion to US$19.5 billion in the quarter that ended Sep 30. Analysts, on average, estimated US$15 billion, according to data compiled by Bloomberg. Gross margins will be in the range of 12 to 12.5 per cent, Super Micro said on Tuesday (Oct 20) in a statement.

The company has been benefiting from surging demand for gear to train and run artificial intelligence tasks. Super Micro’s servers are fitted with the Nvidia chips that have become the preferred components for the vast majority of AI data centres.

The company also has been in the limelight for a probe that accused a co-founder and two others of illegally diverting billions of dollars’ worth of servers to China in violation of US law.

The company has not been charged in the case and an independent probe concluded Super Micro’s senior management had no knowledge of the purported scheme.  

The shares gained about 12 per cent in extended trading after closing at US$32.47 in New York. The stock has increased 11 per cent this year.

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The company said it would review the results during a conference call scheduled Nov 3. The company gave no reason for announcing the earnings in advance of the scheduled date for the report. BLOOMBERG