Super Micro Computer Gross Margin Falls Short of Estimates
High Material Costs and Supply Chain Issues Impact Profitability
SAN JOSE, Calif., U.S.A. - Super Micro Computer Inc. (SMCI) reported lower-than-expected gross margins for its fiscal fourth quarter due to higher material costs and ongoing supply chain constraints.
The company's gross margin for the quarter ended June 30, 2023, came in at 57.3%, below analysts' estimates of 58.8%. SMCI attributed the shortfall to rising prices for components and increased logistics expenses.
In a statement, Super Micro Computer CEO Charles Liang said, "While we have been proactive in managing costs and mitigating supply chain disruptions, these headwinds have continued to impact our profitability in the near term."
The company expects its gross margin to remain under pressure in the coming quarters as macroeconomic uncertainties and supply chain challenges persist. However, SMCI is implementing measures to reduce costs and improve efficiency, including optimizing its product portfolio and expanding its manufacturing capacity.
Despite the margin challenges, Super Micro Computer reported strong revenue growth for the quarter, driven by continued demand for its server solutions from hyperscale cloud providers, enterprise customers, and small businesses. The company forecast full-year revenue growth in the range of 18% to 22%, above Wall Street expectations.
The market reacted positively to Super Micro Computer's earnings report, with shares rising in premarket trading. Investors remain confident in the company's long-term growth prospects despite the near-term margin pressures.
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