Embattled server maker Super Micro Computer (SMCI) has reported preliminary financial results that missed Wall Street’s targets.
The Silicon Valley-based company announced earnings per share (EPS) for its second quarter of fiscal 2025 of between $0.58 U.S. and $0.60 U.S.
The earnings missed Wall Street’s consensus estimate of $0.61 U.S.
At the same time, the company reported preliminary revenue of $5.6 billion U.S. to $5.7 billion U.S., which missed analysts’ consensus expectation of $5.77 billion U.S.
Sales likely increased about 54% from a year earlier, said the company.
Despite missing targets with its financial results, Super Micro Computer’s stock is up 8% in premarket trading on Feb. 12.
The stock is rising after management said they are “confident” they’ll file the company’s 2024 annual report by a Feb. 25 deadline imposed by the U.S. Securities and Exchange Commission.
Failure to meet the deadline at the end of the month could result in Super Micro Computer’s stock being delisted from the Nasdaq exchange on which it trades.
Super Micro Computer has delayed filing its annual report after being accused in a short seller report last year of accounting malfeasance, and after its auditor resigned last fall.
The company’s management team also announced on an earnings call that they have secured $700 million U.S. in funding through a private placement of 2.25% Convertible Senior Notes due in 2028.
Super Micro Computer plans to use the money raised from the private placement to fund its continuing operations.
In terms of guidance, management said they expect revenue for the current quarter of $5 billion U.S. to $6 billion U.S. Wall Street had sales of $5.976 billion U.S. penciled in for the company.
Super Micro Computer also expects earnings of $0.46 U.S. to $0.62 U.S. this quarter, which is below the consensus expectation of $0.66 U.S.
Heading into the quarterly print and business update, Super Micro Computer’s stock had been on a rollercoaster ride, gaining nearly 60% over five trading sessions before plunging 10%.
Over the last 12 months, Super Micro Computer’s stock has declined 50% to trade at $38.61 U.S. per share.
