Investing.com — Shares of Super Micro Computer Inc. (NASDAQ:) fell sharply by 17% after hours following the company’s announcement that it has lowered its third quarter guidance. The tech firm cited delays in customer platform decisions, which have pushed expected sales into the fourth quarter.
Super Micro, known for providing IT solutions for various high-tech sectors, shared unaudited preliminary financial results for its third quarter of fiscal year 2025, which concluded on March 31, 2025. The company reported that robust design wins for new generation products were overshadowed by the deferral of certain customer decisions, resulting in sales being postponed to the next quarter.
The updated guidance indicates that net sales are expected to range between $4.5 billion to $4.6 billion, with GAAP diluted net income per common share at $0.16 to $0.17 and Non-GAAP diluted net income per common share at $0.29 to $0.31. This represents a significant reduction from the previous guidance, which projected net sales of $5.0 billion to $6.0 billion and a GAAP diluted net income per common share of $0.36 to $0.53, alongside a Non-GAAP diluted net income per common share of $0.46 to $0.62.
The revised figures fall short of market expectations, with consensus estimates previously targeting a third quarter EPS of $0.54 on revenue of $5.41 billion. Additionally, the company’s GAAP and Non-GAAP gross margin for the third quarter was 220 basis points lower than the second quarter, primarily due to higher inventory reserves for older generation products and expedite costs associated with the launch of new products.
Super Micro’s financial update emphasizes that the provided information is based on preliminary results and estimates, subject to change upon completion of the company’s financial closing procedures. The final financial statements for the third quarter may materially differ from these preliminary results.
The market’s response to Super Micro’s adjusted guidance reflects investor concerns over the delayed revenue and the impact of these deferrals on the company’s short-term financial performance.
