On August 6, 2024, Super Micro Computer Inc (SMCI, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full fiscal year 2024, which ended on June 30, 2024. Super Micro Computer Inc provides high-performance server technology services to cloud computing, data center, Big Data, high-performance computing, and "Internet of Things" embedded markets. Its solutions include server, storage, blade and workstations to full racks, networking devices, and server management software. The firm follows a modular architectural approach, which provides flexibility to deliver customized solutions. The Company operates in one operating segment that develops and provides high-performance server solutions based upon an innovative, modular and open-standard architecture. More than half of the firm's revenue is generated in the United States, with the rest coming from Europe, Asia, and other regions.
Quarterly Performance Highlights
Super Micro Computer Inc (SMCI, Financial) reported net sales of $5.31 billion for the fourth quarter of fiscal year 2024, a significant increase from $3.85 billion in the previous quarter and $2.18 billion in the same quarter last year. Despite the impressive revenue growth, the company faced margin pressures, with a gross margin of 11.2%, down from 15.5% in the previous quarter and 17.0% in the same quarter last year.
Net income for the fourth quarter was $353 million, compared to $402 million in the previous quarter and $194 million in the same quarter last year. Diluted net income per common share was $5.51, down from $6.56 in the previous quarter but up from $3.43 in the same quarter last year. Non-GAAP diluted net income per common share was $6.25, compared to $6.65 in the previous quarter and $3.51 in the same quarter last year.
Full-Year Fiscal 2024 Summary
For the full fiscal year 2024, Super Micro Computer Inc (SMCI, Financial) reported net sales of $14.94 billion, a remarkable increase from $7.12 billion in fiscal year 2023. Net income for fiscal year 2024 was $1.21 billion, or $20.09 per diluted share, compared to $640 million, or $11.43 per diluted share, in fiscal year 2023. Non-GAAP net income for fiscal year 2024 was $1.34 billion, or $22.09 per diluted share, compared to $673 million, or $11.81 per diluted share, in fiscal year 2023.
Financial Achievements and Challenges
Super Micro Computer Inc (SMCI, Financial) continues to experience record demand for new AI infrastructures, propelling fiscal 2024 revenue up 110% year over year. However, the company faces challenges with declining gross margins, which could impact profitability if not addressed. The company's investments in Malaysia and Silicon Valley expansions are expected to strengthen its supply chain, security, and economies of scale necessary for the growing AI revolution.
“Supermicro continues to experience record demand of new AI infrastructures propelling fiscal 2024 revenue up 110% year over year to $14.9 billion and non-GAAP earnings per share up 87% to $22.09,” said Charles Liang, President and CEO of Supermicro.
Key Financial Metrics
| Metric | Q4 FY2024 | Q3 FY2024 | Q4 FY2023 |
|---|---|---|---|
| Net Sales | $5.31 billion | $3.85 billion | $2.18 billion |
| Gross Margin | 11.2% | 15.5% | 17.0% |
| Net Income | $353 million | $402 million | $194 million |
| Diluted EPS | $5.51 | $6.56 | $3.43 |
| Non-GAAP Diluted EPS | $6.25 | $6.65 | $3.51 |
Balance Sheet and Cash Flow
As of June 30, 2024, Super Micro Computer Inc (SMCI, Financial) had total cash and cash equivalents of $1.67 billion and total bank debt and convertible notes of $2.17 billion. The company reported cash flow used in operations for the fourth quarter of fiscal year 2024 of $635 million and capital expenditures of $27 million.
Outlook and Future Projections
For the first quarter of fiscal year 2025, the company expects net sales of $6.0 billion to $7.0 billion, GAAP net income per diluted share of $5.97 to $7.66, and non-GAAP net income per diluted share of $6.69 to $8.27. For the full fiscal year 2025, the company projects net sales of $26.0 billion to $30.0 billion.
Super Micro Computer Inc (SMCI, Financial) remains well-positioned to capitalize on the growing demand for AI infrastructure, despite facing margin pressures. The company's strategic investments and innovative solutions are expected to drive future growth and strengthen its market position.
Explore the complete 8-K earnings release (here) from Super Micro Computer Inc for further details.
