Q1 2025 Super Micro Computer Inc Earnings Call Transcript
Key Points
- Super Micro Computer Inc (SMCI) reported a significant year-over-year revenue increase of 181%, driven by strong AI demand.
- The company achieved one of its strongest first quarters in history, with preliminary net revenue ranging from $5.9 billion to $6 billion.
- Non-GAAP gross margin improved to approximately 13.3%, and operating margin increased to approximately 9.9%, reflecting better customer mix and reduced supply chain costs.
- Super Micro Computer Inc (SMCI) successfully deployed the world's largest DLC AI SuperCluster, showcasing its engineering expertise and logistics capabilities.
- The company is expanding its production facilities globally, including a new campus in Malaysia, to increase manufacturing capacity and support future growth.
- Revenue came in at the lower end of guidance due to customers waiting for new-generation GPU chips, impacting short-term sales.
- The resignation of the independent auditor and delay in filing the company's 10-K has raised concerns, although no evidence of fraud or misconduct was found.
- Gross margins are expected to decline in the next quarter due to customer and product mix, indicating potential pricing pressures.
- The company is facing challenges in maintaining inventory levels, with days of inventory increasing, which could impact cash flow.
- There is uncertainty regarding the appointment of a new auditor and the timeline for resolving financial reporting issues, which could affect investor confidence.
Thank you for standing by. My name is Tamia, and I will be your conference operator today. At this time, I would like to welcome everyone to the Super Micro Computer, Inc. SMCI US Q1 FY25 business update call.
With us today are Charles Liang, Founder, President and Chief Executive Officer; David Weigand, CFO; and Michael Staiger, Senior Vice President of Corporate Development. (Operator Instructions)
Good afternoon, and thank you for attending Super Micro's first-quarter fiscal 2025 business update conference call for the first quarter, which ended September 30, 2024. With me today are Charles Liang, Founder Chairman and Chief Executive Officer, David Weigand, Chief Financial Officer.
At the end of today's prepared remarks, we will have a Q&A session for sell-side analysts. I will make additional remarks prior to beginning of the Q&A, but the company will not address any questions regarding the recent decision of our independent auditor to resign and the
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