Super Micro Computer (NASDAQ: SMCI) reported Q4 EPS of $0.39, $0.01 better than the analyst estimate of $0.38. Revenue for the quarter came in at $717.9 million versus the consensus estimate of $709.04 million.

Fiscal 4th Quarter Highlights

• Quarterly net sales of $717.9 million, up 13.7% from the third quarter of fiscal year 2017 and up 36.9% from the same quarter of last year.
• GAAP net income of $17.1 million, up 2.8% from the third quarter of fiscal year 2017 and up 145.7% from the same quarter of last year.
• GAAP gross margin was 13.5%, down from 14.0% in the third quarter of fiscal year 2017 and down from 14.1% in the same quarter of last year.
• Server solutions accounted for 74.3% of net sales compared with 70.0% in the third quarter of fiscal year 2017 and 65.5% in the same quarter of last year.

Business Outlook & Management Commentary

The Company expects net sales of $625 million to $685 million for the first quarter of fiscal year 2018 ending September 30, 2017. The Company expects non-GAAP earnings per diluted share of approximately $0.30 to $0.40 for the first quarter.

“Supermicro has built a strong foundation for sustained high growth while improving profitability. During the last couple of years we have made significant investments in global production capacity, engineering, quality, global services, and systems and datacenter management software. It is these investments that will power the new Supermicro 3.0,” said Charles Liang, Chairman and Chief Executive Officer. “Supermicro 3.0 positions us as the only Tier 1 IT Infrastructure Provider capable of both first to market product innovation and global scale, quality, services and support to engage our rapidly growing enterprise customer base deeply in their business requirements. The record high revenue and strong 27.6% second half growth over last year is a direct result of these Supermicro 3.0 investments. With the major investments in place and the new Skylake product portfolio shipping, future investment and expenses will begin to flatten driving improved profitability moving forward.”

It is currently expected that the outlook will not be updated until the Company’s next quarterly earnings announcement, notwithstanding subsequent developments. However, the Company may update the outlook or any portion thereof at any time. Such updates will take place only by way of a news release or other broadly disseminated disclosure available to all interested parties in accordance with Regulation FD.

GUIDANCE:

Super Micro Computer sees Q1 2018 EPS of $0.30-$0.40, versus the consensus of $0.35. Super Micro Computer sees Q1 2018 revenue of $625-685 million, versus the consensus of $643.75 million.

For earnings history and earnings-related data on Super Micro Computer (SMCI) click here.