Super Micro Computer (NASDAQ: SMCI) reported Q4 EPS of $0.72, $0.18 better than the analyst estimate of $0.54. Revenue for the quarter came in at $896.13 million versus the consensus estimate of $788.37 million.

Fourth Quarter of Fiscal Year 2020 Highlights

• Net sales of $896 million versus $772 million in the third quarter of fiscal year 2020 and $854 million in the same quarter of last year.
• Gross margin of 13.8% versus 17.3% in the third quarter of fiscal year 2020 and 15.5% in the same quarter of last year.
• Net income of $18 million versus $16 million in the third quarter of fiscal year 2020 and $24 million in the same quarter of last year.
• Diluted net income per common share of $0.34 versus $0.29 in the third quarter of fiscal year 2020 and $0.46 in the same quarter of last year.
• Non-GAAP diluted net income per common share of $0.68 versus $0.84 in the third quarter of fiscal year 2020 and $0.69 in the same quarter of last year.
• Cash flow used in operations of $96 million and capital expenditures of $9 million.

GUIDANCE:

Super Micro Computer sees Q1 2021 EPS of $0.10-$0.35, versus the consensus of $0.50.

The Company expects net sales of $720 million to $800 million, GAAP net income per diluted share of $0.03 to $0.27 and non-GAAP net income per diluted share of $0.10 to $0.35 for the first quarter of fiscal year 2021 ending September 30, 2020. The company’s projections for GAAP and non-GAAP net income per diluted share both assume a tax rate of approximately 18% and a fully diluted share count of 56.3 million shares. The outlook for Q1 of fiscal year 2021 GAAP net income per diluted share includes approximately $5.0 million in expected stock-based compensation expense, one-time employee performance bonuses and controls remediation expenses, and other expense that are excluded from non-GAAP net income per diluted share.

"Our 5% year-over-year Q4 revenue growth in a very dynamic business environment demonstrates our continuing market engagement in Edge applications and with internet data center customers, both of which grew double-digits year-on-year,” said Charles Liang, Chairman and Chief Executive Officer. “We also delivered Q4 non-GAAP EPS that was relatively stable year-on-year despite elevated costs resulting from the impact of COVID-19 on our operations. While our Q1 outlook reflects continued pressures from unprecedented market developments, we are very encouraged as we look to the future, as the digital world continues to progress, evolve, and grow. We are using this period of disruption as an opportunity to invest in long-term growth and optimize our workforce and strategy. A key strategic action we are taking is shifting a greater portion of our operations and R&D to our Taiwan campus, which will result in lower costs. We remain committed to re-accelerating our revenue growth and resuming our long history of market share gain.”

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