Super Micro Computer (NASDAQ: SMCI) reported Q1 EPS of $0.55, $0.39 better than the analyst estimate of $0.16. Revenue for the quarter came in at $762 million versus the consensus estimate of $748.02 million.

First Quarter Fiscal Year 2021 Highlights

• Net sales of $762 million versus $896 million in the fourth quarter of fiscal year 2020 and $800 million in the same quarter of last year.
• Gross margin of 17.0% versus 13.8% in the fourth quarter of fiscal year 2020 and 16.4% in the same quarter of last year.
• Net income of $27 million versus $18 million in the fourth quarter of fiscal year 2020 and $26 million in the same quarter of last year.
• Diluted net income per common share of $0.49 versus $0.34 in the fourth quarter of fiscal year 2020 and $0.51 in the same quarter of last year.
• Non-GAAP diluted net income per common share of $0.55 versus $0.68 in the fourth quarter of fiscal year 2020 and $0.68 in the same quarter of last year.
• Cash flow from operations of $121 million and capital expenditures of $12 million.

“We were pleased to deliver Q1 revenue above the midpoint of our guidance range in a turbulent demand environment," said Charles Liang, Chairman and CEO. "As expected, a number of our enterprise customers slowed their spending last quarter, but we are encouraged to see significant progress and growth with several high profile customers last quarter. A recent improvement in business trends gives us confidence in our outlook to resume sequential growth. We are excited about our robust pipeline of innovative products extending into the next calendar year. We believe that our Q1 results will mark a near-term bottom as we aim to re-accelerate our growth through the remainder of fiscal 2021 and drive further growth in fiscal 2022."

GUIDANCE:

Super Micro Computer sees Q2 2021 EPS of $0.35-$0.58, versus the consensus of $0.25. Super Micro Computer sees Q2 2021 revenue of $780-880 million, versus the consensus of $819.8 million.

• The Company expects net sales of $780 million to $880 million, GAAP net income per diluted share of $0.25 to $0.47 and non-GAAP net income per diluted share of $0.35 to $0.58 for the second quarter of fiscal year 2021 ending December 31, 2020.
• The Company’s projections for GAAP and non-GAAP net income per diluted share both assume a tax rate of approximately 16% and a fully diluted share count of 56 million shares.
• The outlook for Q2 of fiscal year 2021 GAAP net income per diluted share includes approximately $7.0 million in expected stock-based compensation expense that is excluded from non-GAAP net income per diluted share.

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