Super Micro Computer Inc

Strong Revenue Growth: Super Micro's preliminary Q1 FY'25 net revenue reached between $5.9 billion and $6 billion, representing a staggering 181% increase year-over-year. However, this was at the lower end of initial guidance of $6 billion to $7 billion, largely attributed to customers delaying orders until the availability of new NVIDIA Blackwell chips.

Improved Margins: The company reported a preliminary non-GAAP gross margin of approximately 13.3%, up from 11.3% sequentially, driven by better customer and product mix, and greater manufacturing efficiency. Non-GAAP operating margin also improved to about 9.9%.

Challenges with Delayed Financial Filings: The resignation of the independent auditor has led to delays in filing the company’s 10-K, which could pose risks related to customer perception and potential impacts on credit availability. Management remains confident in rectifying these issues and has received positive preliminary findings from a Special Committee investigation which found no fraud or misconduct.