Supermicro cut its revenue outlook for fiscal 2025 as the company still hasn't filed its audited annual report. The company said that it intends to make filings by Feb. 25 and raised $700 million in convertible bonds.
For fiscal 2025, Supermicro is projecting revenue of $23.5 billion to $25 billion. The company previously projected fiscal 2025 revenue of $26 billion to $30 billion.
The company, one of Nvidia's biggest customers, has seen sales surge due to demand for AI workloads. Supermicro has also seen its accounting headaches surge too along with subpoenas from the Department of Justice and Securities and Exchange Commission.
The company issued preliminary second quarter results.
However, CEO Charles Liang acknowledged that uncertainty around Supermicro's financials have hampered demand and cash flow. Nevertheless, Liang said the company "is well positioned to grow AI infrastructure design wins based on Nvidia Blackwell" and can deliver $40 billion in revenue in fiscal 2026. Supermicro competes with HPE and Dell Technologies among others.
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As for the unaudited second quarter results, Supermicro said earnings will be between 50 cents a share to 52 cents a share. Revenue for the second quarter will be between $5.6 billion to $5.7 billion. Non-GAAP earnings will be between 58 cents a share to 60 cents a share.
For the third quarter, Supermicro said sales will be between $5 billion to $6 billion in the third quarter with non-GAAP earnings of 46 cents to 62 cents a share.
On a conference call, Liang said Supermicro has swapped auditors, after the previously one quit, and added a new CFO and chief commercial officer.
What remains to be seen is how fast Supermicro can regain credibility. Liang said the company is focused on technology wins. He said:
"Our NVIDIA Blackwell products are shipping now. We have begun volume shipments of both air cooled 10U and liquid-cooled 4U NVIDIA B200 HGX systems. Meanwhile our NVIDIA GB200 NVL72 racks are fully ready as well. Utilizing our system building blocks, we are going to soon offer more brand-new platforms for customers seeking further optimized, higher-density and even greener AI solutions. While most key components are ramping at full speed, it will take some time to fulfill our current AI solution backlogs. Some customers also need more time to finish their DLC data centers build out. At the same time, we see strong new demands keep coming in from enterprises, CSPs, sovereign entities, and hyperscalers. "
Liang touted Supermicro liquid cooled infrastructure wins for xAI's Colossus AI supercomputer. Indeed, Supermicro still operates amid an AI infrastructure boom.
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On the cash front, it's worth noting that Supermicro began the second quarter with $2.1 billion in cash but ended with $1.4 billion in cash. Here's the explanation from CFO David Weigand.
"Super Micro began the quarter with approximately $2.1 billion in cash and recorded approximately $320 million in GAAP net income for the second quarter. Cash was provided from lower inventory and other sources totaling $1.5 billion. The company used cash to pay down accounts payable by $1.2 billion, realized higher other receivables from purchase rebates and prepaid inventory of $484 million, increased accounts receivable by $335 million, reduced bank loans by $346 million net, incurred capital expenditures of $28 million and had other uses of cash totaling $87 million. This resulted in a reduction in cash of $660 million, thereby ending the Company’s 2QFY25 quarter with $1.4 billion in cash in December. We have continued to prudently manage our working capital and ended January 2025 with approximately $2 billion in cash."
