Supermicro sales surge to 19.9 billion dollars as quarterly margin narrows
Supermicro’s fiscal first-quarter sales reached 19.9 billion dollars, compared with 5 billion dollars a year earlier. Gross margin improved year on year but fell from the preceding quarter. The server maker reported an operating cash outflow despite higher profit and projected annual sales of 72–82 billion dollars in preliminary, unaudited results.
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A sharp sales increase
Supermicro reported a sharp increase in sales and adjusted earnings for the first quarter of its 2027 financial year.[1], [2]
Sales reached 19.9 billion dollars in the quarter ended September 30, compared with 11.1 billion dollars in the preceding quarter and 5 billion dollars a year earlier. Management attributed part of the growth to demand for its data-centre solutions. Net income rose to 1.594 billion dollars, from 1.178 billion dollars in the previous quarter and 168 million dollars a year earlier.[1]
Margin narrows from the previous quarter
Gross margin was 12.7 per cent, below the preceding quarter’s 17.5 per cent but above the year-earlier 9.3 per cent. Adjusted gross margin was 12.8 per cent. Operations used 434 million dollars of cash, while capital expenditure and investments totalled 47 million dollars. At September end, cash and cash equivalents stood at 6.9 billion dollars, against 8.6 billion dollars in bank debt and convertible notes.[1]
Preliminary results and forecasts
The company expects sales of 19.5–21.5 billion dollars in the fiscal quarter ending in December and 72–82 billion dollars for the full year. Its financial results remain preliminary and unaudited, with final figures subject to change. Supermicro also identified customer concentration, higher costs and margin pressure among the risks associated with pursuing larger customers and sales opportunities.[1]
