Supermicro Q1 2021 Earnings Report
Key Takeaways
Supermicro reported Q1 2021 net sales of $762 million, a gross margin of 17.0%, and net income of $27 million. The company's Q1 revenue was above the midpoint of their guidance. They anticipate sequential growth in the coming periods.
Net sales reached $762 million, compared to $800 million in the same quarter last year.
Gross margin improved to 17.0% from 16.4% in the same quarter last year.
Net income increased to $27 million, up from $26 million in the same quarter last year.
Non-GAAP diluted net income per common share was $0.55, versus $0.68 in the same quarter of last year.
Supermicro
Supermicro
Forward Guidance
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.
Positive Outlook
- Net sales are expected to be between $780 million and $880 million.
- GAAP net income per diluted share is projected to be $0.25 to $0.47.
- Non-GAAP net income per diluted share is anticipated to be $0.35 to $0.58.
- Guidance assumes a tax rate of approximately 16%.
- Guidance assumes a fully diluted share count of 56 million shares.
Challenges Ahead
- 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.
- The global COVID-19 pandemic continues to present significant uncertainties for all parts of the business including supply chain.
- Quarterly operating results may fluctuate, which could cause rapid declines in the stock price.
- Customer base may become more concentrated, cost of sales may increase, margins may be lower and sales may be less predictable.
- Adverse economic conditions may harm the business.