Super Micro Computer (NASDAQ:SMCI), a global leader in high-performance computing, has raised its fiscal 2024 revenue outlook to between $10 billion and $11 billion. This optimistic revision comes despite ongoing GPU supply constraints and is driven by robust demand for AI infrastructure and the anticipation of new product launches. CEO Charles Liang announced this revised projection following the release of the company's Q1 2024 results.
For Q1 2024, Super Micro Computer reported net sales of $2.12 billion. While this figure represents a decrease from Q4 2023's $2.18 billion, it marks an increase from Q1 2023's $1.85 billion. The gross margin was down to 16.7%, falling from both Q4 2023's 17.0% and Q1 2023's 18.8%.
The company's net income for the period was $157 million, less than both Q4 2023's $194 million and Q1 2023's $184 million. Diluted net income per share also dropped to $2.75, lower than both Q4 2023's $3.43 and Q1 2023's $3.35.
On a non-GAAP basis, diluted net income per share was $3.43, after accounting for stock-based compensation expenses of $6 million and adjustments of $41 million. The non-GAAP gross margin for the period stood at 17.0%.
Super Micro Computer also reported operational cash flow of $271 million for the quarter, with capital expenditures totaling $3 million. As of the end of Q1 2024, cash and equivalents totaled $543 million, while bank debt stood at $146 million.
The company's future outlook appears positive due to the strong demand for AI infrastructure solutions and the potential impact of upcoming product releases. Despite the challenges posed by GPU supply constraints, Super Micro Computer is well-positioned to capitalize on these growth opportunities.
InvestingPro Insights
Drawing upon real-time data from InvestingPro, Super Micro Computer (SMCI) boasts a market capitalization of $13.35 billion and a P/E ratio of 20.75, as of the last twelve months ending Q4 2023. The company's revenue for the same period stood at a substantial $7123.48 million, marking a growth of 37.09%.
Two key InvestingPro Tips that are particularly relevant to Super Micro Computer's current situation are the company's consistent increase in earnings per share and the anticipation of sales growth in the current year. These are both positive indicators of the company's performance and future potential, especially given the recent upward revision of its fiscal 2024 revenue outlook.
Moreover, despite the recent price drop over the last three months, the company has experienced a large price uptick over the last six months and a high return over the last decade. This implies the company's ability to bounce back from short-term market fluctuations and maintain a strong long-term performance.
For more in-depth analysis and additional tips, consider exploring InvestingPro's comprehensive set of tools and insights, which includes over 20 tips for SMCI and countless other companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.