Super Micro Computer (NASDAQ:SMCI) shares plunged premarket Monday after the company slashed its third-quarter revenue guidance due to new component shortages.
The IT company now expects revenue for the third quarter ended March 31, to come in at $1.28 billion, down from the previously forecast $1.47 billion.
It explained that the shortfall is "primarily due to key new component shortages for Supermicro's transition to new generation product lines," although it added the shortages have now mostly been resolved. The supply chain challenges impacted the company's orders.
SMCI shares are currently down more than 12% premarket at around $94 per share. The stock has gained over 29% in 2023.
"Supermicro saw record levels of engagements in our new product lines during the quarter," stated Charles Liang, President and CEO of Supermicro. "We secured several large design wins whose orders were impacted by these new supply chain challenges. The challenges are improving as we speak, and we are now well positioned to fulfill delayed deliveries and have commenced production."