Super Micro Computer shares fell 16.64% in after-hours trading Tuesday after the company issued weaker-than-expected preliminary third-quarter results. Revenue is projected between $4.5 billion and $4.6 billion, below its prior forecast of $5 billion to $6 billion. Adjusted earnings are now expected between 29 and 31 cents per share, down from a previous range of 46 to 62 cents. The company cited delayed customer decisions pushing sales into the fourth quarter and noted a 220 basis point drop in gross margin from the previous quarter due to inventory reserves and expedite costs. Super Micro highlighted strong demand for new product designs as a positive note. The report also pressured shares of other chip companies in after-hours trading. Final results will be released on May 6th.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Supermicrocomputer shares fell 16.64% in after-hours trading on Tuesday
00:06after the company issued weaker-than-expected preliminary third-quarter results.
00:11Revenue is projected between $4.5 billion and $4.6 billion,
00:14below its prior forecast of $5 billion to $6 billion.
00:18Trusts earners are now expected between $0.29 and $0.31 per share,
00:22down from a previous range of $0.46 to $0.62.
00:25The company cited delayed customer decisions,
00:27pushing sales into the fourth quarter and noted a 220-basis-point drop in gross margin
00:31from the previous quarter due to inventory reserves and expedite costs.
00:36Supermicro highlighted strong demand for new product designs as a positive note.
00:40The report also pressured shares of other chip companies in after-hours trading.
00:44Final results were released on May 6th.
00:46For all things money, visit Benzinga.com slash GSTV.