GoKawiilSuper Micro Computer shares jumped 19% in extended trading on Tuesday after the server maker issued strong guidance, although revenue for its fiscal third quarter came in below estimates.
Here's how the company did in comparison with LSEG consensus:
Earnings per share: 84 cents adjusted vs. 62 cents expected
84 cents adjusted vs. 62 cents expected Revenue: $10.24 billion vs. $12.33 billion expected
Revenue jumped 123% year over year in the quarter, which ended on March 31, according to a statement.
Customer readiness caused delays in recognizing revenue during the quarter, CEO Charles Liang told analysts on a conference call.
"Several customers were not yet equipped with the power and networking required for their cloud deployment, and we expect to capture this revenue in the coming quarters," he said.
For the fiscal fourth quarter, management called for 65 cents to 79 cents in adjusted earnings per share on $11 billion to $12.5 billion in revenue. The LSEG consensus was for earnings of 55 cents per share and $11.07 billion in revenue.
Super Micro has carved out a position in the artificial intelligence boom, selling servers that are packed with Nvidia's graphics processing units. However, the company has been beset by other challenges.
During the quarter, the U.S. Attorney's Office for the Southern District of New York charged associates of an unidentified U.S. server maker with illegally diverting billions of dollars in Nvidia-powered servers to China. The indictment did not name Super Micro, but the company said one defendant was a co-founder and executive, another was a manager, and the third was a contractor.
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