Super Micro Computer announced a significant cut to its expectations for third-quarter revenue and profit, blaming delays in customer spending. The company now anticipates Q3 FY25 revenue in the range of $4.5 billion to $4.6 billion, a notable reduction from its prior guidance of $5 billion to $6 billion. This pre-announcement signals weaker-than-expected financial performance.
The company also indicated that its gross margin for the quarter would be 220 basis points lower than the prior period. This margin contraction is partly due to higher inventory reserves resulting from older generation products. These factors point to increased cost pressures and challenges in managing inventory amidst rapid technology transitions.
This downward revision amplifies investor worries about Super Micro's position in the AI market, especially after months of accounting issues and a potential delisting threat. The delay in customer platform decisions, particularly between current and upcoming GPU generations, is impacting near-term sales. This news represents a significant blow to investor confidence.
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