(Bloomberg) — Super Micro Computer Inc. reported quarterly sales that tripled from the same period last year but fell slightly short of estimates, disappointing investors who had high hopes that the company’s business Server maker would benefit from AI-related demand.
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Revenue for the fiscal third quarter, which ended March 31, jumped to $3.85 billion, the company said in a statement Tuesday. That’s just below the consensus estimate of $3.86 billion, according to data compiled by Bloomberg. Profit, excluding certain items, came to $6.65 per share, higher than the $5.58 expected by Wall Street analysts.
A surge in demand for equipment that powers training and artificial intelligence applications has helped boost sales at Super Micro, which makes servers for data centers. The San Jose, Calif.-based company’s growth rates have increased in recent quarters thanks to deals with large companies and a growing supply of high-power chips.
Tuesday’s results weren’t enough to keep the hype going. Shares fell about 13% in extended trading after closing at $858.80 in New York. The company’s value more than tripled this year and was added to the S&P 500 index. Still, the stock had fallen about 25% since its March peak after the company announced a stock sale for raise up to $2 billion.
CEO Charles Liang said in the release that the company is expected to “continue to gain market share” as new products are launched. He added that many tools are designed to support Nvidia Corp.’s recent technology.
Speaking on a conference call after the results were released, Chief Financial Officer David Weigand said improving supply chains and creating new products should help fuel strong growth.
A major point of investor caution is whether Nvidia, the world’s most valuable chipmaker, will reduce Super Micro’s revenue as the semiconductor giant invests in new business areas, George Wang wrote , analyst at Barclays, in a note before the results were released.
Revenue for the quarter ending in June will be between $5.1 billion and $5.5 billion, the company said. Analysts on average expected $4.73 billion, according to data compiled by Bloomberg. Earnings, excluding certain items, will amount to $8.42 per share, compared with an average estimate of $6.97.
(Updated with CFO comments in sixth paragraph.)
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