Super Micro Computer Inc. said Tuesday its gross profit margins fell in the fiscal fourth quarter to 11.2% of revenue, down from 15.5% in the previous quarter, and 17% in the year-ago quarter.
Those GAAP gross margins were the lowest the company has reported in fiscal 2024. While Wall Street had been warned that margins would fall sequentially, they may not have been expecting a drop this low. Its shares however jumped 10% in after-hours trading on a bullish fiscal first-quarter revenue forecast.
In its third-quarter earnings call in April, Chief Financial Office David Weigand told analysts to expect gross profit margins to be down sequentially from the fiscal third quarter, as the company focused on driving “strategic market-share gains.”
SuperMicro also said its non-GAAP gross margin for the fourth quarter was 11.3% of revenue, excluding stock compensation expense of $3 million.
But he also added that the company’s target for gross margins was still in the range of 14% to 17%.
