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super micro just released their latest
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quartly figures and the after hour
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action is basically this at the time of
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recording the stock is up around 8 to 9%
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now bear in mind that at one moment the
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stock was down 15% when I checked it
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could have been down a little bit more
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but when I saw it it was down 15% and
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now it's up close to 9% that's a huge
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huge swing in after hours so let's
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discuss the good and the very bad in the
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quarter and if you're wondering if their
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10K has been filed no it has not so
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anyways hit all the buttons we really
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appreciate that we're probably going to
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cover lift in a couple of hours or maybe
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tomorrow before the Market opens if
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you're interested in that let me know
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down in the comment section below you
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want sport me even further do check out
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the link down in the description and in
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the P comment you the top 10 best stocks
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to buy now or go to f.com investor thank
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you very much all right so let's first
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start with the current quarter so net
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sales came in at 5.6 to 5.7 billion
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dollars representing 54% year-over-year
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growth at the midpoint by the way for
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the quarter lots of Misses lots of
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misses and guidance also missed so there
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is that but but there is a huge huge win
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and we'll talk about that in a second
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Gap and non-gaap gross margin continues
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to come down in the range of 11.8 to
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11.9% and by the way these are
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preliminary second quarter results as
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for Gap diluted net income per share
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that should come in in the range of of
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50 to 52 cents flat year- on-ear also a
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miss and the same for non Gap management
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said the following with our leading
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direct liquid cooling technology and
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over 30% of new data center expected to
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adopt it in the next 12 months super
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micro is well positioned to grow AI
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infrastructure design WIS based on
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Nvidia Blackwell and more combined with
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exceptional product Quality Service
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software networking and security with
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Data Center building block super micro
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will expand our leadership as the
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premier us-based data center
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infrastructure solution provider during
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the call they also talked about not just
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growing in the United States but growing
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in other Asian markets and Europe
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specifically we anticipate this
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technology transition sets a strong
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foundation for us now resulting in fisar
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25 Revenue in the range of 23.5 to$ 25
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billion which is lower than what they
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previously expected the higher end was
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closer to $30 billion but but the huge
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surprise and huge win here and that's
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one of the reasons why the stock is up
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so much after hours is for fiscal 26
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Revenue guidance this well the target
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here and Charles Yang said numerous
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times during the earnings call that this
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is a conservative number so they expect
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revenue for fiscal 26 to be
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approximately $40 billion it's a huge
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huge increase year over year huge huge
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increase and he kept on saying this is
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conservative so I mean for a company
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that is worth now what still under $30
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billion they expect to generate a
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proximately $40 billion in fiscal 26 I
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mean there is a big disconnect here but
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of course if there's no 10K filed 10 Q
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filed by February 25th they are going to
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get delisted now they did tell us a
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little bit more about that I'll go over
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that in just a second as for guidance
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for the next quarter they said the
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following the company expect net sales
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in the range of5 to6 billion for the
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third quarter Gap net income per diluted
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share of 36 to 53 cents and non Gap net
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income perut share of 46 to 62 cents and
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then fiscal 25 the company is updating
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the revenue guidance from a range of 26
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to30 billion to a new range of 23.5 to
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$25 billion so that's the big Miss
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basically now as for the corporate
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updates so by the way first of all
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during the earning call they said that
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Nvidia Blackwell is shipping the AI
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solution backlog will take time to be
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fulfilled there are Enterprises csps and
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many others that are contacting super
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micro so demand is increasing for
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various solutions they have two billion
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dollars in cash and they said that b200
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and gb200 demand is still very high and
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the high volume liquid cooling solution
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that they have is basically the
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advantage over the competition but to be
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honest if that is true then we should be
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seeing margins starting to pick back up
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right now it's really coming down down
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down so as for the corporate update they
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said the following super micro continues
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to work diligently toward the filing of
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its annual report on form 10K for a
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fiscal year ending June 30 2024 yes it's
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been since August and its quarterly
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report on form 10q for the period ending
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September 30 2024 based on information
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currently available the company believes
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it will make such filings by February
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25th 2025 Additionally the company today
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filed a form which basically means that
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the current quarter the filing there is
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also going to be delayed so that's it
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12b 25 that's the form in a separate
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press release issued today the company
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announced that it had agreed to issue a
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private placement of $700 million of new
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2.25% convertible senior noes due 2028
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and to amend the terms of its existing
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convertible senior notes due 2029 yes
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this is dilutive but again the keyword
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here is convertible can be converted can
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also not be then with regards to the doj
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story that happened last year in late
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2024 the company received subers from
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the Department of Justice and the
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Securities and Exchange Commission yes
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SEC seeking certain documents following
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the publication of allegations in a
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short seller report which was published
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in August 2024 the company is
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cooperating with this document request
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in addition in connection with the delay
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in the filing periodic reports several
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security litigation complaints and
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derivative suits were filed against the
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company management believes these
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complaints are without Merit again this
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is not that great continuing here with
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regards to the unaudited preliminary
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fiscal 24 and fourth quarter fiscal 24
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results the company is reconfirming that
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no previously issued financial
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statements require restatement as the
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company Works towards completing the
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audit it made certain adjustments to the
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preliminary un audited results for a
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fourth quarter of fiscal 24 that it
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announced on August 6 2024 the
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adjustments recorded in the results for
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the fourth quarter of fiscal 24 include
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an increase in net sales of
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approximately $46 million and an
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increase of cost of sales of
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approximately $96 million which includes
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a charge due to an increase in inventory
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reserve of approximately 45 million and
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an increase in operating expenses of
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around $5 million now until the
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company's fiscal 24 financial statements
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are filed the company is required to
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reassess its accounting estimates for
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financial reporting so all in all small
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changes here an increase in sales but
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also an increase in cost of sales now
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again the whole story here with super
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micro is pretty clear right up until
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February 25th you are basically saying
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okay I think they are going to file on
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time no delisting will happen and then
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the stock will soar which to be honest
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if they do not get delisted I am pretty
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certain that this stock will go up quite
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drastically because well if you just
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look at the market cap you look at how
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much revenue they are expected to
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generate this year and next year Well if
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you take that $40 billion number for
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fiscal 26 and you look at the market cap
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right now there is quite a disconnect it
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just doesn't make any sense the stock
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could just double based on that price to
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sales multiple doubling right so it's
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basically that it's basically that you
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are waiting right now and you are
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putting well your money on the table and
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basically saying you know what I trust
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management enough I trust that they will
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file everything that's needed on time
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they still have two weeks time and this
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is a story that has been going on for 6
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months so right now what we're seeing is
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that the stock is going to make its way
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closer to the 200 day moving average we
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already been close closer previously
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back in December but this time 200 day
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moving out is a bit lower so let's see
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let's see if this stock can manage to
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actually maybe go above it there is also
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a CPI report coming out on Wednesday so
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that might affect the overall market and
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certainly could affect a company and a
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stock like smci but it will affect all
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the other stocks as well whether it's
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good or bad so yeah with smci right now
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the results for the quarter and for next
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quarter not good at all right misses a
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across the board but the big big number
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is that $40 billion in revenue for
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fiscal 26 that came out of nowhere and
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actually if we look at the current
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analyst estimates we can see that that
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number is around $10 billion more than
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what analysts are expecting right right
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now analysts are expecting a number
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closer to $30 billion and smci said $40
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billion that 10 billion dollar more 30%
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more than what the analysts are
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currently expecting so yeah that's going
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to be that's going to be something to
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watch so again bottom line here is we're
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going to wait until February 25th
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hopefully before that they file
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everything everything's on time and well
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the stock will probably probably go much
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much higher than this do I want to take
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a gamble here no no but I'm watching I'm
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watching I listen to the comments that
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they were saying with regards to Nvidia
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Blackwell gb200 b200 okay nothing really
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new everything's going according to
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plans so business as usual I do want to
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say one thing is that that earnings
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calls where the audio is so bad I think
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should be punishable I think that should
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be punishable because every time audio
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cuts off one guy asks a question the
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other guy is still answering the other
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question because there is a delay it's
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horrible it's horrible and I don't even
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want to know how the transcript is going
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to look like so yeah there is that the
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end of my rent here anyways that's all
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I've got for right now that's the main
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reason why the stock is up basically
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because that fiscally 2026 guidance is
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just so much higher than what the
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analyst were expecting so that's about
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it for me in this video if you're
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interested in a lift video let me know
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as well in the comment section below and
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then tomorrow we have many other
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companies reporting so stay tuned for
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that hit all the buttons and I see you
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all in the next one bye-bye
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[Music]
