Super Micro gross margins fall to 11.2% in fiscal fourth quarter

Super Micro Computer Inc. said Tuesday that its fiscal fourth-quarter gross profit margin fell to 11.2% of revenue, compared with 15.5% in the year-ago quarter and 17% in the same quarter a year earlier.

Those GAAP gross margins were the lowest the company has reported for fiscal 2024. While Wall Street had been warned that margins would decline sequentially, they likely weren’t expecting a decline that low. However, the company’s shares rose 10% in after-hours trading on a bullish fiscal first-quarter revenue forecast.

During a third-quarter earnings conference call in April, CFO David Weigand told analysts to expect gross profit margin to decline sequentially compared to the fiscal third quarter as the company focuses on “strategically gaining market share.”

SuperMicro also reported that its non-GAAP gross margin for the fourth quarter was 11.3% of revenue, excluding stock-based compensation expense of $3 million.