Super Micro Computer, Inc [NASDAQ: SMCI] was a top gainer yesterday and looks set for more gains short-term. This is after the company that deals with high-efficiency servers and storage technology as well as green computing released its financial results for the first quarter of the fiscal year 2021 ended September 30, 2020.
According to that financial report, the company recorded net sales of $762 million, which was lower than its results in the fourth quarter and the first quarter of the fiscal year 2020 which were $896 million and $800 million respectively. The gross margin for this quarter was 17% as compared to the fourth quarter of the previous year that was 13.8% and that of the first quarter of the previous year that was at 16.4%. Net income for this quarter was $27 million, a significant increase as compared to the last quarter of the previous year that was $18 million and also an improvement from last year’s first quarter that recorded $26 million.
The Non-GAAP gross margin for this quarter was at 17.1% that adds back stock-based compensation expenditures of $0.5 million. The report recorded $0.55 Non-GAAP diluted net income per common share in this quarter that adds back stock-based compensation expenditures of about $7.2 million. Special performance bonuses were amounting to $0.1 million and additional expenses that are non-recurring of $0.2 million.
Following these results, the company projects a better second quarter, expecting net sales of about $780 million to $880 million. They also expect a GAAP net income per diluted share of $0.25 to about $0.47 as well as a non-GAAP net income of $0.35 for every diluted share. These projections both assume that there will be a tax rate of about 16% with a total of 56 million shares that will be fully diluted.
Supermicro Chairman and CEO, Charles Liang expressed his joy saying that they were pleased to have recorded a revenue higher than the midpoint of the company’s guidance range despite the rough year that has seen a very turbulent business environment. He notes that a number of their enterprise clients reduced their spending significantly slowing down business, but they are encouraged by a boost from their high profile customers. They also have confidence going forward with a couple of innovative products coming in place. He hopes that going forward the company will record even better financial reports in the preceding quarters of the fiscal year 2021.