Supermicro Pulls In A Strong Quarter Thanks To Rack-scale Demand

Supermicro, server provider to the hyperscale cloud providers, has delivered better than expected figures for its fiscal Q4 2022, attributing it to a growing number of customers adopting its rack-scale solutions.

The San Jose-based outfit announced revenue of $1.64 billion for the quarter ended June 30, up from $1.36 billion for the previous quarter and more than 50 percent greater than the $1.07 billion Supermicro reported for the same quarter last year. Net profit almost doubled to $141 million.

For the full fiscal 2022 the server maker booked $5.20 billion in revenue versus $3.56 billion for its fiscal year 2021, a 46 percent increase year-on-year. Net profit was $285 million versus $111.9 million.

In its earnings call, Supermicro founder and CEO Charles Liang put the revenue spike down to a recent run of wins based on the company's rack-scale infrastructure products, but also GPU hardware and AI platforms.

An increasing number of customers are also adopting the server maker's green computing products due to growing awareness of the rising environmental challenges and the energy costs of racks upon racks of compute equipment, Liang claimed.

The CEO said that following the recent economic uncertainty, Supremicro is optimistic that some of the supply chain and logistics issues will begin to subside.

Supermicro continues to see demand growing for accelerating compute and AI platforms, according to Liang, who said the company is able to meet this at both a system and rack-scale level, through which it offers rack-scale single-source products for customers pitched as offering lower infrastructure costs and savings on total cost of ownership.

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He said Supermicro is planning to invest more in its datacenter management software stack to enable it to deliver infrastructure-as-a-service and secure monitoring-as-a-service functionality.

Meanwhile, the company is preparing to use next-generation platforms from the server technology companies.

"Our early deployment programs with our upcoming Intel and AMD product lines are mostly ready just waiting for the new Intel and AMD processors to be available," Liang said.

For the current quarter to the end of September, Liang said Supermicro is forecasting $1.57 billion in revenue, and is confident that the company's full fiscal year 2023 revenue will be in the range of $6.2 billion to $7 billion, rather than the $6 billion to $7 billion previously predicted.

Longer term, the company said it is aiming to hit $10 billion to $12 billion in annual revenue as it continues to ramp up its rack-scale capabilities globally. ®