April 30 (Reuters) - Super Micro Computer ( SMCI )
forecast fourth-quarter revenue above estimates on Tuesday as it
expects continued demand for its servers used in artificial
intelligence applications.
Super Micro's in-house liquid cooling solutions for
servers have helped it get products to the market quicker than
its competitors, who rely partly on third-party vendors.
Its close relations with chip giants Nvidia ( NVDA ) and
Advanced Micro Devices ( AMD ), whose headquarters are less than
10 miles from Super Micro's, help it receive early samples of
chips to check prototypes, giving it further advantage over
rivals.
Super Micro's stock, which has nearly tripled so far this
year, was added to the S&P 500 index last month.
The company expects fourth-quarter revenue between $5.1
billion and $5.5 billion, compared with estimates of $4.89
billion, according to LSEG data.
Revenue for the quarter ended March 31 stood at $3.85
billion, compared with estimates of $3.95 billion, according to
LSEG data.
The company posted a net income of $402.5 million in the
third quarter, compared with $85.9 million a year ago.
Gross margin for the three-month period was 15.5%,
compared with 17.6%, a year ago, in line with analyst
expectations.
Shares of the San Jose, California-based company were
down 3% in volatile trading after the bell.