Super Micro Computer, Inc. (NASDAQ: SMCI)
Super Micro Computer, Inc. (SMCI), a company that provides server solutions based on modular and open standard architecture yesterday reported their fiscal fourth quarter 2016 financial results. Super Micro projects non-GAAP earnings to be $0.15 to $0.17 per share which fell short of their previous guidance of $0.46 to $0.58 per share. Super Micro now projects fourth quarter revenues to be in between $520 and $524 million which fell short of previous guidance of $580 to $640 million.
Super Micro Computer, Inc. CEO’s Comments
“We are disappointed to report that our performance was well below our forecast. Although we have been growing well in mid-size accounts during the past quarters and improving our SAP and global operations, our business has become more dependent on larger customers which has created more volatility in our results. We will provide more details on the fourth quarter financial performance at the time of our earnings call,” said Charles Liang, Chairman and Chief Executive Officer. “In addition to our financial performance, we will also discuss our go forward strategy to better utilize our capacity to compete more effectively and gain market share.” The company also announced a stock repurchase program, “The repurchase program announced today reflects the Board of Directors’ continued confidence in the Company’s long-term financial and operating performance and commitment to enhancing stockholder value,” said Charles Liang, Chairman and Chief Executive Officer. “With over $183 million in cash and investments, we believe that we have the strategic flexibility to institute a repurchase program while maintaining sufficient capital for operations and innovation.” Business Wire
SMCI Technical Analysis
SMCI opened trading yesterday at $26.15 which was up from the previous days trading of $26.00. SMCI closed trading yesterday at $26.34 and crashed down after market to $22.00, equivalent to a 16% decrease from the closing price. Taking a look at the daily chart we can see the last time SMCI traded below these levels was on January 11th when it traded at $21.52. Taking a closer look at the daily chart we can see that SMCI has been on an overall downward trend dating back to April 1st when it traded at its 52 week high price of $34.69. SMCI has a float of 30.63 million shares and traded below the normal daily trading volume on Monday. For trading purposes, I would like to see SMCI open trading on Tuesday below $23.30 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Super Micro Computer, Inc., together with its subsidiaries, develops and provides high performance server solutions based on modular and open-standard architecture. The company offers a range of server, storage, blade, workstation, and full rack solutions, as well as networking devices, server management software, and technology support and services. It also provides a range of application optimized server solutions, including rackmount and blade server systems; and server subsystems and accessories comprising server boards, and chassis and power supplies, as well as other system accessories, including microprocessors, and memory and disc drives. The company offers its products to data center, cloud computing, enterprise IT, big data, high performance computing, and embedded markets. It sells its server systems, and server subsystems and accessories primarily through distributors that comprise value added resellers and system integrators, and OEMs, as well as through direct sales force. The company has operations primarily in San Jose, California; the Netherlands; Taiwan; China; and Japan. Super Micro Computer, Inc. was founded in 1993 and is headquartered in San Jose, California. Yahoo Finance