Supermicro Computer preannounces a miss in Revenues and EPS. Stock down sharply

SMCI – which has been criticized for their accounting practices in recent past – preannounced their earnings estimates, and it is not good:

• Revenues $4.5 – $4.6 billion versus previous estimate of $5.0 – $6.0 billion
• EPS $0.29 – $0.31 versus previous estimate $0.46 – $0.62.

According to the release, during Q3 some delayed customer platform decisions moved sales into Q4. In addition “gross margin for Q3 was 220 basis points lower than Q2 preliminary due to fire inventory reserves resulting from older generation products and expedite costs to enable time-to-market for new products”

Shares are trading down -17% to $29.91.

This article was written by Greg Michalowski at www.forexlive.com.