Super Micro Warns Of Disappointing Earnings

By Markets MarketWatch Pulse

Super Micro Computer Inc. divulged Thursday afternoon that its quarterly earnings will come in well below its earlier projections. The computer-server company said that it now expects revenues of $530 million to $533 million, after previously providing a range of $530 million to $580 million, and said adjusted profit would be 33 cents a share to 35 cents a share, much lower than the company's previous estimate of 43 cents a share to 53 cents a share. "Results for this quarter were weaker than forecasted due to weaker demand with some large customers and the channel than we anticipated," Chief Executive Charles Liang said in the company's news release. Analysts had expected the company to report adjusted profit of 49 cents a share on sales of $557 million, according to a FactSet survey. Super Micro shares were stopped in after-hours trading ahead of the announcement, and fell 5.9% once the halt was lifted.

Continue Reading Below

Copyright © 2016 MarketWatch, Inc.