Super Micro Computer Cuts Guidance, Shares Plunge 13%

Shares of

were trading lower by more than 13 percent early Friday morning after the company

an update to its guidance. The provider of end-to-end green computing solutions revised its third quarter guidance. The company expects its third quarter sales to be in a range of $530 million to $533 million and expects to earn $0.33 per share to $0.35 per share. Super Micro Computer previously guided its third quarter sales to a range of $530 million to $580 million and earn $0.43 per share to $0.53 per share. Wall Street analysts were projecting the company's revenue to be $557.3 million and earnings per share to be $0.49. "While we saw the market slow down a little in the March quarter, Supermicro revenue continued to grow at an industry leading pace by growing 12% to 13% year over year. However, results for this quarter were weaker than forecasted due to weaker demand with some large customers and the channel than we anticipated. January and February were particularly soft while March showed improved momentum. Storage and datacenter continued to grow," said Charles Liang, Chairman and Chief Executive Officer. "We are confident that Supermicro will continue to gain market share consistently and grow multiple times the industry growth rate in the upcoming quarter and year. We will provide more details on the third quarter financial performance at the time of our earnings call later this month." Super Micro Computer also announced it will report its third quarter results after market close on Thursday, April 28, 2016.