Super Micro Computer, Inc. (SMCI), a high performance server solutions company, yesterday reported their fiscal second quarter 2017 financial results. Super Micro Computer reported second quarter earnings of $0.48 per share which beat analyst estimates of $0.47 per share. Super Micro Computer reported second quarter revenues of $652 million which beat analyst estimates of $613.7 million.

Super Micro Computer, Inc. CEO’s Comments

“We are pleased to report record second quarter revenues of $652.0 million that exceeded our guidance and outpaced a strong compare with last year. Contributing to this strong growth was our Twin family product line including our FatTwin, Storage, HPC, MicroBlade, and strong growth from enterprise cloud and Asia Pacific, particularly China. Component shortages and pricing, product and geographic mix adversely impacted gross margins while improved leverage allowed us to deliver stronger operating margins from last quarter,” said Charles Liang, Chairman and Chief Executive Officer. “We expect to continue the growth of last quarter and be reflected in the year-over-year revenue growth in the March quarter based on an increasing number of sizable customer engagements demanding the performance and advantages of our leading product lines. In addition, we are well positioned to benefit from technology transitions in 2017 and have upgraded our product lines to optimize these new technologies.”  Business Wire

SMCI Technical Analysis

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SMCI opened trading yesterday at $28.45 which was exactly the sames as the previous day’s trading close. SMCI closed trading yesterday at $28.55 and spiked up after market to $31.35, equivalent to a 10% increase from the closing price. Taking a look at the daily chart we can see that the last time SMCI traded above these levels we have to go back to April 14th, 2016 when it traded at  $33.32.

Taking a closer look at the daily chart we can see that before the spike up SMCI had already been in an overall upward trend dating back to November 4th, 2016 when it traded at $22.05. SMCI has a float of 38 million shares and traded below the normal daily trading volume on Thursday. For trading purposes, I would like to see SMCI open trading on Friday above $30.43 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position, fearing anything more than that and the stock would start to fill in the gap up.