Applied Digital quarterly loss balloons as power disruptions hit data center operations
:Data-center operator Applied Digital reported a larger-than-expected quarterly loss on Thursday after power disruptions hampered operations at one of its facilities in January, sending the company’s shares down more than 8 per cent in extended trading.
Dallas, Texas-based Applied Digital had warned in February revenue from its Ellendale data center hosting facility would take a hit in the third quarter after it faced power disruptions that resulted in a complete outage on Jan. 19.
“The company anticipates that as new transformers are received and installed, the Ellendale facility will target operating capacity of approximately 65 per cent-75 per cent of full capacity by the end of May 2024,” Applied Digital said.
Applied Digital posted an adjusted loss of 32 cents per share for the quarter ended Feb. 29, compared with estimates for a loss of 10 cents, according to LSEG data.
Enterprise budgets of tech firms remain tight as they try to rein in costs and build their independent data centers, hurting demand for companies such as Applied Digital in an uncertain economy.
The company posted revenue of $43.3 million, compared with analysts’ average estimate of $51.92 million, according to LSEG data. Its net loss widened to $62.8 million, from a loss of $7.3 million a year earlier.
