Applied Digital said that revenue from its Ellendale data center hosting facility would be decreased in the current quarter owing to an ongoing power outage, causing its shares to fall more than 10% in extended trading.
Applied Digital (APLD.O) opened a new tab and stated on Friday that revenue from its Ellendale data center hosting facility would be reduced in the current quarter due to an ongoing power outage, sending its shares down more than 10% in extended trading.
The facility began having a power loss on January 18, 2024, and had a total outage by January 19, according to a Securities and Exchange Commission filing.
“This complete power outage is currently ongoing as our electricity provider is performing upgrades to ensure the stability of our electrical supply,” the business said in a statement.
Revenue from this plant will be “materially impacted by this outage” for the quarter ending Feb. 29, according to the Dallas, Texas-based corporation, which also expects the facility to be operational again this month.
Last month, Applied Digital cut its full-year projections, citing a shortage of sought-after networking components manufactured by chipmaker Nvidia (NVDA.O).
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