Attached files
| file | filename |
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| 8-K - CURRENT REPORT ON FORM 8-K - Super Micro Computer, Inc. | d8k.htm |
| EX-99.1 - PRESS RELEASE - Super Micro Computer, Inc. | dex991.htm |
 Earnings Conference Presentation October 27, 2009 Exhibit 99.2 Supermicro © 2009 |
 Supermicro © 2009 2 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements may relate, among other things, to our expected financial and
operating results, our ability to build and grow Supermicro, the benefit of
our products and our ability to achieve our goals, plans and
objectives. Such forward-looking statements do not constitute guarantees
of future performance and are subject to a variety of risks and
uncertainties that could cause our actual results to differ materially from those anticipated. These include, but are not limited to: our dependence on continued growth
in the markets for X86 based servers, blade servers and embedded
applications, increased competition, difficulties of predicting timing of
new product introductions, customer acceptance of new products, difficulties in establishing and maintaining successful relationships with our distributors and vendors,
shortages or price fluctuations in our supply chain, our ability to protect
our intellectual property rights, our ability to control the rate of
expansion domestically and internationally, difficulty managing rapid growth and general political, economic and market conditions and events. For a further list and description of risks and uncertainties, see the reports filed by Supermicro with the Securities and Exchange Commission. Supermicro disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise. Supplemental information, condensed balance sheets and
statements of operations follow. All monetary amounts are stated in U.S.
dollars. |
 Supermicro © 2009 3 Non-GAAP Financial Measures Non-GAAP gross margin in this presentation excludes stock-based compensation expense. Non-GAAP net income and net income per share in this presentation exclude stock-based compensation expense, a provision of litigation loss and the related tax effect of the applicable items.
Management presents non- GAAP financial measures because it considers
them to be important supplemental measures of performance. Management uses
the non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that non-GAAP financial measures provide additional insight
for analysts and investors in evaluating the Company's financial and
operational performance. However, these non-GAAP financial measures have
limitations as an analytical tool, and are not intended to be an alternative to financial measures prepared in accordance with GAAP. Pursuant to the requirements of SEC Regulation G, detailed reconciliations between the
Company's GAAP and non-GAAP financial results is provided at the end of
the press release that was issued announcing the Company’s operating
and financial results for the quarter ended September 30, 2009. In addition, a reconciliation from GAAP to non-GAAP results is contained in the
financial summary attached to today’s presentation and is available in
the Investor Relations section of our website at www.supermicro.com
in the Events and Presentations section. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed
in the Company's SEC filings. |
 Supermicro © 2009 4 Q1’FY2010 Non-GAAP Financial Highlights (in millions, except per share data) Q1'10 YoY Sequential Revenue $148.5 3.1% 20.3% Profit after Tax $5.8 -30.0% 54.6% EPS $0.15 -28.6% 50.0% Change |
 Supermicro © 2009 5 Summary of Results The Nehalem processor began to ramp and our first to market advantage helped us to record a strong start to this technology Our innovative 2U Twin architecture was in strong demand This quarter indicates a strong ramp to our GPU product line Late in this quarter, we introduced AMD’s Istanbul 6-core processor and again we
were first to market with the broadest array of products for this new
technology The economy is improving and demand is growing for better technology
to improve overall competitive performance and TCO In summary, we continue to outperform our competition and gain market share
2 |
 Supermicro © 2009 Leading Architecture – FY10 TwinBlade™ Highest computing density 40 processors / 240 cores in 7U 1U GPU Solution 2 TFLOPS of performance per 1U 4U GPU Solution 4 GPUs plus Graphics card in 4U 2U Twin² 4 Hot-pluggable DP nodes in 2U 1U Twin™ 2 DP nodes in 1U, 20+ SKUs 2U Twin 6x 3.5” HDDs per node 2U GPU Solution 1 GPU per hot-pluggable DP node Leveraging Twin architecture |
 Supermicro © 2009 7 Upcoming Products and Launches Twin Blade Based on our Twin architecture, doubles the density of our SuperBlade In a 7U space, able to provide 20/28 DP nodes support with 40Gb/s Infiniband or 10G Ethernet connectivity options Most suitable for HPC and Datacenter applications New generation 1U and 2U enterprise optimized rack mount product lines Further optimized for enterprise virtualization applications Including 18 DIMM, 94% high efficiency redundant power supply, more I/O capacity,
GPU capability, and 100% cooling redundancy New Generation 4-way Systems Intel new Boxboro MP system in 1U/4U Addressing HPC application needs as well as enterprise market Storage product line expansion Super SBB product line Higher density storage subsystems |
 Supermicro © 2009 8 Revenue Comparables $144 $129 $110 $123 $149 $0 $40 $80 $120 $160 $'s millions Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Supermicro Revenue Trend Y/Y 22.1% -6.1% -19.9% -17.1% 3.1% Seq. -3.2% -10.8% -14.8% 12.7% 20.3% |
 Supermicro © 2009 9 Revenue Analysis $88 $56 $76 $53 $67 $43 $78 $45 $97 $51 $- $40 $80 $120 $160 $'s millions Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Supermicro Sub-system/System Revenue Sub-systems Systems |
 Supermicro © 2009 10 Non-GAAP Gross Margins 19.4% 18.9% 15.0% 16.7% 16.6% Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 |
 Supermicro © 2009 11 Non-GAAP Gross Profit $28.0 $24.2 $16.5 $20.6 $24.7 $- Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Gross Profit $'s millions |
 Supermicro © 2009 12 Summary P&L non-GAAP (in millions, except per share data) Q1'10 YoY Sequential Q1'09 Q4'09 Operating Expense $15.6 $0.7 $0.4 $14.9 $15.2 Operating Expense Ratio 10.5% 0.1% -1.8% 10.4% 12.3% Operating Income $9.1 -$3.9 $3.7 $13.0 $5.4 Net Income $5.8 -$2.5 $2.0 $8.3 $3.8 EPS $0.15 -$0.06 $0.05 $0.21 $0.10 Diluted Share Count 40.1 39.6 39.5 Effective Quarterly Tax Rate (Benefit) 35.1% 36.1% 28.0% Change |
 Supermicro © 2009 13 Q1 FY2010 YTD Summary Statement of Cash Flows ($’s millions) 3 Months Ended 3 Months Ended 30-Sep-09 30-Sep-08 Net Income $3.9 $7.2 Depreciation and amortization $1.1 $0.8 Stock comp expense (FAS 123R) $1.5 $1.2 Other reserves $1.0 $2.2 Net change in AR, Inventory, AP -$2.8 -$7.9 Other prepaids and liabilities $5.0 $9.2 Cash flow from operations $9.7 $12.7 Capital expenditures -$0.7 -$1.4 Free cash flow $9.0 $11.3 Net cash - investing activities $3.4 $0.8 Net cash - financing activities -$9.1 $1.2 Net change in cash $3.3 $13.3 |
 Supermicro © 2009 14 Q1 FY 2010 Summary of Balance Sheet Metrics ($’s millions) Q1'10 Q4'09 Change Cash Equivalents & Investments 85.2 $ 85.0 $ 0.2 $ Accounts Receivable 50.1 $ 45.7 $ 4.4 $ Inventory 100.1 $ 90.0 $ 10.1 $ Accounts Payable 86.3 $ 73.5 $ 12.8 $ DSO 30 33 -3 DIO 71 77 -6 DPO 59 60 -1 Cash Cycle Days 42 50 -8 |
 Supermicro © 2009 15 Supplemental Financials First Quarter Fiscal 2010 Ended September 30, 2009 |
 Supermicro © 2009 16 Non-GAAP Financial Summary (in millions, except per share data) Q1'10 Q4'09 Q1'09 Net Sales 148.5 $ 123.5 $ 144.1 $ Non-GAAP Gross Margin 16.6% 16.7% 19.4% Non-GAAP Operating Expenses 15.6 $ 15.2 $ 14.9 $ Non-GAAP Operating Income 9.1 $ 5.4 $ 13.0 $ Non-GAAP Net Income 5.8 $ 3.8 $ 8.3 $ Non-GAAP Net Income per share 0.15 $ 0.10 $ 0.21 $ Fully diluted shares for calculation 40.1 39.5 39.6 |
 Supermicro © 2009 17 Prior Period Net Income Comparisons (in millions, except per share data) Q1'10 Q4'09 Q1'09 Net Income (GAAP) 3.9 $ 2.4 $ 7.2 $ FAS123R & Other Unusual Expense (tax affected) 1.9 $ 1.4 $ 1.1 $ Net Income (Non-GAAP) 5.8 $ 3.8 $ 8.3 $ Diluted Net Income per share (GAAP) 0.10 $ 0.06 $ 0.18 $ FAS123R 0.05 $ 0.04 $ 0.03 $ Diluted Net Income per share (Non-GAAP) 0.15 $ 0.10 $ 0.21 $ Shares used in diluted EPS calculation 40.1 39.5 39.6 |
 Supermicro © 2009 18 Q1 FY 2010 GAAP to Non-GAAP Reconciliation (in millions, except per share data) FAS123R & Q1'10 Q1'10 GAAP Other Unusual Non-GAAP Results Expenses Results Net Sales 148.5 $ - $
148.5 $ Cost of Sales 124.0 $ 0.1 $
123.9 $ Gross Profit 24.5 $ 0.1 $
24.7 $ Operating Expense 18.0 $ 2.5 $
15.6 $ Operating Income 6.5 $ 2.6 $
9.1 $ Interest, net (0.1) $ - $
(0.1) $ Income Before Tax 6.4 $ 2.6 $
9.0 $ Income Tax 2.5 $ 0.7 $
3.1 $ Net Income 3.9 $ 1.9 $
5.8 $ Diluted Net Income per share 0.10 $ 0.05 $
0.15 $ Diluted shares used in GAAP and Non-GAAP per share calculation 39.9 40.1 40.1 |
 Supermicro © 2009 19 Q4 FY 2009 GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q4'09 Q4'09 GAAP FAS123R Non-GAAP Results Expenses Results Net Sales 123.5 $ - $ 123.5 $ Cost of Sales 103.0 $ 0.2 $ 102.8 $ Gross Profit 20.5 $ 0.2 $ 20.6 $ Operating Expense 16.7 $ 1.5 $ 15.2 $ Operating Income 3.7 $ 1.7 $ 5.4 $ Interest, net (0.2) $ - $ (0.2) $ Income Before Tax 3.6 $ 1.7 $ 5.2 $ Income Tax 1.2 $ 0.3 $ 1.5 $ Net Income 2.4 $ 1.4 $ 3.8 $ Diluted Net Income per share 0.06 $ 0.04 $ 0.10 $ Diluted shares used in GAAP and Non-GAAP per share calculation 39.2 39.5 39.5 |
 Supermicro © 2009 20 Q3 FY 2009 GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q3'09 Q3'09 GAAP FAS123R Non-GAAP Results Expenses Results Net Sales 109.5 $ - $ 109.5 $ Cost of Sales 93.2 $ 0.1 $ 93.1 $ Gross Profit 16.3 $ 0.1 $ 16.5 $ Operating Expense 15.9 $ 1.2 $ 14.6 $ Operating Income 0.4 $ 1.3 $ 1.8 $ Interest, net (0.2) $ - $ (0.2) $ Income Before Tax 0.3 $ 1.3 $ 1.7 $ Income Tax (1.0) $ 0.2 $ (0.7) $ Net Income 1.2 $ 1.0 $ 2.4 $ Diluted Net Income per share 0.03 $ 0.03 $ 0.06 $ Diluted shares used in GAAP and Non-GAAP per share calculation 38.8 38.9 38.9 |
 Supermicro © 2009 21 Q2 FY 2009 GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q2'09 Q2'09 GAAP FAS123R Non-GAAP Results Expenses Results Net Sales 128.6 $ - $ 128.6 $ Cost of Sales 104.5 $ 0.1 $ 104.3 $ Gross Profit 24.1 $ 0.1 $ 24.2 $ Operating Expense 16.8 $ 1.2 $ 15.6 $ Operating Income 7.3 $ 1.3 $ 8.6 $ Interest, net (0.1) $ - $ (0.1) $ Income Before Tax 7.2 $ 1.3 $ 8.5 $ Income Tax 1.8 $ (0.0) $ 1.8 $ Net Income 5.3 $ 1.3 $ 6.7 $ Diluted Net Income per share 0.14 $ 0.03 $ 0.17 $ Diluted shares used in GAAP and Non-GAAP per share calculation 39.2 39.2 39.2 |
 Supermicro © 2009 22 Q1 FY 2009 GAAP to Non-GAAP Reconciliation (in millions, except per share) Q1'09 Q1'09 GAAP FAS123R Non-GAAP Results Expenses Results Net Sales 144.1 $ - $ 144.1 $ Cost of Sales 116.2 $ 0.1 $ 116.1 $ Gross Profit 27.8 $ 0.1 $ 28.0 $ Operating Expense 16.0 $ 1.1 $ 14.9 $ Operating Income 11.8 $ 1.2 $ 13.0 $ Income Before Tax 11.8 $ 1.2 $ 13.0 $ Income Tax 4.6 $ 0.1 $ 4.7 $ Net Income 7.2 $ 1.1 $ 8.3 $ Diluted Net Income per share 0.18 $ 0.03 $ 0.21 $ Diluted shares used in GAAP and Non-GAAP per share calculation 39.3 39.6 39.6 |