Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT ON FORM 8-K - Super Micro Computer, Inc. | d339620d8k.htm |
| EX-99.1 - PRESS RELEASE OF SUPER MICRO COMPUTER, INC. - Super Micro Computer, Inc. | d339620dex991.htm |
 Third
Quarter Fiscal 2012 Earnings Conference Presentation
April 24, 2012
Exhibit 99.2 |
 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, poor product sales,
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. |
 3
Non-GAAP Financial Measures
Non-GAAP gross margin in this presentation excludes stock-based
compensation expense and accrued customs fee for prior periods.
Non-GAAP net income and net income per share in this presentation
exclude stock-based compensation expense, accrued customs fee for prior periods 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 the 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 March 31, 2012. 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. |
 4
Q3’FY2012 Non-GAAP Financial Highlights
(in millions, except per share data)
Q3'12
YoY
Sequential
Revenue
$240.2
2.5%
-3.9%
Profit after Tax
$8.8
-28.1%
-21.1%
EPS
$0.19
-31.8%
-24.0%
Change |
 5
Summary of Results
Revenues high 2.5% higher year over year, and impacted
by the HDD shortage and late launch of Sandy Bridge
OEM and Direct business was 47.4% of total revenues and
Internet Data Center was 15.7% of total revenues
System business was 48.5% of total revenues
Revenues by Geography:
US –
56.5%
Europe –
23.0%
Asia –
18.1%
Other –
2.4%
Mass production of Sandy Bridge platforms underway
Look for launch of new Twin product for data centers |
 Leading Application Optimized Solutions
X9 Sandy Bridge Solutions in Mass Production
Twin Architecture
X9
Sandy
Bridge
Update
-
16
DIMMs
per
DP
node
New
Fat
Twin
Architecture
–
Configurations
in
8,
4
or
2
nodes
in
4U.
PUE Optimized Architecture
High Temperature Operation (0-47 degree Celsius)
Reduces cooling cost, achieves PUE < 1.1
Optimized and Cost Effective Datacenter Solution
SuperBlade™
Solutions
20/28 DP nodes in 7U, support 40Gb/s Infiniband or 10G Ethernet
connectivity
GPU optimized product lines (1U, 2U, 4U and Blade)
1U, 2U New High Density GPU product line are completely ready
Ready for Kepler GPU and MIC solution
IPC and Embedded Applications
Dedicated FAE and Sales teams were formed 4 months ago
Workstation and Everest product line
Intel Everest CPU optimized solutions
Over clocking and Everest both will be in production in June quarter
Twin Architectures
TwinBlade™
Industrial Solution
GPU-optimized
Workstation
Fat Twin Architecture
PUE-Optimized |
 HPC/Enterprise 8-way/4-way Systems
8-way 5U high-end high-margin solution –
80 cores and 2TB
Sandy Bridge MP systems in 1U/2U/4U ready in production now
UP Solutions
Volume products. X9 Ivy Bridge update
Storage Product Lines
Double-Sided, Growing SBB product line with
software solutions SuperRack™
Double side access, cable management, water cooling
Hadoop mini-rack solution
Switch Products: 10GbE, IB, FCoE
10GbE onboard and 10GbE standalone switch
Layer 2 SW in production
MicroCloud™
Cost effective cloud solution, optimized for IaaS
Power Subsystems
High efficiency (95%+), digital switching, UPS w/ battery
Software Opportunities
SDCM (Super DCM)
HPC/DC management toolset (DCM) and massive firmware update
SSM functionality in service to select customers
Window OS Integration/Bundle
Front
Back
Super-SBB
Double-Sided Storage
1U / Sandy Bridge 4-way
5U / 8-way
SuperRack
MicroCloud
Leading Application Optimized Solutions
Battery Backup Power
UP Solutions |
 Revenue Trend
Y/Y
23.8%
29.1%
19.6%
3.8%
2.5
%
Seq.
-2.7%
11.1%
-4.8%
0.8%
-3.9%
8 |
 9
Revenue Analysis |
 10
Non-GAAP Gross Margins |
 11
Non-GAAP Gross Profit |
 12
Summary P&L non-GAAP
(in millions, except per share data)
Q3'12
YoY
Sequential
Q3'11
Q2'12
Operating Expense
$28.7
$7.9
$2.1
$20.8
$26.6
Operating Expense Ratio
11.9%
3.0%
1.3%
8.9%
10.6%
Operating Income
$12.2
-$5.0
-$4.0
$17.2
$16.2
Net Income
$8.8
-$3.4
-$2.4
$12.3
$11.2
EPS
$0.19
-$0.09
-$0.06
$0.28
$0.25
Diluted Common Share Count
45.5
44.0
44.6
Effective Quarterly
Tax Rate
26.6%
28.3%
30.5% |
  13
Q3 FY2012 YTD Summary Statement of Cash Flows
($’s millions)
9 Months Ended
9 Months Ended
31-Mar-12
31-Mar-11
Net Income
$24.3
$29.5
Depreciation and amortization
$5.1
$4.0
Stock comp expense
$7.4
$5.7
Other reserves
$7.5
$6.5
Net change in AR, Inventory, AP
-$34.3
-$50.1
Other prepaids and liabilities
$8.9
$2.6
Cash flow from operations
$19.0
-$1.8
Capital expenditures
-$18.8
-$19.6
Free cash flow
$0.2
-$21.3
Net cash - investing activities
$2.0
$1.2
Net cash - financing activities
$16.3
$15.6
Effect of exchange rate fluctuation
on cash and cash equivalents
$0.4
$0.0
Net change in cash
$18.9
-$4.5 |
    141 414
141
4
Q3 FY 2012 Summary of Balance Sheet Metrics
($’s millions)
Q3'12
Q2'12
Change
Cash Equivalents & Investments
92.2
$
106.1
$
(13.9)
$
Accounts Receivable
101.0
$
80.1
$
20.9
$
Inventory
228.9
$
193.4
$
35.6
$
Accounts Payable
142.2
$
115.9
$
26.3
$
DSO
35
31
4
DIO
97
85
12
DPO
60
53
7
Cash Cycle Days
72
63
9 |
 15
Supplemental Financials
Third Quarter Fiscal 2012
Ended March 31, 2012 |
 16
Non-GAAP Financial Summary
(in millions, except per share data)
Q3'12
Q2'12
Q3'11
Net Sales
240.2
$
249.9
$
234.3
$
Non-GAAP Gross Margin
17.0%
17.1%
16.2%
Non-GAAP Operating Expenses
28.7
$
26.6
$
20.8
$
Non-GAAP Operating Income
12.2
$
16.2
$
17.2
$
Non-GAAP Net Income
8.8
$
11.2
$
12.3
$
Non-GAAP Net Income per share
0.19
$
0.25
$
0.28
$
Fully diluted shares for calculation
45.5
44.6
44.0 |
 17
Prior Period Net Income Comparisons
(in millions, except per share data)
* Note: Non-GAAP, please see Non-GAAP financial measures on page 3.
Q3'12
Q2'12
Q3'11
Net Income (GAAP)
7.1
$
8.8
$
10.7
$
Stock Comp & Other Unusual Expense (tax affected)*
1.7
$
2.4
$
1.6
$
Net Income (Non-GAAP)*
8.8
$
11.2
$
12.3
$
Diluted Net Income per common share (GAAP)
0.16
$
0.20
$
0.25
$
Stock Comp & Other Unusual Expense (tax affected)*
0.03
$
0.05
$
0.03
$
Diluted Net Income per share (Non-GAAP)*
0.19
$
0.25
$
0.28
$
Shares used in diluted EPS calculation
45.5
44.6
44.0 |
 18
Quarterly Net Income (Loss)
GAAP to Non-GAAP Reconciliation
(in millions, except per share data)
Q3'12
Q2'12
Q1'12
Q4'11
Q3'11
Net income (GAAP)
7.1
$
8.8
$
8.5
$
10.7
$
10.7
$
Adjustments:
Stock-based compensation expense
2.6
2.5
2.3
2.3
2.1
Accrued customs fee
-
-
-
0.8
-
Income tax effects of adjustments
(0.9)
(0.1)
(0.3)
(0.9)
(0.5)
Net income (Non-GAAP)
8.8
$
11.2
$
10.5
$
13.0
$
12.3
$
Diluted Net Income per share (GAAP)
0.16
$
0.20
$
0.19
$
0.24
$
0.25
$
Adjustments:
0.03
0.05
0.05
0.05
0.03
Diluted Net Income per share (Non-GAAP)
0.19
$
0.25
$
0.24
$
0.29
$
0.28
$
Diluted shares used in GAAP per share calculation
44.6
43.8
43.4
43.7
42.9
Diluted shares used in Non-GAAP per share calculation
45.5
44.6
44.3
44.9
44.0 |