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Published: 2023-11-01 16:23:05 ET
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EX-99.1 2 exhibit991_20230930.htm EX-99.1 Document

Exhibit 99.1

Supermicro Announces First Quarter Fiscal Year 2024 Financial Results

SAN JOSE, Calif. -- November 1, 2023 (BUSINESS WIRE) -- Super Micro Computer, Inc. (Nasdaq: SMCI), a Total IT Solution Manufacturer for AI, Cloud, Storage and 5G/Edge, today announced financial results for its first quarter of fiscal year 2024 ended September 30, 2023.

First Quarter Fiscal Year 2024 Highlights
•Net sales of $2.12 billion versus $2.18 billion in the fourth quarter of fiscal year 2023 and $1.85 billion in the same quarter of last year.
•Gross margin of 16.7% versus 17.0% in the fourth quarter of fiscal year 2023 and 18.8% in the same quarter of last year.
•Net income of $157 million versus $194 million in the fourth quarter of fiscal year 2023 and $184 million in the same quarter of last year.
•Diluted net income per common share of $2.75 versus $3.43 in the fourth quarter of fiscal year 2023 and $3.35 in the same quarter of last year.
•Non-GAAP diluted net income per common share of $3.43 versus $3.51 in the fourth quarter of fiscal year 2023 and $3.42 in the same quarter of last year.
•Cash flow provided by operations for the first quarter of fiscal year 2024 of $271 million and capital expenditures of $3 million.
Non-GAAP gross margin for the first quarter of fiscal year 2024 was 17.0% which adds back stock-based compensation expenses of $6 million. Non-GAAP diluted net income per common share for the first quarter of fiscal year 2024 was $3.43, with adjustments for stock-based compensation expenses of $41 million, net of the related tax effects of $16 million.

As of September 30, 2023, total cash and cash equivalents was $543 million and total bank debt was $146 million.



“I am pleased to announce that we are off to a good start to fiscal 2024, achieving first quarter revenue of $2.12B,” said Charles Liang, President and CEO of Supermicro. “Our teams executed with passion and precision despite the ongoing GPU supply constraints. We are working diligently to meet these challenges and given my confidence in my team and the strong demand we are seeing for AI infrastructure and compelling new and upcoming compute and storage products we are now raising our fiscal year 2024 outlook to $10B - $11B in revenue.”

Business Outlook and Management Commentary
For the second quarter of fiscal year 2024 ending December 31, 2023, the Company expects net sales of $2.7 billion to $2.9 billion, GAAP net income per diluted share of $3.75 to $4.24 and non-GAAP net income per diluted share of $4.40 to $4.88. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 15.7% and 17.1%, respectively, and a fully diluted share count of 57.6 million shares for GAAP and fully diluted share count of 58.3 million shares for non-GAAP. The outlook for second quarter of fiscal year 2024 GAAP net income per diluted share includes approximately $40 million in expected stock-based compensation, net of related tax effects of $13 million that are excluded from non-GAAP net income per diluted share.

For fiscal year 2024 ending June 30, 2024, the Company maintains its guidance for net sales from a range of $10 billion to $11 billion.


Conference Call and Webcast Information
Supermicro will hold a public webcast at 2:00 p.m. PDT today to discuss the results for its first quarter of fiscal year 2024.
Those wishing to access the live webcast may use the following link:
https://events.q4inc.com/attendee/484918945

The conference call can be accessed by registering online at:
https://conferencingportals.com/event/dteAMPMM
After registering, a confirmation will be sent through email, including dial-in details and unique conference call codes for entry. Registration is open during the live call, but to ensure connectivity for the full call, it is recommended that participants register a day in advance and dial-in for the call at least 10 minutes before the start of the call.
A replay of the webcast will be available shortly after the call on the Company’s investor relations website (https://ir.supermicro.com) and will remain accessible for one year.

Cautionary Statement Regarding Forward Looking Statements
Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may relate to, among other things, the second quarter of fiscal year 2024 and updated full year fiscal 2024 guidance and the Company's ability to meet supply constraint challenges. 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, including: (i) our quarterly operating results may fluctuate, which could cause rapid declines in our stock price, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may be less predictable, (iii) if we fail to meet publicly announced financial guidance or other expectations about our business, our stock could decline in value, (iv) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (v) adverse economic conditions may harm our business. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward looking statements are contained in our filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2023, and Quarterly Reports on Form 10-Q filed thereafter.




Use of Non-GAAP Financial Measures
Non-GAAP gross margin discussed in this press release adds back stock-based compensation expenses. Non-GAAP diluted net income per common share discussed in this press release adds back stock-based compensation expenses adjusted for the related tax effects. 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. A reconciliation of GAAP gross margin to non-GAAP gross margin and from GAAP diluted net income per common share to non-GAAP diluted net income per common share is included in the tables below.

About Super Micro Computer, Inc.
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first to market innovation for Enterprise, Cloud, AI, and 5G/Edge IT Infrastructure. We are a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro’s motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

Investor Relations Contact
Nicole Noutsios
email: ir@supermicro.com


SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 (unaudited)

September 30,June 30,
20232023
ASSETS
Current assets:
Cash and cash equivalents$543,156 $440,459 
Accounts receivable, net of allowance for credit losses845,729 1,148,259 
Inventories2,052,805 1,445,564 
Prepaid expenses and other current assets129,144 145,144 
Total current assets3,570,834 3,179,426 
Property, plant and equipment, net291,669 290,240 
Deferred income taxes, net185,675 162,654 
Other assets47,786 42,409 
Total assets$4,095,964 $3,674,729 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$1,084,058 $776,831 
Accrued liabilities152,500 163,865 
Income taxes payable161,395 129,166 
Short-term debt40,843 170,123 
Deferred revenue166,025 134,667 
Total current liabilities1,604,821 1,374,652 
Deferred revenue, non-current174,478 169,781 
Long-term debt105,389 120,179 
Other long-term liabilities45,737 37,947 
Total liabilities1,930,425 1,702,559 
Stockholders’ equity:
Common stock and additional paid-in capital574,718 538,352 
Accumulated other comprehensive income651 639 
Retained earnings1,590,009 1,433,014 
Total Super Micro Computer, Inc. stockholders’ equity2,165,378 1,972,005 
Noncontrolling interest161 165 
Total stockholders’ equity2,165,539 1,972,170 
Total liabilities and stockholders’ equity$4,095,964 $3,674,729 


SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 (unaudited)

 Three Months Ended
September 30,
 20232022
Net sales$2,119,672 $1,852,130 
Cost of sales1,765,981 1,504,595 
Gross profit353,691 347,535 
Operating expenses:
Research and development
111,027 74,243 
Sales and marketing
37,230 29,363 
General and administrative
32,924 23,806 
Total operating expenses181,181 127,412 
Income from operations172,510 220,123 
Other income, net
6,613 8,054 
Interest expense(1,863)(3,938)
Income before income tax provision177,260 224,239 
Income tax provision
(20,215)(38,934)
Share of loss from equity investee, net of taxes
(50)(889)
Net income$156,995 $184,416 
Net income per common share:
Basic
$2.96 $3.51 
Diluted
$2.75 $3.35 
Weighted-average shares used in calculation of net income per common share:
Basic
53,093 52,598 
Diluted
57,185 55,017 

Stock-based compensation is included in the following cost and expense categories by period (in thousands):

 Three Months Ended
September 30,
 20232022
Cost of sales$5,904 $884 
Research and development35,710 6,118 
Sales and marketing5,665 809 
General and administrative10,100 3,203 
Stock-based compensation expense $57,379 $11,014 


SUPER MICRO COMPUTER, INC.
SELECTED CASH FLOW INFORMATION
(in thousands)
 (unaudited)

Three Months Ended
September 30,
20232022
Net cash provided by operating activities$270,465 $313,587 
Net cash used in investing activities
(7,631)(10,746)
Net cash used in financing activities
(159,941)(331,183)
Effect of exchange rate fluctuations on cash(203)(1,472)
Net increase (decrease) in cash, cash equivalents and restricted cash
102,690 (29,813)
Cash, cash equivalents and restricted cash at the beginning of the period440,960 268,559 
Cash, cash equivalents and restricted cash at the end of the period$543,650 $238,746 



SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
 (unaudited)

Three Months Ended
September 30, 2023June 30, 2023September 30, 2022
GAAP GROSS PROFIT$353,691 $371,696 $347,535 
Stock-based compensation5,904 989 884 
NON-GAAP GROSS PROFIT$359,595 $372,685 $348,419 
GAAP GROSS MARGIN16.7 %17.0 %18.8 %
Stock-based compensation0.3 %0.1 %0.0 %
NON-GAAP GROSS MARGIN17.0 %17.1 %18.8 %
GAAP OPERATING EXPENSE$181,181 $144,941 $127,412 
Stock-based compensation (51,475)(11,797)(10,130)
NON-GAAP OPERATING EXPENSE$129,706 $133,144 $117,282 
GAAP INCOME FROM OPERATIONS$172,510 $226,755 $220,123 
Stock-based compensation 57,379 12,786 11,014 
NON-GAAP INCOME FROM OPERATIONS$229,889 $239,541 $231,137 
GAAP OPERATING MARGIN 8.1 %10.4 %11.9 %
Stock-based compensation2.7 %0.6 %0.6 %
NON-GAAP OPERATING MARGIN 10.8 %11.0 %12.5 %
GAAP TAX EXPENSE $20,215 $31,302 $38,934 
Adjustments to tax provision16,049 5,304 3,230 
NON-GAAP TAX EXPENSE$36,264 $36,606 $42,164 
GAAP NET INCOME$156,995 $193,569 $184,416 
Stock-based compensation 57,379 12,786 11,014 
Adjustments to tax provision(16,049)(5,304)(3,230)
NON-GAAP NET INCOME$198,325 $201,051 $192,200 
GAAP NET INCOME PER COMMON SHARE – BASIC$2.96 $3.67 $3.51 
Impact of Non-GAAP adjustments0.78 0.15 0.14 
NON-GAAP NET INCOME PER COMMON SHARE – BASIC$3.74 $3.82 $3.65 
GAAP NET INCOME PER COMMON SHARE – DILUTED$2.75 $3.43 $3.35 
Impact of Non-GAAP adjustments0.68 0.08 0.07 
NON-GAAP NET INCOME PER COMMON SHARE – DILUTED$3.43 $3.51 $3.42 
WEIGHTED-AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE
BASIC – GAAP53,093 52,679 52,598 
BASIC – NON-GAAP53,093 52,679 52,598 


SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
 (unaudited)

Three Months Ended
September 30, 2023June 30, 2023September 30, 2022
DILUTED – GAAP57,185 56,505 55,017 
DILUTED – NON-GAAP57,846 57,222 56,271