Slide 1: Second Quarter Fiscal 2016 Earnings Conference Presentation
Confidential Second Quarter Fiscal 2016 Earnings Conference Presentation January 28, 2016 © 2016 Supermicro
Slide 2: Safe Harbor Statement
Confidential 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, t
Slide 3: Non-GAAP Financial Measures
Confidential 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 and the related tax effect of the applicable items. Management pr
Slide 4: Q2'FY2016 Non-GAAP Financial Highlights
Confidential Q2’FY2016 Non-GAAP Financial Highlights (in millions, except per share data) Change Q2'16 YoY Sequential Revenue $639.0 27.0% 23.0% Profit after Tax $38.0 13.4% 130.4% EPS $0.73 12.3% 128.1% Revenues were 27.0% higher year over year Revenues have grown 5X since CYQ1’09 Direct busi
Slide 5: World's Best Server/Storage Product Lines
Confidential World’s Best Server/Storage Product Lines The Ultra 1U and 2U Haswell/Broadwell Product Lines 50%+ revenue growth YoY 24 DIMM, 160W Xeon CPU, Flexible I/O, NVMe support… NEW! 3 to 15% less power consumption than competition The 1U/2U TwinPro and 4U FatTwin Best performance/w
Slide 6: Q2'16 Revenue by Geography
Confidential Q2’16 Revenue by Geography North America Europe Asia 63.7% 17.9% 13.8% Other – 4.6% 6 CY’ Q1’ Q4’
Slide 7: Revenue Trend
Confidential Revenue Trend Supermicro Revenue Trend #039;s millions $639 $574 $503 $520 $471 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Y/Y 41.2% 26.1% 34.0% 17.2% 27.0% Seq. 13.5% -6.3% 21.7% -9.4% 23.0% 7 CY’ Q1’ Q4’
Slide 8: Revenue Analysis
Confidential Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $354 $454 $302 $356 $302 $201 $220 $169 $163 $185 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Subsystems Systems 8 CY’ Q1’ Q4’
Slide 9: Non-GAAP Gross Margins
Confidential Non-GAAP Gross Margins 16.8% 16.3% 16.7% 15.7% 13.9% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 9 CY’ Q1’ Q4’
Slide 10: Non-GAAP Operating Margin
Confidential Non-GAAP Operating Margin 9.1% 8.3% 7.8% 7.4% 4.9% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 10 CY’ Q1’ Q4’
Slide 11: Summary P&L non-GAAP
Confidential Summary P&L non-GAAP (in millions, except per share data) 11 CY’ Q1’ Q4’
Slide 12: Q2 FY2016 YTD Summary Statement of Cash Flows
Q2 FY2016 YTD Summary Statement of Cash Flows Confidential ($’s millions) 6 Months Ended 6 Months Ended 31-Dec-15 31-Dec-14 Net Income $48.4 $52.1 Depreciation and amortization $6.0 $3.8 Stock-based comp expense $7.9 $6.2 Other reserves -$1.7 $0.1 Net change in AR, Inventory, AP $1.5 -$83.5 Other pr
Slide 13: Q2 FY2016 Summary of Balance Sheet Metrics
Confidential Q2 FY2016 Summary of Balance Sheet Metrics ($’s millions) Q2'16 Q1'16 Change Cash Equivalents & Investments $172.6 $113.6 $59.0 Accounts Receivable $314.2 $297.1 $17.1 Inventory $486.5 $461.4 $25.2 Accounts Payable $321.2 $263.2 $58.0 DSO 44 54 -10 DIO 82 95 -13 DPO 50 58 -8 Cash Cycle
Slide 14: Supplemental Financials
Confidential Supplemental Financials Second Quarter Fiscal 2016 Ended December 31, 2015 14 CY’ Q1’ Q4’
Slide 15: Prior Period Net Income Comparisons
Confidential Prior Period Net Income Comparisons (in millions, except per share data) * Note: Non-GAAP, please see Non-GAAP financial measures on page 3. 15 CY’ Q1’ Q4’
Slide 16: Non-GAAP Financial Summary
Confidential Non-GAAP Financial Summary (in millions, except per share data) Q2'16 Q1'16 Q2'15 Net Sales $ 639.0 $ 519.6 $ 503.0 Non-GAAP Gross Margin 16.7% 13.9% 16.8% Non-GAAP Operating Expenses $ 53.5 $ 47.1 $ 38.6 Non-GAAP Operating Income $ 53.1 $ 25.3 $ 46.1 Non-GAAP Net Income $ 38.0 $ 16.5 $
Slide 17: GAAP to Non-GAAP Reconciliation
Quarterly Net Income (Loss) Confidential GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q2'16 Q1'16 Q4'15 Q3'15 Q2'15 Net income (GAAP) $ 34.7 $ 13.7 $ 26.7 $ 23.1 $ 31.2 Adjustments: Stock-based compensation expense $ 4.0 $ 3.9 $ 4.0 $ 3.6 $ 3.2 Income tax effects of adjustmen