Slide 1: Fiscal 1Q 2021 Results
FISCAL 1Q 2021 RESULTS November 3, 2020
Slide 2: Disclosures
DISCLOSURES Cautionary Statement Regarding Forward Looking Statements Statements contained in this presentation 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
Slide 3: Q1 Highlights
Q1 HIGHLIGHTS • Additional traction with new Cloud, Internet and Enterprise customers • Joined the fight against COVID-19 with Lawrence Livermore Labs • Collaborated with Preferred Networks to build the #1 Supercomputer in Green500 • Accelerating footprint expansion in Taiwan to lower mid/long-term
Slide 4: Key Vertical Markets and Growth Drivers
KEY VERTICAL MARKETS AND GROWTH DRIVERS Supermicro has been focused on the fastest-growing IT markets leveraging our unique business model and go-to-market partnerships Enterprise, Channel Cloud 5G/Edge & Telco Software & Services B2B/B2C IoT & AI & Large DC Business Automation 4
Slide 5: Revenue
REVENUE Net Sales Sales Above Midpoint of Guidance Range 1,000 900 • -5% YoY, -15% QoQ in challenging business environment 800 700 600 • Customers broadly “digested” strong Q4 purchases in Q1 $M 500 400 762 • Offset by continued traction with select new Internet and 300 Cloud customers 200 100 0 • U
Slide 6: Non-GAAP EPS
NON-GAAP EPS Non-GAAP EPS 70 90 60 80 70 50 60 Cents ($) Cents ($) 50 40 40 30 30 55c 55c 20 20 10c - 35c 10 0 10 1Q 2Q 3Q 4Q 1Q FY20 FY21 0 Guidance (8/11) Q1 Non-GAAP EPS EPS Above High End of Guidance Range • Strong gross margin, expense discipline and favorable taxes drove EPS upside A reconcili
Slide 7: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 20% 18% 16% 14% 12% 10% 8% 17.1% 6% 4% 2% 0% 1Q 2Q 3Q 4Q 1Q FY20 FY21 Non-GAAP Gross Margin • +310bp QoQ, +70bp YoY • Helped by lower commodity cost, freight cost, and product mix A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation. 7
Slide 8: Non-GAAP Operating Expenses
NON-GAAP OPERATING EXPENSES 120 100 80 $M 60 95 40 20 0 1Q 2Q 3Q 4Q 1Q FY20 FY21 Non-GAAP Operating Expenses • +4% QoQ, +10% YoY • No recurrence of $4.8M bad debt recovery QoQ A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation. 8
Slide 9: Cash Flow and Net Cash
CASH FLOW AND NET CASH Cash Flow From Operations 150 Net Cash 350 100 300 50 121 250 200 $M 0 $M 150 -50 264 100 -100 50 -150 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY20 FY21 FY20 FY21 • Cash Flow from Operations $121M, impacted primarily by working capital • Free Cash Flow $109M • Net Cash and Cash Equiva
Slide 10: Share Repurchase Program
SHARE REPURCHASE PROGRAM Previously Authorized Program: • Completed in Q1 2020 • 1.14M shares at $26.24 average price Newly Authorized Program Details: • The board has approved a $50M share repurchase authorization • Effective until October 31, 2021 or until authorized funds fully deployed, whicheve
Slide 11: 2Q21 Outlook
2Q21 OUTLOOK REVENUE NON-GAAP EPS $780M to $880M 35c to 58c (GAAP: 25c to 47c) The outlook for Q2 of fiscal year 2021 GAAP net income per diluted share includes approximately $7.0 million in expected stock-based compensation expense that is excluded from non-GAAP net income per diluted share. 11
Slide 12: Taiwan Campus
TAIWAN CAMPUS 12
Slide 13: New Taiwan Facility
NEW TAIWAN FACILITY 13
Slide 14: Appendix
APPENDIX 14
Slide 15: 1Q21 Highlights
1Q21 HIGHLIGHTS 1Q21 QoQ YoY Revenue $762M -15% -5% Gross Margin (non-GAAP) 17.1% +310bp +70bp Earnings Per Share (non-GAAP) 55c -13c -13c Cash Flow from Operations $121M +$217M +115M Mix: Systems 81% -17% -3% Subsystems & Accessories 19% -7% -12% A reconciliation of GAAP to non-GAAP measures can be
Slide 16: GAAP to Non-GAAP Reconciliation (1 of 2)
GAAP TO NON-GAAP RECONCILIATION (1 OF 2) (in Thousands, except per share amounts) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Consolidated Statement of Operations Net Sales $ 799,804 $ 870,943 $ 772,408 $ 896,126 $ 762,250 GAAP GROSS PROFIT $ 130,929 $ 138,404 $ 133,360 $ 123,51
Slide 17: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) (in Thousands, except per share amounts) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 GAAP INCOME FROM OPERATIONS $ 32,865 $ 27,815 $ 15,546 $ 9,428 $ 30,446 Stock-based compensation 5,054 4,964 4,805 5,366 7,170 Executive SEC settlement 1