Slide 1: Fiscal 4Q 2020 Results
FISCAL 4Q 2020 RESULTS Aug 11, 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: 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 IoT & AI & Large DC
Slide 4: Progress Against Key Priorities
PROGRESS AGAINST KEY PRIORITIES • Traction with new Internet Data Center and (5G) Edge customers • Expanding footprint in Taiwan to lower mid/long-term costs • Pipeline of innovation with partners Intel, AMD and Nvidia, and exciting new storage solutions • Share Repurchase: – Commitment to sharehold
Slide 5: Net Sales and Non-GAAP EPS
NET SALES AND NON-GAAP EPS Net Sales Grew Sequentially and Year-Over-Year Net Sales $1,000 • +16% QoQ, +5% YoY in challenging business environment $900 $800 $700 • Double-digit growth in Edge and Internet data center $600 customers, offset by weakness in OEMs $M $500 $400 $896M $300 • Healthy sequen
Slide 6: Customer and Product Mix
CUSTOMER AND PRODUCT MIX Subsystems & Accessories 17% Direct / OEM 47% Channel 53% Server and Storage Systems 83% Mix by Customer Type Systems Mix • Indirect / Channel +7% QoQ, +27% YoY • Subsystems & Accessories -23% QoQ, -1% YoY • Direct / OEM +28% QoQ, -12% YoY • Server and Storage Systems +30% Q
Slide 7: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 20% 18% 16% 14% 12% 10% 8% 14.0% 6% 4% 2% 0% 4Q 1Q 2Q 3Q 4Q FY19 FY20 Non-GAAP Gross Margin • -370bp QoQ, -150bp YoY • Freight costs remain elevated • Significant commodity cost pressure A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presenta
Slide 8: Non-GAAP Operating Expenses
NON-GAAP OPERATING EXPENSES $120 $100 $80 $M $60 $91M $40 $20 $0 4Q 1Q 2Q 3Q 4Q FY19 FY20 Non-GAAP Operating Expenses • +5% QoQ, +5% YoY • Down as a % of sales QoQ, flat YoY • Lack of R&D credit largest driver of QoQ increase A reconciliation of GAAP to non-GAAP measures can be found in the appendix
Slide 9: Cash Flow and Net Cash
CASH FLOW AND NET CASH Cash Flow From Operations Net Cash $100 $350 $80 $300 $60 $250 $40 $20 $200 $M $0 $M $150 -$20 $100 -$40 $181M -$96M -$60 $50 -$80 $0 -$100 4Q 1Q 2Q 3Q 4Q -$120 FY20 4Q 1Q 2Q 3Q 4Q FY20 • Cash Flow from Operations -$96M, impacted primarily by timing of inventory purchases, hig
Slide 10: Share Repurchase
SHARE REPURCHASE Details: • The board has approved a $30M share repurchase authorization • Effective until December 31, 2020 or until authorized funds fully deployed • Rule 10b5-1 plan Message to Shareholders: • Commitment to shareholder value creation and efficient use of capital • Offset dilution
Slide 11: 1Q21 Outlook
1Q21 OUTLOOK REVENUE NON-GAAP EPS $720M to $800M 10c to 35c (GAAP: 3c to 27c) The outlook for Q1 of fiscal year 2021 GAAP net income per diluted share includes approximately $5.0 million in expected stock-based compensation expense, one- time employee performance bonuses and controls remediation exp
Slide 12: Appendix
APPENDIX 12
Slide 13: 4Q20 Highlights
4Q20 HIGHLIGHTS 4Q20 QoQ YoY Revenue $896M +16% +5% Gross Margin (non-GAAP) 14.0% -370bp -150bp Earnings Per Share (non-GAAP) 68c -16c -1c Cash Flow from Operations -$96M NA NA Mix: Systems 83% +30% +6% Subsystems & Accessories 17% -23% -1% Direct / OEM 47% +28% -12% Channel 53% +7% +27% A reconcili
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Three Months Ended Twelve Months Ended June 30, June 30, 2020 2019 2020 2019 GAAP GROSS PROFIT $ 123,517 $ 132,034 $ 526,210 $ 495,522 Stock-based compensation 355 407 1,504 1,663 One-time employee performance bonuses 1,201 — 4,072 — Other expenses 39 — 39 — Non-GAAP