Slide 1: First Quarter Fiscal 2016 Earnings Conference Presentation
First Quarter Fiscal 2016 Earnings Conference Presentation November 16, 2015 © Supermicro 2014
Slide 2: Safe Harbor Statement
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 expecte
Slide 3: Non-GAAP Financial Measures
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 presents non-GA
Slide 4: Q1'FY2016 Non-GAAP Financial Highlights
Q1’FY2016 Non-GAAP Financial Highlights (in millions, except per share data) Change Q1'16 YoY Sequential Revenue $519.6 17.2% -9.4% Profit after Tax $16.5 -28.9% -45.0% EPS $0.32 -30.4% -43.9% 4
Slide 5: Summary of Results
Summary of Results Revenues were 17.2% higher year over year OEM and Direct business was 54.4% of total revenues and Internet Data Center was 24.7% of total revenues System business was 68.6% of total revenues Revenues by Geography: US –65.2 % Europe – 16.8% Asia – 14.3% Other – 3.7%
Slide 6: World's Best Server/Storage Product Lines
World’s Best Server/Storage Product Lines The Ultra 1U and 2U Haswell Product Lines 24 DIMM, 160W Xeon CPU, Flexible I/O, NVMe support… One platform optimized for many applications 3 to 15% less power consumption than competition The 2U TwinPro and FatTwin Most optimized for Hyperconveng
Slide 7: Revenue Trend
Revenue Trend Supermicro Revenue Trend #039;s millions $574 $520 $503 $471 $443 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Y/Y 43.5% 41.2% 26.1% 34.0% 17.2% Seq. 3.6% 13.5% -6.3% 21.7% -9.4% 7
Slide 8: Revenue Analysis
Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $354 $302 $356 $255 $302 $201 $220 $188 $169 $164 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Subsystems Systems 8
Slide 9: Non-GAAP Gross Margins
Non-GAAP Gross Margins 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 16.8% 16.3% 15.7% 15.7% 8.0% 13.9% 6.0% 4.0% 2.0% 0.0% Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 9
Slide 10: Non-GAAP Operating Margin
Non-GAAP Operating Margin 10.0% 9.0% 8.0% 7.0% 9.1% 7.8% 6.0% 7.8% 5.0% 7.4% 4.0% 3.0% 4.9% 2.0% 1.0% 0.0% Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 10
Slide 11: Summary P&L non-GAAP
Summary P&L non-GAAP (in millions, except per share data) Change Q1'16 YoY Sequential Q1'15 Q4'15 Operating Expense $47.1 $12.3 $1.9 $34.8 $45.3 Operating Expense Ratio 9.0% 1.1% 1.1% 7.9% 7.9% Operating Income $25.3 -$9.3 -$19.4 $34.6 $44.8 Net Income $16.5 -$6.7 -$13.5 $23.2 $30.0 EPS $0.32 -$0.14
Slide 12: Q1 FY2016 YTD Summary Statement of Cash Flows
Q1 FY2016 YTD Summary Statement of Cash Flows ($’s millions) 3 Months Ended 3 Months Ended 30-Sep-15 30-Sep-14 Net Income $13.7 $20.9 Depreciation and amortization $2.8 $1.8 Stock-based comp expense $3.9 $3.0 Other reserves -$2.5 $1.6 Net change in AR, Inventory, AP -$11.8 -$6.8 Other prepaids and l
Slide 13: Q1 FY2016 Summary of Balance Sheet Metrics
Q1 FY2016 Summary of Balance Sheet Metrics ($’s millions) Q1'16 Q4'15 Change Cash Equivalents & Investments $ 113.6 $ 98.1 $ 15.5 Accounts Receivable $ 297.1 $ 322.6 $ (25.5) Inventory $ 461.4 $ 463.5 $ (2.1) Accounts Payable $ 263.2 $ 299.8 $ (36.6) DSO 55 43 12 DIO 95 83 12 DPO 58 52 6 Cash Cycle
Slide 14: Supplemental Financials
Supplemental Financials First Quarter Fiscal 2016 Ended September 30, 2015 14
Slide 15: Prior Period Net Income Comparisons
Prior Period Net Income Comparisons (in millions, except per share data) Q1'16 Q4'15 Q1'15 Net Income (GAAP) $ 13.7 $ 26.7 $ 20.9 Stock-based Compensation Expense (tax affected)* $ 2.8 $ 3.3 $ 2.3 Net Income (Non-GAAP)* $ 16.5 $ 30.0 $ 23.2 Diluted Net Income per common share (GAAP) $ 0.27 $ 0.51 $
Slide 16: Non-GAAP Financial Summary
Non-GAAP Financial Summary (in millions, except per share data) Q1'16 Q4'15 Q1'15 Net Sales $ 519.6 $ 573.6 $ 443.3 Non-GAAP Gross Margin 13.9% 15.7% 15.7% Non-GAAP Operating Expenses $ 47.1 $ 45.3 $ 34.8 Non-GAAP Operating Income $ 25.3 $ 44.8 $ 34.6 Non-GAAP Net Income $ 16.5 $ 30.0 $ 23.2 Non-GAA
Slide 17: Quarterly Net Income (Loss) GAAP to Non-GAAP Reconciliation
Quarterly Net Income (Loss) GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q1'16 Q4'15 Q3'15 Q2'15 Q1'15 Net income (GAAP) $ 13.7 $ 26.7 $ 23.1 $ 31.2 $ 20.9 Adjustments: Stock-based compensation expense $ 3.9 $ 4.0 $ 3.6 $ 3.2 $ 3.0 Income tax effects of adjustments $ (1.1) $