Slide 1: First Quarter Fiscal 2017 Earnings Conference Presentation
Confidential First Quarter Fiscal 2017 Earnings Conference Presentation October 27, 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: Q1 FY2017 Non-GAAP Financial Highlights
Confidential Q1 FY2017 Non-GAAP Financial Highlights (in millions, except per share data) Change Q1'17 YoY Sequential Revenue $529.0 1.8% 0.9% Profit after Tax $16.7 1.1% 60.9% EPS $0.32 0.0% 60.0% Direct business was 50.0% of total revenues System business was 67.6% of total revenues 4 CY’ Q1’
Slide 5: Revenue Trend
Confidential Revenue Trend Supermicro Revenue Trend #039;s millions $639 $520 $533 $524 $529 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Y/Y 17.2% 27.0% 13.1% -8.6% 1.8% Seq. -9.4% 23.0% -16.6% -1.6% 0.9% 5 CY’ Q1’ Q4’
Slide 6: Revenue Analysis
Confidential Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $454 $356 $372 $343 $357 $163 $185 $160 $181 $171 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Subsystems Systems 6 CY’ Q1’ Q4’
Slide 7: Q1 FY2017 Major Markets
Confidential Q1 FY2017 Major Markets Datacenter/Cloud 12.8% of Total Revenue -47.2% YoY Storage 23.5% of Total Revenue 10.4% YoY Growth 7 CY’ Q1’ Q4’
Slide 8: Q1 FY2017 Revenue by Geography
Confidential Q1 FY2017 Revenue by Geography United States Europe Asia 55.9% 21.5% 18.2% Other – 4.4% 8 CY’ Q1’ Q4’
Slide 9: IoT/Embedded
Confidential IoT/Embedded 10.7% of Total Revenue 12.9% YoY Growth 9 CY’ Q1’ Q4’
Slide 10: World's Best Server/Storage Product Lines
Confidential World’s Best Server/Storage Product Lines The Ultra 1U and 2U Broadwell Product Lines 24 DIMM, 160W Xeon CPU, Flexible I/O, NVMe support 3 to 10% Less power consumption than competition The Twin Architecture: TwinPro, FatTwin and BigTwin Most optimized for Hyper-converged and
Slide 11: Non-GAAP Gross Margins
Confidential Non-GAAP Gross Margins 16.7% 14.9% 15.2% 13.9% 14.1% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 11 CY’ Q1’ Q4’
Slide 12: Non-GAAP Operating Margins
Confidential Non-GAAP Operating Margins 8.3% 4.9% 5.3% 4.7% 3.1% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 12 CY’ Q1’ Q4’
Slide 13: Summary P&L non-GAAP
Confidential Summary P&L non-GAAP (in millions, except per share data) Change Q1'17 YoY Sequential Q1'16 Q4'16 Operating Expense $55.7 $8.6 -$2.2 $47.1 $57.9 Operating Expense Ratio 10.5% 1.5% -0.5% 9.0% 11.0% Operating Income $24.7 -$0.6 $8.5 $25.3 $16.2 Net Income $16.7 $0.2 $6.3 $16.5 $10.4 EPS $
Slide 14: Q1 FY2017 YTD Summary Statement of Cash Flows
Q1 FY2017 YTD Summary Statement of Cash Flows Confidential ($’s millions) 3 Months Ended 3 Months Ended 30-Sep-16 30-Sep-15 Net Income $13.5 $13.7 Depreciation and amortization $3.8 $2.8 Stock-based comp expense $4.5 $3.9 Other reserves $3.2 -$2.5 Net change in AR, Inventory, AP -$50.9 -$11.8 Other
Slide 15: Q1 FY2017 Summary of Balance Sheet Metrics
Confidential Q1 FY2017 Summary of Balance Sheet Metrics ($’s millions) Q1'17 Q4'16 Change Cash Equivalents & Investments $149.4 $183.7 $(34.3) Accounts Receivable $328.3 $288.9 $39.3 Inventory $500.0 $449.0 $51.0 Accounts Payable $287.6 $249.2 $38.4 DSO 54 50 4 DIO 97 94 3 DPO 55 53 2 Cash Cycle Day
Slide 16: Supplemental Financials
Confidential Supplemental Financials First Quarter Fiscal 2017 Ended September 30, 2016 16 CY’ Q1’ Q4’
Slide 17: Non-GAAP Financial Summary
Confidential Non-GAAP Financial Summary (in millions, except per share data) Q1'17 Q4'16 Q1'16 Net Sales $529.0 $524.3 $519.6 Non-GAAP Gross Margin* 15.2% 14.1% 13.9% Non-GAAP Operating Expenses* $55.7 $57.9 $47.1 Non-GAAP Operating Income* $24.7 $16.2 $25.3 Non-GAAP Net Income* $16.7 $10.4 $16.5 No
Slide 18: Prior Period Net Income Comparisons
Confidential Prior Period Net Income Comparisons (in millions, except per share data) Q1'17 Q4'16 Q1'16 Net Income (GAAP) $13.5 $7.0 $13.7 Stock-based Compensation Expense (tax affected)* $3.2 $3.4 $2.8 Net Income (Non-GAAP)* $16.7 $10.4 $16.5 Diluted Net Income per common share (GAAP) $0.26 $0.13 $
Slide 19: GAAP to Non-GAAP Reconciliation
Quarterly Net Income (Loss) Confidential GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q1'17 Q4'16 Q3'16 Q2'16 Q1'16 Net income (GAAP) $13.5 $7.0 $16.7 $34.7 $13.7 Adjustments: Stock-based compensation expense $4.5 $4.4 $3.9 $4.0 $3.9 Income tax effects of adjustments $(1.3) $