Slide 1: Third Quarter Fiscal 2016 Earnings Conference Presentation
Confidential Third Quarter Fiscal 2016 Earnings Conference Presentation April 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: Q3'FY2016 Non-GAAP Financial Highlights
Confidential Q3’FY2016 Non-GAAP Financial Highlights (in millions, except per share data) Change Q3'16 YoY Sequential Revenue $532.7 13.1% -16.6% Profit after Tax $19.0 -23.8% -50.0% EPS $0.36 -23.4% -50.7% Revenues were 13.1% higher year over year Direct business was 54.4% of total revenues S
Slide 5: Major Markets
Confidential Major Markets Datacenter/Cloud 26% of Total Revenue 40% YoY Growth Storage 21% of Total Revenue 23% YoY Growth 5 CY’ Q1’ Q4’
Slide 6: World's Best Server/Storage Product Lines
Confidential World’s Best Server/Storage Product Lines The Ultra 1U and 2U Broadwell Product Lines NEW! 24 DIMM, 160W Xeon CPU, Flexible I/O, NVMe support 3 to 15% less power consumption than competition The 1U/2U TwinPro and 4U FatTwin Most optimized for Hyper-converged Applications Bes
Slide 7: Q3'16 Revenue by Geography
Confidential Q3’16 Revenue by Geography North America Europe Asia 61.3% 17.5% 14.7% Other – 6.5% 7 CY’ Q1’ Q4’
Slide 8: Revenue Trend
Confidential Revenue Trend Supermicro Revenue Trend #039;s millions $639 $574 $520 $533 $471 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Y/Y 26.1% 34.0% 17.2% 27.0% 13.1% Seq. -6.3% 21.7% -9.4% 23.0% -16.6% 8 CY’ Q1’ Q4’
Slide 9: Revenue Analysis
Confidential Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $354 $454 $356 $372 $302 $220 $169 $163 $185 $160 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Subsystems Systems 9 CY’ Q1’ Q4’
Slide 10: Non-GAAP Gross Margins
Confidential Non-GAAP Gross Margins 16.3% 16.7% 15.7% 14.9% 13.9% Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 10 CY’ Q1’ Q4’
Slide 11: Non-GAAP Operating Margin
Confidential Non-GAAP Operating Margin 8.3% 7.4% 7.8% 5.3% 4.9% Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 11 CY’ Q1’ Q4’
Slide 12: Summary P&L non-GAAP
Confidential Summary P&L non-GAAP (in millions, except per share data) Change Q3'16 YoY Sequential Q3'15 Q2'16 Operating Expense $51.1 $9.1 -$2.4 $42.0 $53.5 Operating Expense Ratio 9.6% 0.7% 1.2% 8.9% 8.4% Operating Income $28.3 -$6.7 -$24.8 $35.0 $53.1 Net Income $19.0 -$5.9 -$19.0 $24.9 $38.0 EPS
Slide 13: Q3 FY2016 YTD Summary Statement of Cash Flows
Q3 FY2016 YTD Summary Statement of Cash Flows Confidential ($’s millions) 9 Months Ended 9 Months Ended 31-Mar-16 31-Mar-15 Net Income $65.1 $75.2 Depreciation and amortization $9.5 $5.9 Stock-based comp expense $11.8 $9.7 Other reserves $0.4 -$7.4 Net change in AR, Inventory, AP -$9.1 -$89.3 Other
Slide 14: Q3 FY2016 Summary of Balance Sheet Metrics
Confidential Q3 FY2016 Summary of Balance Sheet Metrics ($’s millions) Q3'16 Q2'16 Change Cash Equivalents & Investments $179.1 $172.6 $6.5 Accounts Receivable $285.7 $314.2 $(28.5) Inventory $479.3 $486.5 $(7.3) Accounts Payable $277.3 $321.2 $(44.0) DSO 51 44 7 DIO 97 82 15 DPO 60 50 10 Cash Cycle
Slide 15: Supplemental Financials Third Quarter Fiscal 2016
Confidential Supplemental Financials Third Quarter Fiscal 2016 Ended March 31, 2016 15 CY’ Q1’ Q4’
Slide 16: Prior Period Net Income Comparisons
Confidential Prior Period Net Income Comparisons (in millions, except per share data) Q3'16 Q2'16 Q3'15 Net Income (GAAP) $16.7 $34.7 $23.1 Stock-based Compensation Expense (tax affected)* $2.3 $3.3 $1.9 Net Income (Non-GAAP)* $19.0 $38.0 $24.9 Diluted Net Income per common share (GAAP) $0.32 $0.67
Slide 17: Non-GAAP Financial Summary
Confidential Non-GAAP Financial Summary (in millions, except per share data) Q3'16 Q2'16 Q3'15 Net Sales $532.7 $639.0 $471.2 Non-GAAP Gross Margin 14.9% 16.7% 16.3% Non-GAAP Operating Expenses $51.1 $53.5 $42.0 Non-GAAP Operating Income $28.3 $53.1 $35.0 Non-GAAP Net Income $19.0 $38.0 $24.9 Non-GA
Slide 18: GAAP to Non-GAAP Reconciliation
Quarterly Net Income (Loss) Confidential GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q3'16 Q2'16 Q1'16 Q4'15 Q3'15 Net income (GAAP) $16.7 $34.7 $13.7 $26.7 $23.1 Adjustments: Stock-based compensation expense $3.9 $4.0 $3.9 $4.0 $3.6 Income tax effects of adjustments $(1.6)