Slide 1: First Quarter Fiscal 2015 Earnings Conference Presentation
First Quarter Fiscal 2015 Earnings Conference Presentation October 21, 2014 © 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'FY2015 Non-GAAP Financial Highlights
Q1’FY2015 Non-GAAP Financial Highlights (in millions, except per share data) Change Q1'15 YoY Sequential Revenue $443.3 43.5% 3.6% Profit after Tax $23.2 134.8% 19.5% EPS $0.46 109.1% 15.0% 4
Slide 5: Summary of Results
Summary of Results Revenues were 43.5% higher year over year OEM and Direct business was 44% of total revenues and Internet Data Center was 13.7% of total revenues System business was 57.7% of total revenues Revenues by Geography: US – 54.9% Europe – 20.2% Asia – 19.9% Other – 5.0%
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Slide 7: Revenue Trend
Revenue Trend Supermicro Revenue Trend #039;s millions $428 $443 $356 $374 $309 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Y/Y 14.2% 22.3% 34.4% 32.8% 43.5% Seq. -4.1% 15.3% 4.9% 14.5% 3.6% 7
Slide 8: Revenue Analysis
Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $236 $255 $187 $174 $143 $182 $186 $192 $188 $166 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Subsystems Systems 8
Slide 9: Non-GAAP Gross Margins
Non-GAAP Gross Margins 15.7% 15.6% 15.5% 15.4% 15.2% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 9
Slide 10: Non-GAAP Operating Margin
Non-GAAP Operating Margin 8.0% 7.0% 7.8% 6.0% 6.9% 5.0% 6.5% 6.4% 4.0% 4.7% 3.0% 2.0% 1.0% 0.0% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 10
Slide 11: Summary P&L non-GAAP
Summary P&L non-GAAP (in millions, except per share data) Change Q1'15 YoY Sequential Q1'14 Q4'14 Operating Expense $34.8 $2.4 -$2.4 $32.4 $37.2 Operating Expense Ratio 7.9% -2.6% -0.8% 10.5% 8.7% Operating Income $34.6 $20.0 $5.2 $14.6 $29.4 Net Income $23.2 $13.3 $3.8 $9.9 $19.4 EPS $0.46 $0.24 $0
Slide 12: Q1 FY2015 YTD Summary Statement of Cash Flows
Q1 FY2015 YTD Summary Statement of Cash Flows ($’s millions) 3 Months Ended 3 Months Ended 30-Sep-14 30-Sep-13 Net Income $20.9 $7.7 Depreciation and amortization $1.8 $1.4 Stock-based comp expense $3.0 $2.6 Other reserves $1.6 $0.2 Net change in AR, Inventory, AP -$6.8 $6.6 Other prepaids and liabi
Slide 13: Q1 FY2015 Summary of Balance Sheet Metrics
Q1 FY2015 Summary of Balance Sheet Metrics ($’s millions) Q1'15 Q4'14 Change Cash Equivalents & Investments $ 120.2 $ 99.6 $ 20.6 Accounts Receivable $ 194.4 $ 212.7 $ (18.4) Inventory $ 341.5 $ 315.8 $ 25.7 Accounts Payable $ 222.6 $ 219.4 $ 3.2 DSO 42 42 0 DIO 81 77 4 DPO 54 53 1 Cash Cycle Days 6
Slide 14: Supplemental Financials
Supplemental Financials First Quarter Fiscal 2015 Ended September 30, 2014 14
Slide 15: Prior Period Net Income Comparisons
Prior Period Net Income Comparisons (in millions, except per share data) Q1'15 Q4'14 Q1'14 Net Income (GAAP) $ 20.9 $ 16.5 $ 7.7 Stock-based Compensation Expense (tax affected)* $ 2.3 $ 2.9 $ 2.2 Net Income (Non-GAAP)* $ 23.2 $ 19.4 $ 9.9 Diluted Net Income per common share (GAAP) $ 0.42 $ 0.34 $ 0.
Slide 16: Non-GAAP Financial Summary
Non-GAAP Financial Summary (in millions, except per share data) Q1'15 Q4'14 Q1'14 Net Sales $ 443.3 $ 428.1 $ 309.0 Non-GAAP Gross Margin 15.7% 15.6% 15.2% Non-GAAP Operating Expenses $ 34.8 $ 37.2 $ 32.4 Non-GAAP Operating Income $ 34.6 $ 29.4 $ 14.6 Non-GAAP Net Income $ 23.2 $ 19.4 $ 9.9 Non-GAAP
Slide 17: Quarterly Net Income Reconciliation
Quarterly Net Income (Loss) GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q1'15 Q4'14 Q3'14 Q2'14 Q1'14 Net income (GAAP) $ 20.9 $ 16.5 $ 16.6 $ 13.3 $ 7.7 Adjustments: Stock-based compensation expense $ 3.0 $ 2.9 $ 2.8 $ 2.8 $ 2.6 Income tax effects of adjustments $ (0.7) $ (