Slide 1: Third Quarter Fiscal 2015 Earnings Conference Presentation
Third Quarter Fiscal 2015 Earnings Conference Presentation April 21, 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: Q3'FY2015 Non-GAAP Financial Highlights
Q3’FY2015 Non-GAAP Financial Highlights (in millions, except per share data) Change Q3'15 YoY Sequential Revenue $471.2 26.1% -6.3% Profit after Tax $24.9 40.3% -25.6% EPS $0.47 27.0% -27.7% 4
Slide 5: Summary of Results
Summary of Results Revenues were 26.1% higher year over year OEM and Direct business was 53.9% of total revenues and Internet Data Center was 20.7% of total revenues System business was 64.1% of total revenues Revenues by Geography: US – 58.1% Europe – 18.7% Asia – 15.9% Other – 7.3%
Slide 6: The Best Server/Storage Products WW
The Best Server/Storage Products WW Product Families – X10 Haswell and more... Twin Architecture The original Twin architecture innovator. FatTwin™ & TwinPro™ and more Ultra and DCO Products Upgradable with expandable I/O options, hot-swap NVMe, Hyperspeed Solutions, Up to 195W TDP and power efficie
Slide 7: Revenue Trend
Revenue Trend Supermicro Revenue Trend #039;s millions $503 $471 $428 $443 $374 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Y/Y 34.4% 32.8% 43.5% 41.2% 26.1% Seq. 4.9% 14.5% 3.6% 13.5% -6.3% 7
Slide 8: Revenue Analysis
Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $255 $302 $236 $302 $187 $186 $192 $188 $201 $169 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Subsystems Systems 8
Slide 9: Non-GAAP Gross Margins
Non-GAAP Gross Margins 17.0% 16.5% 16.0% 16.8% 15.5% 16.3% 15.6% 15.7% 15.0% 15.4% 14.5% Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 9
Slide 10: Non-GAAP Operating Margin
Non-GAAP Operating Margin 10.0% 9.0% 8.0% 7.0% 9.1% 6.0% 7.8% 7.4% 5.0% 6.5% 6.9% 4.0% 3.0% 2.0% 1.0% 0.0% Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 10
Slide 11: Summary P&L non-GAAP
Summary P&L non-GAAP (in millions, except per share data) Change Q3'15 YoY Sequential Q3'14 Q2'15 Operating Expense $42.0 $8.8 $3.4 $33.2 $38.6 Operating Expense Ratio 8.9% 0.0% 1.2% 8.9% 7.7% Operating Income $35.0 $10.7 -$11.1 $24.3 $46.1 Net Income $24.9 $7.2 -$8.6 $17.8 $33.5 EPS $0.47 $0.10 -$0
Slide 12: Q3 FY2015 YTD Summary Statement of Cash Flows
Q3 FY2015 YTD Summary Statement of Cash Flows ($’s millions) 9 Months Ended 9 Months Ended 31-Mar-15 31-Mar-14 Net Income $75.2 $37.6 Depreciation and amortization $5.9 $4.6 Stock-based comp expense $9.7 $8.2 Other reserves -$7.4 -$3.1 Net change in AR, Inventory, AP -$89.3 -$44.9 Other prepaids and
Slide 13: Q3 FY2015 Summary of Balance Sheet Metrics
Q3 FY2015 Summary of Balance Sheet Metrics ($’s millions) Q3'15 Q2'15 Change Cash Equivalents & Investments $ 112.0 $ 85.9 $ 26.0 Accounts Receivable $ 221.6 $ 258.8 $ (37.2) Inventory $ 430.4 $ 409.2 $ 21.2 Accounts Payable $ 261.6 $ 283.8 $ (22.2) DSO 46 41 5 DIO 96 83 13 DPO 62 56 6 Cash Cycle Da
Slide 14: Supplemental Financials
Supplemental Financials Third Quarter Fiscal 2015 Ended March 31, 2015 14
Slide 15: Prior Period Net Income Comparisons
Prior Period Net Income Comparisons (in millions, except per share data) Q3'15 Q2'15 Q3'14 Net Income (GAAP) $ 23.1 $ 31.2 $ 16.6 Stock-based Compensation Expense (tax affected)* $ 1.9 $ 2.3 $ 1.2 Net Income (Non-GAAP)* $ 24.9 $ 33.5 $ 17.8 Diluted Net Income per common share (GAAP) $ 0.44 $ 0.61 $
Slide 16: Non-GAAP Financial Summary
Non-GAAP Financial Summary (in millions, except per share data) Q3'15 Q2'15 Q3'14 Net Sales $ 471.2 $ 503.0 $ 373.8 Non-GAAP Gross Margin 16.3% 16.8% 15.4% Non-GAAP Operating Expenses $ 42.0 $ 38.6 $ 33.2 Non-GAAP Operating Income $ 35.0 $ 46.1 $ 24.3 Non-GAAP Net Income $ 24.9 $ 33.5 $ 17.8 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) Q3'15 Q2'15 Q1'15 Q4'14 Q3'14 Net income (GAAP) $ 23.1 $ 31.2 $ 20.9 $ 16.5 $ 16.6 Adjustments: Stock-based compensation expense $ 3.6 $ 3.2 $ 3.0 $ 2.9 $ 2.8 Income tax effects of adjustments $ (1.7) $