Slide 1: Second Quarter Fiscal 2015 Earnings Conference Presentation
Second Quarter Fiscal 2015 Earnings Conference Presentation January 20, 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: Q2'FY2015 Non-GAAP Financial Highlights
Q2’FY2015 Non-GAAP Financial Highlights (in millions, except per share data) Change Q2'15 YoY Sequential Revenue $503.0 41.2% 13.5% Profit after Tax $33.5 110.9% 44.5% EPS $0.65 85.7% 41.3% 4
Slide 5: Summary of Results
Summary of Results Revenues were 41.2% higher year over year OEM and Direct business was 50.0% of total revenues and Internet Data Center was 20.3% of total revenues System business was 60.1% of total revenues Revenues by Geography: US – 57.0% Europe – 18.2% Asia – 15.6% Other – 9.2%
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 $428 $443 $356 $374 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Y/Y 22.3% 34.4% 32.8% 43.5% 41.2% Seq. 15.3% 4.9% 14.5% 3.6% 13.5% 7
Slide 8: Revenue Analysis
Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $255 $302 $236 $187 $174 $182 $186 $192 $188 $201 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Subsystems Systems 8
Slide 9: Non-GAAP Gross Margins
Non-GAAP Gross Margins 17.0% 16.5% 16.0% 16.8% 15.5% 15.6% 15.7% 15.5% 15.4% 15.0% 14.5% Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 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% 5.0% 6.4% 6.9% 4.0% 6.5% 3.0% 2.0% 1.0% 0.0% Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 10
Slide 11: Summary P&L non-GAAP
Summary P&L non-GAAP (in millions, except per share data) Change Q2'15 YoY Sequential Q2'14 Q1'15 Operating Expense $38.6 $6.3 $3.8 $32.3 $34.8 Operating Expense Ratio 7.7% -1.4% -0.2% 9.1% 7.9% Operating Income $46.1 $23.1 $11.5 $23.0 $34.6 Net Income $33.5 $17.6 $10.3 $15.9 $23.2 EPS $0.65 $0.30 $
Slide 12: Q2 FY2015 YTD Summary Statement of Cash Flows
Q2 FY2015 YTD Summary Statement of Cash Flows ($’s millions) 6 Months Ended 6 Months Ended 31-Dec-14 31-Dec-13 Net Income $52.1 $21.0 Depreciation and amortization $3.8 $2.9 Stock-based comp expense $6.2 $5.4 Other reserves $0.1 $1.7 Net change in AR, Inventory, AP -$83.5 -$19.3 Other prepaids and l
Slide 13: Q2 FY2015 Summary of Balance Sheet Metrics
Q2 FY2015 Summary of Balance Sheet Metrics ($’s millions) Q2'15 Q1'15 Change Cash Equivalents & Investments $ 85.9 $ 120.2 $ (34.3) Accounts Receivable $ 258.8 $ 194.4 $ 64.4 Inventory $ 409.2 $ 341.5 $ 67.7 Accounts Payable $ 283.8 $ 222.6 $ 61.2 DSO 41 42 -1 DIO 83 81 2 DPO 56 54 2 Cash Cycle Days
Slide 14: Supplemental Financials
Supplemental Financials Second Quarter Fiscal 2015 Ended December 31, 2014 14
Slide 15: Prior Period Net Income Comparisons
Prior Period Net Income Comparisons (in millions, except per share data) Q2'15 Q1'15 Q2'14 Net Income (GAAP) $ 31.2 $ 20.9 $ 13.3 Stock-based Compensation Expense (tax affected)* $ 2.3 $ 2.3 $ 2.6 Net Income (Non-GAAP)* $ 33.5 $ 23.2 $ 15.9 Diluted Net Income per common share (GAAP) $ 0.61 $ 0.42 $
Slide 16: Non-GAAP Financial Summary
Non-GAAP Financial Summary (in millions, except per share data) Q2'15 Q1'15 Q2'14 Net Sales $ 503.0 $ 443.3 $ 356.4 Non-GAAP Gross Margin 16.8% 15.7% 15.5% Non-GAAP Operating Expenses $ 38.6 $ 34.8 $ 32.3 Non-GAAP Operating Income $ 46.1 $ 34.6 $ 23.0 Non-GAAP Net Income $ 33.5 $ 23.2 $ 15.9 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) Q2'15 Q1'15 Q4'14 Q3'14 Q2'14 Net income (GAAP) $ 31.2 $ 20.9 $ 16.5 $ 16.6 $ 13.3 Adjustments: Stock-based compensation expense $ 3.2 $ 3.0 $ 2.9 $ 2.8 $ 2.8 Income tax effects of adjustments $ (0.9) $