Slide 1: Fourth Quarter Fiscal 2014 Earnings Conference Presentation
Fourth Quarter Fiscal 2014 Earnings Conference Presentation August 5, 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: Q4'FY2014 Non-GAAP Financial Highlights
Q4’FY2014 Non-GAAP Financial Highlights (in millions, except per share data) Change Q4'14 YoY Sequential Revenue $428.1 32.8% 14.5% Profit after Tax $19.4 71.8% 9.2% EPS $0.40 53.8% 8.1% 4
Slide 5: Summary of Results
Summary of Results Revenues were 32.8% higher year over year OEM and Direct business was 48.1% of total revenues and Internet Data Center was 17.8% of total revenues System business was 55.2% of total revenues Revenues by Geography: US – 58.6% Europe – 18.5% Asia – 19.6% Other – 3.3%
Slide 6: The Best Server Products on the Market
The Best Server Products on the Market Product Families – X10 Haswell Refresh Twin Architecture The original Twin architecture innovator. FatTwin™ & TwinPro™ and more GPU/Xeon Phi Optimized Solutions FatTwin™ TwinPro™ Full line of GPU/Xeon Phi optimized solutions, non-blocking airflow for 8 cards in
Slide 7: X10 Haswell & Ultra Industry-Leading Features
X10 Haswell & Ultra Industry-Leading Optimized Optimized Systems Features Motherboards Storage (DCO) • High performance storage interface such as NVMe and SAS3 Optimized Thermal Architecture X10DDW Series • “Ultra” architecture FatTwin (Ultra) and product line X10DRF Series • Memory (DDR4/DDR3) opti
Slide 8: Revenue Trend
Revenue Trend Supermicro Revenue Trend #039;s millions $428 $356 $374 $322 $309 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Y/Y 16.8% 14.2% 22.3% 34.4% 32.8% Seq. 15.9% -4.1% 15.3% 4.9% 14.5% 8
Slide 9: Revenue Analysis
Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $236 $174 $187 $153 $143 $169 $182 $186 $192 $166 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Subsystems Systems 9
Slide 10: Non-GAAP Gross Margins
Non-GAAP Gross Margins 15.6% 15.5% 15.4% 15.2% 14.4% Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 10
Slide 11: Non-GAAP Operating Margin
Non-GAAP Operating Margin 6.9% 6.5% 6.4% 4.7% 4.7% Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 11
Slide 12: Summary P&L non-GAAP
Summary P&L non-GAAP (in millions, except per share data) Change Q4'14 YoY Sequential Q4'13 Q3'14 Operating Expense $37.2 $6.0 $4.0 $31.2 $33.2 Operating Expense Ratio 8.7% -1.0% -0.2% 9.7% 8.9% Operating Income $29.4 $14.3 $5.1 $15.1 $24.3 Net Income $19.4 $8.1 $1.6 $11.3 $17.8 EPS $0.40 $0.14 $0.0
Slide 13: Q4 FY2014 YTD Summary Statement of Cash Flows
Q4 FY2014 YTD Summary Statement of Cash Flows ($’s millions) 12 Months Ended 12 Months Ended 30-Jun-14 30-Jun-13 Net Income $54.2 $21.3 Depreciation and amortization $6.4 $7.8 Stock-based comp expense $11.1 $11.4 Other reserves $0.7 $2.7 Net change in AR, Inventory, AP -$82.5 -$37.8 Other prepaids a
Slide 14: Q4 FY2014 Summary of Balance Sheet Metrics
Q4 FY2014 Summary of Balance Sheet Metrics ($’s millions) Q4'14 Q3'14 Change Cash Equivalents & Investments $ 99.6 $ 104.4 $ (4.8) Accounts Receivable $ 212.7 $ 182.0 $ 30.7 Inventory $ 315.8 $ 295.1 $ 20.7 Accounts Payable $ 219.4 $ 205.2 $ 14.1 DSO 42 41 1 DIO 77 83 -6 DPO 53 58 -5 Cash Cycle Days
Slide 15: Supplemental Financials
Supplemental Financials Fourth Quarter Fiscal 2014 Ended June 30, 2014 15
Slide 16: Prior Period Net Income Comparisons
Prior Period Net Income Comparisons (in millions, except per share data) Q4'14 Q3'14 Q4'13 Net Income (GAAP) $ 16.5 $ 16.6 $ 8.4 Stock-based Compensation Expense (tax affected)* $ 2.9 $ 1.2 $ 2.9 Net Income (Non-GAAP)* $ 19.4 $ 17.8 $ 11.3 Diluted Net Income per common share (GAAP) $ 0.34 $ 0.35 $ 0
Slide 17: Non-GAAP Financial Summary
Non-GAAP Financial Summary (in millions, except per share data) Q4'14 Q3'14 Q4'13 Net Sales $ 428.1 $ 373.8 $ 322.3 Non-GAAP Gross Margin 15.6% 15.4% 14.4% Non-GAAP Operating Expenses $ 37.2 $ 33.2 $ 31.2 Non-GAAP Operating Income $ 29.4 $ 24.3 $ 15.1 Non-GAAP Net Income $ 19.4 $ 17.8 $ 11.3 Non-GAA
Slide 18: Quarterly Net Income Reconciliation
Quarterly Net Income (Loss) GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q4'14 Q3'14 Q2'14 Q1'14 Q4'13 Net income (GAAP) $ 16.5 $ 16.6 $ 13.3 $ 7.7 $ 8.4 Adjustments: Stock-based compensation expense $ 2.9 $ 2.8 $ 2.8 $ 2.6 $ 2.7 Income tax effects of adjustments $ (0.0) $ (1