Slide 1: Fiscal 4Q 2017 Results
http://ir.supermicro.com FISCAL 4Q 2017 RESULTS AUGUST 3rd, 2017
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: Road to Supermicro 3.0
ROAD TO SUPERMICRO 3.0 • Tasks – Total solution from complete server and storage systems and full racks – Management software, global service / support – Leading enterprise quality • Methods – 3 years of focused investments – Hundreds of engineers (60%+ growth in engineer headcount) – Expanding netw
Slide 4: CEO Highlights
CEO HIGHLIGHTS • Rapid growth and expansion in FY17 – Blade +250% YoY – Storage (i.e., NVMe) +30% YoY • Supermicro 3.0 transition well underway – Software / service billings nearly double – Accelerating in FY18 • Enterprise expansion in early innings – FY17 was our first year of significant growth –
Slide 5: Progression
PROGRESSION Presence EMEA Domestic Asia Pacific 3.0 2.0 Targets: 1.0 Enterprise Verticals: Market Channel: Cloud, Enterprise, Brand Recognition Distributors/VARs Accelerated Computing Innovation Subsystems Server Systems Total Solutions Motherboards BigTwin, NVMe / Simply Management software, Global
Slide 6: CFO Highlights
CFO HIGHLIGHTS • Strong revenue growth led by storage and Asia market – Q4’17 +37% YoY – Q1’18 guidance above seasonal Revenue and EPS Trends $800 $718 $0.60 • Memory and SSD pricing an ongoing margin headwind $652 $700 $631 $0.50 – Estimated 0.5% – 0.7% gross margin impact $600 $524 $529 $0.48 $0.4
Slide 7: Verticals
VERTICALS Growth in All Verticals Except IDC Storage YoY QoQ 24% Storage 69.8% 19.9% Channel IDC -50.8% -30.6% 44% IDC 7% IOT 31.7% 8.4% HPC 126.8% 40.4% IOT 10% Enterprise 689.5% 172.9% Enterprise HPC 8% 7% Channel 35.4% 14.5% Note: Channel is 46% with some overlap with HPC and Storage 7
Slide 8: Mix by Revenue & Geography
MIX BY REVENUE & GEOGRAPHY Systems Nodes QoQ YoY Volume 91,000 162,000 USA 14.1% 16.8% ASP $5,865 $3,295 EMEA 13.5% 42.4% QoQ 12.8% 3.6% APAC 19.1% 117.3% Others -15.1% 12.5% Others 4% Subsystems & Accessories APAC 26% 25% USA 53% Systems 74% EMEA 18% 8
Slide 9: Quarterly Summary
QUARTERLY SUMMARY NON-GAAP GAAP Amount in millions except per share amount Q4'17 Q3'17 Q4'16 Amount in millions except per share amount Q4'17 Q3'17 Q4'16 Net Sales $717.9 $631.1 $524.3 Net Sales $717.9 $631.1 $524.3 Non-GAAP Gross Margin 13.5% 14.0% 14.1% GAAP Gross Margin 13.5% 14.0% 14.1% Non-GAAP
Slide 10: Investor Relations Contact
INVESTOR RELATIONS CONTACT Perry G. Hayes President, Supermicro Netherlands, BV SVP, Investor Relations Phone: 408.895.6570 Email: perryh@supermicro.com 10
Slide 11: Appendices
APPENDICES 11
Slide 12: 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 13: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Amount in millions except per share amount Q4’17 Q3’17 Q2’17 Q1’17 Q4’16 Net Income (GAAP) $17.1 $16.7 $22.0 $13.5 $7.0 Stock Based Compensation Expense $5.1 $4.8 $4.7 $4.5 $4.4 Income Tax Effects of Adjustments $(1.5) $(1.2) $(1.7) $(1.3) $(1.0) Net Income (NON-GAAP)
Slide 14: Free Cash Flow Bridge
FREE CASH FLOW BRIDGE Amount in millions Q4’17 FY17 Net Income (GAAP) $17.1 $69.3 A/R, net $(92.1) $(195.1) 5 days more DSO = $39M, $155M revenue growth Inventories, net of A/P $40.9 $(56.8) Memory quantity vs. price increase and X11 investment Other operating activities $27.9 $86.2 Reserves and cha