Slide 1: Fiscal Q2 2021 Results
FISCAL Q2 2021 RESULTS February 2, 2021
Slide 2: Disclosures
DISCLOSURES Cautionary Statement Regarding Forward Looking Statements Statements contained in this presentation that are not historical fact may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such
Slide 3: Key Vertical Markets and Growth Drivers
KEY VERTICAL MARKETS AND GROWTH DRIVERS Supermicro has been focused on the fastest-growing IT markets leveraging our unique business model and go-to-market partnerships Enterprise, Channel Cloud 5G/Edge & Telco Software & Services B2B/B2C IoT & AI & Large DC Business Automation 3
Slide 4: New Facilities
NEW FACILITIES Taiwan Science & Technology Park Target completion 2H 2021 1M+ sq feet 2.5x current Taiwan capacity US Green Computing Park Online calendar Q2 2021 230k+ sq feet Production, warehouse, office space 4
Slide 5: Revenue
REVENUE Net Sales Sales at Midpoint of Guidance Range 1,000 900 • -5% YoY, +9% QoQ 800 700 600 • International performance recovered after recently weak performance $M 500 400 830 300 • US weakest region, -12% YoY; Europe +5% YoY, Asia -3% YoY, 200 100 Rest of World +68% YoY 0 Q2 Q3 Q4 Q1 Q2 FY20 FY
Slide 6: Non-GAAP EPS
NON-GAAP EPS Non-GAAP EPS 70 90 60 80 70 50 35c- 58c 60 Cents 40 50 Cents 40 30 63c 30 63c 20 20 10 10 0 Q2 Q3 Q4 Q1 Q2 0 FY20 FY21 Guidance (11/3) Q2 Non-GAAP EPS EPS Above High End of Guidance Range • Strong gross margin, expense discipline drove EPS upside A reconciliation of GAAP to non-GAAP mea
Slide 7: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 20% 18% 16% 14% 12% 10% 8% 16.4% 6% 4% 2% 0% Q2 Q3 Q4 Q1 Q2 FY20 FY21 Non-GAAP Gross Margin • -70bp QoQ, +50bp YoY • Helped by cost recovery, offset by freight, obsolete inventory A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation. 7
Slide 8: Non-GAAP Operating Expenses
NON-GAAP OPERATING EXPENSES 120 100 80 $M 60 90 40 20 0 Q2 Q3 Q4 Q1 Q2 FY20 FY21 Non-GAAP Operating Expenses • -5% QoQ, -12% YoY • QoQ decrease driven by lower audit fees, lower R&D expense and overall expense discipline A reconciliation of GAAP to non-GAAP measures can be found in the appendix of t
Slide 9: Cash Flow and Net Cash
CASH FLOW AND NET CASH Cash Flow From Operations 150 Net Cash 350 100 300 50 250 63 200 $M $M 0 150 270 -50 100 50 -100 0 -150 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY20 FY21 FY20 FY21 • Cash Flow from Operations $63M • Free Cash Flow $49M • Net Cash and Cash Equivalents $270M • Previously authorized $50 mi
Slide 10: Share Repurchase Program
SHARE REPURCHASE PROGRAM Previously Authorized Program: • Completed on January 6, 2021 • 1.68M shares at $29.82 average price Newly Authorized Program Details: • $200M share repurchase authorization approved • Effective until July 31, 2022 or until authorized funds fully deployed, whichever occurs f
Slide 11: Q3 2021 Outlook
Q3 2021 OUTLOOK REVENUE NON-GAAP EPS $790M to $870M 37c to 57c (GAAP: 22c to 42c) The outlook for Q3 of fiscal year 2021 GAAP diluted net income per common share includes approximately $7.0 million in expected stock-based compensation expense and $2.5 million in special performance bonuses that are
Slide 12: Appendix
APPENDIX 12
Slide 13: Q2 2021 Highlights
Q2 2021 HIGHLIGHTS Q2 QoQ YoY Revenue $830M +9% -5% Gross Margin (non-GAAP) 16.4% -70bp +50bp Earnings Per Share (non-GAAP) 63c +8c +6c Cash Flow from Operations $63M -$57M -$18M Mix: Systems $643M (77%) +4% -4% Subsystems & Accessories $187M (23%) +30% -5% A reconciliation of GAAP to non-GAAP measu
Slide 14: GAAP to Non-GAAP Reconciliation (1 of 2)
GAAP TO NON-GAAP RECONCILIATION (1 OF 2) FY20 FY21 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Thousands (except per share amounts) Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Consolidated Statement of Operations Net Sales $ 870,943 $ 772,408 $ 896,126 $ 762,250 $ 830,306 GAAP GROSS PROFIT $ 138,404 $ 133,360 $ 123,517 $
Slide 15: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) FY20 FY21 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Thousands (except per share amounts) Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 GAAP INCOME FROM OPERATIONS $ 27,815 $ 15,546 $ 9,428 $ 30,446 $ 37,365 Stock-based compensation 4,964 4,805 5,366 7,170 6,453 Executive SEC settle