Slide 1: Second Quarter Fiscal 2017 Earnings Conference Presentation
Confidential Second Quarter Fiscal 2017 Earnings Conference Presentation January 26, 2017 © 2016 Supermicro
Slide 2: Safe Harbor Statement
Confidential 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, t
Slide 3: Non-GAAP Financial Measures
Confidential 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 pr
Slide 4: Q2 FY2017 Non-GAAP Financial Highlights
Confidential Q2 FY2017 Non-GAAP Financial Highlights (in millions, except per share data) Change Q2'17 YoY Sequential Revenue $652.0 2.0% 23.3% Profit after Tax $25.0 -34.1% 50.1% EPS $0.48 -34.2% 50.0% Direct business was 53.8% of total revenues System business was 68.1% of total revenues * Not
Slide 5: Revenue Trend
Confidential Revenue Trend Supermicro Revenue Trend #039;s millions $639 $652 $533 $524 $529 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Y/Y 27.0% 13.1% -8.6% 1.8% 2.0% Seq. 23.0% -16.6% -1.6% 0.9% 23.3% 5 CY’ Q1’ Q4’
Slide 6: Revenue Analysis
Confidential Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $454 $444 $372 $343 $357 $185 $181 $208 $160 $171 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Subsystems Systems 6 CY’ Q1’ Q4’
Slide 7: Q2 FY2017 Major Markets
Confidential Q2 FY2017 Major Markets Storage 24.3% of Total Revenue 19.7% YoY Growth Datacenter/Cloud 13.8% of Total Revenue -52.6% YoY 7 CY’ Q1’ Q4’
Slide 8: Q2 FY2017 Revenue by Geography
Confidential Q2 FY2017 Revenue by Geography United States Europe Asia 55.0% 19.9% 21.1% Other – 4.0% 8 CY’ Q1’ Q4’
Slide 9: IoT/Embedded
Confidential IoT/Embedded 9.9% of Total Revenue 12.7% YoY Growth 9 CY’ Q1’ Q4’
Slide 10: World's Best Server/Storage Product Lines
Confidential World’s Best Server/Storage Product Lines The Ultra 1U and 2U Broadwell Product Lines 24 DIMM, 160W Xeon CPU, Flexible I/O, NVMe support 3 to 10% Less power consumption than competition The Twin Architecture: TwinPro, FatTwin and BigTwin Most optimized for Hyper-converged and
Slide 11: Non-GAAP Gross Margins
Confidential Non-GAAP Gross Margins 16.7% 14.9% 15.2% 14.4% 14.1% Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 * Note: Non-GAAP, please see Non-GAAP financial measures on page 3. 11 CY’ Q1’ Q4’
Slide 12: Non-GAAP Operating Margins
Confidential Non-GAAP Operating Margins 8.3% 5.6% 5.3% 4.7% 3.1% Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 * Note: Non-GAAP, please see Non-GAAP financial measures on page 3. 12 CY’ Q1’ Q4’
Slide 13: Summary P&L non-GAAP
Confidential Summary P&L non-GAAP (in millions, except per share data) Q2'17 YoY Sequential Q2'16 Q1'17 Operating Expense $57.2 $3.7 $1.6 $53.5 $55.7 Operating Expense Ratio 8.8% 0.4% -1.7% 8.4% 10.5% Operating Income $36.5 -$16.7 $11.8 $53.1 $24.7 Net Income $25.0 -$13.0 $8.4 $38.0 $16.7 EPS $0.48
Slide 14: Q2 FY2017 YTD Summary Statement of Cash Flows
Q2 FY2017 YTD Summary Statement of Cash Flows Confidential ($’s millions) 6 Months Ended 6 Months Ended 31-Dec-16 31-Dec-15 Net Income $35.5 $48.4 Depreciation and amortization $7.7 $6.0 Stock-based comp expense $9.2 $7.9 Other reserves $2.4 -$1.7 Net change in AR, Inventory, AP -$138.2 $1.5 Other p
Slide 15: Q2 FY2017 Summary of Balance Sheet Metrics
Confidential Q2 FY2017 Summary of Balance Sheet Metrics ($’s millions) Q2'17 Q1'17 Change Cash Equivalents & Investments $131.5 $149.4 $(17.9) Accounts Receivable $366.9 $328.3 $38.6 Inventory $599.3 $500.0 $99.3 Accounts Payable $341.9 $287.6 $54.3 DSO 49 54 -5 DIO 91 97 -6 DPO 52 55 -3 Cash Cycle
Slide 16: Supplemental Financials Second Quarter Fiscal 2017
Confidential Supplemental Financials Second Quarter Fiscal 2017 Ended December 31, 2016 16 CY’ Q1’ Q4’
Slide 17: Non-GAAP Financial Summary
Confidential Non-GAAP Financial Summary (in millions, except per share data) Q2'17 Q1'17 Q2'16 Net Sales $652.0 $529.0 $639.0 Non-GAAP Gross Margin 14.4% 15.2% 16.7% Non-GAAP Operating Expenses $57.2 $55.7 $53.5 Non-GAAP Operating Income $36.5 $24.7 $53.1 Non-GAAP Net Income $25.0 $16.7 $38.0 Non-GA
Slide 18: Prior Period Net Income Comparisons
Confidential Prior Period Net Income Comparisons (in millions, except per share data) Q2'17 Q1'17 Q2'16 Net Income (GAAP) $22.0 $13.5 $34.7 Stock-based Compensation Expense (tax affected)* $3.0 $3.2 $3.3 Net Income (Non-GAAP)* $25.0 $16.7 $38.0 Diluted Net Income per common share (GAAP) $0.43 $0.26
Slide 19: GAAP to Non-GAAP Reconciliation
Quarterly Net Income (Loss) Confidential GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q2'17 Q1'17 Q4'16 Q3'16 Q2'16 Net income (GAAP) $22.0 $13.5 $7.0 $16.7 $34.7 Adjustments: Stock-based compensation expense $4.7 $4.5 $4.4 $3.9 $4.0 Income tax effects of adjustments $(1.7) $