Slide 1: Third Quarter Fiscal 2014 Earnings Conference Presentation
© Supermicro 2014 Third Quarter Fiscal 2014 Earnings Conference Presentation April 22, 2014 Exhibit 99.2
Slide 2: Safe Harbor Statement
2 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 expec
Slide 3: Non-GAAP Financial Measures
3 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-
Slide 4: Q3'FY2014 Non-GAAP Financial Highlights
4 Q3’FY2014 Non-GAAP Financial Highlights (in millions, except per share data) Q3'14 YoY Sequential Revenue $373.8 34.4% 4.9% Profit after Tax $17.8 77.1% 11.8% EPS $0.37 60.9% 5.7% Change
Slide 5: Summary of Results
5 Summary of Results Revenues were 34.4% higher year over year OEM and Direct business was 48.1% of total revenues and Internet Data Center was 15.9% of total revenues System business was 50.1% of total revenues Revenues by Geography: US – 54.5% Europe – 21.7% Asia – 21.0% Other – 2.
Slide 6: Moving Towards Total Solution
Moving Towards Total Solution Motherboard & Building Blocks Expertise Period of Vertical Integration 1993 Subsystem Innovation 2003 Twin & GPU Architectures Breakthrough Product Line growth & New Market Entry 2004 Server System Innovation Corporate & Global Expansion Software & Service Total Solutio
Slide 7: The Best Server Products on the Market
The Best Server Products on the Market FatTwin™ GPU/Xeon Phi-optimized HFT Workstations Embedded Solutions Storage Solutions MicroBlade DCO Products Product Families Twin Architecture The original Twin architecture innovator. FatTwin™ & TwinPro™ GPU/Xeon Phi Optimized Solutions Full line of GPU/Xeon
Slide 8: Revenue Trend
8 Revenue Trend Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 $278 $322 $309 $356 $374 #039;s millions Y/Y 15.8% 16.8% 14.2% 22.3% 34.4% Seq. -4 6 5 9 - 1 15 9
Slide 9: Revenue Analysis
9 Revenue Analysis Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 $162 $169 $166 $182 $186 $116 $153 $143 $174 $187 #039;s millions Supermicro Subsystems/System Revenue Subsystems Systems
Slide 10: Non-GAAP Gross Margins
10 Non-GAAP Gross Margins 13.0% 13.5% 14.0% 14.5% 15.0% 15.5% Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 14.1% 14.4% 15.2% 15.5% 15.4%
Slide 11: Non-GAAP Operating Margin
11 Non-GAAP Operating Margin Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 3.0% 4.7% 4.7% 6.4% 6.5%
Slide 12: Summary P&L non-GAAP
12 Summary P&L non-GAAP (in millions, except per share data) Q3'14 YoY Sequential Q3'13 Q2'14 Operating Expense $33.2 $2.4 $0.9 $30.8 $32.3 Operating Expense Ratio 8.9% -2.2% -0.2% 11.1% 9.1% Operating Income $24.3 $16.0 $1.3 $8.3 $23.0 Net Income $17.8 $7.7 $1.9 $10.0 $15.9 EPS $0.37 $0.14 $0.02 $0
Slide 13: Q3 FY2014 YTD Summary Statement of Cash Flows
13 Q3 FY2014 YTD Summary Statement of Cash Flows ($’s millions) 9 Months Ended 9 Months Ended 31-Mar-14 31-Mar-13 Net income $37.6 $12.9 Depreciation and amortization $4.6 $5.9 Stock-based comp. expense $8.2 $8.7 Other reserves -$3.1 $2.2 Net change in AR, Inventory, AP -$44.9 -$20.1 Other prepaids
Slide 14: Q3 FY2014 Summary of Balance Sheet Metrics
Q3 FY2014 Summary of Balance Sheet Metrics ($’s millions) 14 Q3'14 Q2'14 Change Cash Equivalents & Investments 104.4$ 92.6$ 11.8$ Accounts Receivable 182.0$ 161.2$ 20.9$ Inventory 295.1$ 290.9$ 4.2$ Accounts Payable 205.2$ 205.8$ (0.5)$ DSO 41 38 3 DIO 83 83 0 DPO 58 57 1 Cash Cycle Days 66 64 2
Slide 15: Supplemental Financials
15 Supplemental Financials Third Quarter Fiscal 2014 Ended March 31, 2014
Slide 16: Prior Period Net Income Comparisons
16 Prior Period Net Income Comparisons (in millions, except per share data) * Note: Non-GAAP, please see Non-GAAP financial measures on page 3. Q3'14 Q2'14 Q3'13 Net income (GAAP) 16.6$ 13.3$ 7.0$ Stock-based compensation expense (tax affected)* 1.2$ 2.6$ 3.0$ Net income (Non-GAAP)* 17.8$ 15.9$ 10.0
Slide 17: Non-GAAP Financial Summary
17 Non-GAAP Financial Summary (in millions, except per share data) Q3'14 Q2'14 Q3'13 Net Sales 373.8$ 356.4$ 278.0$ Non-GAAP Gross Margin 15.4% 15.5% 14.1% Non-GAAP Operating Expenses 33.2$ 32.3$ 30.8$ Non-GAAP Operating Income 24.3$ 23.0$ 8.3$ Non-GAAP Net Income 17.8$ 15.9$ 10.0$ Non-GAAP Net Inco
Slide 18: Quarterly Net Income GAAP to Non-GAAP Reconciliation
18 Quarterly Net Income (Loss) GAAP to Non-GAAP Reconciliation (in millions, except per share data) * Note: Non-GAAP, please see Non-GAAP financial measures on page 3. Q3'14 Q2'14 Q1'14 Q4'13 Q3'13 Net income (GAAP) 16.6$ 13.3$ 7.7$ 8.4$ 7.0$ Adjustments: Stock-based compensation expense 2.8$ 2.8$ 2