Slide 1: Fiscal Q3 2021 Results
FISCAL Q3 2021 RESULTS May 4, 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: CEO Messages
CEO MESSAGES OEM & 5G, Telco & Large DC Organic (Enterprise & Edge/IoT Channel), AI / ML • Demand improving, bucking seasonality • High profile customer engagements • Robust portfolio of innovative products with AMD, Intel, NVIDIA • Aim to accelerate our growth 3
Slide 4: Strong Portfolio of Innovation
STRONG PORTFOLIO OF INNOVATION SuperServers A+ Solutions GPU Solutions Twin Twin Ultra Server Ultra Server Architecture Architecture HGX Solution Redstone Solution SuperBlade® Delta Solution Delta Solution 2U2N Upcoming Universal UP Server GPU Architectures CloudDC CloudDC SuperStorage 4
Slide 5: Capacity Expansion on Track
CAPACITY EXPANSION ON TRACK Taiwan Science & Technology Park B62 Online July 2021 1M+ sq ft. area 2.5X current Taiwan capacity & capability US Green Computing Park B23 Online August 2021 230K+ sq ft. area
Slide 6: Revenue
REVENUE Revenue Sales above High End of Guidance Range 1,000 900 • +16% YoY, +8% QoQ 800 700 600 • US +18% YoY; Asia +29% YoY, Europe +3% YoY, Rest of World - 12% YoY $M 500 896 400 300 200 100 0 Q3 Q4 Q1 Q2 Q3 FY20 FY21 Geographic Mix Others 900 3% 790 - 870 Asia 800 23% $M 700 896 US 56% 600 Europ
Slide 7: Non-GAAP EPS
NON-GAAP EPS Non-GAAP EPS 70 100 60 80 50 37c- 57c 60 40 Cents Cents 40 30 50c 50c 20 20 10 0 Q3 Q4 Q1 Q2 Q3 0 FY20 FY21 Guidance (2/2) Q3 Non-GAAP EPS EPS Above Midpoint of Guidance Range • Revenue strength, expense discipline A reconciliation of GAAP to non-GAAP measures can be found in the append
Slide 8: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 20% 18% 16% 14% 12% 10% 8% 13.8% 6% 4% 2% 0% Q3 Q4 Q1 Q2 Q3 FY20 FY21 Non-GAAP Gross Margin • -260bp QoQ, -390bp YoY • Discrete cost recovery event in Q2 • Higher transportation and additional costs A reconciliation of GAAP to non-GAAP measures can be found in the appendix of t
Slide 9: Non-GAAP Operating Expenses
NON-GAAP OPERATING EXPENSES 120 100 80 $M 60 95 40 20 0 Q3 Q4 Q1 Q2 Q3 FY20 FY21 Non-GAAP Operating Expenses • +6% QoQ, +9% YoY • QoQ increase driven by higher payroll taxes and R&D product development costs A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentat
Slide 10: Cash Flow and Net Cash
CASH FLOW AND NET CASH Cash Flow From Operations Net Cash 150 300 100 250 50 200 $M $M 0 150 -50 100 -124 -100 50 94 -150 0 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 3Q FY20 FY21 FY20 FY21 • Cash Flow from Operations -$124M • Free Cash Flow -$144M • Net Cash and Cash Equivalents* $94M • Share repurchases $43M *Inc
Slide 11: Q4 2021 Outlook
Q4 2021 OUTLOOK REVENUE NON-GAAP EPS $980M to $1.08B 70c to 90c (GAAP: 56c to 77c) The outlook for Q4 of fiscal year 2021 GAAP diluted net income per common share includes approximately $7 million in expected stock-based compensation expense and $2 million of other expenses, net of taxes, that are e
Slide 12: Appendix
APPENDIX 12
Slide 13: Q3 2021 Highlights
Q3 2021 HIGHLIGHTS Q3 QoQ YoY Revenue $896M +8% +16% Gross Margin (non-GAAP) 13.8% -260bp -390bp Earnings Per Share (non-GAAP) 50c -13c -34c Cash Flow from Operations -$124M -$188M -$103M Mix: Systems $693M (77%) +8% +21% Subsystems & Accessories $203M (23%) +8% +1% A reconciliation of GAAP to non-G
Slide 14: GAAP to Non-GAAP Reconciliation (1 of 2)
GAAP TO NON-GAAP RECONCILIATION (1 OF 2) FY20 FY21 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 in Thousands (except per share amounts) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Consolidated Statement of Operations Net Sales $ 772,408 $896,126 $762,250 $830,306 $895,881 GAAP GROSS PROFIT $ 133,360 $123,517 $129,915 $136,
Slide 15: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) FY20 FY21 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 in Thousands (except per share amounts) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Consolidated Statement of Operations Net Sales $ 772,408 $896,126 $762,250 $830,306 $895,881 GAAP INCOME FROM OPERATIONS $ 15,546 $ 9,428 $ 30,4