EX-99.1 2 dex991.htm BUSINESS PRESENTATION Business presentation
SUPERMICRO INVESTOR PRESENTATION (November 15, 2007)
Exhibit 99.1


2
Safe Harbor
Certain statements in this presentation relate to future results
and events that are forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995.
This presentation
contains statements involving risks and
uncertainties,
including
statements
relating
to
Super
Micro’s
market opportunity and future business prospects.
Actual
results
may
differ
materially
and
reported
results
should
not be considered as an indication of future performance.
Factors
that
could
cause
actual
results
to
differ
are
included
in
Super Micro’s Annual Report on Form 10-K and other filings
with the Securities and Exchange Commission.


3
Charles Liang
CEO


4
Corporate Overview
Founded:
Product:
Headquarters:
Years Profitable:
FY2007 Revenue:
FY2007 Revenue
Growth:
1993
Application-Optimized
Server Solutions
San Jose, CA
14
$420MM
39%


5
Financial Track Record
Annual Revenue and Net Income
Annual Revenue and Net Income
Revenue ($MM)
Net Income ($MM)
Revenue
Net Income
Note:  FY94 –
FY00 are unaudited.
$212
$167
$137
$89
$64
$60
$60
$14
$20
$36
$46
$2
$303
$420
$7.1
$4.9
$3.5
$2.2
$0.8
$1.0
$1.2
$0.4
$1.1
$0.5
$0.3
$0.1
$16.9
$19.3
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
FY94
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45


6
Evolution of Enterprise Computing
x86 Open Architecture
Application-Optimized
SuperBlade
and 1U Twin
Scale-Out
1990
1990
1995
1995
2003
2003
2007
2007
2000
2000
Clustered System


7
Customers Demand Application-Optimized Solutions
Broad Selection &
Rapid Optimization
Application OEMs
Image Computing
Server Farms
Optimized I/O for
Image & Graphics
Flexible Support
Extremely High
CPU & Memory
Performance
General Servers
Brand Name &
Worldwide Service     
& Cost
High
Med
Low
High
Med
Low
High
Med
Low
High
Med
Low
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
General Purpose Servers


8
Investment Highlights
Large and Fast-Growing Application-Optimized Server Market
Value based on Engineering Expertise & Proprietary IP
Consistent Profitable Financial Record For 14 Years
Significant Future Growth Drivers
Seasoned Management and Engineering Teams


9
Large and Growing Market Opportunity
$26.6
$33.8
$31.9
$29.9
$27.8
$36.4
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
2005
2006
2007
2008
2009
2010
Revenue
($B)
$2.2
$8.4
$6.3
$4.5
$3.0
$11.2
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
$11.0
$12.0
$13.0
$14.0
$15.0
2005
2006
2007
2008
2009
2010
Revenue
($B)
x86 Server Market
(1)
x86 Server Market
(1)
Blade Server Market
(2)
Blade Server Market
(2)
(1)
Source:  IDC, November 2006.
(2)
Source:  IDC, October 2006.
(3)
Note:  Fiscal years.  FY01 –
FY03 are unaudited.


10
Supermicro Performance
$152
$104
$22
$38
$51
$67
$12
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
2001
2002
2003
2004
2005
2006
2007
$64
$212
$167
$137
$89
$303
$420
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
$450.0
2001
2002
2003
2004
2005
2006
2007
Revenue
($MM)
Revenue
($MM)
Supermicro Overall Growth
(2)
Supermicro Overall Growth
(2)
Supermicro Server
System Growth
(3)
Supermicro Server
System Growth
(3)


11
Competitive Advantages
Advanced
Power / Cooling
First-to-Market
Broadest Product
Portfolio
In-House Design/
Proprietary IP
Modular Building Blocks
Lower TCO


12
First-to-Market For Over Fourteen Years
<2000
Innovation
First
Dual
Intel
Pentium
Pro-
based Server board
Revolutionary
Redundant
Cooling Power Supply
(1998)
First
SuperServer
Shipped
(2000)
2001-2002
Performance
2003
Scalability
First
1-terabyte SATA            
in a 1U Xeon Solution
Offered the Most
Comprehensive Xeon
(Prestonia) Product Line
2004-2006
Choice
First
to provide Xeon
(Nocona) Workstations /
Servers Solutions
(2004)
First
to
market
SAS
Server and Storage
Solutions
Among the
First
to launch
Intel Dual-core PentiumD
Platform
First
to
introduce
90%+
high-efficiency
power
on
server platforms
(2006)
2007-Now
Optimization
First
Dual
Socket
Xeon
Motherboard
(2001)
First
1U/2U Dual Intel Xeon
Rackmount
Servers
First
Multiprocessing Intel
Xeon Processor Server
(2002)
Introducing the First
4U/Tower Convertible
Platform
(2002)
System
Innovations
with
1U
Twin™
UIO
and
SuperBlade™
architecture
First
and
the
Most
Comprehensive
Line
of Quad-core Xeon 5400/5200
Series Servers
First
and
the
Most
Comprehensive
Line of Quad-core Xeon MP 7300
Series Servers
Among the
First
to Launch AMD
Socket F and Barcelona Platform
(2002)
(1996)
(2005)
(2005)


13
Server Building Block Solutions
®
520
Motherboards
1266
Chassis
316
Cooling
Modules
119 Power
Supplies
Open
CPU/ Memory
Operating
Systems /
Applications
In-House Design and Building Block Solutions
Technology Partners
Customer Requirements
OEM
Specs
In-House Design
Optimized
Data Center
Lawrence
Livermore
National
Laboratory


14
Based on Significant Engineering Expertise
Super SSI Architecture
Supermicro Server Management Products
1U Twin,
UIO,
SuperBlade
Design
High-efficiency Power & Thermal Technology
TM
TM


15
119 Power Supplies
316
Thermal Cooling
520 Motherboards
1266 Chassis
1U Servers
388 SKUs
2U Servers
110 SKUs
3U Servers
17 SKUs
4U/Tower Servers
196 SKUs
CPU/Memory
Others
1,000’s of Servers
Built by Customers
With Super SSI Components
Building Blocks
Building Blocks
SuperServer
Systems
SuperServer
Systems
Custom Server Systems
Custom Server Systems
Thousands of Server Products Based on Super SSI


16
Customer Case Studies-Most Demanding & Exacting
Servers with Extremely
High Computing
Density, Memory
Performance, Power
efficiency and Quick
Design
Turnaround
OEMs
Unique features and
Configurations plus
Rapid “Build to Order”
Capabilities
Large Server Farms
Required Systems
Optimized for
Computing Power and
I/O for Image
Processing
Complex Computing
Lawrence
Livermore
National Laboratory


17
Time to Market
Product Breadth
Proprietary IP
In-House Design
Economic Scale
Competitive Advantages
Source:  Super Micro management estimates.


18
3 Main Locations Worldwide
97 Sales & Marketing Professionals In 12 Countries
415 VARs And Distributors Worldwide
Global Reach
Super Micro Headquarters
Sales / Distribution Partners
Super Micro Subsidiaries


19
Key Growth Strategies
New
Customers
and
International
Expansion
Growth    
With Current
Customers
Large             
Data Centers,
Direct Sales
Accounts
More Complete
Systems
Storage 
Hardware
Solutions
Blade Servers
Enterprise Blade
Data Center Blade
OfficeBlade
Personal Blade
Networking
Product
Management
Software
Super Doctor III
IPMI
SSM


20
Current Technology Progress
1.
1U Twin –
Growing strongly in both revenue and Product Breadth
2.
Expanding UIO architecture
3.
Growing SuperBlade Product Lines
4.
Expanding Engineering team aggressively in Taiwan
5.
Products Under Development:
Early Bird Launch of PCI-E Gen2 DP XEON Platforms
Office Blade, Workstation Blade, Data Center Blade in progress
QPI Architecture for Itanium/Xeon Products
SSM –
Supermicro Server Management Software


21
Example of Our Superior Product
World’s Highest Power System Efficiency
up to 93%
Outstanding Cooling
State-of-the-art 50dB low noise and power efficient cooling
Best Density in the Industry
40 processors(160 cores) per 7U chassis
240 processors(960 cores) per 42U rack
10 4-Way Blades in 7U chassis
Highest I/O bandwidth
20Gbps per port with 4x DDR IB switch
High reliability
100% Active Component-free Middleplane
SuperBlade Server Competitive Advantages


22
FY08 Outlook
Steady
Building
Block
Serverboard
and
Chassis
Business
Growth
50% Server System Business Growth
Sharply growing Blade Server and Networking products
Asian Expansion for Cost Reduction
Additional Strategic Direct-accounts Development
Minimum 30% y-y
revenue growth
At least 35% Bottom line net profit increase


23
CFO
Hideshima
Howard


24
Financial Highlights
Significant Revenue Growth
Profitable Since Inception
Improving Margin Profile
Diversified Revenue Mix
Significant Upside Drivers


25
Revenue and Margin Drivers
Power Supplies
Thermal Cooling
CPU / Memory
Applications
Operating Systems
Motherboards
Chassis
Server Systems
Subsystems
Components


26
Strong Revenue Growth
Consistent Quarterly Revenue Growth
Consistent Quarterly Revenue Growth
CY2005
CY2006
CY2007
$64.5
$72.1
$90.2
$113.6
$105.7
$110.9
$117.9
$128.0
$135.0
$60.6
$52.0
$90.0
$75.9
$50
$75
$100
$125
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4(Fcst)
Q4(Fcst)


27
Diversified Revenue Mix
United
States
59%
Germany 7%
Rest of
Europe
12%
United
Kingdom
5%
Asia 15%
Other 2%
0
10
20
30
40
50
60
70
80
90
FY04
FY05
FY06
FY07
15%
20%
25%
30%
Revenue
% of Total Revenue
FY2007 Revenue By Geography
FY2007 Revenue By Geography
FY2007 Top 5 Customers
FY2007 Top 5 Customers


28
FY05 to FY08 Q1 Income Statement
(1) Pro forma for stock based compensation expenses.  (2) Includes provision for litigation
Gross Profit
Gross Profit
Research &
Development
Research &
Development
Sales & Marketing
Sales & Marketing
Operating Profit
Operating Profit
General &
Administrative (2)
General &
Administrative (2)
Revenue
Revenue
FY2008 Q1 (1)
FY2005 (1)
FY2006 (1)
FY2007 (1)
$211.8
33.5
10.4
7.1
4.1
11.9
$7.5
$211.8
33.5
10.4
7.1
4.1
11.9
$7.5
$117.9
23.2
6.4
3.6
3.2
10.0
$6.6 Q1
$117.9
23.2
6.4
3.6
3.2
10.0
$6.6 Q1
$420.4
75.3
20.1
12.2
10.7
32.3
$21.4
$420.4
75.3
20.1
12.2
10.7
32.3
$21.4
$302.5
60.4
15.4
9.1
7.2
28.7
$17.6
$302.5
60.4
15.4
9.1
7.2
28.7
$17.6
Net Profit
Net Profit


29
Target Financial Model
(1) Pro forma for 123R expenses.
Gross Margin
Gross Margin
Research &
Development
Research &
Development
Sales & Marketing
Sales & Marketing
Operating Margin
Operating Margin
General &
Administrative
General &
Administrative
Revenue
Revenue
100%
18%
5%
3%
2%
8%
100%
18%
5%
3%
2%
8%
Target
(1)
100%
19-22%
4-5%
3%
2-3%
9-12%
100%
19-22%
4-5%
3%
2-3%
9-12%
FY2007
(1)
100%
20%
5%
3%
3%
9%
100%
20%
5%
3%
3%
9%
FY2008 Q1
(1)


30
Balance Sheet
($MM)
June 30, 2007
Balance Sheet
Sept 30,
2007
Balance Sheet
Cash Equivalents & ST Invest
Total Current Assets
Notes Payable
Total Stockholders’
Equity
Cash Equivalents & ST Invest
Total Current Assets
Notes Payable
Total Stockholders’
Equity
$65.9
173.5
11.3
115.9
$65.9
173.5
11.3
115.9
$69.4
191.8
11.2
121.9
$69.4
191.8
11.2
121.9


31
FY08 Outlook
Steady
Building
Block
Serverboard
and
Chassis
Business
Growth
50% Server System Business Growth
Sharply growing Blade Server and Networking products
Asian Expansion for Cost Reduction
Additional Strategic Direct-accounts Development
Minimum 30% y-y
revenue growth
At least 35% Bottom line net profit increase


SUPERMICRO INVESTOR PRESENTATION (November 15, 2007)