EX-99.1 2 exhibit991_20231231.htm EX-99.1 Document

Exhibit 99.1

Supermicro Announces Second Quarter Fiscal Year 2024 Financial Results

SAN JOSE, Calif. -- January 29, 2024 (BUSINESS WIRE) -- Super Micro Computer, Inc. (Nasdaq: SMCI), a Total IT Solution Provider for AI, Cloud, Storage and 5G/Edge, today announced financial results for its second quarter of fiscal year 2024 ended December 31, 2023.

Second Quarter Fiscal Year 2024 Highlights
•Net sales of $3.66 billion versus $2.12 billion in the first quarter of fiscal year 2024 and $1.80 billion in the same quarter of last year.
•Gross margin of 15.4% versus 16.7% in the first quarter of fiscal year 2024 and 18.7% in the same quarter of last year.
•Net income of $296 million versus $157 million in the first quarter of fiscal year 2024 and $176 million in the same quarter of last year.
•Diluted net income per common share of $5.10 versus $2.75 in the first quarter of fiscal year 2024 and $3.14 in the same quarter of last year.
•Non-GAAP diluted net income per common share of $5.59 versus $3.43 in the first quarter of fiscal year 2024 and $3.26 in the same quarter of last year.
•Cash flow used in operations for the second quarter of fiscal year 2024 of $595 million and capital expenditures of $15 million.

Non-GAAP gross margin for the second quarter of fiscal year 2024 was 15.5% which adds back stock-based compensation expenses of $4 million. Non-GAAP diluted net income per common share for the second quarter of fiscal year 2024 was $5.59, with adjustments for stock-based compensation expenses of $43 million, net of the related tax effects of $10 million.

As of December 31, 2023, total cash and cash equivalents was $726 million and total bank debt was $376 million.



“We continued to demonstrate our market leadership in fiscal Q2 2024, reporting record revenue results of $3.66B, year-over-year growth of 103%,” said Charles Liang, President and CEO of Supermicro. “While we continue to win new partners, our current end customers continue to demand more Supermicro’s optimized AI computer platforms and rack-scale Total IT Solutions. As our innovative solutions continue to gain market share, we are raising our fiscal year 2024 revenue outlook to $14.3 billion to $14.7 billion.”

Business Outlook and Management Commentary
For the third quarter of fiscal year 2024 ending March 31, 2024, the Company expects net sales of $3.7 billion to $4.1 billion, GAAP net income per diluted share of $4.79 to $5.64 and non-GAAP net income per diluted share of $5.20 to $6.01. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 13.8% and 15.8%, respectively, and a fully diluted share count of 60.1 million shares for GAAP and fully diluted share count of 61.0 million shares for non-GAAP. The outlook for third quarter of fiscal year 2024 GAAP net income per diluted share includes approximately $28 million in expected stock-based compensation, net of related tax effects of $14 million that are excluded from non-GAAP net income per diluted share.

For fiscal year 2024 ending June 30, 2024, the Company is raising its guidance for revenues from a range of $10 billion to $11 billion to a range of $14.3 billion to $14.7 billion.

Conference Call and Webcast Information
Supermicro will present a live audio webcast of a conference call to review its second quarter of fiscal year 2024 on Monday, January 29, 2024, at 5:00 p.m. ET / 2:00 p.m. PT.
The webcast will be available at https://ir.supermicro.com.

A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.



Cautionary Statement Regarding Forward Looking Statements
Statements contained in this press release 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 forward looking statements may relate to, among other things, the third quarter of fiscal year 2024 and updated full year fiscal 2024 guidance, the ability to continue to demonstrate market leadership, the ability to continue to win new partners, and our ability to continue to gain market share. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, which could cause rapid declines in our stock price, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may be less predictable, (iii) if we fail to meet publicly announced financial guidance or other expectations about our business, our stock could decline in value, (iv) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (v) adverse economic conditions may harm our business. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward looking statements are contained in our filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2023, and Quarterly Reports on Form 10-Q filed thereafter.




Use of Non-GAAP Financial Measures
Non-GAAP gross margin discussed in this press release adds back stock-based compensation expenses. Non-GAAP diluted net income per common share discussed in this press release adds back stock-based compensation expenses and litigation recovery adjusted for the related tax effects. Management presents non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company's financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. A reconciliation of GAAP gross margin to non-GAAP gross margin and from GAAP diluted net income per common share to non-GAAP diluted net income per common share is included in the tables below.

About Super Micro Computer, Inc.
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first to market innovation for Enterprise, Cloud, AI and 5G Telco/Edge IT Infrastructure. We are transforming to being a Total IT Solutions provider with server, AI, storage, IoT and switch systems, software and services while continuing to deliver advanced high-volume motherboard, power and chassis products. The products are designed and manufactured in-house (in US, Taiwan and Netherlands) leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power and cooling solutions (air conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

Investor Relations Contact
Nicole Noutsios
email: ir@supermicro.com


SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 (unaudited)

December 31,June 30,
20232023
ASSETS
Current assets:
Cash and cash equivalents$725,660 $440,459 
Accounts receivable, net of allowance for credit losses1,502,971 1,148,259 
Inventories2,466,997 1,445,564 
Prepaid expenses and other current assets146,727 145,144 
Total current assets4,842,355 3,179,426 
Property, plant and equipment, net297,102 290,240 
Deferred income taxes, net218,274 162,654 
Other assets47,269 42,409 
Total assets$5,405,000 $3,674,729 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$1,261,533 $776,831 
Accrued liabilities214,462 163,865 
Income taxes payable46,453 129,166 
Short-term debt276,307 170,123 
Deferred revenue193,334 134,667 
Total current liabilities1,992,089 1,374,652 
Deferred revenue, non-current190,342 169,781 
Long-term debt99,322 120,179 
Other long-term liabilities46,173 37,947 
Total liabilities2,327,926 1,702,559 
Stockholders’ equity:
Common stock and additional paid-in capital1,190,276 538,352 
Accumulated other comprehensive income657 639 
Retained earnings1,885,977 1,433,014 
Total Super Micro Computer, Inc. stockholders’ equity3,076,910 1,972,005 
Noncontrolling interest164 165 
Total stockholders’ equity3,077,074 1,972,170 
Total liabilities and stockholders’ equity$5,405,000 $3,674,729 


SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 (unaudited)

 Three Months Ended
December 31,		Six Months Ended
December 31,
 2023202220232022
Net sales$3,664,924 $1,803,195 $5,784,596 $3,655,325 
Cost of sales3,100,602 1,465,773 4,866,583 2,970,368 
Gross profit564,322 337,422 918,013 684,957 
Operating expenses:
Research and development
108,824 70,700 219,851 144,943 
Sales and marketing
46,854 28,445 84,084 57,808 
General and administrative
37,180 23,095 70,104 46,901 
Total operating expenses192,858 122,240 374,039 249,652 
Income from operations371,464 215,182 543,974 435,305 
Other (expense) income, net (7,886)(6,335)(1,273)1,719 
Interest expense(8,131)(1,756)(9,994)(5,694)
Income before income tax provision355,447 207,091 532,707 431,330 
Income tax provision
(61,503)(29,573)(81,718)(68,507)
Share of income (loss) from equity investee, net of taxes2,024 (1,351)1,974 (2,240)
Net income$295,968 $176,167 $452,963 $360,583 
Net income per common share:
Basic
$5.47 $3.31 $8.45 $6.84 
Diluted
$5.10 $3.14 $7.86 $6.51 
Weighted-average shares used in calculation of net income per common share:
Basic
54,135 53,160 53,614 52,726 
Diluted
58,078 56,144 57,632 55,427 

Stock-based compensation is included in the following cost and expense categories by period (in thousands):

 Three Months Ended
December 31,		Six Months Ended
December 31,
 2023202220232022
Cost of sales$3,555 $1,486 $9,459 $2,370 
Research and development25,439 9,334 61,149 15,452 
Sales and marketing4,340 1,448 10,005 2,257 
General and administrative9,727 4,713 19,827 7,916 
Stock-based compensation expense $43,061 $16,981 $100,440 $27,995 


SUPER MICRO COMPUTER, INC.
SELECTED CASH FLOW INFORMATION
(in thousands)
 (unaudited)

Six Months Ended
December 31,
20232022
Net cash (used in) provided by operating activities$(324,620)$474,674 
Net cash used in investing activities
(22,535)(20,631)
Net cash provided by (used in) financing activities632,194 (415,821)
Effect of exchange rate fluctuations on cash170 (1,693)
Net increase in cash, cash equivalents and restricted cash285,209 36,529 
Cash, cash equivalents and restricted cash at the beginning of the period440,960 268,559 
Cash, cash equivalents and restricted cash at the end of the period$726,169 $305,088 



SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
 (unaudited)

Three Months EndedSix Months Ended
December 31, 2023December 31, 2022December 31, 2023December 31, 2022
GAAP GROSS PROFIT$564,322 $337,422 $918,013 $684,957 
Stock-based compensation3,555 1,486 9,459 2,370 
NON-GAAP GROSS PROFIT$567,877 $338,908 $927,472 $687,327 
GAAP GROSS MARGIN15.4 %18.7 %15.9 %18.7 %
Stock-based compensation0.1 %0.1 %0.1 %0.1 %
NON-GAAP GROSS MARGIN15.5 %18.8 %16.0 %18.8 %
GAAP OPERATING EXPENSE$192,858 $122,240 $374,039 $249,652 
Stock-based compensation (39,506)(15,495)(90,981)(25,625)
Litigation recovery— 2,230 — 2,230 
NON-GAAP OPERATING EXPENSE$153,352 $108,975 $283,058 $226,257 
GAAP INCOME FROM OPERATIONS$371,464 $215,182 $543,974 $435,305 
Stock-based compensation 43,061 16,981 100,440 27,995 
Litigation recovery— (2,230)— (2,230)
NON-GAAP INCOME FROM OPERATIONS$414,525 $229,933 $644,414 $461,070 
GAAP OPERATING MARGIN 10.1 %11.9 %9.4 %11.9 %
Stock-based compensation1.2 %1.0 %1.7 %0.8 %
Litigation recovery— %(0.1)%— %(0.1)%
NON-GAAP OPERATING MARGIN 11.3 %12.8 %11.1 %12.6 %
GAAP TAX EXPENSE $61,503 $29,573 $81,718 $68,507 
Adjustments to tax provision9,569 4,300 25,618 7,530 
NON-GAAP TAX EXPENSE$71,072 $33,873 $107,336 $76,037 
GAAP NET INCOME$295,968 $176,167 $452,963 $360,583 
Stock-based compensation 43,061 16,981 100,440 27,995 
Litigation recovery— (2,230)— (2,230)
Adjustments to tax provision(9,569)(4,300)(25,618)(7,530)
NON-GAAP NET INCOME$329,460 $186,618 $527,785 $378,818 
GAAP NET INCOME PER COMMON SHARE – BASIC$5.47 $3.31 $8.45 $6.84 
Impact of Non-GAAP adjustments0.62 0.20 1.39 0.34
NON-GAAP NET INCOME PER COMMON SHARE – BASIC$6.09 $3.51 $9.84 $7.18 
GAAP NET INCOME PER COMMON SHARE – DILUTED$5.10 $3.14 $7.86 $6.51 
Impact of Non-GAAP adjustments0.49 0.12 1.18 0.18
NON-GAAP NET INCOME PER COMMON SHARE – DILUTED$5.59 $3.26 $9.04 $6.69 


SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
 (unaudited)

Three Months EndedSix Months Ended
December 31, 2023December 31, 2022December 31, 2023December 31, 2022
WEIGHTED-AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE
BASIC – GAAP54,135 53,160 53,614 52,726 
BASIC – NON-GAAP54,135 53,160 53,614 52,726 
DILUTED – GAAP58,078 56,144 57,632 55,427 
DILUTED – NON-GAAP58,962 57,318 58,404 56,641 

Non-GAAP diluted net income per common share for the first quarter of fiscal year 2024 was $3.43, with adjustments for stock-based compensation expenses of $41 million, net of the related tax effects of $16 million.