EX-99.1 2 exhibit991_20240331.htm EX-99.1 Document

Exhibit 99.1

Supermicro Announces Third Quarter Fiscal Year 2024 Financial Results

SAN JOSE, Calif. -- April 30, 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 third quarter of fiscal year 2024 ended March 31, 2024.

Third Quarter Fiscal Year 2024 Highlights
•Net sales of $3.85 billion versus $3.66 billion in the second quarter of fiscal year 2024 and $1.28 billion in the same quarter of last year.
•Gross margin of 15.5% versus 15.4% in the second quarter of fiscal year 2024 and 17.6% in the same quarter of last year.
•Net income of $402 million versus $296 million in the second quarter of fiscal year 2024 and $86 million in the same quarter of last year.
•Diluted net income per common share of $6.56 versus $5.10 in the second quarter of fiscal year 2024 and $1.53 in the same quarter of last year.
•Non-GAAP diluted net income per common share of $6.65 versus $5.59 in the second quarter of fiscal year 2024 and $1.63 in the same quarter of last year.
•Cash flow used in operations for the third quarter of fiscal year 2024 of $1,520 million and capital expenditures of $93 million.

Non-GAAP gross margin for the third quarter of fiscal year 2024 was 15.6% with adjustments for stock-based compensation expenses of $3 million. Non-GAAP diluted net income per common share for the third quarter of fiscal year 2024 was $6.65, with adjustments for stock-based compensation expenses of $9 million, net of the related tax effect of $47 million.

As of March 31, 2024, total cash and cash equivalents was $2,115 million and total bank debt and convertible notes were $1,863 million.



“We had yet another record quarter with fiscal Q3 revenue of $3.85 billion with non-GAAP EPS of $6.65 per share. This year-over-year revenue growth of 200% and year-over-year non-GAAP EPS growth of 308% was well above our industry peers,” said Charles Liang, President and CEO of Supermicro. “Strong demand for AI rack scale PnP solutions, along with our team’s ability to develop innovative DLC designs, enabled us to expand our market leadership in AI infrastructure. As new solutions ramp, including fully production ready DLC, we expect to continue gaining market share. As such, we are raising our fiscal year 2024 revenue outlook from $14.3 to $14.7 billion to a new range of $14.7 to $15.1 billion.”

Business Outlook and Management Commentary
For the fourth quarter of fiscal year 2024 ending June 30, 2024, the Company expects net sales of $5.1 billion to $5.5 billion, GAAP net income per diluted share of $7.20 to $8.05 and non-GAAP net income per diluted share of $7.62 to $8.42. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately -2.9% and 2.6%, respectively, and a fully diluted share count of 64.8 million shares for GAAP and fully diluted share count of 65.3 million shares for non-GAAP. The outlook for fourth quarter of fiscal year 2024 GAAP net income per diluted share includes approximately $30 million in expected stock-based compensation, net of related tax effects of $28 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 $14.3 billion to $14.7 billion to a range of $14.7 billion to $15.1 billion and establishing guidance for GAAP net income per diluted share of $21.61 to $22.46 and non-GAAP net income per diluted share of $23.29 to $24.09. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 3.6% and 9.2%, respectively, and a fully diluted share count of 61.2 million shares for GAAP and fully diluted share count of 61.8 million shares for non-GAAP. The outlook for fiscal year 2024 GAAP net income per diluted share includes approximately $116 million in expected stock-based compensation, net of related tax effects of $98 million that are excluded from non-GAAP net income per diluted share.

Conference Call and Webcast Information
Supermicro will present a live audio webcast of a conference call to review its third quarter of fiscal year 2024 on Tuesday, April 30, 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 fourth quarter of fiscal year 2024 and updated full year fiscal 2024 guidance, the ability of the team to develop innovative DLC designs, the ability to expand market leadership in AI infrastructure, the ability of new systems to ramp, and the 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 a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enable our development and production, enabling next generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the 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)

March 31,June 30,
20242023
ASSETS
Current assets:
Cash and cash equivalents$2,115,476 $440,459 
Accounts receivable, net of allowance for credit losses1,650,153 1,148,259 
Inventories4,124,587 1,445,564 
Prepaid expenses and other current assets173,716 145,144 
Total current assets8,063,932 3,179,426 
Property, plant and equipment, net385,566 290,240 
Deferred income taxes, net330,248 162,654 
Other assets83,035 42,409 
Total assets$8,862,781 $3,674,729 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$1,092,445 $776,831 
Accrued liabilities290,370 163,865 
Income taxes payable20,021 129,166 
Short-term debt81,566 170,123 
Deferred revenue233,293 134,667 
Total current liabilities1,717,695 1,374,652 
Deferred revenue, non-current203,198 169,781 
Long-term debt85,646 120,179 
Convertible notes
1,696,255 — 
Other long-term liabilities65,831 37,947 
Total liabilities3,768,625 1,702,559 
Stockholders’ equity:
Common stock and additional paid-in capital2,805,008 538,352 
Accumulated other comprehensive income549 639 
Retained earnings2,288,436 1,433,014 
Total Super Micro Computer, Inc. stockholders’ equity5,093,993 1,972,005 
Noncontrolling interest163 165 
Total stockholders’ equity5,094,156 1,972,170 
Total liabilities and stockholders’ equity$8,862,781 $3,674,729 


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

 Three Months Ended
March 31,		Nine Months Ended
March 31,
 2024202320242023
Net sales$3,850,066 $1,283,296 $9,634,662 $4,938,621 
Cost of sales3,252,698 1,056,937 8,119,281 4,027,305 
Gross profit597,368 226,359 1,515,381 911,316 
Operating expenses:
Research and development 116,226 77,515 336,077 222,458 
Sales and marketing49,691 25,312 133,775 83,120 
General and administrative53,137 24,450 123,241 71,351 
Total operating expenses219,054 127,277 593,093 376,929 
Income from operations378,314 99,082 922,288 534,387 
Other income (expense), net 10,035 (78)8,762 1,641 
Interest expense(6,246)(1,288)(16,240)(6,982)
Income before income tax provision382,103 97,716 914,810 529,046 
Income tax benefit (provision)19,983 (10,857)(61,735)(79,364)
Share of income (loss) from equity investee, net of taxes373 (1,013)2,347 (3,253)
Net income$402,459 $85,846 $855,422 $446,429 
Net income per common share:
Basic$7.13 $1.61 $15.68 $8.42 
Diluted$6.56 $1.53 $14.53 $8.00 
Weighted-average shares used in calculation of net income per common share:
Basic56,478 53,280 54,562 53,011 
Diluted61,431 56,233 58,889 55,796 

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

 Three Months Ended
March 31,		Nine Months Ended
March 31,
 2024202320242023
Cost of sales$3,221 $1,215 $12,680 $3,585 
Research and development24,856 8,097 86,005 23,549 
Sales and marketing4,993 1,214 14,998 3,471 
General and administrative23,037 3,126 42,864 11,042 
Stock-based compensation expense $56,107 $13,652 $156,547 $41,647 


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

Nine Months Ended
March 31,
20242023
Net cash (used in) provided by operating activities$(1,844,158)$672,919 
Net cash used in investing activities(131,969)(28,618)
Net cash provided by (used in) financing activities3,652,783 (547,291)
Effect of exchange rate fluctuations on cash(1,634)(2,269)
Net increase in cash, cash equivalents and restricted cash1,675,022 94,741 
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$2,115,982 $363,300 



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

Three Months EndedNine Months Ended
March 31, 2024March 31, 2023March 31, 2024March 31, 2023
GAAP GROSS PROFIT$597,368 $226,359 $1,515,381 $911,316 
Stock-based compensation3,221 1,215 12,680 3,585 
NON-GAAP GROSS PROFIT$600,589 $227,574 $1,528,061 $914,901 
GAAP GROSS MARGIN15.5 %17.6 %15.7 %18.5 %
Stock-based compensation0.1 %0.1 %0.1 %0.1 %
NON-GAAP GROSS MARGIN15.6 %17.7 %15.8 %18.6 %
GAAP OPERATING EXPENSE$219,054 $127,277 $593,093 $376,929 
Stock-based compensation (52,886)(12,437)(143,867)(38,062)
Litigation recovery— 1,540 — 3,770 
NON-GAAP OPERATING EXPENSE$166,168 $116,380 $449,226 $342,637 
GAAP INCOME FROM OPERATIONS$378,314 $99,082 $922,288 $534,387 
Stock-based compensation 56,107 13,652 156,547 41,647 
Litigation recovery— (1,540)— (3,770)
NON-GAAP INCOME FROM OPERATIONS$434,421 $111,194 $1,078,835 $572,264 
GAAP OPERATING MARGIN 9.8 %7.7 %9.6 %10.8 %
Stock-based compensation1.5 %1.1 %1.6 %0.8 %
Litigation recovery— %(0.1)%— %(0.1)%
NON-GAAP OPERATING MARGIN 11.3 %8.7 %11.2 %11.5 %
GAAP TAX (BENEFIT) EXPENSE
$(19,983)$10,857 $61,735 $79,364 
Adjustments to tax provision47,023 4,433 72,641 11,963 
NON-GAAP TAX EXPENSE$27,040 $15,290 $134,376 $91,327 
GAAP NET INCOME$402,459 $85,846 $855,422 $446,429 
Stock-based compensation 56,107 13,652 156,547 41,647 
Litigation recovery— (1,540)— (3,770)
Adjustments to tax provision(47,023)(4,433)(72,641)(11,963)
NON-GAAP NET INCOME$411,543 $93,525 $939,328 $472,343 
GAAP NET INCOME - BASIC
$402,459 $85,846 $855,422 $446,429 
Convertible notes interest charge, net of tax385 — 385 — 
GAAP NET INCOME - DILUTED
$402,844 $85,846 $855,807 $446,429 
NON-GAAP NET INCOME - DILUTED
$411,928 $93,525 $939,713 $472,343 
GAAP NET INCOME PER COMMON SHARE – BASIC$7.13 $1.61 $15.68 $8.42 
Impact of Non-GAAP adjustments0.16 0.15 1.54 0.49 
NON-GAAP NET INCOME PER COMMON SHARE – BASIC$7.29 $1.76 $17.22 $8.91 
GAAP NET INCOME PER COMMON SHARE – DILUTED$6.56 $1.53 $14.53 $8.00 


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

Three Months EndedNine Months Ended
March 31, 2024March 31, 2023March 31, 2024March 31, 2023
Impact of Non-GAAP adjustments0.09 0.10 1.24 0.29 
NON-GAAP NET INCOME PER COMMON SHARE – DILUTED$6.65 $1.63 $15.77 $8.29 
WEIGHTED-AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE
BASIC – GAAP56,478 53,280 54,562 53,011 
BASIC – NON-GAAP56,478 53,280 54,562 53,011 
DILUTED – GAAP61,431 56,233 58,889 55,796 
DILUTED – NON-GAAP61,953 57,315 59,578 56,966 

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 $33 million, net of the related tax effects of $10 million.