Super Micro Computer, Inc. announces financial results for the second quarter fiscal year 2020

Super Micro Computer, Inc. (Supermicro), a globally renowned company in high-performance, high-efficiency server, storage technology and green computing, has announced financial results for its fiscal second quarter ended December 31, 2019.

Fiscal second quarter highlights include:

• Net sales of US$ 870.9 million versus US$ 799.8 million in the first quarter of fiscal year 2020 and US$ 931.5 million in the same quarter of last year.
• GAAP gross margin of 15.9% versus 16.4% in the first quarter of fiscal year 2020 and 13.7% in the same quarter of last year.
• GAAP net income of US$ 23.7 million versus US$ 26.3 million in the first quarter of fiscal year 2020 and US$ 18.2 million in the same quarter of last year.
• GAAP fully diluted earnings per share of US$ 0.46 versus US$ 0.51 in the first quarter of fiscal year 2020 and US$ 0.36 in the same quarter of last year.
• Non-GAAP fully diluted earnings per share of US$ 0.57 versus US$ 0.68 in the first quarter of fiscal year 2020 and US$ 0.66 in the same quarter of last year.
• Cash flow from operations of US$ 81.6 million and capital expenditures of US$ 10.8 million.

Non-GAAP gross margin

Non-GAAP gross margin for the fiscal second quarter of 2020 was 15.9%, which excludes stock-based compensation expenses of US$ 0.4 million.

Non-GAAP fully diluted earnings per share was US$ 0.57, which excludes stock-based compensation expenses of US$ 5.0 million and consulting expenses related to regaining SEC compliance and other non-recurring expenses of US$ 3.8 million less the related tax effects of both.

Total cash, cash equivalents and short-term investments

As of December 31, 2019, total cash, cash equivalents and short-term investments was US$ 309.0 million

As of December 31, 2019, total cash, cash equivalents and short-term investments was US$ 309.0 million and bank debt was US$ 23.3 million.

Charles Liang, the Chairman and Chief Executive Officer (CEO) at Super Micro Computer, Inc., said “Over the last couple of years, Supermicro has been continuing our mission of becoming a strong global leader of server and storage solutions, especially the greenest and best TCO IT solutions.”

New product lines added

He adds, “We have added many new product lines and dramatically increased our operational capacity worldwide. This quarter, our revenue exceeded the upper end of our original guidance which marks the beginning of our business reacceleration.”

Charles Liang continues, “We are the only server and storage solution provider with more than half of our engineering, product development and final assembly, based in the United States of America (USA). Our engineering and R&D strengths allow us to quickly deliver the most advanced technology, with the broadest range of server and storage products in our industry. We are very excited by our product solutions targeting Artificial Intelligence (AI), 5G / Edge, and the evolving needs of the Enterprise, which offer our company a substantial growth opportunity in a US$ 100 billion market.”

Third quarter fiscal 2020 guidance

Super Micro Computer, Inc. expects net sales in a range of US$ 770 million to US$ 830 million for the third quarter of fiscal year - 2020 ending March 31, 2020. The company expects non-GAAP earnings per diluted share of approximately US$ 0.35 to US$ 0.55 for the third quarter of fiscal year - 2020.

The company expects to incur additional charges of US$ 35 million to US$ 40 million, which will be one-time in nature, in the third or fourth fiscal quarter of 2020. These one-time charges will address residual clean-up matters from their extended black-out period and have not been included in the above guidance.