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Before we start I’ll remind you that our remarks include forward-looking statements. There are a number of risk factors that could cause Super Micro’s future results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10(k) for fiscal 2011 and our other SEC filings. All of those documents are available from the Investor Relations page of Super Micro’s website at www.supermicro.com. We assume no obligation to update any forward-looking statements.Most of today’s presentation will refer to non-GAAP financial results and outlooks. For an explanation of our non-GAAP financial measures, please refer to Slide 3 of this presentation or to our press release published earlier today. In addition, a reconciliation of GAAP to non-GAAP results is contained in today’s press release and in the supplemental information attached to today’s presentation. I’ll now turn the call over to Charles Liang, Chairman and Chief Executive Officer. Charles Liang Thank you, Perry, and good afternoon everyone. Please turn to Slide 4. First let me provide you with the highlights of our FQ1. FQ1 revenue was $247.9 million or 4.8% lower than last quarter, and 19.6% higher year-over-year. After-tax net income was $10.5 million or 19.3% lower quarter-over-quarter and 13.2% higher compared to last year. Super Micro’s diluted earnings per share was $0.24 per diluted share compared to $0.29 last quarter or $0.22 last year. Slide 5, please. With this FQ1 results we have demonstrated a strong start to our earnings fiscal year in the seasonally soft quarter. We anticipated this softness in our August guidance and this quarter unfolded as expected by achieving approximately 20% revenue growth year-over-year. In the past two quarters we have sold more than $0.5 billion of server and storage products, indicating good growth momentum, although in these past quarter there were lots of macroeconomic concerns in the United States and in Europe in addition to somewhat seasonal softness. This impact was relatively minor to our business.
From a geographic productive perspective, the United States accounted for 62.1% of revenue and Asia was 15.8%. While both regions were lower quarter-over-quarter the European share rose to 18.8% last quarter as a strong September was offset by a generally slower summer period. Last quarter OEM and Direct customers accounted for over 44% of revenue and both groups continued to grow steadily. Internet Data Center reached 16.4% of total revenue in FQ1 as certain new products were deployed as the result of the higher OEM and Direct business. System sales also continues to be strong and accounted for over 39% of sales.I will start with details regarding the progress of our new Generation X9 Sandy Bridge dual processor and H8 Interlagos solutions. As most of our customers are eagerly anticipating them, we have been investing heavily on the final push of the development cycle with our consistently growing engineering team. We will again be first to market with our phase of the product among competition. We overcame the technical challenge and had carefully tuned and test-engineered a subsystem and a completed solution to ensure them of optimized performance and features before full bore putting us in. Last quarter we began entering into our presale activities through simple and qualifying servers for Sandy Bridge and Interlagos with our customers on specific projects. We are anticipating the launch of Interlagos with great momentum next month. For Sandy Bridge we will continue to increase our tempering and seeding programs and work with large datacenter customers for an early ship program during this quarter, and we expect they will generate additional revenue. However, we anticipate a significant revenue growth from those new solutions to begin in early 2012. Read the rest of this transcript for free on seekingalpha.com