TMCnet News
Super Micro Computer, Inc. Announces 3rd Quarter 2017 Financial ResultsSuper Micro Computer, Inc. (NASDAQ:SMCI), a global leader in high-performance, high-efficiency server, storage technology and green computing, today announced third quarter fiscal 2017 financial results for the quarter ended March 31, 2017. Fiscal 3rd Quarter Highlights
Net sales for the third quarter ended March 31, 2017 totaled $631.1 million, down 3.2% from $652.0 million in the second quarter of fiscal year 2017. No customer accounted for more than 10% of net sales during the quarter ended March 31, 2017. GAAP net income for the third quarter of fiscal year 2017 and for the same period a year ago were both $16.7 million or $0.32 per diluted share. Included in net income for the quarter is $4.8 million of stock-based compensation expense (pre-tax). Excluding this item and the related tax effect, non-GAAP net income for the third quarter was $20.3 million, or $0.38 per diluted share, compared to non-GAAP net income of $19.0 million, or $0.36 per diluted share, in the same quarter of the prior year. On a sequential basis, non-GAAP net income decreased from the second quarter of fiscal year 2017 by $4.7 million or $(0.1) per diluted share. GAAP gross margin for the third quarter of fiscal year 2017 was 14.0% compared to 14.9% in the same period a year ago. Non-GAAP gross margin for the third quarter was 14.0% compared to 14.9% in the same period a year ago. GAAP gross margin for the second quarter of fiscal year 2017 was 14.3% and Non-GAAP gross margin for the second quarter of fiscal year 2017 was 14.4%. The GAAP income tax provision for the third quarter of fiscal year 2017 was $5.1 million or 23.6% of income before tax provision compared to $7.4 million or 30.7% in the same period a year ago and $9.3 million or 29.7% in the second quarter of fiscal year 2017. The effective tax rate for the third quarter of fiscal year 2017 was lower primarily due to a tax benefit resulting from the completion of an income tax audit in a foreign jurisdiction. The Company's cash and cash equivalents and short and long term investments at March 31, 2017 were $110.5 million compared to $183.7 million at June 30, 2016. Free cash flow for the nine months ended March 31, 2017 was $(113.5) million, primarily due to an increase in the Company's cash used in operating activities. Business Outlook & Management Commentary The Company expects net sales of $655 million to $715 million for the fourth quarter of fiscal year 2017 ending June 30, 2017. The Company expects non-GAAP earnings per diluted share of approximately $0.40 to $0.50 for the fourth quarter. "We are pleased to report third quarter revenues that exceeded our guidance in a quarter complicated by shortages in memory and SSD. Our resurgent revenue growth and market share gains are a result of our strategy of developing vertical markets that expand our TAMs. Storage, IOT, Accelerated Computing, Enterprise and Asia contributed to the 18.5% growth from last year," said Charles Liang, Chairman and Chief Executive Officer. "Supermicro's preparation for the upcoming new Xeon processor launches has never been stronger and our traction with new customer engagement for seeding and early deployment has been outstanding. We expect to lead the industry with the most innovative platform architectures, the broadest product array and total solutions during the upcoming technology transitions." It is currently expected that the outlook will not be updated until the Company's next quarterly earnings announcement, notwithstanding subsequent developments. However, the Company may update the outlook or any portion thereof at any time. Such updates will take place only by way of a news release or other broadly disseminated disclosure available to all interested parties in accordance with Regulation FD. Conference Call Information Super Micro Computer will discuss these financial results in a conference call at 2:00 p.m. PT, today. To participate in the conference, please call 1-888-715-1389 (International callers dial 1-913-312-1383) 10 minutes prior. A recording of the conference will be available until 11:59 pm (Eastern Time) on Thursday, May 11, 2017, by dialing 1-844-512-2921 (International callers dial 1-412-317-6671) and entering replay PIN 7820076. The live web cast and recording of the call will be available on the Investor Relations section at www.supermicro.com two hours after the conference conclusion. They will remain available until the Company's next earnings call. 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, among other things, to our expected financial and operating results, our ability to build and grow Super Micro Computer, the benefits of our products and our ability to achieve our goals, plans and objectives. 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. These include, but are not limited to: our dependence on continued growth in the markets for X86, blade servers and embedded applications, increased competition, difficulties of predicting timing, introduction and customer acceptance of new products, poor product sales, difficulties in establishing and maintaining successful relationships with our distributors and vendors, shortages or price fluctuations in our supply chain, our ability to protect our intellectual property rights, our ability to control the rate of expansion domestically and internationally, difficulty managing rapid growth and general political, economic and market conditions and events. 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. Use of Non-GAAP Financial Measures Non-GAAP gross margin discussed in this press release excludes stock-based compensation expense. Non-GAAP net income and net income per share discussed in this press release exclude stock-based compensation expense and the related tax effect of the applicable items. 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. Pursuant to the requirements of SEC Regulation G, detailed reconciliations between the Company's GAAP and non-GAAP financial results is provided at the end of this press release. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in the Company's SEC filings. About Super Micro Computer, Inc. Supermicro®, a global leader in high-performance, high-efficiency server technology and innovation is a premier provider of end-to-end green computing solutions for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and Embedded Systems worldwide. Supermicro's advanced Server Building Block Solutions® offer a vast array of components for building energy-efficient, application-optimized, computing solutions. Architecture innovations include Twin, TwinPro, FatTwin™, Ultra Series, MicroCloud, MicroBlade, SuperBlade®, Simply Double, Double-sided Storage®, Battery Backup Power (BBP®) modules and WIO/UIO. Products include servers, blades, GPU systems, workstations, motherboards, chassis, power supplies, storage, networking, server management software and SuperRack® cabinets/accessories delivering unrivaled performance and value. Founded in 1993 and headquartered in San Jose, California, Supermicro is committed to protecting the environment through its "We Keep IT Green®" initiative. The Company has global logistics and operations centers in Silicon Valley (USA), the Netherlands (Europe) and its Science & Technology Park in Taiwan (Asia). Supermicro, FatTwin, TwinPro, SuperBlade, Double-Sided Storage, BBP, SuperRack, Building Block Solutions and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc. All other brands, names and trademarks are the property of their respective owners.
SMCI-F View source version on businesswire.com: http://www.businesswire.com/news/home/20170427006559/en/ |