SUPER MICRO COMPUTER, INC. ANNOUNCES 2ND QUARTER 2012 FINANCIAL RESULTS
SAN JOSE, Calif.–(BUSINESS WIRE)– Super Micro Computer, Inc. (NASDAQ:SMCI – News), a personality in focus optimized, tall opening server solutions, now voiced second quarter mercantile 2012 monetary results for the entertain finished Dec 31, 2011. The final results are in line with the rough formula voiced by the Company on Jan 10, 2012.
Fiscal 2nd Quarter Highlights
Quarterly net sales of $249.9 million, up 0.8% from the initial entertain of mercantile year 2012 and up 3.8% from the same entertain of final year.
Net income of $8.8 million, up 3.3% from the initial entertain of mercantile year 2012 and down 24.2% from the same entertain of final year.
Gross domain of 17.1%, up from 16.0% in the initial entertain of mercantile year 2012 and up 0.4% from the same entertain of final year.
Server Solutions accounted for 44.0% of net sales compared with 39.4% in the initial entertain of mercantile year 2012 and 40.5% in the same entertain of final year.
Net sales for the second entertain finished Dec 31, 2011 totaled $249.9 million, up 0.8% from $247.9 million in the initial entertain of mercantile year 2012. No patron accounted for more than 10% of net sales during the entertain finished Dec 31, 2011.
Net income for the second entertain of mercantile year 2012 was $8.8 million or $0.20 per widely separated share, a diminution of 24.2% from the net income of $11.6 million, or $0.27 per widely separated share in the same duration a year ago. Included in net income for the entertain is $2.5 million of stock-based remuneration responsibility (pre-tax). Excluding this object and the associated taxation effect, non-GAAP net income for the second entertain was $11.2 million, or $0.25 per widely separated share, compared to non-GAAP net income of $13.3 million, or $0.31 per widely separated share, in the same entertain of the prior to year. On a consecutive basis, non-GAAP net income increasing from the initial entertain of mercantile year 2012 by $0.7 million or $0.01 per widely separated share.
Gross domain for the second entertain was 17.1% compared to 16.7% in the same duration a year ago. Non-GAAP sum domain for the second entertain was 17.1% compared to 16.8% in the same duration a year ago. Non-GAAP sum domain was 16.1% for the initial entertain of mercantile year 2012.
The Company’s money and money equivalents and reduced and prolonged tenure investments at Dec 31, 2011 were $106.1 million compared to $75.2 million at Jun 30, 2011. Free money upsurge in the 6 months finished Dec 31, 2011 was $21.5 million.
Business Outlook & Management Commentary
The Company expects net sales of $240 million to $270 million for the third entertain of mercantile year 2012 finale Mar 31, 2012. The Company expects non-GAAP earnings per widely separated share of we estimate $0.19 to $0.27 for the third quarter.
“We’ve formerly pronounced that the third mercantile entertain was severe predominantly due to stroke on the tough hoop expostulate supply sequence ensuing from the flooding in Thailand. We are stability to work with our vendors to redeem tough hoop expostulate reserve that will assistance us encounter the clever flourishing direct for our products,” pronounced Charles Liang, CEO of Supermicro. “2012 will be a poignant year to us due to the entrance launch of Sandy Bridge. During the quarter, we one after another our R&D investment to be able to suggest the broadest product charity in the attention for the Sandybridge launch. Also, we non-stop our new Taiwan trickery which will enlarge our potency and reduce the price to broach products to our customers. Backlog for our products is high. We are assured that our new product architectures together with Fat Twin and full digital energy subsystem and enlargement of our prolongation will yield extended event for us in the entrance quarters.”
It is now approaching that the opinion will not be updated until the Company’s successive quarterly earnings announcement, in spite of successive developments. However, the Company may refurbish the opinion or any apportionment thereof at any time. Such updates will take place usually by approach of a news recover or other broadly disseminated avowal accessible to all meddlesome parties in suitability with Regulation FD.
Conference Call Information
Super Micro Computer will plead these monetary formula in a discussion call at 2:00 p.m. PT, today. To experience the conference, please call 1-888-812-8589 (international callers dial 1-913-312-0407) 10 mins prior. A recording of the discussion will be accessible until 11:59 pm ET on Tuesday, Feb 7, 2012 by dialing 1-877-870-5176 (international callers dial 1-858-384-5517) and entering replay PIN 4396394. The live web expel and recording of the call will be accessible on the Investor Relations territory at www.supermicro.com two hours after the discussion conclusion. They will sojourn accessible until the Company’s successive gain call.
Cautionary Statement Regarding Forward Looking Statements
Statements contained in this press recover that are not chronological actuality may be forward-looking statements inside of the definition of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may relate, in between other things, to our approaching monetary and handling results, our capability to set up and grow Super Micro Computer, the benefits of our products and our capability to grasp our goals, skeleton and objectives. Such forward-looking statements do not consecrate guarantees of destiny opening and are theme to a accumulation of risks and uncertainties that could means our tangible formula to talk about materially from those anticipated. These include, though are not singular to: our coherence on one after another enlargement in the markets for X86 based servers, knife edge servers and embedded applications, increasing competition, difficulties of presaging timing of new product introductions, and patron acceptance of new products, bad product sales, difficulties in substantiating and progressing successful relations with our distributors and vendors, shortages or price fluctuations in our supply chain, our capability to strengthen our egghead skill rights, our capability to control the rate of enlargement domestically and internationally, worry handling fast enlargement and ubiquitous political, mercantile and marketplace conditions and events. Additional factors that could means tangible formula to talk about materially from those projected or referred to in any forward-looking statements are contained in our filings with the Securities and Exchange Commission, together with those factors discussed underneath the heading “Risk Factors” in such filings.
Use of Non-GAAP Financial Measures
Non-GAAP sum domain discussed in this press recover excludes stock-based remuneration responsibility and accrued etiquette fee for prior to periods. Non-GAAP net income and net income per share discussed in this press recover bar stock-based remuneration expense, accrued etiquette fee for prior to periods, a sustenance for lawsuit costs and the associated taxation effect of the germane items. Management presents non-GAAP monetary measures since it considers them to be critical supplemental measures of performance. Management uses the non-GAAP monetary measures for formulation purposes, together with research of the Company’s opening opposite prior to periods, the credentials of handling budgets and to establish suitable levels of handling and collateral investments. Management also believes that the non-GAAP monetary measures yield one more discernment for analysts and investors in evaluating the Company’s monetary and operational performance. However, these non-GAAP monetary measures have stipulations as an methodical tool, and are not dictated to be an pick to monetary measures rebuilt in suitability with GAAP. Pursuant to the mandate of SEC Regulation G, detailed reconciliations in between the Company’s GAAP and non-GAAP monetary formula is supposing at the end of this press release. Investors are suggested to delicately examination and cruise this information as well as the GAAP monetary formula that are disclosed in the Company’s SEC filings.
About Super Micro Computer, Inc.
Supermicro® (NASDAQ: SMCI – News), a tellurian personality in high-performance, high-efficiency server technology creation is a premier provider of end-to-end immature computing solutions for Enterprise IT, Datacenter, Cloud Computing, HPC and Embedded Systems worldwide. Supermicro’s modernized server Building Block Solutions® offers a immeasurable form of modular, interoperable components for office building energy-efficient, application-optimized computing solutions. This extended line of products includes servers, blades, GPU systems, workstations, motherboards, chassis, energy supplies, storage technologies, networking solutions and SuperRack® cabinets/accessories. Architecture innovations include Twin Architecture, SuperServer®, SuperBlade®, MicroCloud, Super Storage Bridge Bay (SBB), Double-Sided Storage™, Universal I/O (UIO) and WIO enlargement technology all of which broach unequaled opening and value. Supermicro is committed to safeguarding the sourroundings through the “We Keep IT Green®” commencement by on condition that business with the many energy-efficient, environmentally-friendly solutions accessible on the market. Founded in 1993, Supermicro is headquartered in Silicon Valley with worldwide operations and production centers in Europe and Asia. For more information, visit www.supermicro.com.
Supermicro, Building Block Solutions, SuperServer, SuperBlade, SuperRack, Double-Sided Storage and We Keep IT Green are trademarks and/or purebred trademarks of Super Micro Computer, Inc.
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31,
June 30,
2011
2011
ASSETS
Current assets:
Cash and money equivalents
$
102,377
$
69,943
Accounts receivable, net
80,100
85,005
Inventory, net
193,360
192,711
Deferred income taxes – current
11,114
10,250
Prepaid income taxes
2,270
7,207
Prepaid losses and other stream assets
5,477
4,506
Total stream assets
394,698
369,622
Long-term investments
3,669
5,188
Property, plant and equipment, net
96,051
74,438
Deferred income taxes – noncurrent
2,323
2,792
Other assets
3,256
12,580
Total assets
$
499,997
$
464,620
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
115,859
$
113,340
Accrued liabilities
27,638
25,816
Income taxes payable
756
936
Short-term debt
9,855
-
Current apportionment of long-term debt
2,800
555
Total stream liabilities
156,908
140,647
Long tenure debt-net of stream portion
22,003
27,596
Other long-term liabilities
9,609
9,120
Total liabilities
188,520
177,363
Stockholders’ equity:
Common batch and one more paid-in capital
129,552
122,693
Treasury batch (at cost)
(2,030
)
(2,030
)
Accumulated other extensive loss
(109
)
(204
)
Retained earnings
184,064
166,798
Total stockholders’ equity
311,477
287,257
Total liabilities and stockholders’ equity
$
499,997
$
464,620
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, solely share and per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
December 31,
December 31,
December 31,
December 31,
2011
2010
2011
2010
Net sales
$
249,915
$
240,813
$
497,800
$
447,991
Cost of sales
207,301
200,634
415,560
374,775
Gross profit
42,614
40,179
82,240
73,216
Operating expenses:
Research and development
15,657
12,297
29,481
22,743
Sales and marketing
8,032
6,701
15,742
12,909
General and administrative
5,207
4,257
9,785
8,631
Total handling expenses
28,896
23,255
55,008
44,283
Income from operations
13,718
16,924
27,232
28,933
Interest and other income, net
20
15
37
35
Interest expense
(173
)
(169
)
(367
)
(328
)
Income prior to income taxation provision
13,565
16,770
26,902
28,640
Income taxation provision
4,791
5,201
9,636
9,854
Net income
$
8,774
$
11,569
$
17,266
$
18,786
Net income per usual share:
Basic
$
0.21
$
0.30
$
0.42
$
0.49
Diluted
$
0.20
$
0.27
$
0.39
$
0.45
Weighted-average shares used in calculation of net income per usual share:
Basic (a)
40,555
37,543
40,456
37,383
Diluted (b)
43,816
41,619
43,603
41,509
Stock-based remuneration is enclosed in the following price and responsibility categories by duration (in thousands):
Three Months Ended
Six Months Ended
December 31,
December 31,
December 31,
December 31,
2011
2010
2011
2010
Cost of sales
$
200
$
173
$
408
$
367
Research and development
1,328
928
2,600
1,792
Sales and marketing
362
249
640
531
General and administrative
617
480
1,189
964
SUPER MICRO COMPUTER, INC
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(In thousands)
(Unaudited)
Six Months Ended
December 31,
2011
2010
OPERATING ACTIVITIES:
Net income
$
17,266
$
18,786
Reconciliation of net income to net money supposing by handling activities:
Depreciation and amortization
3,147
2,604
Stock-based remuneration expense
4,837
3,654
Excess taxation benefits from stock-based compensation
(1,084
)
(1,216
)
Allowance for puzzled accounts
25
409
Allowance for sales returns
4,348
2,987
Provision for inventory
3,902
489
Deferred income taxes, net
(421
)
3,327
Changes in handling resources and liabilities:
Accounts receivable, net
532
(8,223
)
Inventory
(4,551
)
(52,551
)
Prepaid losses and other assets
(813
)
(3,127
)
Accounts payable
1,887
48,100
Income taxes payable/receivable, net
5,962
(2,267
)
Accrued liabilities
1,345
6,519
Other long-term liabilities
508
1,408
Net money supposing by handling activities
36,890
20,899
INVESTING ACTIVITIES:
Proceeds from investments
1,675
1,300
Purchases of property, plant and equipment
(18,260
)
(8,275
)
Restricted cash
(29
)
(82
)
Land deposition refund
2,868
-
Net money used in investing activities
(13,746
)
(7,057
)
FINANCING ACTIVITIES:
Proceeds from debt
31,021
13,875
Repayment of debt
(23,962
)
(13,854
)
Proceeds from practice of batch options
1,926
1,142
Excess taxation benefits from stock-based compensation
1,084
1,216
Payment of obligations underneath collateral leases
(18
)
(34
)
Advances (Payment) underneath receivable financing arrangements
441
(181
)
Minimum taxation self-denial paid on interest of officers and an worker for limited batch awards
(1,109
)
(1,434
)
Net money supposing by financing activities
9,383
730
Effect of sell rate fluctuations on money and money equivalents
(93
)
-
Net enlarge in money and money equivalents
32,434
14,572
Cash and money equivalents at commencement of period
69,943
72,644
Cash and money equivalents at end of period
$
102,377
$
87,216
Supplemental avowal of money upsurge information:
Cash paid for interest
$
376
$
299
Cash paid for taxes, net of refunds
$
3,485
$
7,473
Non-cash investing and financing activities:
Accrued costs for property, plant and apparatus purchases
$
2,114
$
971
Deposit practical to skill acquisition
$
5,867
-
SUPER MICRO COMPUTER, INC
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, solely share and per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
December 31,
December 31,
December 31,
December 31,
2011
2010
2011
2010
GAAP GROSS PROFIT
$
42,614
$
40,179
$
82,240
$
73,216
Add behind stock-based remuneration (c)
200
173
408
367
Non-GAAP GROSS PROFIT
$
42,814
$
40,352
$
82,648
$
73,583
GAAP GROSS MARGIN
17.1
%
16.7
%
16.5
%
16.3
%
Add behind stock-based remuneration (c)
0.0
%
0.1
%
0.1
%
0.1
%
Non-GAAP GROSS MARGIN
17.1
%
16.8
%
16.6
%
16.4
%
GAAP INCOME FROM OPERATIONS
$
13,718
$
16,924
$
27,232
$
28,933
Add behind stock-based remuneration (c)
2,507
1,830
4,837
3,654
Add behind sustenance for lawsuit detriment (d)
-
-
-
729
Non-GAAP INCOME FROM OPERATIONS
$
16,225
$
18,754
$
32,069
$
33,316
GAAP NET INCOME
$
8,774
$
11,569
$
17,266
$
18,786
Add behind stock-based remuneration (c)
2,507
1,830
4,837
3,654
Add behind sustenance for lawsuit detriment (d)
-
-
-
729
Add behind adjustments to taxation sustenance (e)
(116
)
(65
)
(453
)
(570
)
Non-GAAP NET INCOME
$
11,165
$
13,334
$
21,650
$
22,599
GAAP NET INCOME PER COMMON SHARE – BASIC (a)
$
0.21
$
0.30
$
0.42
$
0.49
Add behind stock-based compensation, sustenance for lawsuit detriment and adjustments to taxation sustenance (c) (d) (e)
0.06
0.05
0.11
0.10
Non-GAAP NET INCOME PER COMMON SHARE – BASIC (f)
$
0.27
$
0.35
$
0.53
$
0.59
GAAP NET INCOME PER COMMON SHARE – DILUTED (b)
$
0.20
$
0.27
$
0.39
$
0.45
Add behind stock-based compensation, sustenance for lawsuit detriment and adjustments to taxation sustenance (c) (d) (e)
0.05
0.04
0.10
0.08
Non-GAAP NET INCOME PER COMMON SHARE – DILUTED (g)
$
0.25
$
0.31
$
0.49
$
0.53
WEIGHTED-AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE
BASIC –GAAP (h)
40,555
37,543
40,456
37,383
BASIC – Non-GAAP (i)
40,915
38,165
40,869
38,087
DILUTED – GAAP (h)
43,816
41,619
43,603
41,509
DILUTED – Non-GAAP (i)
44,625
42,691
44,472
42,704
(a) Approximately $77,000 and $175,000 of undistributed gain allocated to participating bonds were not enclosed in the integrity of GAAP simple net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively, and we estimate $189,000 and $347,000 for the 3 and 6 months finished Dec 31, 2010, respectively.
(b) Approximately $71,000 and $162,000 of undistributed gain allocated to participating bonds were not enclosed in the integrity of GAAP widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively, and we estimate $170,000 and $313,000 for the 3 and 6 months finished Dec 31, 2010, respectively.
(c) Amortization of ASC Topic 718 (SFAS No. 123R, APB twenty-five and SFAS No. 123) stock-based remuneration for the 3 and 6 months finished Dec 31, 2011 and 2010.
(d) Provision for lawsuit costs for the 6 months finished Dec 31, 2010 was associated to a allotment of a obvious lawsuit in Sep 2010.
(e) The sustenance of income taxes used in nearing at the non-GAAP net income was computed regulating an income taxation rate of 30.5% and 31.8% for the 3 and 6 months finished Dec 31, 2011, respectively, and 28.3% and 31.6% for the 3 and 6 months finished Dec 31, 2010, respectively.
(f) Approximately $98,000 and $219,000 of undistributed gain allocated to participating bonds were enclosed in the integrity of Non-GAAP simple net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively, and we estimate $217,000 and $418,000 of undistributed gain allocated to participating bonds were enclosed in the integrity of Non-GAAP simple net income per usual share for the 3 and 6 months finished Dec 31, 2010, respectively.
(g) Approximately $90,000 and $202,000 of undistributed gain allocated to participating bonds were enclosed in the integrity of Non-GAAP widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively, and we estimate $194,000 and $372,000 of undistributed gain allocated to participating bonds were enclosed in the integrity of Non-GAAP widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2010, respectively.
(h) 359,282 and 413,955 shares of unvested limited batch awards were not enclosed in the integrity of GAAP simple and widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively. 622,289 and 703,759 shares of unvested limited batch awards were not enclosed in the integrity of GAAP simple and widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2010, respectively.
(i) 359,282 and 413,955 shares of unvested limited batch awards were enclosed in the integrity of Non-GAAP simple and widely separated net income per share for the 3 and 6 months finished Dec 31, 2011, respectively. 622,289 and 703,759 shares of unvested limited batch awards were enclosed in the integrity of Non-GAAP simple and widely separated net income per share for the 3 and 6 months finished Dec 31, 2010, respectively.
SMCI-F
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SAN JOSE, Calif.–(BUSINESS WIRE)– Super Micro Computer, Inc. (NASDAQ:SMCI – News), a personality in focus optimized, tall opening server solutions, now voiced second quarter mercantile 2012 monetary results for the entertain finished Dec 31, 2011. The final results are in line with the rough formula voiced by the Company on Jan 10, 2012.
Fiscal 2nd Quarter Highlights
Quarterly net sales of $249.9 million, up 0.8% from the initial entertain of mercantile year 2012 and up 3.8% from the same entertain of final year.
Net income of $8.8 million, up 3.3% from the initial entertain of mercantile year 2012 and down 24.2% from the same entertain of final year.
Gross domain of 17.1%, up from 16.0% in the initial entertain of mercantile year 2012 and up 0.4% from the same entertain of final year.
Server Solutions accounted for 44.0% of net sales compared with 39.4% in the initial entertain of mercantile year 2012 and 40.5% in the same entertain of final year.
Net sales for the second entertain finished Dec 31, 2011 totaled $249.9 million, up 0.8% from $247.9 million in the initial entertain of mercantile year 2012. No patron accounted for more than 10% of net sales during the entertain finished Dec 31, 2011.
Net income for the second entertain of mercantile year 2012 was $8.8 million or $0.20 per widely separated share, a diminution of 24.2% from the net income of $11.6 million, or $0.27 per widely separated share in the same duration a year ago. Included in net income for the entertain is $2.5 million of stock-based remuneration responsibility (pre-tax). Excluding this object and the associated taxation effect, non-GAAP net income for the second entertain was $11.2 million, or $0.25 per widely separated share, compared to non-GAAP net income of $13.3 million, or $0.31 per widely separated share, in the same entertain of the prior to year. On a consecutive basis, non-GAAP net income increasing from the initial entertain of mercantile year 2012 by $0.7 million or $0.01 per widely separated share.
Gross domain for the second entertain was 17.1% compared to 16.7% in the same duration a year ago. Non-GAAP sum domain for the second entertain was 17.1% compared to 16.8% in the same duration a year ago. Non-GAAP sum domain was 16.1% for the initial entertain of mercantile year 2012.
The Company’s money and money equivalents and reduced and prolonged tenure investments at Dec 31, 2011 were $106.1 million compared to $75.2 million at Jun 30, 2011. Free money upsurge in the 6 months finished Dec 31, 2011 was $21.5 million.
Business Outlook & Management Commentary
The Company expects net sales of $240 million to $270 million for the third entertain of mercantile year 2012 finale Mar 31, 2012. The Company expects non-GAAP earnings per widely separated share of we estimate $0.19 to $0.27 for the third quarter.
“We’ve formerly pronounced that the third mercantile entertain was severe predominantly due to stroke on the tough hoop expostulate supply sequence ensuing from the flooding in Thailand. We are stability to work with our vendors to redeem tough hoop expostulate reserve that will assistance us encounter the clever flourishing direct for our products,” pronounced Charles Liang, CEO of Supermicro. “2012 will be a poignant year to us due to the entrance launch of Sandy Bridge. During the quarter, we one after another our R&D investment to be able to suggest the broadest product charity in the attention for the Sandybridge launch. Also, we non-stop our new Taiwan trickery which will enlarge our potency and reduce the price to broach products to our customers. Backlog for our products is high. We are assured that our new product architectures together with Fat Twin and full digital energy subsystem and enlargement of our prolongation will yield extended event for us in the entrance quarters.”
It is now approaching that the opinion will not be updated until the Company’s successive quarterly earnings announcement, in spite of successive developments. However, the Company may refurbish the opinion or any apportionment thereof at any time. Such updates will take place usually by approach of a news recover or other broadly disseminated avowal accessible to all meddlesome parties in suitability with Regulation FD.
Conference Call Information
Super Micro Computer will plead these monetary formula in a discussion call at 2:00 p.m. PT, today. To experience the conference, please call 1-888-812-8589 (international callers dial 1-913-312-0407) 10 mins prior. A recording of the discussion will be accessible until 11:59 pm ET on Tuesday, Feb 7, 2012 by dialing 1-877-870-5176 (international callers dial 1-858-384-5517) and entering replay PIN 4396394. The live web expel and recording of the call will be accessible on the Investor Relations territory at www.supermicro.com two hours after the discussion conclusion. They will sojourn accessible until the Company’s successive gain call.
Cautionary Statement Regarding Forward Looking Statements
Statements contained in this press recover that are not chronological actuality may be forward-looking statements inside of the definition of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may relate, in between other things, to our approaching monetary and handling results, our capability to set up and grow Super Micro Computer, the benefits of our products and our capability to grasp our goals, skeleton and objectives. Such forward-looking statements do not consecrate guarantees of destiny opening and are theme to a accumulation of risks and uncertainties that could means our tangible formula to talk about materially from those anticipated. These include, though are not singular to: our coherence on one after another enlargement in the markets for X86 based servers, knife edge servers and embedded applications, increasing competition, difficulties of presaging timing of new product introductions, and patron acceptance of new products, bad product sales, difficulties in substantiating and progressing successful relations with our distributors and vendors, shortages or price fluctuations in our supply chain, our capability to strengthen our egghead skill rights, our capability to control the rate of enlargement domestically and internationally, worry handling fast enlargement and ubiquitous political, mercantile and marketplace conditions and events. Additional factors that could means tangible formula to talk about materially from those projected or referred to in any forward-looking statements are contained in our filings with the Securities and Exchange Commission, together with those factors discussed underneath the heading “Risk Factors” in such filings.
Use of Non-GAAP Financial Measures
Non-GAAP sum domain discussed in this press recover excludes stock-based remuneration responsibility and accrued etiquette fee for prior to periods. Non-GAAP net income and net income per share discussed in this press recover bar stock-based remuneration expense, accrued etiquette fee for prior to periods, a sustenance for lawsuit costs and the associated taxation effect of the germane items. Management presents non-GAAP monetary measures since it considers them to be critical supplemental measures of performance. Management uses the non-GAAP monetary measures for formulation purposes, together with research of the Company’s opening opposite prior to periods, the credentials of handling budgets and to establish suitable levels of handling and collateral investments. Management also believes that the non-GAAP monetary measures yield one more discernment for analysts and investors in evaluating the Company’s monetary and operational performance. However, these non-GAAP monetary measures have stipulations as an methodical tool, and are not dictated to be an pick to monetary measures rebuilt in suitability with GAAP. Pursuant to the mandate of SEC Regulation G, detailed reconciliations in between the Company’s GAAP and non-GAAP monetary formula is supposing at the end of this press release. Investors are suggested to delicately examination and cruise this information as well as the GAAP monetary formula that are disclosed in the Company’s SEC filings.
About Super Micro Computer, Inc.
Supermicro® (NASDAQ: SMCI – News), a tellurian personality in high-performance, high-efficiency server technology creation is a premier provider of end-to-end immature computing solutions for Enterprise IT, Datacenter, Cloud Computing, HPC and Embedded Systems worldwide. Supermicro’s modernized server Building Block Solutions® offers a immeasurable form of modular, interoperable components for office building energy-efficient, application-optimized computing solutions. This extended line of products includes servers, blades, GPU systems, workstations, motherboards, chassis, energy supplies, storage technologies, networking solutions and SuperRack® cabinets/accessories. Architecture innovations include Twin Architecture, SuperServer®, SuperBlade®, MicroCloud, Super Storage Bridge Bay (SBB), Double-Sided Storage™, Universal I/O (UIO) and WIO enlargement technology all of which broach unequaled opening and value. Supermicro is committed to safeguarding the sourroundings through the “We Keep IT Green®” commencement by on condition that business with the many energy-efficient, environmentally-friendly solutions accessible on the market. Founded in 1993, Supermicro is headquartered in Silicon Valley with worldwide operations and production centers in Europe and Asia. For more information, visit www.supermicro.com.
Supermicro, Building Block Solutions, SuperServer, SuperBlade, SuperRack, Double-Sided Storage and We Keep IT Green are trademarks and/or purebred trademarks of Super Micro Computer, Inc.
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31,
June 30,
2011
2011
ASSETS
Current assets:
Cash and money equivalents
$
102,377
$
69,943
Accounts receivable, net
80,100
85,005
Inventory, net
193,360
192,711
Deferred income taxes – current
11,114
10,250
Prepaid income taxes
2,270
7,207
Prepaid losses and other stream assets
5,477
4,506
Total stream assets
394,698
369,622
Long-term investments
3,669
5,188
Property, plant and equipment, net
96,051
74,438
Deferred income taxes – noncurrent
2,323
2,792
Other assets
3,256
12,580
Total assets
$
499,997
$
464,620
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
115,859
$
113,340
Accrued liabilities
27,638
25,816
Income taxes payable
756
936
Short-term debt
9,855
-
Current apportionment of long-term debt
2,800
555
Total stream liabilities
156,908
140,647
Long tenure debt-net of stream portion
22,003
27,596
Other long-term liabilities
9,609
9,120
Total liabilities
188,520
177,363
Stockholders’ equity:
Common batch and one more paid-in capital
129,552
122,693
Treasury batch (at cost)
(2,030
)
(2,030
)
Accumulated other extensive loss
(109
)
(204
)
Retained earnings
184,064
166,798
Total stockholders’ equity
311,477
287,257
Total liabilities and stockholders’ equity
$
499,997
$
464,620
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, solely share and per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
December 31,
December 31,
December 31,
December 31,
2011
2010
2011
2010
Net sales
$
249,915
$
240,813
$
497,800
$
447,991
Cost of sales
207,301
200,634
415,560
374,775
Gross profit
42,614
40,179
82,240
73,216
Operating expenses:
Research and development
15,657
12,297
29,481
22,743
Sales and marketing
8,032
6,701
15,742
12,909
General and administrative
5,207
4,257
9,785
8,631
Total handling expenses
28,896
23,255
55,008
44,283
Income from operations
13,718
16,924
27,232
28,933
Interest and other income, net
20
15
37
35
Interest expense
(173
)
(169
)
(367
)
(328
)
Income prior to income taxation provision
13,565
16,770
26,902
28,640
Income taxation provision
4,791
5,201
9,636
9,854
Net income
$
8,774
$
11,569
$
17,266
$
18,786
Net income per usual share:
Basic
$
0.21
$
0.30
$
0.42
$
0.49
Diluted
$
0.20
$
0.27
$
0.39
$
0.45
Weighted-average shares used in calculation of net income per usual share:
Basic (a)
40,555
37,543
40,456
37,383
Diluted (b)
43,816
41,619
43,603
41,509
Stock-based remuneration is enclosed in the following price and responsibility categories by duration (in thousands):
Three Months Ended
Six Months Ended
December 31,
December 31,
December 31,
December 31,
2011
2010
2011
2010
Cost of sales
$
200
$
173
$
408
$
367
Research and development
1,328
928
2,600
1,792
Sales and marketing
362
249
640
531
General and administrative
617
480
1,189
964
SUPER MICRO COMPUTER, INC
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(In thousands)
(Unaudited)
Six Months Ended
December 31,
2011
2010
OPERATING ACTIVITIES:
Net income
$
17,266
$
18,786
Reconciliation of net income to net money supposing by handling activities:
Depreciation and amortization
3,147
2,604
Stock-based remuneration expense
4,837
3,654
Excess taxation benefits from stock-based compensation
(1,084
)
(1,216
)
Allowance for puzzled accounts
25
409
Allowance for sales returns
4,348
2,987
Provision for inventory
3,902
489
Deferred income taxes, net
(421
)
3,327
Changes in handling resources and liabilities:
Accounts receivable, net
532
(8,223
)
Inventory
(4,551
)
(52,551
)
Prepaid losses and other assets
(813
)
(3,127
)
Accounts payable
1,887
48,100
Income taxes payable/receivable, net
5,962
(2,267
)
Accrued liabilities
1,345
6,519
Other long-term liabilities
508
1,408
Net money supposing by handling activities
36,890
20,899
INVESTING ACTIVITIES:
Proceeds from investments
1,675
1,300
Purchases of property, plant and equipment
(18,260
)
(8,275
)
Restricted cash
(29
)
(82
)
Land deposition refund
2,868
-
Net money used in investing activities
(13,746
)
(7,057
)
FINANCING ACTIVITIES:
Proceeds from debt
31,021
13,875
Repayment of debt
(23,962
)
(13,854
)
Proceeds from practice of batch options
1,926
1,142
Excess taxation benefits from stock-based compensation
1,084
1,216
Payment of obligations underneath collateral leases
(18
)
(34
)
Advances (Payment) underneath receivable financing arrangements
441
(181
)
Minimum taxation self-denial paid on interest of officers and an worker for limited batch awards
(1,109
)
(1,434
)
Net money supposing by financing activities
9,383
730
Effect of sell rate fluctuations on money and money equivalents
(93
)
-
Net enlarge in money and money equivalents
32,434
14,572
Cash and money equivalents at commencement of period
69,943
72,644
Cash and money equivalents at end of period
$
102,377
$
87,216
Supplemental avowal of money upsurge information:
Cash paid for interest
$
376
$
299
Cash paid for taxes, net of refunds
$
3,485
$
7,473
Non-cash investing and financing activities:
Accrued costs for property, plant and apparatus purchases
$
2,114
$
971
Deposit practical to skill acquisition
$
5,867
-
SUPER MICRO COMPUTER, INC
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, solely share and per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
December 31,
December 31,
December 31,
December 31,
2011
2010
2011
2010
GAAP GROSS PROFIT
$
42,614
$
40,179
$
82,240
$
73,216
Add behind stock-based remuneration (c)
200
173
408
367
Non-GAAP GROSS PROFIT
$
42,814
$
40,352
$
82,648
$
73,583
GAAP GROSS MARGIN
17.1
%
16.7
%
16.5
%
16.3
%
Add behind stock-based remuneration (c)
0.0
%
0.1
%
0.1
%
0.1
%
Non-GAAP GROSS MARGIN
17.1
%
16.8
%
16.6
%
16.4
%
GAAP INCOME FROM OPERATIONS
$
13,718
$
16,924
$
27,232
$
28,933
Add behind stock-based remuneration (c)
2,507
1,830
4,837
3,654
Add behind sustenance for lawsuit detriment (d)
-
-
-
729
Non-GAAP INCOME FROM OPERATIONS
$
16,225
$
18,754
$
32,069
$
33,316
GAAP NET INCOME
$
8,774
$
11,569
$
17,266
$
18,786
Add behind stock-based remuneration (c)
2,507
1,830
4,837
3,654
Add behind sustenance for lawsuit detriment (d)
-
-
-
729
Add behind adjustments to taxation sustenance (e)
(116
)
(65
)
(453
)
(570
)
Non-GAAP NET INCOME
$
11,165
$
13,334
$
21,650
$
22,599
GAAP NET INCOME PER COMMON SHARE – BASIC (a)
$
0.21
$
0.30
$
0.42
$
0.49
Add behind stock-based compensation, sustenance for lawsuit detriment and adjustments to taxation sustenance (c) (d) (e)
0.06
0.05
0.11
0.10
Non-GAAP NET INCOME PER COMMON SHARE – BASIC (f)
$
0.27
$
0.35
$
0.53
$
0.59
GAAP NET INCOME PER COMMON SHARE – DILUTED (b)
$
0.20
$
0.27
$
0.39
$
0.45
Add behind stock-based compensation, sustenance for lawsuit detriment and adjustments to taxation sustenance (c) (d) (e)
0.05
0.04
0.10
0.08
Non-GAAP NET INCOME PER COMMON SHARE – DILUTED (g)
$
0.25
$
0.31
$
0.49
$
0.53
WEIGHTED-AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE
BASIC –GAAP (h)
40,555
37,543
40,456
37,383
BASIC – Non-GAAP (i)
40,915
38,165
40,869
38,087
DILUTED – GAAP (h)
43,816
41,619
43,603
41,509
DILUTED – Non-GAAP (i)
44,625
42,691
44,472
42,704
(a) Approximately $77,000 and $175,000 of undistributed gain allocated to participating bonds were not enclosed in the integrity of GAAP simple net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively, and we estimate $189,000 and $347,000 for the 3 and 6 months finished Dec 31, 2010, respectively.
(b) Approximately $71,000 and $162,000 of undistributed gain allocated to participating bonds were not enclosed in the integrity of GAAP widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively, and we estimate $170,000 and $313,000 for the 3 and 6 months finished Dec 31, 2010, respectively.
(c) Amortization of ASC Topic 718 (SFAS No. 123R, APB twenty-five and SFAS No. 123) stock-based remuneration for the 3 and 6 months finished Dec 31, 2011 and 2010.
(d) Provision for lawsuit costs for the 6 months finished Dec 31, 2010 was associated to a allotment of a obvious lawsuit in Sep 2010.
(e) The sustenance of income taxes used in nearing at the non-GAAP net income was computed regulating an income taxation rate of 30.5% and 31.8% for the 3 and 6 months finished Dec 31, 2011, respectively, and 28.3% and 31.6% for the 3 and 6 months finished Dec 31, 2010, respectively.
(f) Approximately $98,000 and $219,000 of undistributed gain allocated to participating bonds were enclosed in the integrity of Non-GAAP simple net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively, and we estimate $217,000 and $418,000 of undistributed gain allocated to participating bonds were enclosed in the integrity of Non-GAAP simple net income per usual share for the 3 and 6 months finished Dec 31, 2010, respectively.
(g) Approximately $90,000 and $202,000 of undistributed gain allocated to participating bonds were enclosed in the integrity of Non-GAAP widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively, and we estimate $194,000 and $372,000 of undistributed gain allocated to participating bonds were enclosed in the integrity of Non-GAAP widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2010, respectively.
(h) 359,282 and 413,955 shares of unvested limited batch awards were not enclosed in the integrity of GAAP simple and widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2011, respectively. 622,289 and 703,759 shares of unvested limited batch awards were not enclosed in the integrity of GAAP simple and widely separated net income per usual share for the 3 and 6 months finished Dec 31, 2010, respectively.
(i) 359,282 and 413,955 shares of unvested limited batch awards were enclosed in the integrity of Non-GAAP simple and widely separated net income per share for the 3 and 6 months finished Dec 31, 2011, respectively. 622,289 and 703,759 shares of unvested limited batch awards were enclosed in the integrity of Non-GAAP simple and widely separated net income per share for the 3 and 6 months finished Dec 31, 2010, respectively.
SMCI-F