Supermicro® Schedules Conference Call and Webcast for Fourth Quarter and Fiscal 2016 Financial Results
Company to Report Lower than Expected Revenue and EPS
Company Also Announces $100 Million Stock Repurchase Program
SAN JOSE, Calif.--(BUSINESS WIRE)--
Super Micro Computer, Inc. (NASDAQ: SMCI), a global leader in
high-performance, high-efficiency server, storage technology and green
computing, today provided preliminary information regarding its
financial results for the fourth quarter and fiscal year ended June 30,
The Company also announced that it will release fourth quarter and
fiscal 2016 financial results on Thursday, August 4, 2016, immediately
after the close of regular trading, followed by a teleconference
beginning at 2:00 p.m. (Pacific Time).
The Company now anticipates that it will report revenue for its fourth
quarter of fiscal 2016 in the range of $520 million to $524 million.
This compares to the Company's previous guidance range of $580 million
to $640 million. Revenue was lower than expected primarily due to weaker
than expected orders from some of the company's larger accounts. Revenue
was also adversely impacted by pricing, timing of purchase decisions and
certain business and shipping delays resulting from the Company's global
roll out of SAP and the implementation of the Company's new global
Non-GAAP gross margin is expected to be approximately 14% primarily due
to lower cost absorption due to lower utilization as well as product mix.
The Company anticipates that it will report non-GAAP operating expenses
for fourth fiscal quarter between $57.9 million and $58.3 million,
higher than for the fourth fiscal quarter of 2015 primarily due to
higher R&D expense in new product development to expand our product
The Company also anticipates that its non-GAAP earnings per diluted
share will be in a range of $0.15 to $0.17. This includes an estimated
negative impact of approximately $0.07 non-GAAP earnings per diluted
share related to higher tax expenses associated with the implementation
of the company's new global corporate structure on May 1, 2016. This
compares to the Company's previous guidance of $0.46 to $0.58.
The Company ended the fourth quarter of fiscal 2016 with approximately
$183.7 million in cash and cash equivalents, and short and long term
investments compared to $98.1 million at the end of fourth quarter of
"We are disappointed to report that our performance was well below our
forecast. Although we have been growing well in mid-size accounts during
the past quarters and improving our SAP and global operations, our
business has become more dependent on larger customers which has created
more volatility in our results. We will provide more details on the
fourth quarter financial performance at the time of our earnings call,"
said Charles Liang, Chairman and Chief Executive Officer. "In addition
to our financial performance, we will also discuss our go forward
strategy to better utilize our capacity to compete more effectively and
gain market share."
The Company also announced today that the Company's Board of Directors
has adopted a program to repurchase from time to time at management's
discretion up to $100 million dollars of the Company's common stock in
the open market or in private transactions during the next 12 months at
prevailing market prices. As of June 30, 2016, the Company had 48.6
million shares of common stock outstanding. Repurchases will be made
under the program using the Company's own cash resources. This share
repurchase program does not obligate the Company to acquire any
particular amount of common stock, and it may be suspended at any time
at the Company's discretion.
"The repurchase program announced today reflects the Board of Directors'
continued confidence in the Company's long-term financial and operating
performance and commitment to enhancing stockholder value," said Charles
Liang, Chairman and Chief Executive Officer. "With over $183 million in
cash and investments, we believe that we have the strategic flexibility
to institute a repurchase program while maintaining sufficient capital
for operations and innovation."
Conference Call/Webcast Information for August 4, 2016
Supermicro will hold a teleconference to announce its fourth quarter and
fiscal 2016 financial results on Thursday, August 4, 2016, beginning at
2:00 p.m. (Pacific Time). Those wishing to participate in the conference
call should call 1-888-455-2263 (International callers dial
1-719-325-2177) a few minutes prior to the call's start to register. The
conference ID is 1154709. A replay of the call will be available through
11:59 p.m. (Eastern Time) on Thursday, August 18, 2016, by dialing
1-877-870-5176 (International callers dial 1-858-384-5517) and entering
replay PIN 1154709.
Those wishing to access the live or archived webcast via the Internet
should go to the Investor Relations tab of the Supermicro website at www.Supermicro.com.
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®,
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
View source version on businesswire.com: http://www.businesswire.com/news/home/20160718006255/en/
Super Micro Computer, Inc.
SVP, Investor Relations
Source: Super Micro Computer, Inc.
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