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Fiscal 4th Quarter Highlights
Net sales for the fourth quarter ended
Net income for the fourth quarter of fiscal year 2011 was
Gross margin for the fourth quarter was 15.4% compared to 15.3% in the same period a year ago. Non-GAAP gross margin for the fourth quarter was 15.5% compared to 15.4% in the same period a year ago. Non-GAAP gross margin was 16.2% for the third quarter of fiscal year 2011.
The Company's cash and cash equivalents and short and long term
investments at
Fiscal Year 2011 Summary
Net sales for the fiscal year ended
Business Outlook & Management Commentary
The Company expects net sales of
"Supermicro achieved record revenues of
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
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
Use of Non-GAAP Financial Measures
Non-GAAP gross margin discussed in this press release excludes
stock-based compensation expense and accrued customs fee for prior
periods. Non-GAAP net income and net income per share discussed in this
press release exclude stock-based compensation expense, accrued customs
fee for prior periods, a provision for litigation costs 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
About
Supermicro, the leader in server technology innovation and green
computing, provides customers around the world with
application-optimized server, workstation, blade, storage and GPU
systems. Based on its advanced Server Building Block Solutions,
Supermicro offers the most optimized selection for IT, datacenter and
HPC deployments. The company's system architecture innovations include
the Twin server, double-sided storage and SuperBlade® product families.
Offering the most comprehensive product lines in the industry,
Supermicro provides businesses of all sizes with energy-efficient,
earth-friendly solutions that deliver unmatched performance and value.
Founded in 1993, Supermicro is headquartered in
| SUPER MICRO COMPUTER, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| June 30, | June 30, | |||||||
| 2011 | 2010 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 69,943 | $ | 72,644 | ||||
| Short-term investments | 59 | 845 | ||||||
| Accounts receivable, net | 85,005 | 72,963 | ||||||
| Inventory, net | 192,711 | 135,584 | ||||||
| Deferred income taxes — current | 10,250 | 9,756 | ||||||
| Prepaid income taxes | 7,207 | 2,737 | ||||||
| Prepaid expenses and other current assets | 4,447 | 2,328 | ||||||
| Total current assets | 369,622 | 296,857 | ||||||
| Long-term investments | 5,188 | 5,901 | ||||||
| Property, plant and equipment, net | 74,438 | 62,691 | ||||||
| Deferred income taxes — noncurrent | 2,792 | 4,825 | ||||||
| Restricted cash | 409 | 286 | ||||||
| Other assets | 12,171 | 202 | ||||||
| Total assets | $ | 464,620 | $ | 370,762 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 113,340 | $ | 95,416 | ||||
| Accrued liabilities | 24,780 | 19,432 | ||||||
| Income taxes payable | 936 | 3,219 | ||||||
| Advances from receivable financing arrangements | 1,000 | 1,193 | ||||||
| Short-term debt | - | 18,553 | ||||||
| Current portion of long-term debt | 555 | - | ||||||
| Current portion of capital lease obligations | 36 | 62 | ||||||
| Total current liabilities | 140,647 | 137,875 | ||||||
| Long-term capital lease obligations-net of current portion | 50 | 46 | ||||||
| Long term debt-net of current portion | 27,596 | - | ||||||
| Other long-term liabilities | 9,070 | 8,140 | ||||||
| Total liabilities | 177,363 | 146,061 | ||||||
| Stockholders' equity: | ||||||||
| Common stock and additional paid-in capital | 122,693 | 100,350 | ||||||
| Treasury stock (at cost) | (2,030) | (2,030) | ||||||
| Accumulated other comprehensive loss | (204) | (204) | ||||||
| Retained earnings | 166,798 | 126,585 | ||||||
| Total stockholders' equity | 287,257 | 224,701 | ||||||
| Total liabilities and stockholders' equity | $ | 464,620 | $ | 370,762 | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||
| June 30, | June 30, | June 30, |
June 30, |
|||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Net sales | $ | 260,303 | $ | 201,664 | $ | 942,582 | $ | 721,438 | ||||
| Cost of sales | 220,271 | 170,755 | 791,478 | 606,446 | ||||||||
| Gross profit | 40,032 | 30,909 | 151,104 | 114,992 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 13,163 | 10,244 | 48,108 | 37,382 | ||||||||
| Sales and marketing | 7,412 | 5,273 | 26,859 | 20,458 | ||||||||
| General and administrative | 4,855 | 4,008 | 17,444 | 15,318 | ||||||||
| Provision for litigation loss | - | - | - | 1,089 | ||||||||
| Total operating expenses | 25,430 | 19,525 | 92,411 | 74,247 | ||||||||
| Income from operations | 14,602 | 11,384 | 58,693 | 40,745 | ||||||||
| Interest and other income, net | 10 | 26 | 66 | 103 | ||||||||
| Interest expense | (197) | (94) | (686) | (383) | ||||||||
| Income before income tax provision | 14,415 | 11,316 | 58,073 | 40,465 | ||||||||
| Income tax provision | 3,684 | 3,601 | 17,860 | 13,550 | ||||||||
| Net income | $ | 10,731 | $ | 7,715 | $ | 40,213 | $ | 26,915 | ||||
| Net income per common share: | ||||||||||||
| Basic (a) | $ | 0.27 | $ | 0.20 | $ | 1.04 | $ | 0.73 | ||||
| Diluted (b) | $ | 0.24 | $ | 0.18 | $ | 0.93 | $ | 0.65 | ||||
| Weighted-average shares used in calculation of net income per common share: | ||||||||||||
| Basic | 39,510,670 | 36,848,521 | 38,132,114 | 35,883,640 | ||||||||
| Diluted | 43,721,303 | 42,219,333 | 42,395,970 | 40,735,336 | ||||||||
|
Stock-based compensation is included in the following cost and expense categories by period (in thousands): |
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|
|
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| Three Months Ended | Fiscal Year Ended | |||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Cost of sales | $ | 242 | $ | 163 | $ | 812 | $ | 573 | ||||
| Research and development | 1,203 | 779 | 4,077 | 3,106 | ||||||||
| Sales and marketing | 291 | 255 | 1,077 | 880 | ||||||||
| General and administrative | 598 | 482 | 2,090 | 1,898 | ||||||||
|
SUPER MICRO COMPUTER, INC |
||||||
| CONDENSED CONSOLIDATED CASH FLOW STATEMENTS | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| Fiscal Year Ended June 30, | ||||||
| 2011 | 2010 | |||||
| OPERATING ACTIVITIES: | ||||||
| Net income | $ | 40,213 | $ | 26,915 | ||
| Reconciliation of net income to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 5,453 | 4,619 | ||||
| Stock-based compensation expense | 8,056 | 6,457 | ||||
| Excess tax benefits from stock-based compensation | (2,401) | (1,484) | ||||
| Allowance for doubtful accounts | 499 | 772 | ||||
| Allowance for sales returns | 6,624 | 5,310 | ||||
| Provision for inventory | 3,353 | 2,614 | ||||
| Loss on disposal of property, plant and equipment | 35 | 63 | ||||
| Deferred income taxes | 1,539 | (4,407) | ||||
| Gain on short-term investments | - | (1) | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable, net | (19,165) | (33,336) | ||||
| Inventory | (60,480) | (48,154) | ||||
| Prepaid expenses and other assets | (4,144) | (792) | ||||
| Accounts payable | 16,933 | 21,840 | ||||
| Income taxes payable, net | 5,687 | 9,497 | ||||
| Accrued liabilities | 5,348 | 5,514 | ||||
| Other long-term liabilities | 930 | 2,399 | ||||
| Net cash provided by (used in) operating activities | 8,480 | (2,174) | ||||
| INVESTING ACTIVITIES: | ||||||
| Proceeds from investments | 1,500 | 8,999 | ||||
| Purchase of investments | - | (58) | ||||
| Purchases of property, plant and equipment | (16,202) | (22,223) | ||||
| Restricted cash | (123) | 1,480 | ||||
| Investment in a privately held company | (750) | - | ||||
| Land deposit | (9,195) | - | ||||
| Net cash used in investing activities | (24,770) | (11,802) | ||||
| FINANCING ACTIVITIES: | ||||||
| Proceeds from debt | 23,730 | 18,553 | ||||
| Repayment of debt | (14,132) | (9,994) | ||||
| Proceeds from exercise of stock options | 10,271 | 6,351 | ||||
| Excess tax benefits from stock-based compensation | 2,401 | 1,484 | ||||
| Payment of obligations under capital leases | (64) | (42) | ||||
| Payment under receivable financing arrangements | (193) | (27) | ||||
| Minimum tax withholding paid on behalf of employees for stock options and restricted stock awards | (8,424) | - | ||||
| Net cash provided by financing activities | 13,589 | 16,325 | ||||
| Net increase (decrease) in cash and cash equivalents | (2,701) | 2,349 | ||||
| Cash and cash equivalents at beginning of year | 72,644 | 70,295 | ||||
| Cash and cash equivalents at end of year | $ | 69,943 | $ | 72,644 | ||
| Supplemental disclosure of cash flow information: | ||||||
| Cash paid for interest | $ | 649 | $ | 371 | ||
| Cash paid for taxes, net of refunds | 9,813 | 6,542 | ||||
| Non-cash investing and financing activities: | ||||||
| Accrued costs for property, plant and equipment purchases | 1,482 | 491 | ||||
| Changes in fair values of investments | - | 984 | ||||
| Equipment purchased under capital leases | 42 | 42 | ||||
| SUPER MICRO COMPUTER, INC | |||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||||||||
| (In thousands, except share and per share amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Fiscal Year Ended | ||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| GAAP GROSS PROFIT | $ | 40,032 | $ | 30,909 | $ | 151,104 | $ | 114,992 | |||||
| Add back stock-based compensation (c) | 242 | 163 | 812 | 573 | |||||||||
| Add back customs fee accrual (d) | 178 | - | - | - | |||||||||
| Non-GAAP GROSS PROFIT | $ | 40,452 | $ | 31,072 | $ | 151,916 | $ | 115,565 | |||||
| GAAP GROSS MARGIN | 15.4% | 15.3% | 16.0% | 15.9% | |||||||||
| Add back stock-based compensation (c) | 0.1% | 0.1% | 0.1% | 0.1% | |||||||||
| Add back customs fee accrual (d) | - | - | - | - | |||||||||
| Non-GAAP GROSS MARGIN | 15.5% | 15.4% | 16.1% | 16.0% | |||||||||
| GAAP INCOME FROM OPERATIONS | $ | 14,602 | $ | 11,384 | $ | 58,693 | $ | 40,745 | |||||
| Add back stock-based compensation (c) | 2,334 | 1,679 | 8,056 | 6,457 | |||||||||
| Add back customs fee accrual (d) | 794 | - | 616 | - | |||||||||
| Add back provision for litigation costs (e) | - | - | 729 | 1,089 | |||||||||
| Non-GAAP INCOME FROM OPERATIONS | $ | 17,730 | $ | 13,063 | $ | 68,094 | $ | 48,291 | |||||
| GAAP NET INCOME | $ | 10,731 | $ | 7,715 | $ | 40,213 | $ | 26,915 | |||||
| Add back stock-based compensation (c) | 2,334 | 1,679 | 8,056 | 6,457 | |||||||||
| Add back customs fee accrual (d) | 794 | - | 616 | - | |||||||||
| Add back provision for litigation costs (e) | - | - | 729 | 1,089 | |||||||||
| Add back adjustments to tax provision (f) | (872) | (317) | (1,896) | (1,390) | |||||||||
| Non-GAAP NET INCOME | $ | 12,987 | $ | 9,077 | $ | 47,718 | $ | 33,071 | |||||
| GAAP NET INCOME PER COMMON SHARE — BASIC (a) | $ | 0.27 | $ | 0.20 | $ | 1.04 | $ | 0.73 | |||||
| Add back stock-based compensation, customs fee accrual, provision for litigation costs and adjustments to tax provision (c) (d) (e) (f) | 0.05 | 0.04 | 0.19 | 0.17 | |||||||||
| Non-GAAP NET INCOME PER COMMON SHARE — BASIC (g) | $ | 0.32 | $ | 0.24 | $ | 1.23 | $ | 0.90 | |||||
| GAAP NET INCOME PER COMMON SHARE — DILUTED (b) | $ | 0.24 | $ | 0.18 | $ | 0.93 | $ | 0.65 | |||||
| Add back stock-based compensation, customs fee accrual, provision for litigation costs and adjustments to tax provision (c) (d) (e) (f) | 0.05 | 0.03 | 0.17 | 0.13 | |||||||||
| Non-GAAP NET INCOME PER COMMON SHARE — DILUTED (h) | $ | 0.29 | $ | 0.21 | $ | 1.10 | $ | 0.78 | |||||
| WEIGHTED-AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE | |||||||||||||
|
BASIC — GAAP (i) |
39,510,670 | 36,848,521 | 38,132,114 | 35,883,640 | |||||||||
| BASIC - Non-GAAP (j) | 40,049,593 | 37,704,044 | 38,754,132 | 36,822,258 | |||||||||
| DILUTED — GAAP (i) | 43,721,303 | 42,219,333 | 42,395,970 | 40,735,336 | |||||||||
| DILUTED - Non-GAAP (j) | 44,875,928 | 43,682,579 | 43,572,260 | 42,363,543 | |||||||||
|
|
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| (a) Approximately $144,000 and $175,000 of undistributed earnings allocated to participating securities were not included in the determination of GAAP basic net income per common share for the three months ended June 30, 2011 and 2010, respectively, and approximately $645,000 and $686,000 for the year ended June 30, 2011 and 2010, respectively. | |||||||||||||
| (b) Approximately $131,000 and $153,000 of undistributed earnings allocated to participating securities were not included in the determination of GAAP diluted net income per common share for the three months ended June 30, 2011 and 2010, respectively, and approximately $581,000 and $606,000 for the year ended June 30, 2011 and 2010, respectively. | |||||||||||||
| (c) Amortization of ASC Topic 718 (SFAS No. 123R, APB 25 and SFAS No. 123) stock-based compensation for the three months and fiscal year ended June 30, 2011 and 2010. | |||||||||||||
| (d) Customs fee accrual for the three months and fiscal year ended June 30, 2011 was related to an accrual of customs fee for prior periods. | |||||||||||||
| (e) Provision for litigation costs for the fiscal year ended June 30, 2011 was related to a settlement of a patent litigation in September 2010. Provision for litigation costs for the fiscal year ended June 30, 2010 was related to a commercial lawsuit filed in 1999. | |||||||||||||
| (f) The provision of income taxes used in arriving at the non-GAAP net income was computed using an income tax rate of 26.0% and 30.2% for the three months ended June 30, 2011 and 2010, respectively, and 29.3% and 31.1% for the fiscal year ended June 30, 2011 and 2010, respectively. | |||||||||||||
| (g) Approximately $175,000 and $768,000 of undistributed earnings allocated to participating securities were not included in the determination of Non-GAAP basic net income per common share for the three months and fiscal year ended June 30, 2011, respectively. | |||||||||||||
| (h) Approximately $156,000 and $683,000 of undistributed earnings allocated to participating securities were not included in the determination of Non-GAAP diluted net income per common share for the three months and fiscal year ended June 30, 2011, respectively. | |||||||||||||
| (i) 538,923 and 622,018 shares of unvested restricted stock awards were not included in the determination of GAAP basic and diluted net income per common share for the three months and fiscal year ended June, 2011, respectively. 855,523 and 938,618 shares of unvested restricted stock awards were not included in the determination of GAAP basic and diluted net income per common share for the three months and fiscal year ended June 30, 2010, respectively. | |||||||||||||
| (j) 538,923 and 622,018 shares of unvested restricted stock awards were included in the determination of Non-GAAP basic and diluted net income per share for the three months and fiscal year ended June 30, 2011, respectively. | |||||||||||||
SMCI-F
Chief
Financial Officer
ir@supermicro.com
or
SVP, Investor Relations
ir@supermicro.com
Source:
News Provided by Acquire Media
