SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 30, 2018--
Super Micro Computer, Inc. (NASDAQ:SMCI), a global leader in
high-performance, high-efficiency server, storage technology and green
computing, today announced preliminary financial information for its
fiscal second quarter ended December 31, 2017 and certain management
changes.
Preliminary Fiscal Second Quarter Highlights
The Company expects to report the following financial results for the
quarter ended December 31, 2017:
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Net sales in a range of $840 million to $850 million compared to its
previous guidance range of $725 million to $780 million
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GAAP gross margin in the range of 13.2% to 13.4%
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Non-GAAP gross margin in the range of 13.2% to 13.4%
-
GAAP fully diluted earnings per share in the range of $0.05 to $0.09
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Non-GAAP fully diluted earnings per share in the range of $0.49 to
$0.53
The GAAP and non-GAAP gross margin that the Company expects to report is
in the range of 13.2% to 13.4%. The GAAP gross margin includes
stock-based compensation of $0.4 million. The GAAP fully diluted
earnings per share range of $0.05 to $0.09 that the Company expects to
report includes stock-based compensation expense of $6.3 million, Audit
Committee investigation expense of $10.8 million and an estimated $11.8
million increase in tax expense related to the recently enacted Tax Cuts
and Jobs Act of 2017. Excluding the stock-based compensation and the
Audit Committee investigation expense and the related tax effect of
both, as well as the tax expense increase, the non-GAAP fully diluted
earnings per share range that the Company expects to report is $0.49 to
$0.53.
At December 31, 2017, total cash, cash equivalents, short and long term
investments was $135.0 million and bank debt was $177.6 million.
Financial Information Is Preliminary and May Be Subject To Change
The unaudited interim financial information presented in this press
release is preliminary. The final financial results reported for this
period may also differ from the results reported in this release as a
result of the Audit Committee investigation and additional reviews
discussed below.
Third Quarter Fiscal 2018 Guidance
The Company expects net sales in a range of $700 million to $780 million
for the third quarter of fiscal year 2018 ending March 31, 2018.
Delayed SEC Filings
The Audit Committee has completed the previously disclosed
investigation. Additional time is required to analyze the impact, if
any, of the results of the investigation on the Company’s historical
financial statements, as well as to conduct additional reviews before
the Company will be able to finalize its Annual Report on Form 10-K for
the fiscal year ended June 30, 2017 (the “Form 10-K”). The Company is
unable at this time to provide a date as to when the Form 10-K will be
filed or to determine whether the Company’s historical financial
statements will be adjusted or, if so, the amount of any such
adjustment(s) and what periods any such adjustments may impact. The
Company intends to file its Quarterly Reports on Form 10-Q for the
quarters ended September 30 and December 31, 2017 promptly after filing
the Form 10-K.
Management Changes
The Company has separately announced the appointment of Kevin Bauer as
Senior Vice President and Chief Financial Officer. The Company also
announced that Wally Liaw, Sr. Vice President of International Sales,
Phidias Chou, Sr. Vice President, Worldwide Sales and Howard Hideshima,
Senior Vice President, Chief Financial Officer, have resigned. In
addition, Mr. Liaw has resigned from the Company’s Board of Directors.
The resignations and appointment are effective immediately. Don Clegg,
Vice President of Worldwide Business Development and Marketing will
succeed Phidias Chou as our interim worldwide sales leader.
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 to, among other
things, the preliminary financial information for the quarter ended
December 31, 2017. 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, including the impact of any
adjustments to the Company’s historical or current financial results as
a result of the Audit Committee investigation and additional review
being conducted as a result thereof, and the timing and consequences of
the delays in the Company’s regaining compliance with its SEC filing
obligations. 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 net income and net income per share discussed in this press
release exclude stock-based compensation expense, costs associated with
the Audit Committee investigation described above and the related tax
effect of the applicable items as well as the estimated increase in tax
expense related the Tax Cuts and Jobs Act of 2017. 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, the reconciliation between the Company's GAAP and
non-GAAP financial results is associated with stock-based compensation
of $6.3 million and Audit Committee investigation expense of $10.8
million, less related tax effect of both as well as the tax expense
increase of $11.8 million discussed above.
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
respective owners.
SMCI-F
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Source: Super Micro Computer, Inc.
Investor Relations Contact
Super Micro Computer, Inc.
Perry
G. Hayes, 408-895-6570
SVP, Investor Relations