SAN JOSE, Calif.--(BUSINESS WIRE)--May 3, 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 third quarter ended March 31, 2018.
Preliminary Fiscal Third Quarter Highlights
The Company expects to report the following financial results for the
quarter ended March 31, 2018:
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Net sales in a range of $785 million to $795 million compared to its
previous guidance range of $700 million to $780 million
-
GAAP gross margin in the range of 13.0% to 13.2%
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Non-GAAP gross margin in the range of 13.3% to 13.5%
-
GAAP fully diluted earnings per share in the range of $0.28 to $0.32
-
Non-GAAP fully diluted earnings per share in the range of $0.48 to
$0.52
The GAAP gross margin range of 13.0% to 13.2% that the Company expects
to report includes stock-based compensation of $0.4 million and
accelerated building depreciation expense of $2.6 million. Excluding the
stock-based compensation and accelerated building depreciation expense,
the non-GAAP gross margin range that the Company expects to report is
13.3% to 13.5%. The GAAP fully diluted earnings per share range of $0.28
to $0.32 that the Company expects to report includes stock-based
compensation expense of $6.1 million, Audit Committee investigation
expense of $9.5 million, and accelerated building depreciation expense
of $2.6 million. Excluding the stock-based compensation, the Audit
Committee investigation expense, the accelerated building depreciation
and their related tax effect, the non-GAAP fully diluted earnings per
share range that the Company expects to report is $0.48 to $0.52.
At March 31, 2018, total cash, cash equivalents and short term
investments was $136.0 million and bank debt was $186.3 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 review discussed below.
Fourth Quarter Fiscal 2018 Guidance
The Company expects net sales in a range of $800 million to $860 million
for the fourth quarter of fiscal year 2018 ending June 30, 2018.
Delayed SEC Filings
The Company has completed the previously disclosed investigation
conducted by the Audit Committee. In furtherance of the preparation of
the financial statements, the Audit Committee is overseeing additional
testing that the Company believes is nearing completion. To date, the
Company’s cash flows have not been impacted by the findings of the
investigation or the additional testing. Additional time is required to
analyze any impact of the results of the investigation and additional
testing on the Company’s historical financial statements, as well as to
complete 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 “2017 10-K”).
The Company presented an updated compliance plan to The Nasdaq Stock
Market Hearings Panel on April 26, 2018 and the Company requested an
additional exception period for continued listing of its common stock on
The Nasdaq Global Select Market through August 24, 2018 in order for it
to complete and file its 2017 10-K and subsequent delinquent SEC
quarterly filings. The Company is unable at this time to provide a date
as to when the 2017 10-K will be filed or to predict whether the
Company’s historical financial statements will be adjusted or, if so,
the amount of any such adjustment. The Company intends to file its
Quarterly Reports on Form 10-Q for the quarters ended September 30,
December 31, 2017, and March 31, 2018 promptly after filing the 2017
10-K.
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
March 31, 2018. 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, including whether the Company will be granted an additional
exception period to continue the listing of its common stock on The
Nasdaq Global Select Market. 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 and fully diluted earnings per share discussed in
this press release exclude as applicable stock-based compensation
expense, costs associated with the Audit Committee investigation
described above, accelerated depreciation 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,
the reconciliation between the Company's GAAP gross margin and non-GAAP
gross margin is stock-based compensation of $0.4 million and accelerated
building depreciation expense of $2.6 million and the reconciliation
between the Company’s GAAP fully diluted earnings per share and non-GAAP
fully diluted earnings per share is stock-based compensation of $6.1
million, Audit Committee investigation expense of $9.5 million, and
accelerated building depreciation expense of $2.6 million, less related
tax effect of each of them.
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