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Supermicro Announces Second Quarter Fiscal Year 2021 Financial Results 

SAN JOSE, Calif., Feb. 3, 2021 -- Super Micro Computer, Inc., a global leader in high-performance, high-efficiency server and storage technology and green computing, has announced financial results for its second quarter of fiscal year 2021 ended December 31, 2020.

Second Quarter Fiscal Year 2021 Highlights

  • Net sales of $830 million versus $762 million in the first quarter of fiscal year 2021 and $871 million in the same quarter of last year.
  • Gross margin of 16.4% versus 17.0% in the first quarter of fiscal year 2021 and 15.9% in the same quarter of last year.
  • Net income of $28 million versus $27 million in the first quarter of fiscal year 2021 and $24 million in the same quarter of last year.
  • Diluted net income per common share of $0.52 versus $0.49 in the first quarter of fiscal year 2021 and $0.46 in the same quarter of last year.
  • Non-GAAP diluted net income per common share of $0.63 versus $0.55 in the first quarter of fiscal year 2021 and $0.57 in the same quarter of last year.
  • Cash flow from operations of $63 million and capital expenditures of $14 million.

Non-GAAP gross margin for the second quarter of fiscal year 2021 was 16.4%, which adds back stock-based compensation expenses of $0.4 million. Non-GAAP diluted net income per common share for the second quarter of fiscal year 2021 was $0.63, which adds back stock-based compensation expenses of $6.5 million and special performance bonuses of $2.5 million, net of the related tax effects.

As of December 31, 2020, total cash, cash equivalents and restricted cash was $317 million and total bank debt was $45 million. Supermicro completed its previously announced $50 million share repurchase program on January 6, 2021.

“We were pleased to deliver Q2 revenue at the midpoint of our guidance range driven by strong sequential growth in sales to our international customers in a variety of countries, which demonstrates the breadth and strength of our channel partnerships around the world," said Charles Liang, Chairman and CEO. "Recently strong bookings also give us confidence in our outlook to resume year-over-year growth in Q3. We are excited about our robust pipeline of innovative products and aim to continue to grow through the remainder of fiscal 2021 and drive further growth in fiscal 2022."

Third Quarter Fiscal Year 2021 Guidance

The Company expects net sales of $790 million to $870 million, GAAP net income per diluted share of $0.22 to $0.42 and non-GAAP diluted net income per common share of $0.37 to $0.57 for the third quarter of fiscal year 2021 ending March 31, 2021. The Company’s projections for GAAP and non-GAAP diluted net income per common share both assume a tax rate of approximately 16% and a fully diluted share count of 54.5 million shares. The outlook for Q3 of fiscal year 2021 GAAP diluted net income per common share includes approximately $7.0 million in expected stock-based compensation expense and $2.5 million in special performance bonuses, both net of tax effects, that are excluded from non-GAAP diluted net income per common share.

Chief Financial Officer Transition

On January 29, 2021, Mr. Kevin Bauer, Senior Vice President, Chief Financial Officer, and Corporate Secretary of Supermicro, who serves as the Company’s principal financial officer and principal accounting officer, resigned from his positions with the Company to pursue other interests. Mr. David Weigand, currently Senior Vice President and Chief Compliance Officer, has been appointed as the Senior Vice President, Chief Financial Officer, and Corporate Secretary.

Mr. Bauer will remain at the company for a transition period through February 2021. Kevin Bauer commented, “I have enjoyed working with Charles and the very dedicated Supermicro team and helping the Company through challenging times over the last four years. I am most proud of our work enhancing our company's finance function, providing a stronger foundation for the Company to continue to grow, as well as our focus on improving operations to generate cash, which enabled a return of capital to shareholders."

"I am pleased to announce the appointment of David Weigand as Senior Vice President & Chief Financial Officer," said Supermicro Chairman and CEO Charles Liang. "Kevin has made valuable contributions to Supermicro as a key member of our executive team. His diligent efforts have helped to lay the foundation for Supermicro’s next phase of growth. We wish Kevin well in his future endeavors.”

Mr. Weigand joined the company in May 2018 as Senior Vice President & Chief Compliance Officer. He previously held executive positions at HPE and at Renesas Electronics America, Inc, where he was Chief Financial Officer."

Share Repurchase Authorization

The Company also announced today a new stock repurchase program pursuant to which the Company may repurchase up to $200 million of its common stock. The stock repurchase program is effective until July 31, 2022 or until the maximum amount of common stock is repurchased, whichever occurs first.

"The stock repurchase program reflects our ongoing commitment to creating value for stockholders and our very positive long-term view of our business opportunities," said Charles Liang, Chairman and CEO of the Company.

Stock repurchases may be made from time to time at prevailing prices in the open market including pursuant to a Rule 10b5-1 plan. There can be no assurance of how many shares will be repurchased, and the repurchase program may be suspended for periods or discontinued at any time. The timing and amount of any shares repurchased will be determined based on an evaluation of market conditions and other factors. Share repurchases will be funded with cash on hand.

The Company had approximately 50,651,054 shares of common stock outstanding on December 31, 2020.

About Super Micro Computer, Inc.

Supermicro (Nasdaq:SMCI), a leading innovator in high-performance, high-efficiency server and storage technology is a premier provider of advanced server Building Block Solutions for Enterprise Data Center, Cloud Computing, Artificial Intelligence, and Edge Computing Systems worldwide. Supermicro is committed to protecting the environment through its “We Keep IT Green” initiative and provides customers with the most energy-efficient, environmentally-friendly solutions available on the market.

 

SUPER MICRO COMPUTER, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

December 31,

June 30,

2020

2020

ASSETS

Current assets:

Cash and cash equivalents

$

315,610

$

210,533

Accounts receivable, net of allowances

323,021

403,745

Inventories

807,431

851,498

Prepaid expenses and other current assets

98,211

126,985

Total current assets

1,544,273

1,592,761

Investment in equity investee

3,862

2,703

Property, plant and equipment, net

255,406

233,785

Deferred income taxes, net

55,781

54,898

Other assets

34,750

34,499

Total assets

$

1,894,072

$

1,918,646

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

396,288

$

417,673

Accrued liabilities

141,698

155,401

Income taxes payable

10,555

4,700

Short-term debt

24,921

23,704

Deferred revenue

99,509

106,157

Total current liabilities

672,971

707,635

Deferred revenue, non-current

95,396

97,612

Long-term debt, net of debt issuance costs

20,577

5,697

Other long-term liabilities

40,908

41,995

Total liabilities

829,852

852,939

Stockholders’ equity:

Common stock and additional paid-in capital

410,522

389,972

Treasury stock

(20,491

)

Accumulated other comprehensive gain (loss)

396

(152

)

Retained earnings

653,129

696,211

Total Super Micro Computer, Inc. stockholders’ equity

1,064,047

1,065,540

Noncontrolling interest

173

167

Total stockholders’ equity

1,064,220

1,065,707

Total liabilities and stockholders’ equity

$

1,894,072

$

1,918,646

 

SUPER MICRO COMPUTER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

Three Months Ended
December 31,

Six Months Ended
December 31,

2020

2019

2020

2019

Net sales

$

830,306

$

870,943

$

1,592,556

$

1,670,747

Cost of sales

694,211

732,539

1,326,546

1,401,414

Gross profit

136,095

138,404

266,010

269,333

Operating expenses:

Research and development

52,729

55,572

107,527

105,144

Sales and marketing

20,740

21,977

41,032

42,171

General and administrative

25,261

33,040

49,640

61,338

Total operating expenses

98,730

110,589

198,199

208,653

Income from operations

37,365

27,815

67,811

60,680

Other income (expense), net

(2,539

)

(416

)

(3,380

)

1,173

Interest expense

(569

)

(560

)

(1,243

)

(1,112

)

Income before income tax provision

34,257

26,839

63,188

60,741

Income tax provision

(5,108

)

(2,113

)

(8,768

)

(10,681

)

Share of income from equity investee, net of taxes

(1,475

)

(1,020

)

(145

)

(9

)

Net income

$

27,674

$

23,706

$

54,275

$

50,051

Net income per common share:

Basic

$

0.54

$

0.47

$

1.05

$

1.00

Diluted

$

0.52

$

0.46

$

1.00

$

0.97

Weighted-average shares used in calculation of net income per common share:

Basic

51,499

50,181

51,914

50,129

Diluted

53,584

52,009

54,005

51,758

 

Stock-based compensation is included in the following cost and expense categories by period (in thousands):

Three Months Ended
December 31,

Six Months Ended
December 31,

2020

2019

2020

2019

Cost of sales

$

407

$

384

$

910

$

779

Research and development

3,339

3,126

7,041

6,256

Sales and marketing

497

423

1,014

859

General and administrative

2,210

1,031

4,658

2,124

Stock-based compensation expense

$

6,453

$

4,964

$

13,623

$

10,018

 

SUPER MICRO COMPUTER, INC.

SELECTED CASH FLOW INFORMATION

(in thousands)

(unaudited)

Six Months Ended
December 31,

2020

2019

Net cash provided by operating activities

$

183,802

$

87,153

Net cash used in investing activities

(25,551

)

(23,339

)

Net cash used in financing activities

(53,697

)

(2,076

)

Effect of exchange rate fluctuations on cash

540

175

Net increase in cash, cash equivalents and restricted cash

105,094

61,913

Cash, cash equivalents and restricted cash at the beginning of the period

212,390

262,140

Cash, cash equivalents and restricted cash at the end of the period

$

317,484

$

324,053

 

Click here for the full announcement.


Source: SUPER MICRO COMPUTER, INC.

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