![]() SUPERMICRO INVESTOR PRESENTATION (November 15, 2007) Exhibit 99.1 |
![]() 2 Safe Harbor Certain statements in this presentation relate to future results and events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. This presentation contains statements involving risks and uncertainties, including statements relating to Super Micro’s market opportunity and future business prospects. Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ are included in Super Micro’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. |
![]() 3 Charles Liang CEO |
![]() 4 Corporate Overview Founded: Product: Headquarters: Years Profitable: FY2007 Revenue: FY2007 Revenue Growth: 1993 Application-Optimized Server Solutions San Jose, CA 14 $420MM 39% |
![]() 5 Financial Track Record Annual Revenue and Net Income Annual Revenue and Net Income Revenue ($MM) Net Income ($MM) Revenue Net Income Note: FY94 – FY00 are unaudited. $212 $167 $137 $89 $64 $60 $60 $14 $20 $36 $46 $2 $303 $420 $7.1 $4.9 $3.5 $2.2 $0.8 $1.0 $1.2 $0.4 $1.1 $0.5 $0.3 $0.1 $16.9 $19.3 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 |
![]() 6 Evolution of Enterprise Computing x86 Open Architecture Application-Optimized SuperBlade™ and 1U Twin™ Scale-Out 1990 1990 1995 1995 2003 2003 2007 2007 2000 2000 Clustered System |
![]() 7 Customers Demand Application-Optimized Solutions Broad Selection & Rapid Optimization Application OEMs Image Computing Server Farms Optimized I/O for Image & Graphics Flexible Support Extremely High CPU & Memory Performance General Servers Brand Name & Worldwide Service & Cost High Med Low High Med Low High Med Low High Med Low 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% General Purpose Servers |
![]() 8 Investment Highlights Large and Fast-Growing Application-Optimized Server Market Value based on Engineering Expertise & Proprietary IP Consistent Profitable Financial Record For 14 Years Significant Future Growth Drivers Seasoned Management and Engineering Teams |
![]() 9 Large and Growing Market Opportunity $26.6 $33.8 $31.9 $29.9 $27.8 $36.4 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 2005 2006 2007 2008 2009 2010 Revenue ($B) $2.2 $8.4 $6.3 $4.5 $3.0 $11.2 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 $11.0 $12.0 $13.0 $14.0 $15.0 2005 2006 2007 2008 2009 2010 Revenue ($B) x86 Server Market (1) x86 Server Market (1) Blade Server Market (2) Blade Server Market (2) (1) Source: IDC, November 2006. (2) Source: IDC, October 2006. (3) Note: Fiscal years. FY01 – FY03 are unaudited. |
![]() 10 Supermicro Performance $152 $104 $22 $38 $51 $67 $12 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 2001 2002 2003 2004 2005 2006 2007 $64 $212 $167 $137 $89 $303 $420 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 2001 2002 2003 2004 2005 2006 2007 Revenue ($MM) Revenue ($MM) Supermicro Overall Growth (2) Supermicro Overall Growth (2) Supermicro Server System Growth (3) Supermicro Server System Growth (3) |
![]() 11 Competitive Advantages Advanced Power / Cooling First-to-Market Broadest Product Portfolio In-House Design/ Proprietary IP Modular Building Blocks Lower TCO |
![]() 12 First-to-Market For Over Fourteen Years <2000 Innovation First Dual Intel Pentium Pro- based Server board Revolutionary Redundant Cooling Power Supply (1998) First SuperServer Shipped (2000) 2001-2002 Performance 2003 Scalability First 1-terabyte SATA in a 1U Xeon Solution Offered the Most Comprehensive Xeon (Prestonia) Product Line 2004-2006 Choice First to provide Xeon (Nocona) Workstations / Servers Solutions (2004) First to market SAS Server and Storage Solutions Among the First to launch Intel Dual-core PentiumD Platform First to introduce 90%+ high-efficiency power on server platforms (2006) 2007-Now Optimization First Dual Socket Xeon Motherboard (2001) First 1U/2U Dual Intel Xeon Rackmount Servers First Multiprocessing Intel Xeon Processor Server (2002) Introducing the First 4U/Tower Convertible Platform (2002) System Innovations with 1U Twin™ UIO and SuperBlade™ architecture First and the Most Comprehensive Line of Quad-core Xeon 5400/5200 Series Servers First and the Most Comprehensive Line of Quad-core Xeon MP 7300 Series Servers Among the First to Launch AMD Socket F and Barcelona Platform (2002) (1996) (2005) (2005) |
![]() 13 Server Building Block Solutions ® 520 Motherboards 1266 Chassis 316 Cooling Modules 119 Power Supplies Open CPU/ Memory Operating Systems / Applications In-House Design and Building Block Solutions Technology Partners Customer Requirements OEM Specs In-House Design Optimized Data Center Lawrence Livermore National Laboratory |
![]() 14 Based on Significant Engineering Expertise Super SSI Architecture Supermicro Server Management Products 1U Twin, UIO, SuperBlade Design High-efficiency Power & Thermal Technology TM TM |
![]() 15 119 Power Supplies 316 Thermal Cooling 520 Motherboards 1266 Chassis 1U Servers 388 SKUs 2U Servers 110 SKUs 3U Servers 17 SKUs 4U/Tower Servers 196 SKUs CPU/Memory Others 1,000’s of Servers Built by Customers With Super SSI Components Building Blocks Building Blocks SuperServer Systems SuperServer Systems Custom Server Systems Custom Server Systems Thousands of Server Products Based on Super SSI |
![]() 16 Customer Case Studies-Most Demanding & Exacting Servers with Extremely High Computing Density, Memory Performance, Power efficiency and Quick Design Turnaround OEMs Unique features and Configurations plus Rapid “Build to Order” Capabilities Large Server Farms Required Systems Optimized for Computing Power and I/O for Image Processing Complex Computing Lawrence Livermore National Laboratory |
![]() 17 Time to Market Product Breadth Proprietary IP In-House Design Economic Scale Competitive Advantages Source: Super Micro management estimates. |
![]() 18 3 Main Locations Worldwide 97 Sales & Marketing Professionals In 12 Countries 415 VARs And Distributors Worldwide Global Reach Super Micro Headquarters Sales / Distribution Partners Super Micro Subsidiaries |
![]() 19 Key Growth Strategies New Customers and International Expansion Growth With Current Customers Large Data Centers, Direct Sales Accounts More Complete Systems Storage Hardware Solutions Blade Servers Enterprise Blade Data Center Blade OfficeBlade Personal Blade Networking Product Management Software Super Doctor III IPMI SSM |
![]() 20 Current Technology Progress 1. 1U Twin – Growing strongly in both revenue and Product Breadth 2. Expanding UIO architecture 3. Growing SuperBlade Product Lines 4. Expanding Engineering team aggressively in Taiwan 5. Products Under Development: Early Bird Launch of PCI-E Gen2 DP XEON Platforms Office Blade, Workstation Blade, Data Center Blade in progress QPI Architecture for Itanium/Xeon Products SSM – Supermicro Server Management Software |
![]() 21 Example of Our Superior Product World’s Highest Power System Efficiency — up to 93% Outstanding Cooling — State-of-the-art 50dB low noise and power efficient cooling Best Density in the Industry — 40 processors(160 cores) per 7U chassis — 240 processors(960 cores) per 42U rack 10 4-Way Blades in 7U chassis Highest I/O bandwidth — 20Gbps per port with 4x DDR IB switch High reliability — 100% Active Component-free Middleplane SuperBlade Server Competitive Advantages |
![]() 22 FY08 Outlook Steady Building Block Serverboard and Chassis Business Growth 50% Server System Business Growth Sharply growing Blade Server and Networking products Asian Expansion for Cost Reduction Additional Strategic Direct-accounts Development Minimum 30% y-y revenue growth At least 35% Bottom line net profit increase |
![]() 23 CFO Hideshima Howard |
![]() 24 Financial Highlights Significant Revenue Growth Profitable Since Inception Improving Margin Profile Diversified Revenue Mix Significant Upside Drivers |
![]() 25 Revenue and Margin Drivers Power Supplies Thermal Cooling CPU / Memory Applications Operating Systems Motherboards Chassis Server Systems Subsystems Components |
![]() 26 Strong Revenue Growth Consistent Quarterly Revenue Growth Consistent Quarterly Revenue Growth CY2005 CY2006 CY2007 $64.5 $72.1 $90.2 $113.6 $105.7 $110.9 $117.9 $128.0 $135.0 $60.6 $52.0 $90.0 $75.9 $50 $75 $100 $125 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4(Fcst) Q4(Fcst) |
![]() 27 Diversified Revenue Mix United States 59% Germany 7% Rest of Europe 12% United Kingdom 5% Asia 15% Other 2% 0 10 20 30 40 50 60 70 80 90 FY04 FY05 FY06 FY07 15% 20% 25% 30% Revenue % of Total Revenue FY2007 Revenue By Geography FY2007 Revenue By Geography FY2007 Top 5 Customers FY2007 Top 5 Customers |
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() 28 FY05 to FY08 Q1 Income Statement (1) Pro forma for stock based compensation expenses. (2) Includes provision for litigation Gross Profit Gross Profit Research & Development Research & Development Sales & Marketing Sales & Marketing Operating Profit Operating Profit General & Administrative (2) General & Administrative (2) Revenue Revenue FY2008 Q1 (1) FY2005 (1) FY2006 (1) FY2007 (1) $211.8 33.5 10.4 7.1 4.1 11.9 $7.5 $211.8 33.5 10.4 7.1 4.1 11.9 $7.5 $117.9 23.2 6.4 3.6 3.2 10.0 $6.6 Q1 $117.9 23.2 6.4 3.6 3.2 10.0 $6.6 Q1 $420.4 75.3 20.1 12.2 10.7 32.3 $21.4 $420.4 75.3 20.1 12.2 10.7 32.3 $21.4 $302.5 60.4 15.4 9.1 7.2 28.7 $17.6 $302.5 60.4 15.4 9.1 7.2 28.7 $17.6 Net Profit Net Profit |
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() 29 Target Financial Model (1) Pro forma for 123R expenses. Gross Margin Gross Margin Research & Development Research & Development Sales & Marketing Sales & Marketing Operating Margin Operating Margin General & Administrative General & Administrative Revenue Revenue 100% 18% 5% 3% 2% 8% 100% 18% 5% 3% 2% 8% Target (1) 100% 19-22% 4-5% 3% 2-3% 9-12% 100% 19-22% 4-5% 3% 2-3% 9-12% FY2007 (1) 100% 20% 5% 3% 3% 9% 100% 20% 5% 3% 3% 9% FY2008 Q1 (1) |
![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() 30 Balance Sheet ($MM) June 30, 2007 Balance Sheet Sept 30, 2007 Balance Sheet Cash Equivalents & ST Invest Total Current Assets Notes Payable Total Stockholders’ Equity Cash Equivalents & ST Invest Total Current Assets Notes Payable Total Stockholders’ Equity $65.9 173.5 11.3 115.9 $65.9 173.5 11.3 115.9 $69.4 191.8 11.2 121.9 $69.4 191.8 11.2 121.9 |
![]() 31 FY08 Outlook Steady Building Block Serverboard and Chassis Business Growth 50% Server System Business Growth Sharply growing Blade Server and Networking products Asian Expansion for Cost Reduction Additional Strategic Direct-accounts Development Minimum 30% y-y revenue growth At least 35% Bottom line net profit increase |
![]() SUPERMICRO INVESTOR PRESENTATION (November 15, 2007) |