Super Micro Computer (SMCI) 8-K Super Micro Computer, Inc. Announces 1st Quarter Fiscal 2009 Financial Results

Supermicro ©

2008

Earnings Conference Presentation

October 29, 2008

Exhibit 99.2

2

Supermicro ©

2008

Safe Harbor Statement

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities

Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These

forward-looking statements may relate, among other things,

to our expected financial and operating

results, our ability to build and grow Supermicro, the benefit of our products and our ability to achieve our

goals, plans and objectives.

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.

These

include,

but

are

not

limited

to:

the

current

economic

uncertainties,

our

dependence

on

continued

growth

in

the

markets

for

X86,

blade

servers

and

embedded

applications,

increased

competition,

difficulties

of

predicting

timing,

introduction

and

customer

acceptance

of

new

products,

poor

product

sales,

difficulties

in

establishing

and

maintaining

successful

relationships

with

our

distributors

and

vendors,

shortages

or

price

fluctuations

in

our

supply

chain,

our

ability

to

protect

our

intellectual

property

rights,

our

ability

to

control

the

rate

of

expansion

domestically

and

internationally,

difficulty

managing

rapid

growth

and

general

political,

economic

and

market

conditions

and

events.

For a further list and description of risks and uncertainties, see the reports filed by Supermicro with the

Securities and Exchange Commission. Supermicro disclaims any intention or obligation to update or revise

any forward-looking statements, whether as a result of new information, future events or otherwise.

Supplemental information, condensed balance sheets and statements of operations follow. All monetary

amounts are stated in U.S. dollars.

3

Supermicro ©

2008

Non-GAAP Financial Measures

Non-GAAP

gross

margin

in

this

presentation

excludes

stock-based

compensation

expense.

Non-GAAP

net

income

and

net

income

per

share

in

this

presentation

exclude

stock-based

compensation

expense

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 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 the press release that was issued

announcing the Company’s operating and financial results for the quarter ended September 30, 2008.  In

addition, a reconciliation from GAAP to non-GAAP results is contained in the financial summary attached

to today’s presentation and is available in the Investor Relations section of our website at

www.supermicro.com

in the Events and Presentations section. Investors are advised to carefully review

and consider this information as well as the GAAP financial results that are disclosed in the Company's

SEC filings.

4

Supermicro ©

2008

Q1’FY2009 Non-GAAP Financial Highlights

(in millions, except per share data)

$11.3

Free Cash Flow

Sequential Change

YoY

Change

Q1'09

$       0.3

$       1.8

$8.3

Profit after Tax

$       0.00

$       0.04

$0.21

EPS

39.6

Diluted Share 

Count

$       (4.8)

$       26.1

$144.1

Revenue

5

Supermicro ©

2008

Economic Conditions and Opportunities

As we completed our first quarter on September 30, the global financial

crisis was creating uncertainty in the economy and in market for

IT

hardware solutions.

Customers need application optimized, lower total cost of ownership

Supermicro’s

opportunity: leverage strengths to be first to market with

solutions that customers will buy

Supermicro will continue execute its successful mission and strategy:

Maintain our time to market advantage based on building block solutions

Expand

product

offerings

utilizing

the

latest

technologies,

including

blade servers

Further improve our leadership in energy efficient server solution designs

Expand into new markets and industries that require application

optimized computing

6

Supermicro ©

2008

Supermicro Differentiators

In-house, collaborative R&D teams develop industry standard

components, providing the building blocks to create modularized

solutions.

Broadest array of server building blocks based on industry standard

requirements, SSI.

Modular architectural approach allows flexible and customizable

server solutions

In-house design and development incorporates the latest technologies

and rapidly provides next generation application optimized solutions

Design innovations optimize power consumption, heat dissipation,

and noise levels.

Design innovations maximize computing power while minimizing

space utilization allowing scalability.

7

Supermicro ©

2008

Upcoming Products

New generation multi-core Xeon platform, QPI technology

50+ Motherboard models

30+ System models

30+ Optimized chassis

Shanghai platform from AMD

Boxboro-based Itanium solution from Intel

QDR InfiniBand

technology

10GbE connectivity products

Switches and Pass-through

Blade-related modules

8

Supermicro ©

2008

Revenue Comparables

-3.4%

8.8%

0.0%

16.1%

6.3%

Seq.

22.0%

34.2%

29.2%

20.2%

31.1%

Y/Y

$118

$137

$137

$149

$144

$0

$40

$80

$120

$160

$'s millions

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Supermicro

Revenue Trend

9

Supermicro ©

2008

Revenue Analysis

$72

$46

$79

$58

$89

$48

$91

$58

$88

$56

$40

$80

$120

$160

$'s millions

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Supermicro

Component/System Revenue

Total Components

Systems

10

Supermicro ©

2008

Non-GAAP Gross Margins

19.6%

20.0%

18.2%

19.2%

19.4%

0.0%

5.0%

10.0%

15.0%

20.0%

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

11

Supermicro ©

2008

Non-GAAP Gross Profit

$23.2

$27.4

$25.0

$28.6

$28.0

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Gross Profit

$'s millions

19.4%

19.2%

18.2%

20.0%

19.6%

12

Supermicro ©

2008

Summary P&L non-GAAP

(in millions, except per share data)

39.1

38.9

39.6

Diluted Share  Count

32.1%

36.6%

36.1%

Effective Quarterly Tax Rate

$0.21

$0.17

-

$0.04

$0.21

EPS

$8.1

$6.6

$0.3

$1.8

$8.3

Net Income

$11.9

$10.1

$1.2

$3.0

$13.0

Operating Income

11.2%

11.1%

-0.8%

-0.7%

10.4%

Operating Expense Ratio

$16.7

$13.1

-$1.8

$1.8

$14.9

Operating Expense

Q4'08

Q1'08

Sequential

Change

YoY

Change

Q1'09

13

Supermicro ©

2008

Q1’09 Summary Statement of Cash Flows

($’s millions)

$(0.5)

$13.3

Net change in cash 

$0.1

$1.2

Net cash -

financing activities

$(4.0)

$0.8

Net cash -

investing activities

$3.4

$11.3

Free cash flow

$(0.6)

$ (1.4)

Capital expenditures

$4.0

$12.7

Cash flow from operations

$4.7

$9.2

Other assets, accruals and liabilities

$(10.2)

$(7.9)

Net change in AR, Inventory, AP

$2.3

$2.2

Other reserves

$0.9

$1.2

Stock comp expense (FAS 123R)

$0.5

$0.8

Depreciation and amortization

$5.8

$7.2

Net Income

Q1'08

Q1'09

14

Supermicro ©

2008

Q1’09 Summary of Balance Sheet Metrics

($’s millions)

-4

35

39

Cash Cycle Days

5

61

66

DPO

-6

68

74

DIO

-3

28

31

DSO

$5.9

$81.0

$86.9

Accounts Payable

$15.2

$85.7

$100.9

Inventory

$(3.3)

$49.5

$46.2

Accounts Receivable

$12.3

$67.6

$79.9

Cash Equivalents & Investments

Change

Q4'08

Q1'09

15

Supermicro ©

2008

First Quarter Fiscal 2009

Ended September 30,2008

16

Supermicro ©

2008

Non-GAAP Financial Summary

(in millions, except per share data)

38.9

39.1

39.6

Fully diluted shares for calculation

$0.17

$0.21

$0.21

Non-GAAP Net Income per share

$6.6

$8.1

$8.3

Non-GAAP Net Income

$10.1

$11.9

$13.0

Non-GAAP Operating Income

$13.1

$16.7

$14.9

Non-GAAP Operating Expenses

19.6%

19.2%

19.4%

Non-GAAP Gross Margin

$117.9

$148.9

$144.1

Net Sales

Q1'08

Q4'08

Q1'09

17

Supermicro ©

2008

Prior Period Net Income Comparisons

(in millions, except per share data)

38.9

39.1

39.6

Shares used in diluted EPS calculation

(Non-GAAP)

$0.17

$0.21

$0.21

Diluted Net Income per share (Non-GAAP)

$0.02

$0.03

$0.03

FAS123R

$0.15

$0.18

$0.18

Diluted Net Income per share (GAAP)

$6.6

$8.1

$8.3

Net Income (Non-GAAP)

$0.8

$1.3

$1.1

FAS123R Expense (tax affected)

$5.8

$6.8

$7.2

Net Income (GAAP)

Q1'08

Q4'08

Q1'09

18

Supermicro ©

2008

Q1 FY09 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

39.6

39.6

39.3

Shares used in GAAP and Non-

GAAP per share calculation

$0.21

$0.03

$0.18

Diluted Net Income per share

$8.3

$1.1

$7.2

Net Income

$4.7

$0.1

$4.6

Income Tax

$13.0

$1.2

$11.8

Income before Tax

$(0.0)

$ -

$(0.0)

Interest, net

$ -

$ -

$ -

Other Income (Expense), net

$13.0

$1.2

$11.8

Operating Income

$14.9

$1.1

$16.0

Operating Expense

$28.0

$0.1

$27.8

Gross Profit

$116.1

$0.1

$116.2

Cost of Sales

$144.1

$ -

$144.1

Net Sales

Q1'09

Non-GAAP

Results

FAS123R

Expenses

Q1'09 GAAP

Results

19

Supermicro ©

2008

Q4 FY08 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

39.1

39.1

39.0

Shares used in GAAP and Non-GAAP

per share calculation

$0.21

$0.03

$0.18

Diluted Net Income per share

$8.1

$1.3

$6.8

Net Income

$3.8

$0.1

$3.7

Income Tax

$11.9

$1.3

$10.5

Income before Tax

$(0.0)

$ -

$(0.0)

Interest, net

$ -

$ -

$ -

Other Income (Expense), net

$11.9

$1.3

$10.6

Operating Income

$16.7

$1.2

$17.8

Operating Expense

$28.6

$0.2

$28.4

Gross Profit

$120.3

$0.2

$120.4

Cost of Sales

$148.9

$ -

$148.9

Net Sales

Q4'08 Non-

GAAP Results

FAS123R

Expenses

Q4'08 GAAP

Results

20

Supermicro ©

2008

Q3 FY08 GAAP to Non-GAAP Reconciliation

(in millions, except per share)

39.1

39.1

39.0

Shares used in GAAP and Non-GAAP

per share calculation

$0.15

$0.02

$0.13

Diluted Net Income per share

$6.0

$1.0

$5.0

Net Income

$3.4

$ -

$3.3

Income Tax

$9.4

$1.0

$8.4

Income before Tax

$0.1

$ -

$0.1

Interest, net

$ -

$ -

$ -

Other Income (Expense), net

$9.3

$1.0

$8.3

Operating Income

$15.6

$0.9

$16.6

Operating Expense

$25.0

$0.1

$24.8

Gross Profit

$111.8

$0.1

$111.9

Cost of Sales

$136.8

$ -

$136.8

Net Sales

Q3'08 Non-

GAAP

Results

FAS123R

Expenses

Q3'08 GAAP

Results

21

Supermicro ©

2008

Q2 FY08 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

38.9

38.9

38.7

Shares used in GAAP and Non-GAAP

per share calculation

$0.22

$0.02

$0.20

Diluted Net Income per share

$8.6

$0.9

$7.7

Net Income

$4.8

$ -

$4.7

Income Tax

$13.4

$0.9

$12.4

Income before Tax

$0.2

$ -

$0.2

Interest, net

$ -

$ -

$ -

Other Income (Expense), net

$13.2

$0.9

$12.2

Operating Income

$14.2

$0.8

$15.0

Operating Expense

$27.4

$0.1

$27.3

Gross Profit

$109.6

$0.1

$109.7

Cost of Sales

$136.9

$ -

$136.9

Net Sales

Q2'08 Non-

GAAP Results

FAS123R

Expenses

Q2'08 GAAP

Results

22

Supermicro ©

2008

Q1 FY08 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

38.9

38.9

38.6

Shares used in GAAP and Non-GAAP

per share calculation

$0.17

$0.02

$0.15

Diluted Net Income per share

$6.6

$0.8

$5.8

Net Income

$3.8

$0.1

$3.7

Income Tax

$10.3

$0.9

$9.5

Income before Tax

$0.3

$ -

$0.3

Interest, net

$ -

$ -

$ -

Other Income (Expense), net

$10.1

$0.9

$9.2

Operating Income

$13.1

$0.8

$13.9

Operating Expense

$23.2

$0.1

$23.0

Gross Profit

$94.8

$0.1

$94.9

Cost of Sales

$117.9

$ -

$117.9

Net Sales

Q1'08 Non-

GAAP

Results

FAS123R

Expenses

Q1'08 GAAP

Results