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

1

Supermicro ©

2008

Earnings Conference Presentation

January 28, 2009

Exhibit 99.2

2

Supermicro ©

2009

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 ©

2009

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 December

31, 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 ©

2009

Q2’FY2009 Non-GAAP Financial Highlights

(in millions, except per share data)

Q2'09

YoY

Sequential

Revenue

128.6

$         

(8.4)

$           

(15.5)

$           

Profit after Tax

6.7

$             

(1.8)

$           

(1.6)

$             

EPS

0.17

$           

(0.05)

$         

(0.04)

$           

Change

5

Supermicro ©

2009

Strong Fundamentals and Product Strategy

Our fundamentals are strong and our product strategy is

succeeding and we are gaining market share

Focused on developing application optimized server solutions

Delivering highest performance, best power efficiency, and

lowest total cost of ownership

Our margins are intact, our cost structure is controlled and we

are profitable

6

Supermicro ©

2009

Stock Buy Back

In November, Board of Directors authorized repurchase of common

stock

Company may repurchase up to 2 million shares

Program expires in June 2009

7

Supermicro ©

2009

Achievements

Supermicro is No. 1 x86 Server vendor to the channel for 2008

Government

Computer

News

rates

SuperServer

6015W

“truly

the best of the best for this year”

Launched the world’s most affordable personal supercomputer

featuring OfficeBlade

Introduced

Supermicro’s

first

cost

effective

SOHO

product

line

1U Twin server solution chosen for Hyperion Project at Lawrence

Livermore National Laboratory

8

Supermicro ©

2009

Upcoming Products and Launches

New generation Nehalem Xeon platforms, QPI technology

50+ Motherboard SKUs

30+ Optimized Chassis

30+ system solutions

Twin

--New architecture for performance per watt and dollar

Continue the momentum of 1U Twin

New generation of 2U Twin² for HPC and Datacenters

SOHO (Small Office and Home) and Embedded product line

Cost effective and Intel Atom, high efficiency CPU based server,

storage, and desktop products

High volume segments and retail

Boxboro-based Itanium /Nehalem EP solutions from Intel

Enterprise class high-end MP server

Complete RAS feature (hot-pluggable CPU, memory, and I/O system)

Storage Bridge Bay (SBB) products

Advanced storage sub-system

Universal storage spec

High speed connectivity products (QDR InfiniBand

and 10GbE)

2

9

Supermicro ©

2009

Revenue Comparables

$137

$137

$149

$144

$129

$0

$40

$80

$120

$160

$'s millions

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Supermicro Revenue Trend

-10.4%

-3.4%

8.8%

0.0%

16.1%

Seq.

-5.8%

22.0%

34.2%

29.2%

20.2%

Y/Y

10

Supermicro ©

2009

Revenue Analysis

$79

$58

$89

$48

$91

$58

$88

$56

$76

$53

$-

$40

$80

$120

$160

$'s millions

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Supermicro Component/System Revenue

Total Components

Systems

11

Supermicro ©

2009

Non-GAAP Gross Margins

20.0%

18.2%

19.2%

19.4%

18.9%

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

12

Supermicro ©

2009

Non-GAAP Gross Profit

$27.4

$25.0

$28.6

$28.0

$24.2

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Gross Profit

$'s millions

18.9%

19.4%

19.2%

18.2%

20.0%

13

Supermicro ©

2009

Summary P&L non-GAAP

(in millions, except per share data)

36.1%

36.0%

20.8%

Effective Quarterly Tax Rate

39.6

38.9

39.2

Diluted Share  Count

$       0.21

$       0.22

$             (0.04)

$          (0.05)

$             0.17

EPS

$         8.3

$         8.6

$               (1.6)

$            (1.8)

$               6.7

Net Income

$       13.0

$       13.2

$               (4.4)

$            (4.6)

$               8.6

Operating Income

10.4%

10.4%

1.9%

1.8%

12.2%

Operating Expense Ratio

$       14.9

$       14.2

$                  0.7

$              1.4

$             15.6

Operating Expense

Q1'09

Q2'08

Sequential

YoY

Q2'09

Change

14

Supermicro ©

2009

Q2’09 Summary Statement of Cash Flows

($’s millions)

6 Months Ended

6 Months Ended

Dec. 31, 2008

Dec. 31, 2007

Net Income

12.5

$                 

13.5

$                 

Depreciation and amortization

1.7

$                    

1.1

$                    

Stock comp expense (FAS 123R)

2.5

$                    

1.8

$                    

Other reserves

3.3

$                    

5.3

$                    

Net change in AR, Inventory, AP

(11.5)

$                

(14.3)

$                

Other prepaids and liabilities

1.4

$                    

3.4

$                    

Cash flow from operations

10.0

$                 

11.0

$                 

Capital expenditures

(2.5)

$                  

(12.6)

$                

Free cash flow

7.5

$                    

(1.6)

$                  

Net cash  - investing activities

0.8

$                    

(3.9)

$                  

Net cash - financing activities

0.5

$                    

0.0

$                    

Net change in cash 

8.8

$                    

(5.5)

$                  

15

Supermicro ©

2009

Q2’09 Summary of Balance Sheet Metrics

($’s millions)

Q2'09

Q1'09

Change

Cash Equivalents & Investments

74.9

$  

79.9

$  

(5.0)

$  

Accounts Receivable

39.6

$  

46.2

$  

(6.6)

$  

Inventory

89.1

$  

100.9

$

(11.7)

$

Accounts Payable

65.6

$  

86.9

$  

(21.3)

$

DSO

31

31

0

DIO

84

74

-10

DPO

67

66

1

Cash Cycle Days

48

39

-9

16

Supermicro ©

2009

Second Quarter Fiscal 2009

Ended December 31, 2008

17

Supermicro ©

2009

Non-GAAP Financial Summary

(in millions, except per share data)

Q2'09

Q1'09

Q2'08

Net Sales

128.6

$  

144.1

$  

136.9

$  

Non-GAAP Gross Margin

18.9%

19.4%

20.0%

Non-GAAP Operating Expenses

15.6

$    

14.9

$    

14.2

$    

Non-GAAP Operating Income

8.6

$      

13.0

$    

13.2

$    

Non-GAAP Net Income

6.7

$      

8.3

$      

8.6

$      

Non-GAAP Net Income per share

0.17

$    

0.21

$    

0.22

$    

Fully diluted shares for calculation

39.2

39.6

38.9

18

Supermicro ©

2009

Prior Period Net Income Comparisons

(in millions, except per share data)

Q2'09

Q1'09

Q2'08

Net Income (GAAP)

5.3

$      

7.2

$      

7.7

$      

FAS123R Expense (tax affected)

1.3

$      

1.1

$      

0.9

$      

Net Income (Non-GAAP)

6.7

$      

8.3

$      

8.6

$      

Diluted Net Income per share (GAAP)

0.14

$    

0.18

$    

0.20

FAS123R

0.03

$    

0.03

$    

0.02

$    

Diluted Net Income per share (Non-GAAP)

0.17

$    

0.21

$    

0.22

$    

Shares used in diluted EPS calculation

39.2

39.6

38.9

$

19

Supermicro ©

2009

Q2 FY09 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

Q2'09

Q2'09 GAAP

FAS123R

Non-GAAP

Results

Expenses

Results

Net Sales

128.6

$         

-

$             

128.6

$         

Cost of Sales

104.5

$         

0.1

$              

104.3

$         

Gross Profit

24.1

$           

0.1

$              

24.2

$           

Operating Expense

16.8

$           

1.2

$              

15.6

$           

Operating Income

7.3

$              

1.3

$              

8.6

$              

Interest, net

(0.1)

$            

-

$             

(0.1)

$            

Income Before Tax

7.2

$              

1.3

$              

8.5

$              

Income Tax

1.8

$              

(0.0)

$            

1.8

$              

Net Income

5.3

$              

1.3

$              

6.7

$              

Diluted Net Income per share

0.14

$           

0.03

$           

0.17

$           

Diluted shares used in GAAP and

Non-GAAP per share calculation

39.2

39.2

39.2

20

Supermicro ©

2009

Q1 FY09 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

Q1'09

Q1'09 GAAP

FAS123R

Non-GAAP

Results

Expenses

Results

Net Sales

144.1

$         

-

$             

144.1

$         

Cost of Sales

116.2

$         

0.1

$              

116.1

$         

Gross Profit

27.8

$           

0.1

$              

28.0

$           

Operating Expense

16.0

$           

1.1

$              

14.9

$           

Operating Income

11.8

$           

1.2

$              

13.0

$           

Income Before Tax

11.8

$           

1.2

$              

13.0

$           

Income Tax

4.6

$              

0.1

$              

4.7

$              

Net Income

7.2

$              

1.1

$              

8.3

$              

Diluted Net Income per share

0.18

$           

0.03

$           

0.21

$           

Diluted shares used in GAAP and

Non-GAAP per share calculation

39.3

39.6

39.6

21

Supermicro ©

2009

Q4 FY08 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

Q4'08

Q4'08 GAAP

FAS123R

Non-GAAP

Results

Expenses

Results

Net Sales

148.9

$         

-

$             

148.9

$         

Cost of Sales

120.4

$         

0.2

$              

120.3

$         

Gross Profit

28.4

$           

0.2

$              

28.6

$           

Operating Expense

17.8

$           

1.2

$              

16.7

$           

Operating Income

10.6

$           

1.3

$              

11.9

$           

Income Before Tax

10.5

$           

1.3

$              

11.9

$           

Income Tax

3.7

$              

0.1

$              

3.8

$              

Net Income

6.8

$              

1.3

$              

8.1

$              

Diluted Net Income per share

0.18

$           

0.03

$           

0.21

$           

Diluted shares used in GAAP and

Non-GAAP per share calculation

39.0

39.1

39.1

22

Supermicro ©

2009

Q3 FY08 GAAP to Non-GAAP Reconciliation

(in millions, except per share)

Q3'08

Q3'08 GAAP

FAS123R

Non-GAAP

Results

Expenses

Results

Net Sales

136.8

$         

-

$            

136.8

$         

Cost of Sales

111.9

$         

0.1

$             

111.8

$         

Gross Profit

24.8

$           

0.1

$             

25.0

$           

Operating Expense

16.6

$           

0.9

$             

15.6

$           

Operating Income

8.3

$             

1.0

$             

9.3

$             

Interest, net

0.1

$             

-

$            

0.1

$             

Income Before Tax

8.4

$             

1.0

$             

9.4

$             

Income Tax

3.3

$             

-

$            

3.4

$             

Net Income

5.0

$             

1.0

$             

6.0

$             

Diluted Net Income per share

0.13

$           

0.02

$           

0.15

$           

Diluted shares used in GAAP and

Non-GAAP per share calculation

39.0

39.1

39.1

23

Supermicro ©

2009

Q2 FY08 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

Q2'08

Q2'08 GAAP

FAS123R

Non-GAAP

Results

Expenses

Results

Net Sales

136.9

$         

-

$            

136.9

$         

Cost of Sales

109.7

$         

0.1

$             

109.6

$         

Gross Profit

27.3

$           

0.1

$             

27.4

$           

Operating Expense

15.0

$           

0.8

$             

14.2

$           

Operating Income

12.2

$           

0.9

$             

13.2

$           

Interest, net

0.2

$             

-

$            

0.2

$             

Income Before Tax

12.4

$           

0.9

$             

13.4

$           

Income Tax

4.7

$             

-

$            

4.8

$             

Net Income

7.7

$             

0.9

$             

8.6

$             

Diluted Net Income per share

0.20

$           

0.02

$           

0.22

$           

Diluted shares used in GAAP and

Non-GAAP per share calculation

38.7

38.9

38.9