Super Micro Computer (SMCI) 8-K Super Micro Computer, Inc. Announces 1st Quarter 2012 Financial Results

GPU Solutions

Universal I/O

Double-Sided

Datacenter

Optimized

Twin Architecture

SuperBlade

®

Storage

1st Quarter Fiscal 2012

Earnings Conference Presentation

October 25, 2011

Exhibit 99.2

2

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: our dependence on continued growth in the markets

for X86 based servers, blade servers and embedded applications, increased competition, difficulties

of predicting timing of new product introductions, customer acceptance of new products, 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

Non-GAAP Financial Measures

Non-GAAP gross margin in this presentation excludes stock-based compensation expense and

accrued customs fee for prior periods. Non-GAAP net income and net income per share in this

presentation exclude stock-based compensation expense, accrued customs fee for prior periods, a

provision

for

litigation

costs

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, 2011. 

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

Q1’FY2012 Non-GAAP Financial Highlights

(in millions, except per share data)

Q1'12

YoY

Sequential

Revenue

$247.9

19.6%

-4.8%

Profit after Tax

$10.5

13.2%

-19.3%

EPS

$0.24

9.1%

-17.2%

Change

5

Summary of Results

Revenues 19.6% higher year over year

OEM and Direct business was 44.2% of revenues of which

16.4% was Internet Data Center

System business was 39.4% of revenues

Revenues by Geography:

US –

62.1%

Europe –

18.8%

Asia –

15.8%

Other –

3.3%

Product focus remains on preparation for Sandy Bridge

Taiwan facility ready for production end of December

Leading Application Optimized Solutions

X9 Romley Solutions in Sampling and early

deployment

H8 Interlagos Solutions in Seeding

Twin Architecture

2U Twin (6x 3.5”

HDD or 12x 2.5”

HDD per node)

1U Twin and 2U Twin²

are still growing

Fat Twin Architecture coming soon (418, 424, 442, 414)

SuperBlade™

-

GPU Blade and TwinBlade™

GPU blade (20GPUs in 7U, most dense in the industry)

20/28 DP nodes in 7U, support 40Gb/s Infiniband or 10G

Ethernet connectivity

GPU optimized product lines (1U, 2U and 4U)

1U, 2U New High Density GPU product line

IPC and Embedded Applications

Atom and Core-based low power server: fan-less / long life

cycle, for embedded and server appliances

Workstation and Everest product line

Chassis 415 for Intel Everest CPU optimization

Twin Architectures

TwinBlade™

Industrial Solution

GPU Blade

GPU-optimized

Workstation

6

HPC/Enterprise 8-way/4-way Systems

8-way

5U

high-end

high-margin

solution

–

80

cores

and

2TB

Nehalem-EX MP and G34 MP system in 1U/2U/4U

Storage Product Lines

Double-Sided, Super SBB product line with software solutions

SuperRack™

Double side access, cable management, water cooling

Hadoop mini-rack solution

Switch Products: 10GbE, IB, FCoE

10GbE onboard and 10GbE standalone switch

FCoE solution coming soon

MicroCloud™

Optimized for IaaS

Power Subsystems

High efficiency (94%+), digital switching, UPS w/ battery

Software Opportunities

Remote management, power management

HPC/DC management toolset (DCM & SSM)

Window OS Integration/Bundle

Front

Back

Super-SBB

Double-Sided Storage

1U / 4-way

5U / 8-way

SuperRack

MicroCloud

Leading Application Optimized Solutions

High Efficiency Power

7

8

Revenue Trend

Y/Y

39.5%

32.3%

23.8%

29.1%

19.6%

Seq.

2.7%

16.2%

-2.7%

11.1%

-4.8%

$0

$40

$80

$120

$160

$200

$240

$280

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

$207

$241

$234

$260

$248

$'s millions

Supermicro Revenue Trend

9

Revenue Analysis

$-

$50

$100

$150

$200

$250

$300

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

$133

$143

$160

$155

$150

$74

$98

$74

$105

$98

$'s millions

Supermicro Subsystems/System Revenue

Subsystems

Systems

10

Non-GAAP Gross Margins

14.0%

17.0%

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

16.0%

16.8%

16.2%

15.5%

16.1%

11

Non-GAAP Gross Profit

$-

$10.0

$20.0

$30.0

$40.0

$50.0

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

$33.2

$40.4

$38.1

$40.5

$39.8

Gross Profit

$'s millions

12

Summary P&L non-GAAP

(in millions, except per share data)

Q1'12

YoY

Sequential

Q1'11

Q4'11

Operating Expense

$24.0

$5.3

$1.3

$18.7

$22.7

Operating Expense Ratio

9.7%

0.7%

1.0%

9.0%

8.7%

Operating Income

$15.8

$1.3

-$1.9

$14.6

$17.7

Net Income

$10.5

$1.2

-$2.5

$9.3

$13.0

EPS

$0.24

$0.02

-$0.05

$0.22

$0.29

Diluted Common Share Count

44.3

42.7

44.9

Effective Quarterly

Tax Rate

33.1%

35.8%

26.0%

Change

13

Q1 FY2012 YTD Summary Statement of Cash Flows

($’s millions)

3 Months Ended

3 Months Ended

30-Sep-11

30-Sep-10

Net Income

$8.5

$7.2

Depreciation and amortization

$1.5

$1.3

Stock comp expense 

$2.3

$1.8

Other reserves

$4.4

$3.4

Net change in AR, Inventory, AP

-$4.5

$1.5

Other prepaids and liabilities

$12.9

$1.7

Cash flow from operations

$25.1

$16.9

Capital expenditures

-$8.0

-$7.2

Free cash flow

$17.1

$9.7

Net cash  -

investing activities

$1.7

$0.8

Net cash -

financing activities

$3.6

$0.4

Effect of exchange rate fluctuations

on cash and cash equivalents

-$0.1

$0.0

Net change in cash 

$22.3

$10.9

14

Q1 FY 2012 Summary of Balance Sheet Metrics

($’s millions)

Q1'12

Q4'11

Change

Cash Equivalents & Investments

96.0

$        

75.2

$   

20.8

$  

Accounts Receivable

87.8

$        

85.0

$   

2.8

$    

Inventory

189.0

$      

192.7

$ 

(3.7)

$   

Accounts Payable

123.6

$      

113.3

$ 

10.3

$  

DSO

32

29

3

DIO

84

83

1

DPO

52

51

1

Cash Cycle Days

64

61

3

15

Supplemental Financials

First Quarter Fiscal 2012

Ended September 30, 2011

16

Non-GAAP Financial Summary

(in millions, except per share data)

Q1'12

Q4'11

Q1'11

Net Sales

247.9

$    

260.3

$   

207.2

$  

Non-GAAP Gross Margin

16.1%

15.5%

16.0%

Non-GAAP Operating Expenses

24.0

$      

22.7

$     

18.7

$    

Non-GAAP Operating Income

15.8

$      

17.7

$     

14.6

$    

Non-GAAP Net Income

10.5

$      

13.0

$     

9.3

$      

Non-GAAP Net Income per share

0.24

$      

0.29

$     

0.22

$    

Fully diluted shares for calculation

44.3

44.9

42.7

17

Prior Period Net Income Comparisons

(in millions, except per share data)

Q1'12

Q4'11

Q1'11

Net Income (GAAP)

8.5

$        

10.7

$     

7.2

$      

Stock

Comp

&

Other

Unusual

Expense

(tax

affected)

*

2.0

$        

2.3

$       

2.1

$      

Net Income (Non-GAAP)

*

10.5

$      

13.0

$     

9.3

$      

Diluted Net Income per common share (GAAP)

$       0.19

0.24

$     

0.17

$    

Stock

Comp

&

Other

Unusual

Expense

(tax

affected)

*

0.05

$      

0.05

$     

0.05

$    

Diluted

Net

Income

per

share

(Non-GAAP)

*

0.24

$      

0.29

$     

0.22

$    

Shares used in diluted EPS calculation

44.3

44.9

42.7

* Note: Non-GAAP, please see Non-GAAP financial measures on page 3.

18

Q1 FY 2012 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

Stock Comp &

Q1'12

Q1'12 GAAP

Other Unusual

Non-GAAP

Results

Expenses*

Results*

Net Sales

247.9

$        

-

$                 

247.9

$        

Cost of Sales

208.3

$        

(0.2)

$                

208.1

$        

Gross Profit

39.6

$          

0.2

$                 

39.8

$          

Operating Expense

26.1

$          

(2.1)

$                

24.0

$          

Operating Income

13.5

$          

2.3

$                 

15.8

$          

Interest, net

(0.2)

$           

-

$                 

(0.2)

$           

Income Before Tax

13.3

$          

2.3

$                 

15.7

$          

Income Tax

4.8

$            

0.3

$                 

5.2

$            

Net Income

8.5

$            

2.0

$                 

10.5

$          

Diluted Net Income per share

0.19

$          

0.05

$              

0.24

$          

Diluted shares used in GAAP and

Non-GAAP per share calculation

43.4

44.3

44.3

* Note: Non-GAAP, please see Non-GAAP financial measures on page 3.

19

Q4 FY 2011 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

Stock Comp &

Q4'11

Q4'11 GAAP

Other Unusual

Non-GAAP

Results

Expenses*

Results*

Net Sales

260.3

$        

-

$                 

260.3

$        

Cost of Sales

220.3

$        

(0.4)

$                

219.9

$        

Gross Profit

40.0

$          

0.4

$                 

40.5

$          

Operating Expense

25.4

$          

(2.7)

$                

22.7

$          

Operating Income

14.6

$          

3.1

$                 

17.7

$          

Interest, net

(0.2)

$           

-

$                 

(0.2)

$           

Income Before Tax

14.4

$          

3.1

$                 

17.5

$          

Income Tax

3.7

$            

0.9

$                 

4.6

$            

Net Income

10.7

$          

2.3

$                 

13.0

$          

Diluted Net Income per share

0.24

$          

0.05

$              

0.29

$          

Diluted shares used in GAAP and

Non-GAAP per share calculation

43.7

44.9

44.9

* Note: Non-GAAP, please see Non-GAAP financial measures on page 3.

20

Q3 FY 2011 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

Stock Comp &

Q3'11

Q3'11 GAAP

Other Unusual

Non-GAAP

Results

Expenses*

Results*

Net Sales

234.3

$        

-

$                 

234.3

$        

Cost of Sales

196.4

$        

(0.2)

$                

196.2

$        

Gross Profit

37.9

$          

0.2

$                 

38.1

$          

Operating Expense

22.7

$          

(1.9)

$                

20.8

$          

Operating Income

15.2

$          

2.1

$                 

17.2

$          

Interest, net

(0.1)

$           

-

$                 

(0.1)

$           

Income Before Tax

15.0

$          

2.1

$                 

17.1

$          

Income Tax

4.3

$            

0.5

$                 

4.8

$            

Net Income

10.7

$          

1.6

$                 

12.3

$          

Diluted Net Income per share

0.25

$          

0.03

$              

0.28

$          

Diluted shares used in GAAP and

Non-GAAP per share calculation

42.9

44.0

44.0

* Note: Non-GAAP, please see Non-GAAP financial measures on page 3.

21

Q2 FY 2011 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

Stock Comp &

Q2'11

Q2'11 GAAP

Other Unusual

Non-GAAP

Results

Expenses*

Results*

Net Sales

240.8

$        

-

$                 

240.8

$        

Cost of Sales

200.6

$        

(0.2)

$                

200.5

$        

Gross Profit

40.2

$          

0.2

$                 

40.4

$          

Operating Expense

23.3

$          

(1.7)

$                

21.6

$          

Operating Income

16.9

$          

1.8

$                 

18.8

$          

Interest, net

(0.2)

$           

-

$                 

(0.2)

$           

Income Before Tax

16.8

$          

1.8

$                 

18.6

$          

Income Tax

5.2

$            

0.1

$                 

5.3

$            

Net Income

11.6

$          

1.9

$                 

13.3

$          

Diluted Net Income per share

0.27

$          

0.04

$              

0.31

$          

Diluted shares used in GAAP and

Non-GAAP per share calculation

41.6

42.7

42.7

* Note: Non-GAAP, please see Non-GAAP financial measures on page 3.

22

Q1 FY 2011 GAAP to Non-GAAP Reconciliation

(in millions, except per share data)

Q1'11

Q1'11 GAAP

Other Unusual

Non-GAAP

Results

Expenses*

Results*

Net Sales

207.2

$        

-

$                 

207.2

$        

Cost of Sales

174.1

$        

(0.2)

$                

173.9

$        

Gross Profit

33.0

$          

0.2

$                 

33.2

$          

Operating Expense

21.0

$          

(2.4)

$                

18.7

$          

Operating Income

12.0

$          

2.6

$                 

14.6

$          

Interest, net

(0.1)

$           

-

$                 

(0.1)

$           

Income Before Tax

11.9

$          

2.6

$                 

14.4

$          

Income Tax

4.7

$            

0.5

$                 

5.2

$            

Net Income

7.2

$            

3.1

$                 

9.3

$            

Diluted Net Income per share

0.17

$          

0.05

$              

0.22

$          

Diluted shares used in GAAP and

Non-GAAP per share calculation

41.4

42.7

42.7

Stock Comp &

* Note: Non-GAAP, please see Non-GAAP financial measures on page 3.