Charles. you, Thank
was outbreak pandemic. actively the manage the for by our Since during for components such key potential would fulfilled I critical be time, our can support customer that inventories chain memory, thank navigate and risk are as and, shortage safety employees, supply of that customers, GPUs, response orders for COVID-XX increasing First, CPUs, Upon the their to like the investors first as our to we as to news challenges partners a our such received. have extent, of continued to they stock add components. lesser we SSDs to overseas,
we spread a of the essential to Santa As the COVID-XX. of County state designated the to directives business, instructions responded California shelter-in-place and combat regarding of Clara
manner. our of Our and is work implement safety health to to safe we priority precautions practices first the numerous a began immediately in operate and workforce,
of guiding go-forward us our critical our customers from labor indirect quickly strategy. transitioned operate industries, in in assessed Operating most also force in infrastructure, customer We identify priority we home. our critical IT sector the work base who of to to
Taiwan bottom guidance towards and this we Europe of States. We successfully operations original also achieve from disruption, the revenues managed the our last at shifted to Despite March some United range. of the X focus weeks
Now let financials. me turn to the
from revenue XXXX X Our last XX% of year. fiscal the gave the but increase initial above range second $XXX decrease a our third and on the the on quarter guidance of same end from an given which midpoint quarter-on-quarter million, was quarter of quarter totaled year This February X. at range fiscal X% lower the reflects of guidance April we
projects number the year-over-year. of of quarter and fulfilled quarter-on-quarter paused sequentially often XX% of quarter. data and enterprise center the March down in total and, shipped in customers nodes but volumes year-over-year. systems large but is the ASPs were revenue, declined December comprised A increased case, Systems up
X%. a basis, Geographic up and EMEA performance sequential Asia on higher. EMEA XX% mixed by XX% a the U.S. with On declined basis while market the was year-over-year XX%, down sequentially X%, grew U.S.
a X% sequentially. declined modest Asia
There were of sizable discrete a would that emphasize. events in I to the like number quarter
million, a earnings reduced cost $X.XX million million of for XX% yield that non of a share on fee Applying GAAP of R&D U.S. product our First, we development tax sales and received which benefit would diluted on GAAP financials. to project a reduced both settlement per expense. and joint rate our $X.X $XX.X $X.X
of cash which included input many matter XX% expected period. investors Second, our related shares approximately of incorporated By outstanding $XX on and $XX our from matters of Directors, call, million we charges direction awards, cleanup from residual of our we our performance conditions. that that of provide onetime incur to in additional Board we saw to blackout this extended to last million holding to input mentioned
we million that quarter, $X.X sales expense, in operating million increased $XX.X recorded million This $X.X related the and cost of of awards. to increased expense which
our As from noted in this our last call, we non-GAAP measures. have excluded item
non-GAAP Lastly, measures. $XX.X we SEC our we recorded settlement an excluded a provision million from have of for that
non-GAAP P&L. the by and driven on higher customer, the geographic Gross XXX favorable points as as lower basis down commodity a product aforementioned basis was costs and well fee. than margin mix year last Working settlement XX.X%,
a million $XX.X including for SEC joint fee. performance increase the tax expenses related offset a on quarter-on-quarter increased related related by to million salaries the product $XXX mainly to development and expenses provision and operating previously X% These GAAP QX and million due settlement. settlement were withholding to in $X.X basis disclosed the $XX.X awards payroll an benefits, million
sequential development including $X.X in costs, decreased product several that reduction Recall year-on-year quarter-on-quarter factors, X% and due of a our and million. was led basis, quarter fee. fees of settlement joint concluding XX% including non-GAAP a million. operating $XX employee increased expenses decline On to costs The lower lower to audit related filings the the approximately to December and audit expenses delinquent R&D sequential in
last gain million quarter to a related expense to exchange and on the million was income as impact primarily dollar-denominated Other our $X.X loss $X.X foreign compared term loan. Taiwan a
a million the basis. U.S. our a liabilities GAAP Netherlands. cases, $X.X tax taxes million quarter, a were and both on on the In benefit a from This expense $X.X in we reduced benefited non-GAAP basis and
expect GAAP forward be We XX%. to tax continue both non-GAAP to going rate approximately and our
$XX defensive earnings per to per share million in quarter results totaled last $X.XX loss ago. previous loss same share last Cash million, the share diluted quarter $X.XX loss year. QX a our in $X.X used quarter totaled million was venture a $X.XX we million a quarter this a invested $X.X year in non-GAAP to inventory and and compared $X joint as the measure. operations as as diluted in the a in compared Lastly,
in And CapEx totaled free $XX of outflow million. cash $XX million, resulting
cash was cash, closing including $XXX restricted Our million. position,
This XXX. is outstanding and was conversion quarter, sales totaled above our XX payable was slightly XX our days, Days which days. XX XX Days cash days. outstanding days days, was of inventory cycle to XX target
our Now for business. turning the to outlook
will quarter. we coming COVID-XX, uncertainties providing guidance the of for be not the Given
However, to following our facts. are context sharing provide metrics business, and around the we
significant the quarter and such of We year the and we see ongoing continue as travel and to have fourth retail, and that impacted XXXX do leisure demand oil have been enter not industries greatest. gas direct to exposure fiscal as
up through our shipments that to year note shippable as customers. quarter ago we compared time our may up and the We a are channel partners compared discover as prior indirect are as the plus to As last well. passes, June also exposure quarter quarter to the distressed greater of and the orders week OEM industries in same
emerged as Looking departures forward, costs. of challenge restricts has industry frequency as transportation the the new logistics and a increases
We our us in our assist labor continue whom expect increased well costs in as freight direct in costs many industries. to employees as to critical we and incentivize work are as serving customers, of
incremental to We points expect XXX gross basis basis. these XXX on costs by margin reduce to a sequential
record will quarter of to in June $XX be $XX million expect Approximately awards. million performance XXXX cash $XX June XXXX the expense also in the related to performance to in million aforementioned $XX to to these quarter. paid awards related We million
COVID-XX. focused the Our by our company management on unfolding guiding team presented through emerging and is challenges
COVID-XX unable well financial believe to result we're further strategically operations, operations, we positioned environment. predict in are of impact and to we which an financially business Although uncertain and extent our the performance may business
to that, for back Q&A. With James turn it I'll
