SMCI - Earnings call transcript Q2 2022 | Super Micro Computer, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Super Micro Second Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. you. Thank Instructions] [Operator pleasure Relations. the my Nicole over Noutsios, Investor to now call turn to It’s ahead. go Please

Nicole Noutsios

Good afternoon. company have quarter, news you Charles Patrick financial Development; XX, And Wang, Financial thank With the Liang, results regular to Officer. Micro’s you company’s the XXXX. should Chief Coast Chief for release discuss Founder, at call President, Chairman and the Executive the today By website. of East second Weigand, received was me David which Corporate copy close and December and trading for ended are attending Strategy Officer; available Super SVP, a distributed and that from on now, of is and the

will available the tab. that refer to As reminder, & under a a to section of on company is the company’s IR website Presentations Events during today’s the participants presentation call,

our some income of business We could expectations. note third information from and Super the regarding taxes, you’ll results have materially including the commentary limitation other without margin, XXXX website. our fiscal of fiscal year revenue, during and cause allocation Micro’s capital also expenses, There today outlook, are management’s those published gross that COVID-XX operating differ the full of operations. of future statements, to our on risk including discussion expenses, XXXX, will the and Please scripted hear year that company’s of for future the forward-looking guidance factors consist of quarter impact and results potential and on business number a

filing we SEC most issued these and risks about our the for earlier XX-K filings. fiscal afternoon, this other XXXX learn release press our recent can more You in

the forward-looking and Most non-GAAP documents Micro’s these results page financial to assume any today’s no business All are Super on outlook. obligation of statements. presentation of refer update to will of available website. We IR

earlier release to today. accompanying For please measures, refer the to press an explanation our of our published presentation non-GAAP financial

to At Charles In addition, we press results ask the to sell-side now end call presentation. today’s of and is a -- GAAP Q&A have will information today’s Charles. for remarks, the session in to non-GAAP contained I’ll the questions. reconciliation of to analysts call over today’s attached a release supplemental prepared

Charles Liang

Thank afternoon, am revenue and growth, sequential our fiscal of everyone. you, was good year-over-year Nicole, to XX% QX growth and announce I billion which pleased Today, XX%. $X.XX was quarterly XXXX, for our

We have COVID from our in growth seen strong and challenges verticals all component and impact. despite shortage key geographies global

our market server solutions, software IT our strategy been thanks all Total to employees, our share, continuously importantly, Solutions dedicated building has powerful gain fast More us block products. growing empowering to finally, and

TAM Solutions, With the and from growth for I trend years to quarter-after-quarter. believe will potential come Total and IT continue stronger getting bigger our many

look quarter. let’s key the from at highlights Now, some

industry’s growth year-on-year quarter net our fiscal XX% of consecutive up our of First, at continue totaled multiple rate. times second up again, $X.XX range $X.X guidance growth as we to XX% the It’s revenue fourth our revenue Super and quarter-on-quarter, billion. at the progression Micro’s trajectory fast of quarter billion billion, end higher $X.X

providing APAC our operational lowering momentum major The year-over-year. geographies All contributed the Our our of per higher last range fiscal $X.XX grew expansion to by earnings growth, which $X.XX region second guidance year, was Taiwan significantly growth the quarter additional of XX% and XX% to the end which and and in same EMEA capacity non-GAAP our especially our in to compared at $X.XX, year-over-year APAC growth share was boosts cost. $X.XX. quarter

the significantly expand We to Auto-configurator the during customers program continued more to BXB quarter. service

enabled FAE, customer’s PM to better well us team’s market Our has to a company improving The services, accelerate and with transition transition offer more. higher product and hardware availability as innovative customers business from software, system optimal to opportunities center been our -- key switches with IT as company. hardware, our presented conditions command-center based Super a Micro has business Recent sales, Total satisfaction. on-line have value efficiency, Solutions our

have previous billion few timeline observing in we and target quarter revenue that target across our machine we More our enterprise, which are ago. are $XX IoT. results Cloud, outperform verticals, diversified shared we outperform -- annual shown Our encouragingly, AI, the our growth large XG/telco a learning,

with with quickly to Our Solutions. design Fortune-listed grow wins and Total IT engagements continue our customers

Most impact Solutions in will Super that are scale Our the higher-quality, partners. of customers Micro customers the with and is and in-house. accurately plug-and-play and our receive chain Total ready optimized, helping in customers forecasting, benefiting This ways. supply by IT our fully prioritizing is global integrated validated Super mitigate disruptions towards effort push Micro also inventories notably, our building multiple products our strategic and

As Total value. IT improve our a customer’s Micro’s Solutions and dramatically result, Super time-to-market our increase

of Our knowledge most robust be Total blocks are IT can Solutions architecture upon system optimized for a built and verticals. that market building

GPU have our enhance offerings. recently new several we Metaverse, and architectures Omniverse of rise introduced the product With to

our Our to EPYC leveraging and new Micro their Omniverse supply XD various system the standardize configurations challenge. GPUs, the customers Metaverse in choose providers glad with and AMD single CPUs, GPUs, FPGA has Xeon processors. committing switches and workloads, immersive announced in only ecosystems, including processors best MIXXX customers The customer limitation Partnering platform, leading to their many products Scalable support from a on technology truly enables major clusters This versatile platform. desired many announce unique Super I/O already new accelerators, workloads different we lines architecture GPUs, and workloads. chain companies GPU newly GPU NVIDIA to these closely and is and to Intel optimize system to doubled for industry and Universal have product the GPU the emerging others. the series to supports that the this leaders Universal allows AXXX I either am applications configurations or AMD

XU optimal provides ratio an Our X-node system features. of with CPU-to-GPU GPU mix resource-saving

AI use and distributed edge everything Along AXXX as Total applications, Hyper with to system platforms, kind Systems, our core XG of AI mission other support center datacenters, the highly and in Micro’s are system servers and inference multiple XS’s. data Hyper-E Last our cases quarter Omniverse GPUs for Components, the ideal support Solutions and application which such computing single and speed inferencing telco a to comprehensive performance our have between. strategies, micro NVIDIA high-performance content building growth critical Super configurable Subsystem include; and workloads. everything Redstone growth blocks high many enterprise or at IT in drivers Metaverse Our for Delta from and we delivery, Complete redefined up and

the of major and our partners, the been the as our large to still and help over driver business and customers, decades with steadily would blocks growth engagements, new they backbone now. building growth. of Our partners complete is I emphasize top revenue business systems that appliance Solutions companies like other have again Total enterprise technology-leading With growing serve IT our

Going hardware forward, coming our server a in into In networking and and summary, service margins Super Micro will years. a to from growing investments profitability rapidly keys and in is software Solutions be the IT the company. our quarters company products, and improve Total transforming

and our customers including Edge share accelerating wins global gains AI, XG/telco key large We learning, enterprise, and machine market are IoT. at and design

and the to share replicating success We rapid and completion ramp market in EMEA are APAC our Taiwan. improving our production U.S. profitability APAC the of with and in expansions our

the as executing more our the I team Total a I timeline to and our growth effectiveness additional our as is confident Auto-configurator Financial -- been customer Command accelerating Automation that pull our is closing, am call Center improving details In satisfaction and a BXB -- gains. to Weigand, quarter. now. year-over-year Chief I now we invest our David diligently new will billion Based you. invest platforms operations increase Super Solutions resources off -- our company. revenue revenue quickly the strategies are and continue Our TAM solid to on we My and taking proof have business Financial Thank to will in more instead are and market we goal. XX% presence, that while provide our $XX and profitability Officer, growth strongly IT market-share Micro’s accelerating pass

David Weigand

Thank you, quarter to Charles. billion. consecutive I our am report exceeding $X pleased of revenues third

for all year-on-year in and of strong resulting continued seeing increase strength services, demand and products are second billion, $X.XX XX% quarter-on-quarter. revenue XX% We a across quarter up our fiscal geographies and

volume Edge/IOT and and last XXXX $XXX and including customers, achieved increased XG/telco XX%, Asia new freight revenues our basis, and sequentially costs. Revenues XX% down costs for into QX a cost a The total market designs of Rest data verticals, fiscal supply XX%, of Japan, billion. continued year vertical, systems revenue supply U.S. Europe to spite the to million and and in a was World end On recovery million increased basis higher XXX the On points Q $XXX Rest vertical and production. both discrete ASPs XX XXXX This and trailing doubled chain XG/telco vertical. due and in increased the On year-over-year XX% represented increased and the increased was vertical product/customer of at across including which were in Enterprise Systems of revenues. XX% gross basis three World OEM current appliance our discipline quarter-over-quarter year Our from subsystems in and sequential node new gross year. shipped, as of and quarters achieving accessories QX X%, totaled Micro’s growth increased we $X.X billion. $X.X XX%, our of Channel mix. with large The billion and The XX%. and more and XX%, revenue basis, growth guidance QX of event price a and increase of Asia, of increased $XXX went a and U.S. due year-on-year in the was quarter-on-quarter. and System XX%. of in were higher XX% million decreased use chain QX as as points of higher Super QX increased all Edge/IoT in as Japan saw better year-over-year up than comprised Europe center XXXX well air four range both QX nodes basis Organic QX to of existing margins margin AI/ML $X.XX FY of through freight year fiscal increased sales recorded

GAAP XX% X% to Income year-on-year as were Other quarter-on-quarter & on GAAP basis higher basis on basis and NRE included a including million. headcount primarily a was expenses, personnel lower Dollar year-on-year driven and by and stock $X.X of interest increased development QX higher and increases million. non-GAAP expense, operating -- on and basis, increased to operating Dollar, from research quarter-on-quarter a last and compensation change quarter-on-quarter to expense Expense to so credits. year-on-year is and our weaker the year-on-year non-GAAP to research expense million increased The $XXX lower higher credits. increases compared X% The personnel were costs quarter-on-quarter $X.X a XX% to a driven loans and million headcount; remeasurement expense development Taiwan FX. and On and interest expenses OpEx a The $XXX by Turning increased U.S. mostly related a costs loss sequential quarter. NRE increased

GAAP This a and on quarter the non-GAAP tax basis. a million provision $XX.X on was million $X.X basis

tax for rate was non-GAAP Our quarter. the XX.X%

rate change increased this tax due tax purposes for regulations. GAAP U.S. to Our in quarter non-GAAP and primarily a

to did near was quarter, was expenses. diluted the to in used QX, higher last the $XXX to cash the levels our shares and the quarter. and Lastly, to $XX CapEx million, and flow guidance operations from million from in of from partially end compared compared non-GAAP to not in cash margins, as was inventory chain to million receivable, disruptions. due $X.X $X.X of a revenues orders and million. operating of We repurchase operations offset deferred QX EPS by Key quarter. income to prepayments customers uses provided Cash build QX be payable, inventory offset by JV mitigate flow position $XX included higher supply impact as share customer in continued increases accounts of higher any increased of our high million cash we $X.XX, totaled this million meet gross which quarter flow range our resulting totaled during of used negative $XX accounts in the in large increasing to of free cash for the revenue.

down increase of position was to million sheet was of bank while we -- inventory $XXX as balance production globally. drew was cash closing bank debt levels $XXX lines new $XXX Our our platforms million, we as on ramped credit

higher from cash our QX of quarter, the XX compared target days days the days, and days, XX days an to prior days days, XX days capital is to was was Turning due outstanding above to by increase down up of sales quarter. representing inventories. sheet days four XX XX our balance days inventory in metrics conversion which of to four to outstanding XX range Days working days. payables cycle down four XXX Days by was last was versus while QX, to

the that the quarter turning our has New from Now are to watching Lunar we from business, typically Year Covid-XX for note outlook impact our disruptions. related seasonal March QX supply holiday impacts to the we chain some also carefully and

year $X.XX XXXX of We billion, diluted $X.XX XX, expect for GAAP $X.XX and income $X.XX the net quarter share to March income $X.X $X.X billion per non-GAAP to diluted range share third XXXX. to sales ending in the per fiscal net of net of of

be to QX up from gross margins We slightly levels. expect

to be $X.X other $XXX million million in are Our GAAP stock-based expenses. included $X.X operating compensation approximately expenses and in non-GAAP and expenses in include expected operating not million

a net continued XX.X% The interest common XXXX investment of and income for share QX be We in expect and a million diluted non-GAAP to and venture. $X.X and includes XX%, operating a personnel tax fiscal assume million GAAP be expect higher share. company’s costs. common from and income million XX The XX.X GAAP non-GAAP other of up our share of income from a expenses, rate quarter-on-quarter per tax for Non-GAAP stock-based diluted compensation million expense, non-GAAP net of to per in common roughly net net of diluted and a effects, our net fully are year joint for projections shares that and in forecasted count contribution expense rate $X.X are income expense, including tax for approximately GAAP expenses nominal of from R&D million non-GAAP. expected outlook excluded GAAP share other diluted per $X

the of billion for $X.XX net a of income at our of income least fiscal GAAP $X.X net and least company’s ending to are $X.X and tax XX, for billion We and XXXX per rate rate income of maintaining our XX% XXXX, outlook net $X.XX. non-GAAP diluted guidance revenue of June a range non-GAAP diluted The year GAAP assumes projections net XX% at for per share income. share

fiscal that for fully per The non-GAAP. share and count For expenses, fully XX.X of net share includes XXXX, fiscal $XX shares year year we excluded share. of XX.X expected XXXX a non-GAAP from diluted earnings per million common million approximately shares million are diluted assuming diluted for net GAAP tax stock-based GAAP outlook are other effects for in compensation and income

for I be $X third expect will to the of it -- fiscal XXXX you. to turn to quarter Nicole, CapEx million of range the We back in $X million. ‘XX

Nicole Noutsios

questions. now can open line up Operator, for we the

Operator

Instructions] Loop [Operator first Your with the from question of Ananda comes line Baruah Capital.

Your line is open.

Ananda Baruah

and A the question guys. and ongoing taking good results. Hey, the so quarter, on for things nice execution. could. then nature, Congratulations expansion, It -- like, of helpful? any linearity of, Thanks afternoon. have -- like, customer up. revenue congrats Thanks. a And is the that workload context around if new and follow couple linearity how expansion, through quick momentum new the I Yeah. Good kinds on be would the customer, I really

Charles Liang

Yeah. Thank you the question. for

Hardware we from a a IT know, just Total Solution you company. As Solution company migrating to

for solution complete customer of our the lots like So auto-ID need.

to technology continue gain leader. and large really really some customer we So some

that’s we partner And So to help… very service are excited industry. more the then… in very happy, really D And

Charles Liang

Yeah. for it. Go

David Weigand

had really vertical. the XG/telco in customer Okay. and telco just add I that, to good wise was going we growth the

Ananda Baruah

Okay.

Charles Liang

Omniverse, lots of Essentially, to opportunity an opposed exciting Metaverse, very there. like, and as like

Ananda Baruah

not me telco to here? think it’s is if sounds half March half But -- year that calendar of interpretation. that accurate up kind going and think an say least at does you you Meta, like December of correct quarter first picked the in energy, it first incrementally continue that do Charles, the of new quarter to

Charles Liang

already some is year just opportunity traditionally, soft different, demand, have likewise, because we mean, them. but say our Metaverse, engagement I season, and GPU, large of quarter, especially Omniverse, we to strong fulfill kind have try March there very of lots is this

Ananda Baruah

Charles. Okay. follow A up Great. helpful. comments… Any That’s quick

Charles Liang

Thank you.

Ananda Baruah

quarter? since we’re you demand? sales year, after second Thanks. can June demand on on on the I year up half second any context half … the the asked calendar coming that of of just provide, the

Charles Liang

with Yeah. There because is and commendable us. woman [ph], looks strong pretty Total now lots bigger back of IT product order Solution, our customer a have of

commendable So of a we in kind very are increasing order our back way.

Ananda Baruah

Excellent.

a in Thanks I’ll lot. get Okay. the back queue.

Operator

SIG. Your next Mehdi comes question line of from with Hosseini the

Your line is open.

Mehdi Hosseini

my Thanks question. taking Yes. for

your for inflationary months. guide midpoint a the and in the about does get is there fact at that you’re to And prices, But I have by inventory past to year $XXX cost extra missing implied is want pass look you not a further trend I March And understanding decline. despite and up follow built been how has your up. June for the or of on over the for something the managing then consecutive suggest component that taking inventory guide revenue fiscal I’m it gone million conservative, you two because Just year six guide, just have able here? that you’re a sequential else or

Charles Liang

I’m And just build chain. supply the And uncertainty based there’s have did are global very -- inventory feel back of chain we We year that, been at now, indeed, a update Indeed, certain some why our back with still supply Other there the very happy than strong. difficulty. not optimistic. uncertainty we whole because the and earnings, reason revenue still terms in Yeah. order. big this on inventory very order with moment, our

Mehdi Hosseini

supply on the … Just

Charles Liang

And…

Mehdi Hosseini

Go ahead, sorry, go ahead.

Charles Liang

Yeah.

way. have in healthy, indeed very Our very happened conservative a inventory to

David Weigand

Yeah. Mehdi, is And David. this

question another question, had. your that you answer to Just

our reflected increased pass margin. Our costs on ability is gross to in really

on. being component increase passed those costs So are

Mehdi Hosseini

Got you.

if me, to that you us and Thanks buckets were excuse the XG/telco. sequential organic year-over-year revenue OEM Can for also contribution. you highlighted, go to bucket? each I then, And the give back providing and for Okay. three dollar changes

David Weigand

So, didn’t in our of we although, quarter. our back the in Mehdi, available believe, slides year, we that’s go don’t that have last -- to on have guidance website. I QX our by Yeah, we

Mehdi Hosseini

can comments can which some was maybe as strongest? provide to you the But qualitative -- Okay. bucket you

David Weigand

Absolutely.

center, channel up XX% I’m the, and bucket prior And our So OEM approximately the the bucket. enterprise then AI/ML organic from XX%. data look and XG/telco constitutes The in appliance and XX%. sorry, is of Edge that’s revenues. X% the the quarters, about our comprises about Edge and And XG/telco

So way quarters. that’s past of that’s kind -- the over the the been trend

Mehdi Hosseini

So the XG…

David Weigand

The big change though…

Mehdi Hosseini

Go ahead. Oh!

David Weigand

big customers. was telco big change The and from in Yeah, from really growth XG. was with traction some

Mehdi Hosseini

Okay. you. Thank

Patrick Wang

Hey, we’re year said another I feel your not I just is kept very where But one -- for question, expect March, there. maintaining for What we’re comfortable read mentioned it quarter implied guidance is just We our just right? we guidance Mehdi. the earlier we in we today, it, given for we’re what that just given situation it actually you want June. the guidance wouldn’t was, in out, here June. to course, guiding of is back given we’ve we’ve not full with we to actually was. guide implied why what that -- This Patrick. -- which come thing which as done

Mehdi Hosseini

Got it.

David Weigand

Yeah. thing… And the

Mehdi Hosseini

Go ahead.

David Weigand

am I sorry. This is Yeah. David.

we to X.X a to out have have range that So we a put will -- we X.X. I range, of that, add

very comfortable we’re So there, sure.

Mehdi Hosseini

components and supply mismatch may demand. still some for just there’s There’s also continued quickly, with mismatches. I If

So to you’re also would given say conservative, mismatches of fair components? availability of the it that be

Charles Liang

that… say You can

Mehdi Hosseini

Okay.

Charles Liang

now. case… conservative, We is … kind in stronger tried by back of, order fully be to the

Mehdi Hosseini

you. Got it. Thank

Operator

with next Choski Capital Markets. the Your Northland comes from of Nehal question line

Northland Capital Your Nehal Markets. open. line is with Choski

line is open. Your

Nehal Choski

Yeah.

on unchanged bit effectively quarter? guidance me flat narrow guidance on difference solid was given Sorry. at a This here. partially XXXX Congrats does has apply Thank the midpoint above mute year-over-year June little for well finer point question put I the let revenue about least March results guidance. that this Q year Why here. Patrick. range already fiscal been the by answered not to you. and on But

Charles Liang

has demand our stronger. Nehal, been never -- our So,

which And our so so forecasts. feel and some new demand, dictates have strong we where order our also this in supply customers, have obtained our market a designed logos, and we is about products your back very new but

And be two so about we supply. forecasting have out on quarters to careful

reason for So that’s our the really range.

Nehal Choski

Understood.

is five I has markets Metaverse/Omniverse, Edge great. very guess… then, And Okay. but love and is Charles, mentioned Omniverse you’ve that Metaverse I not it means. I that, XG/telco And three visibility part the that back certainly year-over-year what vertical into quarter does sure slide know growth. demand yeah, nine significant getting what these do and of fact imply means, And we’re this

Charles Liang

Yeah.

Nehal Choski

to large …I least the Metaverse me bit at was in rep XG/telco. why telecom a Can not impression more just you center, potentially the under that here? i.e., data category, understanding go Metaverse would give falling little into as

Charles Liang

a really Metaverse, some class with engagement Omniverse company are So there company, big strong to right? coming Today or very have them. four we of some

the terms indeed in back to demand. over try AI, Metaverse, we out now of very have order fulfill work strong So and to a GPU, components just

As for ago now to XG/telco it’s have engagement. years bigger new we us. about many XG/telco, relatively start We and territory three

we excited for growth So very as well. XG/telco are

Nehal Choski

Okay.

for the to demand to clear XG/telco, correct? be not strong the So Metaverse is commentary about related then

Charles Liang

kind related. It’s necessary. not much Not of

Nehal Choski

like to year you quarter There’s of production XG/telco opportunity. And ago, so qualification at Investor the look about broke about percentage from long engaged customers a with Okay. ship? cycles. qualifying it went Day, long the basically. it. does talked the Got telecom your What dam Then, cycles, you’re this design

Charles Liang

of Indeed, will have good and A about and some we start big strong a move ago certain some modem three start to portion. I very volume later. so we them mentioned, engagement just years as move XG/telco volume, then far

very a those engagement from partner. we but satisfied big territory, overall So it’s a new with

Nehal Choski

OEM that? center then on year-over-year, Okay. these that, vertical that is was data also appliance markets, only large question the does up imply on my last is why And Great. it XX%

Charles Liang

product value Indeed, of we have some kind engagement large now. high are and they

end, selective, for value meta-scale products. demand center high of As of data are those kind we mentioned, we when really high but kind

some indeed start are gain opportunities. excited. very of those We to we So

Nehal Choski

Thank you. Okay.

David Weigand

Also…

Nehal Choski

Yeah.

David Weigand

-- there little This to because for data going the that add yeah. too, that -- they’ll some think, I is that, purchase three business it’s they’ll thing about and to good -- that, point then our areas pause. we digestion, all is two quarters and I’ll is regular can is have vertical, up the to they’ll that, customers enough are by large have or in grown center offset take bit the quarters, -- going we the one take -- vary a purchasing where that vertical other. But a momentum

Nehal Choski

Great. Thank you.

Operator

Your Tanwanteng from of the next comes question line Jon with CJS.

line Your open. is

Jon Tanwanteng

Good by the headwind you. as outlook, and friction maybe chain same as matched were if was too, see quarter the supply any and it’s in you and are your tell you that what in subset could if it getting this guys easing to the roughly or tougher? you a inflation is, maybe QX us pricing different any quarter, question QX fast. accelerating or and very Thank that’s on My and still for things

Charles Liang

of the that, already for Now our extra question kind cost. get take customer the to most responsibility of is used

So net higher margin basically already that’s get why in or our a right, will basically customer including transportation a charge, accepted gross it. stable margin

Jon Tanwanteng

Any the Great. where on is shipping? Okay. components and friction in commentary

Charles Liang

say, situation would I improving. been, have not gradually supply improving, but improving, much have Overall to gradually chain

feel last more in quarter comfortable get we before? So or then

Jon Tanwanteng

Okay.

Charles Liang

big a concern, still yeah. was It

Jon Tanwanteng

is in sale? like IT earlier the sale time hardware typical transition, in you Total spent a a you the Charles, little margin historically pure just a Total Solutions could call talking IT versus about us tell it. the Solution what Got

Charles Liang

Total the feature to hardware, play, total composite with mean, of a lots lots we as security our cloud utility and kind need compete Solution, Okay. lots But of right, software had model that’s and -- software, competition, IT of [ph]. like waiver competitor. plug of have cloud and of lots there I we customer

invest continue we software. we harvest continue and lot to territory years start invest in and three we -- this the a to So last more will we results in now in

or X% or value, software may say, IT Total X%, of to even to profit would continue like I we add Solution actual years. able be to profit few kind X% in -- quarter gradually, our our value So will revenue grow. to next few net

Jon Tanwanteng

Okay. correct? Day the was And Great. Investor model, -- part of target that your within target that’s

Charles Liang

Yes.

Jon Tanwanteng

Okay. Understood. Thank you.

Charles Liang

Thank you.

Operator

of Capital. Your comes Ananda with next Baruah the Loop from question line

Your line is open.

Ananda Baruah

Hey, constrained going comments said, guys. a the right Thanks. less I moment follow you now. I are back about just for to if have actually you constraints your that Charles just imposing up. could. couple they actually, Thanks ago becoming as

clarification? just So a

Charles Liang

Data still concern, feed especially… control, some data but under --

Ananda Baruah

Okay. Got it.

Charles Liang

complete right, even you … whole solution. you one the product component shortage line, for sometime, just a IT whole solution, cannot in have and ship

So concern. still that’s why it’s lots improving of but

Ananda Baruah

Understood. gross margin, talked you June. XX% Understood. then Helpful. in on And reaching about the guys

that going post you like of gross sounds tracking about the and you’re think -- it So sequentially, trajectory guess, ahead I then how of quarter, the sort margin of wise takes. guided and up we should like how March kind forward are what and put

and to March you June sequential December, up get XX%. sequential up up about guys to sequential think have -- I talked Just

you there, And margin coming it? the personality appreciate some so already gross what give sense now should that quarters, you’re look of can in like us the of

Charles Liang

gross sometime ASP scale benefited in we Total margin some or direction. our large IT that’s hope growing, -- consistently I when will really in may Basically, high slowly But and margin. revenue and it when with happens, net mature, Yeah. margin more net gross Solution our margin very deal the become time OEM engage impact that and

overall to when still company, it’s we some will though future, our positive but deal margin, it’s there. take Although, overall selectively

Ananda Baruah

Thanks. Thanks, Great. appreciate guys. it. Okay. I

Charles Liang

Thank you.

Operator

question Your SIG. Hosseini the Mehdi from line final with of comes

line open. Your is

Mehdi Hosseini

up. the follow Yes. for Thanks

$X.XX minimum I EPS $X.XX. for up. my XXXX FY follow and of over guides for up March modeling take a $X.XX, Just assume June then $X.XX If EPS be would

$X.XX to -- to expansion about March right FY XXXX. from margin is So get way of June thinking that you June, EPS from are minimum expecting for to the the

David Weigand

ahead, go ahead. -- So Go Charles.

Charles Liang

Yeah. kind of Basically, right. June, always season, harvest our

year, strong be June will I quarter same So believe, this I opportunity. believe. very

margin the $X.XX, maybe than have happen, profit net some But little be to maybe should you bit as in that more a than if there. gross And come so lower. more $X. Maybe

David Weigand

margin. said -- -- QX. we the we’re full That’s up got to guidance up said We at we a XX% because We’ve range. target. we it’s we’re guided updates be on out QX for giving has -- very year, higher But not our comfortable being for comfortable QX with as very and for so the inside there, in XX%. should it that’s range low slightly Mehdi, and Yeah. we high QX before, a

Mehdi Hosseini

it. Got you. Thank

Operator

are participation. time. concludes this call. and at There you Ladies your further thank gentlemen, conference no for today’s questions This

now may You disconnect.

Super Micro Computer (SMCI) 2 Feb 222022 Q2 Earnings call transcript