SMCI - Earnings call transcript Q3 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 Computer, Inc. Fiscal Third Quarter 2022 Results Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks session. speakers’ the will question-and-answer be After [Operator you. Instructions] Thank the pleasure to my now call to It’s Relations. turn over Investor Nicole Noutsios, go Please ahead.

Nicole Noutsios

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

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

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

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

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

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

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

Charles Liang

Today, recently our months given ago was you, year-over-year everyone. which two IT I announce very results These year above well of of and guidance growth sequentially. we strong quarters ago. above am and fiscal $X continued growth total our are earnings our to XXXX, quarterly breakout. – Thank revenue the our three and good $X.XX XX% billion and quarter-on-quarter Nicole, pleased weeks at billion of is strategy for indicate working afternoon, beginning well, QX growth updated The are only solution range the given five XX%

at Now quarter. look highlights some of from let's the the key

First, fiscal again, and $X.XX up third quarter-on-quarter. year-on-year quarter up XX% billion, revenue totaled net XX% our

revenue faster Micro’s the guidance of three trajectory to billion. rate. strong industry's growth and four of progression, XXth $X.X our overall billion above growth are continue than and We higher our It's range to Super fifth execute times we to $X.X times quarter at

the demand. was in our recent growth Taiwan customers and total and accepting margin operating tripled expansion major XXX% $X.XX has range growth third solutions. share This IT year-over-year earnings guidance the well our of our end fiscal meeting more compared better geographies balanced, our well demonstrating ago. operation contributed was to $X.XX, strong years per was our leverages higher of value customer the to Our non-GAAP than to with was quarter the our $X.XX of Growth and $X.XX above and

forecasting revenue annual we in are quarters And as $XX five target that year our and on end since on a Our yearly profitability last at we above Based past that to greatly strong demand note capacity, $X.XX XXXX been June showing are for current our has $X are well of shared improving least at billion revenue billion fiscal the coming the revenue. was then. results billion the ahead March. our quarter

base building billion accelerates ahead, we reach telco XXXX have March. I IT the very least at verticals. strategy foundation solutions faster and expect growing optimal total wafer-based of than manpower broad believe Micro features the revenue service next like and further with to to represents power shared billion we scale gains we profitably and IT engineering quarters. integration. without our and no this enterprise, have grow strong architecture, and Many to track will customers. few and fiscal going our can our create solution quickly new many faster to customers, to scale, week, to BXB, the optimal XXXX Auto-configurator range are up sales resource of design, and Cloud, portfolio, launched yearly other Riding Super plan opportunity our enterprise advantages. the complications challenge our our in cost many past believe. allow from automation customer and share our month, XX/X year BXB build The our performance, on that our growth doubled optimized limitation. to solutions datacenter meditation, I automation market Edge of downtime To total have our this changed our This $X will total while building billion and more enrich revenue application with and customers the solution and engineering, in on nationwide our customers and be and and based solutions in from the bandwidth command-center next indeed no IT for customers efficiently, $XX satisfaction tried our to positions we came improve many program deliver more Looking The through original to quality, This continue product in of our out year and economy Micro’s customers software a our database the also and advantage, greatly chain intelligent solution competition. scale and one customer will effectiveness BXC back time-to-market $X our It TCO fuel platforms. With with solution Super to dramatically deploy BXC workload strength in years compared ongoing OEM with annually service success and we supply AI, accelerating operations, to

networking compute, Super Our cloud and and storage building at cloud scale, composer products manage rich GPU, analytics. broker software other including

data-driven and operators we center to middle In in and that software value. data make our solution infrastructure throughout investment enable functionality improve a management and term, efficiently. will as long service capability as workflow decisions stack monitor enhance service IT and clinical will So further our a future see can total datacenter

cases, costs, with these delivering They able validate month and SuperMicro. with close increased saving XX% to up credit Taiwan are lower TCO Manufacturing our facility receive increased per with by X.XX integrate budget. to fully energy the megawatt can by to happy performance capacity or rating even customer while Customers expect energy some same higher-quality, substantially. our focusing are [X.XX] to directly solutions energy leveraging on technologies. liquid campuses, volume, mind. PoE US datacenter real from latest more More and air SuperMicro IT our Our expansion in green solutions, run saving shipping their computing of recent are in cooling and their in designed products. racks of This computing customers [indiscernible] capable better. total of higher optimized, per customers thousands other In are quite and rack-scale

are expand our Intel, to Our our time-to-market R&D organizations to advantages again are and better new all upcoming work processes. at bring to with our customers. technology happy the AMD We lines product and hard in graphics ready new

strong are terms and a pleased customer early deployment of trend We seeding to see requests. in

IT emerging and Gen We partners the our partnered to GPU, including opportunity leading our and XX% rack-scale new that revenue and and has strategy ecosystems trust preference a especially been other CXL, double line and PCI-E all and solution $X.XX continue the customers' NVIDIA for total gaining X, quarters our platform proved to EPS will quarterly watt watt new of GPU With growth and key solution closely and year-over-year our CDRX portfolio XXX coming product IT pen. growth years. this our XXX Metaverse total closing, Omniverse driver CPU technologies, and for are of new the in immersive support technologies workloads. become with growing [ph], develop in In this

new our their dedicated computing employees, IT costs operation strong and products, Taiwan consistently server to will optimized lower We With by value application we and solutions while continue building enhance our leveraging production capability winning satisfaction now. and bill our foundation, continue solutions green quickly technical customers to capacity. our are and total

$XX share. base growth and continue and BXB BXC increase center-based invest team us and I we much will my customer strategies the will importantly, in to market efficiently our execute our to More line command in platforms time help term and accelerating to the $XX to call detail billion and Weigand, revenue plan CFO, midterm quarter. execute reach our to David? to provide well. billion pass new and the target will goal additional start David I now as short our on

David Weigand

XX% third Thank of pleased $X.XX report and quarter XX% solid you, revenue year-on-year fiscal to increase. billion, quarter-on-quarter Charles. I'm increase

our exceeding our $X.X our of of fiscal quarter, third guidance recently Year-to-date fourth to $X.XX increased range $X.X year-over-year. exceeded of revenue updated our revenue initial billion billion. and $X quarter range through was to This Our revenues billion $X.X billion XX% billion. consecutive

platforms of end channel third quarter-over-quarter, recorded versus fiscal year-over-year initiatives and million fiscal Super networking, of Micro $X.XX our through revenues of with large demonstrating edge XX% resilient customers, markets. growing with totaled hybrid QX -- leverage. traditional the verticals, IoT customers the operating was up new software-defined the billion. new expanding quarter. by representing with revenue growth OEM and fast-growing strength GPU growth channel of IT markets drivers XX% of list with 'XX to cloud four nature storage targeting our diversified and driven our growth enterprise and the growth, 'XX, of AI product XX% public XX% Our revenues last three for QX achieved $XXX QX In enterprise momentum. all and customers workloads, both in It market trailing quarters offerings. complement across accelerated and our revenues, total margins accelerating and These and and organic enterprise, gaining AI and Revenues are We and solutions year leading balanced

and large, OEM of large representing which up quarter, customers XX% $XXX XX% and achieved new existing growth in by segment XX% driven and year-over-year versus up QX our customers. appliance last was strong data revenues, Our center OEM million and revenues, data XX% with clients center quarter-over-quarter,

to systems Europe Asia, long-term of XX% including and quarter-to-quarter vast Systems while the continues of but On million increased accessories qualification a XX%; fluctuate, geographies, segment increase. timing XXX% This system basis, well node quarter-over-quarter. quarter. can year-over-year represented of increased X%. for was down ASPs IoT and with last and a revenues basis, world nodes of comprised Edge subsystems win XX% of representing emerging XX% and lower while adoption versus On US distribution grow, the XX%, a rest XXX%. segment revenues systems represents system Japan year-on-year representing XX%. basis, basis, shipped in XG/telco, US short-term Japan, revenue a revenue; rest total XX% momentum XX%, of and was increased, of a including node Europe result cycles. revenues. QX backlog XX% balanced had ASPs achieved revenues and as quarter-over-quarter a XX% of QX product $XX across and mix. of opportunity XX%, On revenues, and on sequential Our the and shipped up were due X% revenues year-over-year new us increased to design customer On We our gross of shipped as and world and volume the depending the the nodes increased volume the increased Asia, This

of basis which Europe including XXX points and QX XX.X%, the from X% points world was basis Asia, margin the increased up quarter-over-quarter Japan, XXX X%. increased and gross was increased year-on-year QX up The and rest utilization in gross increase continually factory chain and mix. higher and efficiencies, year-on-year improving from continued despite and a leverage freight was quarter-on-quarter The achieved supply discipline, elevated operating price to margins due XXX%. costs. product/customer

GAAP a to on quarter-on-quarter OpEx quarter-on-quarter basis, expenses $XXX XX% increased increased and non-GAAP million. operating X% million. a On year-on-year and XX% QX expenses. operating X% year-on-year to to increased basis $XXX Turning

year Our higher ago, X.X% to driven for quarter and improvements X.X% in operating $X.X the expense and to a GAAP leverage. lower on million and basis versus quarter of non-GAAP The interest quarter-on-quarter offset quarter. $X.X expense by operating margin consisting both $X.X was significantly year-on-year and as increases million and Other margins by and and X.X% increased last non-GAAP of compared credits. in costs a NRE demonstrating a were exchange personnel and expense headcount development research last million, income foreign million, in $X.X gross gains, income,

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

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

and GAAP fiscal for quarter, primarily due significant pre-tax rate tax income purposes non-GAAP increase again Our increased to in XXXX. in a this

JV from in non-GAAP million was due last disruptions, $X.XX free $XXX quarter cash inventories used cash due discipline, from to diluted customers as not $XXX increasing increased in accounts and in CapEx as combination demand operations higher QX during any updated This payable totaled our million. We high-end EPS of flow million inventory QX included product Lastly, to mitigate was to to recently original did offset share $X.XX including manufacturing million, $X.XX of cash this $XX operating The our Cash and QX repurchase customer $X.XX, QX, of short-term receivable to and/or and and $XX flow compared share customer to impact and the flow of income of our in to for to a from used uses $X.XX of receivable QX operations were increases debt. of provided and quarter mix compared was the $X.XX. accounts supply range our the chain The reductions earnings exceeded price totaled efficiency, quarter. accounts by $X.XX, increases negative to the in which of revenues, the of continued quarter. guidance range per million grew shares cash Key leverage. prepayments.

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

days days balance higher inventory. compared and by was was unchanged target QX cycle range Turning one days days, the working up above $XXX, to XX our last outstanding at Days days capital relative and sheet to to inventory compared day of quarter, XX our was metrics X sales to representing while slight payable to XX quarter-on-quarter the of versus days. conversion cash due quarter. to decrease QX outstanding by up XX of day X a Days two prior to was

typically our the Now solutions several We innovative turning about for June customers we seasonally are business. IT QX multiple and outlook strong, markets. to and new enthusiastic our new that note total end quarter is leading-edge ramping in

and chain We are situation carefully impacts watching COVID-XX-related continuing and the to the supply from global macro disruptions. economic

diluted fourth XXXX, in we sales range $X.XX GAAP diluted share per of billion, June to expect of the and share ending For net XX, to quarter per $X.X $X.XX income $X.XX XXXX, $X.XX. $X.XX of income fiscal billion non-GAAP net the to net of

stock-based GAAP and million operating and in compensation to margins $XXX expenses. slightly expenses $X QX We expected approximately million levels. in non-GAAP operating be other to not expect million in gross be similar expenses included from include up or are $X

income JV. to a XX.X%, including of nominal of non-GAAP be tax XX.X%, approximately and We GAAP The company's expense GAAP expense, XX.XX% be for operating common shares expense, to of expenses share expect million contribution a and Non-GAAP diluted share non-GAAP. are a continued non-GAAP and diluted $XX.X fully and from rate investment R&D expect from and rate costs. for a of per up interest million tax for quarter-on-quarter in net count net personnel assume projections GAAP income higher a $X and our forecast other

from XX.X% billion guidance from $X.XX to our net new to billion a range company's rate non-GAAP outlook range for we $X.XX. share income $X.X For $X.XX income. our our raising share The net of per rate from billion XXXX, least net $X.XX, income billion, of a to $X.X and of of GAAP non-GAAP diluted a tax $X.XX and ending XXX annual a raising are $X.XX year the assumes diluted range XX.X% per income for of $X.XX projections to fiscal GAAP to lease net and range at a June revenue XX, to

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

to expect $XX Nicole, fourth $XX we range of be Finally, in to fiscal million quarter for CapEx of XXXX ready we’re for million. the Q&A. the

Nicole Noutsios

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

Operator

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

is open. Your line

Ananda Baruah

guys Yeah, have for good guys say, congrats chance year, sounds guys a could, this I Thanks execution June you the guys. like leading would follow-up. the got for the what you half I consider if to first since – talk a then taking we've lot. quarter the it afternoon, Two, on would ago following strong Thanks that's of the a now execution question. time both here. you been such to calendar good first versus it's revenue Charles XX David, Hey, great you And pre-announced. days incremental March and through you What would quarter? have and to to

Charles Liang

times strong I to in X of year-over-year. quarter, continue many a will times product plug and been be this turn X and X out, rack last supply always growth. momentum, we there very And we solution, about to with I to the year rig. That's some lot X Indeed, play direct IP scale year, that's utilize our because XX believe, conservative. factor. I our compared a try invisible because next ship And like really grew our completed why Yeah. be grew PnP, mean – we chain, to mean But are customers months. the Roughly, earlier this solution, in of have March it's total rack lot

Xx growth. So direct to expect we Xx another PnP line product scale

So bit growth mean, that's surprised has a us. been the little why, I

Ananda Baruah

rate? That's you the the of the great natural expect another context, to ask more or since XX% you just you that is than be it couple to Xx XX% next going remarked really you Thanks. Charles. -- that Is should follow-ups as Is look And something rate out sort years? long-term stronger next of then, the to appropriate Charles, growth probably what that I'm still Xx. just growth

Charles Liang

be very on Next can it situation. couple years But chain global of supply strong. our depends again,

challenging and macroeconomic also COVXX has As David us mentioned, condition. still

I is rate virtually will if in So continue not much worse, growth our believe grow. year-over-year to

Ananda Baruah

Okay. Thanks. Thanks so appreciate it. Thanks a lot. I much.

Charles Liang

Thank you.

Patrick Wang

Ananda, is I'm Patrick. to here. this Hey, just jump going in

You also talked the and fiscal XXXX also Charles implied on note is there. growth rate about that expectations

that's So another point. data

Charles Liang

Yes.

year, fiscal to moment, mean, Next will be a I $X I this estimation. XXXX relatively $X billion very conservative believe billion at

Operator

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

Your line is open.

Mehdi Hosseini

revenue. year us of help Yes. that really have billion how and rate seasonal into with $X I you follow-up. question how fiscal about Charles, for follow-ups. we factor fiscal you're revenue up because my for September you And $X asked And quarter? you XXXX? the see really diversification would of And do to couple think should doing I have as the of would well, thanks a it year, company I in billion And think taking run set how trend your seasonal and a look actually, especially I next impacting

Charles Liang

slow have plug high-profile we September question. be Indeed, rack-scale really very will our time be lots this But solution. a And traditionally, because back again, season. you. order play customer, like strong now. of quite and different, good customers our Very Thank can

preparing the are in growth that big segment. So we

even believe have quarter. be June we So this September, great year, will can It more a than I quarter.

Mehdi Hosseini

then And Thanks Okay. for David. color. a question for that

backlog, And assume consecutive burn. to and the given cash three your of the burn had You've that cash going you're again in quarter? June quarter should strength

David Weigand

customers our will cash. Yes, increases, use using Mehdi, have for accounts as add to I expand it think to and and that inventory. inventory, But we we for as we're receivable continue

really that be consider uses. to strong would we So

Mehdi Hosseini

Okay. Thank you.

Operator

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

Your line is open,

Nehal Chokshi

the or Yes, on you availability to during the Would results situation the and has March component at congrats relative the improved amazing awesome all quarter? say quarter December quarter-to-date thank that you and guidance.

Charles Liang

it months ago, and program. improve be few -- gradually that very continues suppose supply That's chain believe still tight. A some situation to parts there why ability we will we suffering I unfortunately, are

serious yes, been some components, are Some have there but other shortage. improved, still dramatically components a in

try situation So, that to we sure. for improve

Nehal Chokshi

Okay.

Still to point indicating are guidance be and guys the to not no hear was pushback in massive so constrained that leading demand, putting that I'd components lead-time in And pull-in is And there appear you these lower your Intel management up this context guide. of share the of seeing especially sustainable. gains Micro's of thus that very clearly, to better how gains share these time? Super you're at that like are

Charles Liang

solution, I plan all mean, present the advance in in more And customer Indeed, to customer events. plan to with the in complete future efficient, because advance drag then able their and others. understand different timing right than scale, kind we flowing the we are demand both efficient ship of components relatively we

of one quarter we extend continue the base is quarter. believe, And June I Indeed, will have least, to we our solution. reg scale at double indeed able them to prepared -- are grow. reg in to customer offer in the coming reasons capacity to scale we So, the why

will be help to we customers have that to strong pretty feel challenge. able continue to supply we So, chain their

Nehal Chokshi

what outperformance? then the with expected. Was cash And line correct? in what consumption in given conversion given Q-to-Q. And I was the cash was that A, I with given expected line you with is was revenue in expected the line revenue what outperformance, great. had presume that you also flattish Okay, cycle actually had had it guys

David Weigand

levels. inventory out and No, Nehal in planning to also also, QX it was, and we have beyond look to our

mean growth capital. in have going the going is that fact we rate, it to challenge high definitely year-over-year XX% So, continue working line. the is I to

Nehal Chokshi

time, to no And Yes, right, been buybacks, that needed the all finance seeing? because as cash point is the in growth this you're massive yes. share the there's such, at growth

David Weigand

right. Yes, exactly

Nehal Chokshi

you would growth make this revenue expect waiting tracking to to does to the incremental you utilize program you're that a share slowdown debt given putting your the And opposed that given capitalist you cash what in business track start consumption before earnings give a confidence really earnest? non-GAAP can turn in is repurchase up, as the Okay. for

David Weigand

have also overall environment. to the watch we Well,

strike so And we're the to balance. trying

Charles Liang

still Yes, lots why factors. we try macroeconomic possibility. careful. unknown about the of are That's we be have talking a to But given very

Nehal Chokshi

All right, fair guys. Congratulations.

Charles Liang

you. Thank

Operator

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

open. is line Your

Jon Tanwanteng

Hi. Good afternoon, for And my congrats guys. the great taking -- a you again, Thank really outlook. and question. quarter on on

question better. going a that's it's you're First seeing gross drop margins charge great case? was we well, in end to the how forward component of the range? of maybe Is I And is, as hear your corresponding in high well, of getting improvement price? wondering the the component supply is much it towards think should

Charles Liang

the China because basically is serious. Asia, hard kind core say Taiwan situation it's to in and Indeed, of Mainland very as of

believe I it's So, hard to say.

this So, much doing will at Weigand? moment, David exactly getting idea. not how but believe improved, although fast we our be are situation bit and

David Weigand

Yeah.

some factories part from your gross lower we unit our experience So -- had throughput the expansion actually we margin second higher of per that we cost. higher at a Jon, question, did means which efficiency,

we do Taiwan. ramp as to continue, in production that And especially up we so, expect

we expansion. margin so, forward look further do And to

Charles Liang

campus can continuing we growing capacity, everyone. product one grow mostly $XX When little play in support Indeed, our current I'd continued our factor Taiwan scale the product. our campus. to before, to not share USA and billion. current rec With chance like share did the facility to business to revenue up scale, with take Indeed, in we rec but a with

So pretty capacity our is up.

continues economical will the gain in our advantage forward looking to margin So many mean. quarters, economical continue when scale, to from grow, our net the gross next profit side, volume I and

Jon Tanwanteng

the you. to about permanent interest continue should great and a use Thank little just How to seen? we that really you've that think just your Or fund My see ability you Is cash bit. the color. is growth? it second support revolver? to great touched to flow it's the regarding financing That's your in have growth to question this on raise capacity. people it. Got And some

Charles Liang

are continue try bank. may possibility, kind may the to If aggressively healthy, more conditions on we from the the Otherwise, leveraging we We conservative. conditions. starting of, then macroeconomic be the to be be depends to continue money macroeconomic

Jon Tanwanteng

again. Okay, understood. Congrats

Operator

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

open. Your line is

Ananda Baruah

been both. but a to guess is get what much available the on the guys of, new that for that of extent supply I piggybacking quarter the dependent the of revenue upside that supply appreciate that off June chain follow-up. you related? And is for. is much to became guess, really, I thanks last you have Hey, demand of how about, Charles you chain March indications one questions. relative trying of demand getting supply guess, was about been and have from taking the may this get do to follow-through an how I'm I for how new sort sense of much think chain conservative is much how And continuing to released? I

Charles Liang

our continue stronger question. Yeah, and stronger. very good Indeed, demand have become growing,

big really the to chain supply limitation So indeed now us. is

to improve time are we spending everyday, the how why to supply that's chain. So figure out

technology, situation. because our and I suppose. solution total strong better demand that's the is support, So getting very strong of keeping growing, and The

Ananda Baruah

demand -- for mentioned remarks. racks, being you the I in completed maybe a just little That's a you bit total you there. spoken or a catalyst see, in helpful. to actually, quick apologize IT prepared general. And jumping between follow-up really But calls the already been if so in I've been specifically even it the And I remarks, to. has answered solutions prepared think

Solutions may it Okay, Thanks up give calendar the is it's showing of be like bigger first be guess, way, IT you're you any context. lot. looks can a year. half about I implication it guess now? and customers an if right of can this revenue so And -- increasingly having like in real us the a what seeing, I engagement I sort context suppose, catalyst to that with your

Charles Liang

customers Yeah. our quarters, to David, for So as something many supply or supply The know, to new indeed with been all add this chain. demand. moment, you Indeed, you want out, in Patrick. our and strong right? us current customers, has chain have existing at maybe David, had Patrick. can some And do puzzling many, or to you customers add work that a something

David Weigand

Yeah.

a Ananda, we're high really seeing seeing lot demand So of AI and we're in ML the area.

that by -- the well so providing our workloads being those are being there that and And received are customers. the we're solutions addressed

And engagements four led growth that three last we're we're so that quarters. that's has the in, seeing to the the driver AI over that our

Patrick Wang

is jump to talk that. I'll This here. Yeah. I'll Patrick in

to bit. be we topic, have hard I without Micro. to It's Because here supply and on customers out. not need. we're work, able And we're strong play the trade all we've the a targeting team backlog, not do operations we about to But about quite Super the of talked talked seeing at side, And got the We've their like products. we customers. to a top our think sets talked supplies chain get other able that So But the product. kudos really about unique us. just stuff

And And the turned our so out solutions, workloads. product result. very to got customers is just a of enjoy really the good on we've it the good news great benefits be that,

we're So all pretty happy here.

Charles Liang

our further utilize bigot to we cash other more or and continue chain flow. start and the to how supply areas, we agree grow utilize that supply we In I flow. chain can efficiently will how space can So cash

Ananda Baruah

Excellent. much context, Thanks you guys. so for the

Operator

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

disconnect. You my now

Super Micro Computer (SMCI) 4 May 222022 Q3 Earnings call transcript