SAN JOSE, Calif., Jan. 21 — Super Micro Computer, Inc., a leader in application optimized, high performance server solutions, today announced second quarter of fiscal 2015 financial results for the quarter ended December 31, 2014.
Fiscal 2nd Quarter Highlights
- Quarterly net sales of $503.0 million, up 13.5% from the first quarter of fiscal year 2015 and up 41.2% from the same quarter of last year.
- GAAP net income of $31.2 million, up 49.7% from the first quarter of fiscal year 2015 and up 134.3% from the same quarter of last year.
- GAAP gross margin of 16.8%, up from 15.6% in the first quarter of fiscal year 2015 and up from 15.5% in the same quarter of last year.
- Server solutions accounted for 60.1% of net sales compared with 57.7% in the first quarter of fiscal year 2015 and 48.8% in the same quarter of last year.
Net sales for the second quarter ended December 31, 2014 totaled $503.0 million, up 13.5% from $443.3 million in the first quarter of fiscal year 2015. One customer accounted for more than 10% of net sales during the quarter ended December 31, 2014.
GAAP net income for the second quarter of fiscal year 2015 was $31.2 million or $0.61 per diluted share, an increase of 134.3% from the net income of $13.3 million, or $0.30 per diluted share in the same period a year ago. Included in net income for the quarter is $3.2 million of stock-based compensation expense (pre-tax). Excluding this item and the related tax effect, non-GAAP net income for the second quarter was $33.5 million, or $0.65 per diluted share, compared to non-GAAP net income of $15.9 million, or $0.35 per diluted share, in the same quarter of the prior year. On a sequential basis, non-GAAP net income increased from the first quarter of fiscal year 2015 by $10.3 million or $0.19 per diluted share.
GAAP gross margin and Non-GAAP gross margin for the second quarter were both 16.8% compared to 15.5% in the same period a year ago. GAAP gross margin and Non-GAAP gross margin for the first quarter of fiscal year 2015 were 15.6% and 15.7%, respectively.
The GAAP income tax provision for the second quarter of fiscal year 2015 was $11.5 million or 26.9% of income before tax provision compared to $6.7 million or 33.5% in the same period a year ago and $10.6 million or 33.7% in the first quarter of fiscal year 2015. The effective tax rate for the second quarter of fiscal year 2015 was lower primarily due to the reinstatement of U.S. federal research and development tax credits.
The Company’s cash and cash equivalents and short and long term investments at December 31, 2014 were $85.9 million compared to $99.6 million at June 30, 2014. Free cash flow for the six months ended December 31, 2014 was $(19.7) million, primarily due to the development and construction of improvements on the Company’s property, which is still in progress and an increase in the Company’s cash used in operating activities.
Business Outlook & Management Commentary
The Company expects net sales of $450 million to $500 million for the third quarter of fiscal year 2015 ending March 31, 2015. The Company expects non-GAAP earnings per diluted share of approximately $0.46 to $0.52 for the third quarter.
“Last quarter we achieved our fifth consecutive record high revenue which was 41.2% higher than last year and we reached our goal of $2 billion annual run rate for revenues in a quarter. Not only was this quarter outstanding from a revenue perspective, but we also continued to improve our operating margin. This performance was driven by a significant increase in our new Haswell product shipments in the first full quarter since its launch, and we are confident that a strong cycle of technology transition is underway. Strength in Storage and Cloud market verticals were part of a record for server systems revenue at 60.1%,” said Charles Liang, Chairman and Chief Executive of Supermicro. “Supermicro has the broadest product portfolio of application optimized server/storage technology in the industry featuring our Ultra line of servers as well as many choices for multi-node servers including our Twin architecture, Blades, MicroCloud and MicroBlade. We are well positioned for growth and market share gains.”
It is currently expected that the outlook will not be updated until the Company’s next quarterly earnings announcement, notwithstanding subsequent developments. However, the Company may update the outlook or any portion thereof at any time. Such updates will take place only by way of a news release or other broadly disseminated disclosure available to all interested parties in accordance with Regulation FD.
About Super Micro Computer, Inc.
Supermicro, a global leader in high-performance, high-efficiency server technology and innovation is a premier provider of end-to-end green computing solutions for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and Embedded Systems worldwide. Supermicro’s advanced Server Building Block Solutions offer a vast array of components for building energy-efficient, application-optimized, computing solutions. Architecture innovations include Twin, FatTwin, MicroCloud, MicroBlade, SuperBlade, Double-sided Storage, Battery Backup Power (BBP) modules and WIO/UIO. Products include servers, blades, GPU systems, workstations, motherboards, chassis, power supplies, storage, networking, server management software and SuperRack cabinets/accessories delivering unrivaled performance and value.
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Source: Super Micro Computer, Inc.