SAN JOSE, Calif., Jan. 29 — Super Micro Computer, Inc. (NASDAQ: SMCI), a global leader in high-performance, high-efficiency server, storage technology and green computing, has announced second quarter fiscal 2016 financial results for the quarter ended December 31, 2015.

Fiscal 2nd Quarter Highlights

• Quarterly net sales of $639.0 million, up 23.0% from the first quarter of fiscal year 2016 and up 27.0% from the same quarter of last year.
• GAAP net income of $34.7 million, up 153.2% from the first quarter of fiscal year 2016 and up 11.0% from the same quarter of last year.
• GAAP gross margin was 16.6%, up from 13.9% in the first quarter of fiscal year 2016 and down from 16.8% in the same quarter of last year.
• Server solutions accounted for 71.0% of net sales compared with 68.6% in the first quarter of fiscal year 2016 and 60.1% in the same quarter of last year.

Net sales for the second quarter ended December 31, 2015 totaled $639.0 million, up 23.0% from $519.6 million in the first quarter of fiscal year 2016. One customer accounted for 15.0% of net sales during the quarter ended December 31, 2015.

GAAP net income for the second quarter of fiscal year 2016 was $34.7 million or $0.67 per diluted share, an increase of 11.0% from net income of $31.2 million, or $0.61 per diluted share in the same period a year ago. Included in net income for the quarter is $4.0 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 $38.0 million, or $0.73 per diluted share, compared to non-GAAP net income of $33.5 million, or $0.65 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 2016 by $21.5 million or $0.41 per diluted share.

GAAP gross margin for the second quarter were 16.6% compared to 16.8% in the same period a year ago. Non-GAAP gross margin for the second quarter was 16.7% compared to 16.8% in the same period year ago. GAAP gross margin and Non-GAAP gross margin for the first quarter of fiscal year 2016 were both 13.9%.

The GAAP income tax provision was $14.1 million or 28.8% of income before tax provision compared to $11.5 million or 26.9% in the same period a year ago and $7.5 million or 35.4% in the first quarter of fiscal year 2016. The effective tax rates for the second quarter of fiscal year 2016 and 2015 were 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, 2015 were $172.6 million compared to $98.1 million at June 30, 2015. Free cash flow for the six months ended December 31, 2015 was $71.7 million, primarily due to an increase in the Company’s cash provided by operating activities and partially offset by the cash used in the development and construction of improvements on the Company’s properties.

Business Outlook & Management Commentary

The Company expects net sales of $530 million to $580 million for the third quarter of fiscal year 2016 ending March 31, 2016. The Company expects non-GAAP earnings per diluted share of approximately $0.43 to $0.53 for the third quarter.

“As previously disclosed, second quarter revenue was above our initial guidance and a record quarter. Our 27% year-over-year growth came from increases in our systems and total solutions which reached 71% of total net sales. Storage solutions grew 58% year-over-year and continue as a key growth driver while cloud and internet datacenter contributed approximately 30% of net sales leveraged by Ultra architecture and other datacenter optimized products. We also saw strong growth across all geographies and especially in North America and Europe,” said Charles Liang, Chairman and Chief Executive Officer. “Supermicro has developed the broadest array of products based on the upcoming Xeon processor, codenamed Broadwell, for launch at the very end of this quarter. With the new processor launch, combined with our new ‘Simply Double’ hot-swap 48 bay 2U storage system, software defined storage as well as our industry leading NVMe solutions, Supermicro is poised to grow its customer relationships this year and is on track with its growth projection of greater than 20% for the fiscal year 2016.”

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 (NASDAQ: SMCI), 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: Supermicro