SAN JOSE, Calif., April 23 — Super Micro Computer, Inc., a leader in application optimized, high performance server solutions, announced third quarter fiscal 2014 financial results for the quarter ended March 31, 2014.
Fiscal 3rd Quarter Highlights
- Quarterly net sales of $373.8 million, up 4.9% from the second quarter of fiscal year 2014 and up 34.4% from the same quarter of last year.
- GAAP net income of $16.6 million, up 24.3% from the second quarter of fiscal year 2014 and up 135.4% from the same quarter of last year.
- GAAP gross margin of 15.3%, down from 15.5% in the second quarter of fiscal year 2014 and up from 14.0% in the same quarter of last year.
- Server solutions accounted for 50.1% of net sales compared with 48.8% in the second quarter of fiscal year 2014 and 41.8% in the same quarter of last year.
Net sales for the third quarter ended March 31, 2014 totaled $373.8 million, up 4.9% from $356.4 million in the second quarter of fiscal year 2014. No customer accounted for more than 10% of net sales during the quarter ended March 31, 2014.
GAAP net income for the third quarter of fiscal year 2014 was $16.6 million or $0.35 per diluted share, an increase of 135.4% from the net income of $7.0 million, or $0.16 per diluted share in the same period a year ago. Included in net income for the quarter is $2.8 million of stock-based compensation expense (pre-tax). Excluding this item and the related tax effect, non-GAAP net income for the third quarter was $17.8 million, or $0.37 per diluted share, compared to non-GAAP net income of $10.0 million, or $0.23 per diluted share, in the same quarter of the prior year. On a sequential basis, non-GAAP net income increased from the second quarter of fiscal year 2014 by $1.9 million or $0.02 per diluted share.
GAAP gross margin for the third quarter was 15.3% compared to 14.0% in the same period a year ago. Non-GAAP gross margin for the third quarter was 15.4% compared to 14.1% in the same period a year ago. GAAP gross margin and Non-GAAP gross margin for the second quarter of fiscal year 2014 were both 15.5%.
The Company’s cash and cash equivalents and short and long term investments at March 31, 2014 were $104.4 million compared to $95.7 million at June 30, 2013. Free cash flow for the nine months ended March 31, 2014 was $(24.3) million primarily due to the purchase of real property in San Jose, California for $30.1 million partially offset by an increase in cash provided by operating activities for $12.5 million.
Business Outlook & Management Commentary
The Company expects net sales of $370 million to $410 million for the fourth quarter of fiscal year 2014 ending June 30, 2014. The Company expects non-GAAP earnings per diluted share of approximately $0.35 to $0.41 for the fourth quarter.
“Supermicro’s third quarter was a second straight quarter of record highs for revenue and earnings. Revenues were 34.4% higher year over year with strong growth coming from North America and from internet data centers. We grew again in multiples of the industry growth rate, expanded market share, and continued to lead the industry in system innovation and time to market,” said Charles Liang, CEO and President of Super Micro. “As we extend our business model to provide more complete solutions including software and maintenance support together with our global operations, we are prepared to drive Supermicro to increased sales momentum in 2014.”
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.
Conference Call Information
Super Micro Computer will discuss these financial results in a conference call at 2:00 p.m. PT, today. To participate in the conference call, please call 1-888-329-8893 (international callers dial 1-719-325-2491) 10 minutes prior. A recording of the conference call will be available until 11:59 pm ET on Tuesday, May 6, 2014 by dialing 1-877-870-5176 (international callers dial 1-858-384-5517) and entering replay PIN 6828329. The live web cast and recording of the call will be available on the Investor Relations section at www.supermicro.com two hours after the conference call conclusion. They will remain available until the Company’s next earnings call.
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.
Source: Super Micro Computer, Inc.