Financial Data and Key Metrics Changes - Fiscal Q3 2024 revenues were $3.85 billion, up 200% year-over-year and 5% quarter-over-quarter [3][26] - Non-GAAP earnings per share for Q3 were $6.65, representing over 308% year-over-year growth [26][81] - Non-GAAP gross margin was 15.6%, slightly up from 15.5% quarter-over-quarter [31] - Operating expenses on a GAAP basis increased by 14% quarter-over-quarter and 72% year-over-year to $219 million [53] Business Line Data and Key Metrics Changes - Server and Storage Systems comprised 96% of Q3 revenue, while Subsystems and Accessories represented 4% [30] - Enterprise/channel vertical revenues were $1.88 billion, representing 49% of revenues, up 190% year-over-year [51] - OEM appliance and large data center vertical revenues were $1.94 billion, representing 50% of revenues, up 222% year-over-year [51] Market Data and Key Metrics Changes - U.S. represented 70% of Q3 revenues, Asia 20%, Europe 7%, and Rest of World 3% [52] - Year-over-year revenue increases: U.S. up 242%, Asia up 257%, Europe up 30%, Rest of World up 87% [52] Company Strategy and Development Direction - The company is focused on significant investments in production, operation, management software, and customer service to sustain rapid growth [2] - The company aims to lead the AI revolution by deploying NVIDIA HGX H100 SuperCluster solutions and developing new generative AI systems [27][46] - The company is preparing to produce over 2,000 liquid cooling racks per month to meet increasing demand [28] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about continued AI growth for many quarters to come [2] - The company expects strong growth in Q4 as the supply chain improves with new customer design wins [34] - Management indicated that the rapid growth is raising complexity in scaling capacity but is confident in overcoming these challenges [28] Other Important Information - The company raised $3.28 billion through a convertible note and secondary equity offering to support growth [2] - The cash conversion cycle was 96 days, with days of inventory increasing to 92 days due to key component purchases [55][122] - The company expects Q4 net sales in the range of $5.1 billion to $5.5 billion [34] Q&A Session Summary Question: Can you provide more color on share gains related to new solutions? - Management indicated that they are gaining market share, especially with their rack-scale plug-and-play solutions that reduce lead time for customers [5][59] Question: What is the trajectory of inventory as supply comes on? - Management explained that inventory increased due to preparing for strong revenue growth in Q4 and the need for liquid cooling systems [6][100] Question: Can you clarify the 21% customer mentioned in the prepared remarks? - Management confirmed that the 21% customer was the same as last quarter, and they are transitioning to identify customers A, B, and C for clarity [15][64] Question: What are the expectations for gross margins in the coming quarters? - Management stated that while they aim for a gross margin range of 14% to 17%, they may need to be aggressive in pricing to gain market share [62][71] Question: How is the company preparing for cash usage expectations? - Management indicated that the proceeds from recent capital raises are primarily allocated for Q4 shipments and to support growth [80][112]

Key TakeawaysSuper Micro Computer shares tumbled in after-hours trading Tuesday after the server and data storage provider reported revenue that missed analysts' expectations despite more than doubling from the year-ago period. Net income and diluted earnings per share beat expectations, and Super Micro Computer raised its full-year revenue guidance, anticipating growth in demand for artificial intelligence.Super Micro Computer has been a beneficiary of the AI boom, with its stock more than tripling in valu ...

Super Micro Computer (SMCI) came out with quarterly earnings of $6.65 per share, beating the Zacks Consensus Estimate of $5.78 per share. This compares to earnings of $1.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.05%. A quarter ago, it was expected that this server technology company would post earnings of $5.48 per share when it actually produced earnings of $5.59, delivering a surprise of 2.01%.Over the last four ...

Q3 FY2024 HIGHLIGHTS 91% 93% 93% 94% 96% 9% 7% 7% 6% 4% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 116 15 Better Faster Greener © 2024 Supermicro Preferred Networks® Case Study Q3FY24 Revenue Mix By Geography 17.7% 17.1% 17.0% 15.5% 15.6% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation. **The outlook for the full fiscal year 2024 GAAP diluted net income per common share includes approximately $116 million in expected stock-based comp ...

Third Quarter Fiscal Year 2024 Highlights Non-GAAP gross margin for the third quarter of fiscal year 2024 was 15.6% with adjustments for stock-based compensation expenses of $3 million. Non-GAAP diluted net income per common share for the third quarter of fiscal year 2024 was $6.65, with adjustments for stock-based compensation expenses of $9 million, net of the related tax effect of $47 million. As of March 31, 2024, total cash and cash equivalents was $2,115 million and total bank debt and convertible not ...

CEO Talks About the Latest Innovations in Rack Scale Plug-and-Play (PnP) Solutions, Including Liquid Cooling, Increased Efficiency, and Optimized Performance for AI, Cloud, and Edge Computing SAN JOSE, Calif. and TAIPEI, April 30, 2024 /PRNewswire/ -- Supermicro, Inc. (NASDAQ: SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, announced that for the seventh consecutive year, President and CEO, Charles Liang will present a CEO Keynote at COMPUTEX 2024, one of the most significant comput ...

Fans of Super Micro Computer (NASDAQ:SMCI) stock are feeling hopeful ahead of the company’s fiscal third-quarter earnings results due tomorrow, April 30. Indeed, SMCI stock has regained more than 20% of its value in just the past five trading sessions.What do you need to know about SMCI stock today?Well, since reaching its all-time high back in early March, SMCI has been somewhat topsy turvy. Indeed, the chipmaker lost as much as 45% of its value in the past two months as some investors decided to capitaliz ...

Super Micro Computer’s (SMCI) third-quarter fiscal 2024 results, scheduled to be released on Apr 30, are likely to reflect strength in its Server and Storage Systems segment.The segment has been the key catalyst for the company backed by its robust storage systems offerings.Revenues from the segment were $3.44 billion in the second quarter of fiscal 2024. The figure accounted for 94% of total revenues and exhibited year-over-year growth of 107%.The Zacks Consensus Estimate for third-quarter fiscal 2024 Serv ...

The AI rockstar is poised to report earnings on Tuesday. Will the stock rally even higher?Super Micro Computer (SMCI 4.33%), also called Supermicro, provides high-performance servers built to withstand the rigors of artificial intelligence (AI) processing. The company has become a poster child of the AI boom and is scheduled to report the results for its fiscal 2024 third quarter (ended March 31) after the market close on Tuesday. AI investors will be sitting on the edge of their seats, as Supermicro could ...

Super Micro Computer (SMCI) is scheduled to report its third-quarter fiscal 2024 results on Apr 30.The company has been benefiting from its diverse business model, which encompasses Graphics Processing Units (GPU), AI, core computing, storage, 5G telco, edge and Internet of Things solutions. Its expanding pipeline of AI-backed software solutions continues to strengthen its foothold in the booming AI market in the to-be-reported quarter.Strength in the Server & Storage Systems segment, owing to continuous AI ...