SMCI Super Micro Computer Inc

Super Micro Computer, Inc. (Nasdaq: SMCI), a Total IT Solution Provider for AI, Cloud, Storage and 5G/Edge, today announced fourth quarter and full-year financial results for fiscal year 2024 ended June 30, 2024.

Fourth Quarter of Fiscal Year 2024 Highlights

• Net sales of $5.31 billion versus $3.85 billion in the third quarter of fiscal year 2024 and $2.18 billion in the same quarter of last year.

• Gross margin of 11.2% versus 15.5% in the third quarter of fiscal year 2024 and 17.0% in the same quarter of last year.

• Net income of $353 million versus $402 million in the third quarter of fiscal year 2024 and $194 million in the same quarter of last year.

• Diluted net income per common share of $5.51 versus $6.56 in the third quarter of fiscal year 2024 and $3.43 in the same quarter of last year.

• Non-GAAP diluted net income per common share of $6.25 versus $6.65 in the third quarter of fiscal year 2024 and $3.51 in the same quarter of last year.

• Cash flow used in operations for the fourth quarter of fiscal year 2024 of $635 million and capital expenditures of $27 million.

• The Company’s Board of Directors has authorized a 10-for-1 forward split of its common stock and we expect trading to commence on a split-adjusted basis on October 1, 2024.

Non-GAAP gross margin for the fourth quarter of fiscal year 2024 was 11.3%, which adds back stock-based compensation expense of $3 million. Non-GAAP diluted net income per common share for the fourth quarter of fiscal year 2024 was $6.25, with adjustments for stock-based compensation expenses of $52 million, net of the related tax effects of $20 million.

As of June 30, 2024, total cash and cash equivalents was $1,670 million and total bank debt and convertible notes were $2,174 million.

“Supermicro continues to experience record demand of new AI infrastructures propelling fiscal 2024 revenue up 110% year over year to $14.9 billion and non-GAAP earnings per share up 87% to $22.09,” said Charles Liang, President and CEO of Supermicro, “We are well positioned to become the largest IT infrastructure company, driven by our technology leadership including rack-scale DLC liquid cooling and business values of our new Datacenter Building Block Solutions. The investments in Malaysia and Silicon Valley expansions will further strengthen our supply chain, security, and economies of scale necessary for the growing AI revolution.”

Fiscal Year 2024 Summary

Net sales for the fiscal year ended June 30, 2024, were $14.94 billion versus $7.12 billion for the fiscal year ended June 30, 2023. Net income for fiscal year 2024 was $1.21 billion, or $20.09 per diluted share, versus $640 million, or $11.43 per diluted share, for fiscal year 2023. Non-GAAP net income for fiscal year 2024 was $1.34 billion, or $22.09 per diluted share, versus $673 million, or $11.81 per diluted share, for fiscal year 2023. Non-GAAP net income for fiscal year 2024 adds back stock-based compensation expense of $135 million, net of the related tax effects of $93 million.

Business Outlook and Management Commentary

For the first quarter of fiscal year 2025 ending September 30, 2024, the Company expects net sales of $6.0 billion to $7.0 billion, GAAP net income per diluted share of $5.97 to $7.66 and non-GAAP net income per diluted share of $6.69 to $8.27. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 9.9% and 14.6%, respectively, and a fully diluted share count of 65 million shares for GAAP and fully diluted share count of 66 million shares for non-GAAP. The outlook for Q1 of fiscal year 2025 GAAP net income per diluted share includes approximately $48 million in expected stock-based compensation expense and other expenses, net of related tax effects of $35 million, which are excluded from non-GAAP net income per diluted share.

For fiscal year 2025 ending June 30, 2025, the Company expects net sales of $26.0 billion to $30.0 billion.

Conference Call and Webcast Information

Supermicro will present a live audio webcast of a conference call to review its fourth quarter of fiscal year 2024 on Tuesday, August 6, 2024, at 5:00 p.m. ET / 2:00 p.m. PT.

The webcast will be available at https://ir.supermicro.com.

A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.

Cautionary Statement Regarding Forward-Looking Statements

Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may relate to, among other things, the first quarter of fiscal year 2025 and full year fiscal 2025 guidance, the ability to continue to see record demand for new AI infrastructure, the ability to become a dominant IT infrastructure Company, and the ability of investments in certain expansions to strengthen the supply chain, security, and economies of scale for growth. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, which could cause rapid declines in our stock price, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may be less predictable, (iii) if we fail to meet publicly announced financial guidance or other expectations about our business, our stock could decline in value, (iv) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (v) adverse economic conditions may harm our business. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward looking statements are contained in our filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2023, and Quarterly Reports on Form 10-Q filed thereafter.

Use of Non-GAAP Financial Measures

Non-GAAP gross margin discussed in this press release adds back stock-based compensation expenses. Non-GAAP diluted net income per common share discussed in this press release adds back stock-based compensation expenses and litigation expense recovery adjusted for the related tax effects. Management presents non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company's financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. A reconciliation of GAAP gross margin to non-GAAP gross margin and from GAAP diluted net income per common share to non-GAAP diluted net income per common share is included in the tables below.

About Super Micro Computer, Inc.

Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first to market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions Provider with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enable our development and production, enabling next generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

SUPER MICRO COMPUTER, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

June 30,

 

June 30,

 

2024

 

2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,669,766

 

$

440,459

Accounts receivable, net of allowance for credit losses

 

2,668,415

 

 

1,148,259

Inventories

 

4,407,972

 

 

1,445,564

Prepaid expenses and other current assets

 

308,471

 

 

145,144

Total current assets

 

9,054,624

 

 

3,179,426

Property, plant and equipment, net

 

414,008

 

 

290,240

Deferred income taxes, net

 

359,656

 

 

162,654

Other assets

 

114,952

 

 

42,409

Total assets

$

9,943,240

 

$

3,674,729

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,545,050

 

$

776,831

Accrued liabilities

 

237,921

 

 

163,865

Income taxes payable

 

18,268

 

 

129,166

Lines of credit and current portion of term loans

 

402,346

 

 

170,123

Deferred revenue

 

200,360

 

 

134,667

Total current liabilities

 

2,403,945

 

 

1,374,652

Deferred revenue, non-current

 

226,493

 

 

169,781

Term loans

 

74,083

 

 

120,179

Convertible notes

 

1,697,716

 

 

—

Other long-term liabilities

 

71,343

 

 

37,947

Total liabilities

 

4,473,580

 

 

1,702,559

Stockholders’ equity:

 

 

 

Common stock and additional paid in capital

 

2,827,627

 

 

538,352

Accumulated other comprehensive income

 

706

 

 

639

Retained earnings

 

2,641,163

 

 

1,433,014

Total Super Micro Computer, Inc. stockholders’ equity

 

5,469,496

 

 

1,972,005

Noncontrolling interest

 

164

 

 

165

Total stockholders’ equity

 

5,469,660

 

 

1,972,170

Total liabilities and stockholders’ equity

$

9,943,240

 

$

3,674,729

SUPER MICRO COMPUTER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended June 30,

 

Years Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net sales

$

5,308,192

 

 

$

2,184,861

 

 

$

14,942,854

 

 

$

7,123,482

 

Cost of sales

 

4,711,844

 

 

 

1,813,165

 

 

 

12,831,125

 

 

 

5,840,470

 

Gross profit

 

596,348

 

 

 

371,696

 

 

 

2,111,729

 

 

 

1,283,012

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

126,849

 

 

 

84,802

 

 

 

462,926

 

 

 

307,260

 

Sales and marketing

 

55,740

 

 

 

31,905

 

 

 

189,515

 

 

 

115,025

 

General and administrative

 

70,355

 

 

 

28,234

 

 

 

193,596

 

 

 

99,585

 

Total operating expenses

 

252,944

 

 

 

144,941

 

 

 

846,037

 

 

 

521,870

 

Income from operations

 

343,404

 

 

 

226,755

 

 

 

1,265,692

 

 

 

761,142

 

Other income, net

 

13,955

 

 

 

2,005

 

 

 

22,717

 

 

 

3,646

 

Interest expense

 

(3,112

)

 

 

(3,509

)

 

 

(19,352

)

 

 

(10,491

)

Income before income tax provision

 

354,247

 

 

 

225,251

 

 

 

1,269,057

 

 

 

754,297

 

Income tax provision

 

(994

)

 

 

(31,302

)

 

 

(62,729

)

 

 

(110,666

)

Share of (loss) income from equity investee, net of taxes

 

(526

)

 

 

(380

)

 

 

1,821

 

 

 

(3,633

)

Net income(1)

$

352,727

 

 

$

193,569

 

 

$

1,208,149

 

 

$

639,998

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

6.01

 

 

$

3.67

 

 

$

21.73

 

 

$

12.09

 

Diluted

$

5.51

 

 

$

3.43

 

 

$

20.09

 

 

$

11.43

 

Weighted-average shares used in calculation of net income per common share:

 

 

 

 

 

 

 

Basic

 

58,688

 

 

 

52,679

 

 

 

55,588

 

 

 

52,925

 

Diluted

 

64,208

 

 

 

56,505

 

 

 

60,215

 

 

 

55,970

 

 

(1) Net income for diluted net income per share calculation includes the add-backs of convertible notes interest charge, net of tax of $1,095 and $0, for the three months ended June 30, 2024 and 2023, respectively. Net income for diluted net income per share calculation includes the add-backs of convertible notes interest charge, net of tax of $1,480 and $0, for the year ended June 30, 2024 and 2023, respectively.

SUPER MICRO COMPUTER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

Stock-based compensation is included in the following cost and expense categories by period (in thousands):

 

 

Three Months Ended June 30,

 

Years Ended June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Cost of sales

$

3,185

 

$

989

 

$

15,865

 

$

4,574

Research and development

 

28,890

 

 

7,187

 

 

114,895

 

 

30,736

Sales and marketing

 

6,197

 

 

1,128

 

 

21,195

 

 

4,599

General and administrative

 

33,380

 

 

3,482

 

 

76,244

 

 

14,524

Stock-based compensation expense

$

71,652

 

$

12,786

 

$

228,199

 

$

54,433

SUPER MICRO COMPUTER, INC.

SELECTED CASH FLOW INFORMATION

(in thousands)

(unaudited)

 

 

Years Ended June 30,

 

 

2024

 

 

 

2023

 

Net cash (used in) provided by operating activities

$

(2,479,437

)

 

$

663,580

 

Net cash used in investing activities

 

(200,783

)

 

 

(39,486

)

Net cash provided by (used in) financing activities

 

3,911,724

 

 

 

(448,293

)

Effect of exchange rate fluctuations on cash

 

(2,191

)

 

 

(3,400

)

Net increase in cash, cash equivalents and restricted cash

 

1,229,313

 

 

 

172,401

 

Cash, cash equivalents and restricted cash at the beginning of the year

 

440,960

 

 

 

268,559

 

Cash, cash equivalents and restricted cash at the end of the year

$

1,670,273

 

 

$

440,960

 

SUPER MICRO COMPUTER, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended

June 30,

 

Twelve Months Ended

June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

GAAP GROSS PROFIT

$

596,348

 

 

$

371,696

 

 

$

2,111,729

 

 

$

1,283,012

 

Stock-based compensation

 

3,185

 

 

 

989

 

 

 

15,865

 

 

 

4,574

 

NON-GAAP GROSS PROFIT

$

599,533

 

 

$

372,685

 

 

$

2,127,594

 

 

$

1,287,586

 

 

 

 

 

 

 

 

 

GAAP GROSS MARGIN

 

11.2

%

 

 

17.0

%

 

 

14.1

%

 

 

18.0

%

Stock-based compensation

 

0.1

%

 

 

0.1

%

 

 

0.1

%

 

 

0.1

%

NON-GAAP GROSS MARGIN

 

11.3

%

 

 

17.1

%

 

 

14.2

%

 

 

18.1

%

 

 

 

 

 

 

 

 

GAAP OPERATING EXPENSES

$

252,944

 

 

$

144,941

 

 

$

846,037

 

 

$

521,870

 

Stock-based compensation

 

(68,467

)

 

 

(11,797

)

 

 

(212,334

)

 

 

(49,859

)

Litigation expense recovery

 

—

 

 

 

—

 

 

 

—

 

 

 

3,770

 

NON-GAAP OPERATING EXPENSES

$

184,477

 

 

$

133,144

 

 

$

633,703

 

 

$

475,781

 

 

 

 

 

 

 

 

 

GAAP INCOME FROM OPERATIONS

$

343,404

 

 

$

226,755

 

 

$

1,265,692

 

 

$

761,142

 

Stock-based compensation

 

71,652

 

 

 

12,786

 

 

 

228,199

 

 

 

54,433

 

Litigation expense recovery

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,770

)

NON-GAAP INCOME FROM OPERATIONS

$

415,056

 

 

$

239,541

 

 

$

1,493,891

 

 

$

811,805

 

 

 

 

 

 

 

 

 

GAAP OPERATING MARGIN

 

6.5

%

 

 

10.4

%

 

 

8.5

%

 

 

10.7

%

Stock-based compensation

 

1.3

%

 

 

0.6

%

 

 

1.5

%

 

 

0.8

%

Litigation expense recovery

 

—

%

 

 

—

%

 

 

—

%

 

 

(0.1

)%

NON-GAAP OPERATING MARGIN

 

7.8

%

 

 

11.0

%

 

 

10.0

%

 

 

11.4

%

 

 

 

 

 

 

 

 

GAAP TAX EXPENSE

$

994

 

 

$

31,302

 

 

$

62,729

 

 

$

110,666

 

Adjustments to tax provision

 

20,167

 

 

 

5,304

 

 

 

92,808

 

 

 

17,267

 

NON-GAAP TAX EXPENSE

$

21,161

 

 

$

36,606

 

 

$

155,537

 

 

$

127,933

 

 

 

 

 

 

 

 

 

GAAP NET INCOME

$

352,727

 

 

$

193,569

 

 

$

1,208,149

 

 

$

639,998

 

Stock-based compensation

 

71,652

 

 

 

12,786

 

 

 

228,199

 

 

 

54,433

 

Litigation expense recovery

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,770

)

Adjustments to tax provision

 

(20,167

)

 

 

(5,304

)

 

 

(92,808

)

 

 

(17,267

)

NON-GAAP NET INCOME

$

404,212

 

 

$

201,051

 

 

$

1,343,540

 

 

$

673,394

 

 

 

 

 

 

 

 

 

GAAP NET INCOME - BASIC

$

352,727

 

 

$

193,569

 

 

$

1,208,149

 

 

$

639,998

 

Convertible notes interest charge, net of tax

 

1,095

 

 

 

—

 

 

 

1,480

 

 

 

—

 

GAAP NET INCOME - DILUTED

$

353,822

 

 

$

193,569

 

 

$

1,209,629

 

 

$

639,998

 

 

 

 

 

 

 

 

 

NON-GAAP NET INCOME - BASIC

$

404,212

 

 

$

201,051

 

 

$

1,343,540

 

 

$

673,394

 

Convertible notes interest charge, net of tax

 

1,095

 

 

 

—

 

 

 

1,480

 

 

 

—

 

NON-GAAP NET INCOME - DILUTED

$

405,307

 

 

$

201,051

 

 

$

1,345,020

 

 

$

673,394

 

 

 

 

 

 

 

 

 

GAAP NET INCOME PER COMMON SHARE – BASIC

$

6.01

 

 

$

3.67

 

 

$

21.73

 

 

$

12.09

 

Impact of NON-GAAP adjustments

 

0.88

 

 

 

0.15

 

 

 

2.44

 

 

 

0.63

 

NON-GAAP NET INCOME PER COMMON SHARE – BASIC

$

6.89

 

 

$

3.82

 

 

$

24.17

 

 

$

12.72

 

 

 

 

 

 

 

 

 

GAAP NET INCOME PER COMMON SHARE – DILUTED

$

5.51

 

 

$

3.43

 

 

$

20.09

 

 

$

11.43

 

Impact of Non-GAAP adjustments

 

0.74

 

 

 

0.08

 

 

 

2.00

 

 

 

0.38

 

NON-GAAP NET INCOME PER COMMON SHARE – DILUTED

$

6.25

 

 

$

3.51

 

 

$

22.09

 

 

$

11.81

 

 

 

 

 

 

 

 

 

WEIGHTED-AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC – GAAP

 

58,688

 

 

 

52,679

 

 

 

55,588

 

 

 

52,925

 

BASIC – NON-GAAP

 

58,688

 

 

 

52,679

 

 

 

55,588

 

 

 

52,925

 

 

 

 

 

 

 

 

 

DILUTED – GAAP

 

64,208

 

 

 

56,505

 

 

 

60,215

 

 

 

55,970

 

DILUTED – NON-GAAP

 

64,827

 

 

 

57,222

 

 

 

60,886

 

 

 

57,027

 

 

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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806847881/en/

Investor Relations Contact: Nicole Noutsios email: ir@supermicro.com