Supermicro Announces Fourth Quarter and Full Year Fiscal Year 2023 Financial Results
- Super Micro Computer reported record net sales of $2.18 billion for the fourth quarter, representing a significant increase compared to the previous quarter and the same quarter last year.
- The company's gross margin for the fourth quarter was 17.0%, slightly lower than the previous quarter and the same quarter last year.
- Net income for the fourth quarter was $194 million, showing a substantial improvement compared to the previous quarter and the same quarter last year.
- For the full fiscal year 2023, Super Micro Computer achieved net sales of $7.12 billion, demonstrating strong growth compared to the previous fiscal year.
- The company expects net sales of $1.90 billion to $2.20 billion for the first quarter of fiscal year 2024.
- None.
Fourth Quarter of Fiscal Year 2023 Highlights
-
Net sales of
versus$2.18 billion in the third quarter of fiscal year 2023 and$1.28 billion in the same quarter of last year.$1.64 billion -
Gross margin of
17.0% versus17.6% in the third quarter of fiscal year 2023 and17.6% in the same quarter of last year. -
Net income of
versus$194 million in the third quarter of fiscal year 2023 and$86 million in the same quarter of last year.$141 million -
Diluted net income per common share of
versus$3.43 in the third quarter of fiscal year 2023 and$1.53 in the same quarter of last year.$2.60 -
Non-GAAP diluted net income per common share of
versus$3.51 in the third quarter of fiscal year 2023 and$1.63 in the same quarter of last year.$2.62 -
Cash flow used in operations for the fourth quarter of fiscal year 2023 of
and capital expenditures of$9 million .$8 million
Non-GAAP gross margin for the fourth quarter of fiscal year 2023 was
As of June 30, 2023, total cash and cash equivalents was
“Supermicro’s record revenue and
Fiscal Year 2023 Summary
Net sales for the fiscal year ended June 30, 2023, were
Business Outlook and Management Commentary
For the first quarter of fiscal year 2024 ending September 30, 2023, the Company expects net sales of
For fiscal year 2024 ending June 30, 2024, the Company expects net sales of
Conference Call and Webcast Information
Supermicro will hold a public webcast at 2:00 p.m. PDT today to discuss the results for its fourth quarter and full-year fiscal 2023 financial results. Those wishing to access the live webcast may use the following link:
https://events.q4inc.com/attendee/910502687
The conference call can be accessed by registering online at:
https://conferencingportals.com/event/AcFjVwZF
After registering, a confirmation will be sent through email, including dial-in details and unique conference call codes for entry. Registration is open during the live call, but to ensure connectivity for the full call, it is recommended that participants register a day in advance and dial-in for the call at least 10 minutes before the start of the call.
A replay of the webcast will be available shortly after the call on the Company’s investor relations website (https://ir.supermicro.com) 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 2024 and full year fiscal 2024 guidance; demand for AI and other advanced applications; and the Company's position to continue 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, 2022, 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 and other expenses. Non-GAAP diluted net income per common share discussed in this press release adds back stock-based compensation expenses, litigation settlement costs, special performance bonuses 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
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, |
||
|
2023 |
|
2022 |
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
440,459 |
|
$ |
267,397 |
Accounts receivable, net of allowance for credit losses |
|
1,148,259 |
|
|
834,513 |
Inventories |
|
1,445,564 |
|
|
1,545,606 |
Prepaid expenses and other current assets |
|
145,144 |
|
|
158,799 |
Total current assets |
|
3,179,426 |
|
|
2,806,315 |
Property, plant and equipment, net |
|
290,240 |
|
|
285,972 |
Deferred income taxes, net |
|
162,654 |
|
|
69,929 |
Other assets |
|
42,409 |
|
|
42,861 |
Total assets |
$ |
3,674,729 |
|
$ |
3,205,077 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
776,831 |
|
$ |
655,403 |
Accrued liabilities |
|
163,865 |
|
|
212,419 |
Income taxes payable |
|
129,166 |
|
|
41,743 |
Short-term debt |
|
170,123 |
|
|
449,146 |
Deferred revenue |
|
134,667 |
|
|
111,313 |
Total current liabilities |
|
1,374,652 |
|
|
1,470,024 |
Deferred revenue, non-current |
|
169,781 |
|
|
122,548 |
Long-term debt |
|
120,179 |
|
|
147,618 |
Other long-term liabilities |
|
37,947 |
|
|
39,140 |
Total liabilities |
|
1,702,559 |
|
|
1,779,330 |
Stockholders’ equity: |
|
|
|
||
Common stock and additional paid in capital |
|
538,352 |
|
|
481,741 |
Accumulated other comprehensive income |
|
639 |
|
|
911 |
Retained earnings |
|
1,433,014 |
|
|
942,923 |
Total Super Micro Computer, Inc. stockholders’ equity |
|
1,972,005 |
|
|
1,425,575 |
Noncontrolling interest |
|
165 |
|
|
172 |
Total stockholders’ equity |
|
1,972,170 |
|
|
1,425,747 |
Total liabilities and stockholders’ equity |
$ |
3,674,729 |
|
$ |
3,205,077 |
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, |
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net sales |
$ |
2,184,861 |
|
|
$ |
1,635,460 |
|
|
$ |
7,123,482 |
|
|
$ |
5,196,099 |
|
Cost of sales |
|
1,813,165 |
|
|
|
1,348,116 |
|
|
|
5,840,470 |
|
|
|
4,396,098 |
|
Gross profit |
|
371,696 |
|
|
|
287,344 |
|
|
|
1,283,012 |
|
|
|
800,001 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
84,802 |
|
|
|
70,790 |
|
|
|
307,260 |
|
|
|
272,273 |
|
Sales and marketing |
|
31,905 |
|
|
|
24,186 |
|
|
|
115,025 |
|
|
|
90,126 |
|
General and administrative |
|
28,234 |
|
|
|
27,155 |
|
|
|
99,585 |
|
|
|
102,435 |
|
Total operating expenses |
|
144,941 |
|
|
|
122,131 |
|
|
|
521,870 |
|
|
|
464,834 |
|
Income from operations |
|
226,755 |
|
|
|
165,213 |
|
|
|
761,142 |
|
|
|
335,167 |
|
Other income, net |
|
2,005 |
|
|
|
3,973 |
|
|
|
3,646 |
|
|
|
8,079 |
|
Interest expense |
|
(3,509 |
) |
|
|
(2,928 |
) |
|
|
(10,491 |
) |
|
|
(6,413 |
) |
Income before income tax |
|
225,251 |
|
|
|
166,258 |
|
|
|
754,297 |
|
|
|
336,833 |
|
Income tax provision |
|
(31,302 |
) |
|
|
(25,760 |
) |
|
|
(110,666 |
) |
|
|
(52,876 |
) |
Share of (loss) income from equity investee, net of taxes |
|
(380 |
) |
|
|
324 |
|
|
|
(3,633 |
) |
|
|
1,206 |
|
Net income |
$ |
193,569 |
|
|
$ |
140,822 |
|
|
$ |
639,998 |
|
|
$ |
285,163 |
|
Net income per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
3.67 |
|
|
$ |
2.70 |
|
|
$ |
12.09 |
|
|
$ |
5.54 |
|
Diluted |
$ |
3.43 |
|
|
$ |
2.60 |
|
|
$ |
11.43 |
|
|
$ |
5.32 |
|
Weighted-average shares used in calculation of net income per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
52,679 |
|
|
|
52,111 |
|
|
|
52,925 |
|
|
|
51,478 |
|
Diluted |
|
56,505 |
|
|
|
54,260 |
|
|
|
55,970 |
|
|
|
53,615 |
|
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, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Cost of sales |
$ |
989 |
|
$ |
498 |
|
$ |
4,574 |
|
$ |
1,876 |
Research and development |
|
7,187 |
|
|
4,447 |
|
|
30,736 |
|
|
16,571 |
Sales and marketing |
|
1,128 |
|
|
541 |
|
|
4,599 |
|
|
2,058 |
General and administrative |
|
3,482 |
|
|
3,398 |
|
|
14,524 |
|
|
12,311 |
Stock-based compensation expense |
$ |
12,786 |
|
$ |
8,884 |
|
$ |
54,433 |
|
$ |
32,816 |
SUPER MICRO COMPUTER, INC. SELECTED CASH FLOW INFORMATION (in thousands) (unaudited) |
|||||||
Years Ended June 30, |
|||||||
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by (used in) operating activities |
$ |
663,580 |
|
|
$ |
(440,801 |
) |
Net cash used in investing activities |
|
(39,486 |
) |
|
|
(46,282 |
) |
Net cash (used in) provided by financing activities |
|
(448,293 |
) |
|
|
522,871 |
|
Effect of exchange rate fluctuations on cash |
|
(3,400 |
) |
|
|
(678 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
172,401 |
|
|
|
35,110 |
|
Cash, cash equivalents and restricted cash at the beginning of the year |
|
268,559 |
|
|
|
233,449 |
|
Cash, cash equivalents and restricted cash at the end of the year |
$ |
440,960 |
|
|
$ |
268,559 |
|
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, |
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
GAAP GROSS PROFIT |
$ |
371,696 |
|
|
$ |
287,344 |
|
|
$ |
1,283,012 |
|
|
$ |
800,001 |
|
Stock-based compensation |
|
989 |
|
|
|
498 |
|
|
|
4,574 |
|
|
|
1,876 |
|
Other expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
295 |
|
NON-GAAP GROSS PROFIT |
$ |
372,685 |
|
|
$ |
287,842 |
|
|
$ |
1,287,586 |
|
|
$ |
802,172 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP GROSS MARGIN |
|
17.0 |
% |
|
|
17.6 |
% |
|
|
18.0 |
% |
|
|
15.4 |
% |
Stock-based compensation |
|
0.1 |
% |
|
|
0.0 |
% |
|
|
0.1 |
% |
|
|
0.0 |
% |
Other expenses |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.0 |
% |
NON-GAAP GROSS MARGIN |
|
17.1 |
% |
|
|
17.6 |
% |
|
|
18.1 |
% |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP OPERATING EXPENSES |
$ |
144,941 |
|
|
$ |
122,131 |
|
|
$ |
521,870 |
|
|
$ |
464,834 |
|
Stock-based compensation |
|
(11,797 |
) |
|
|
(8,386 |
) |
|
|
(49,859 |
) |
|
|
(30,940 |
) |
Litigation settlement costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,000 |
) |
Special performance bonuses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(158 |
) |
Litigation (expense) recovery |
|
— |
|
|
|
(234 |
) |
|
|
3,770 |
|
|
|
(4,367 |
) |
NON-GAAP OPERATING EXPENSES |
$ |
133,144 |
|
|
$ |
113,511 |
|
|
$ |
475,781 |
|
|
$ |
427,369 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP INCOME FROM OPERATIONS |
$ |
226,755 |
|
|
$ |
165,213 |
|
|
$ |
761,142 |
|
|
$ |
335,167 |
|
Stock-based compensation |
|
12,786 |
|
|
|
8,884 |
|
|
|
54,433 |
|
|
|
32,816 |
|
Litigation settlement costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,000 |
|
Special performance bonuses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
453 |
|
Litigation expense (recovery) |
|
— |
|
|
|
234 |
|
|
|
(3,770 |
) |
|
|
4,367 |
|
NON-GAAP INCOME FROM OPERATIONS |
$ |
239,541 |
|
|
$ |
174,331 |
|
|
$ |
811,805 |
|
|
$ |
374,803 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP OPERATING MARGIN |
|
10.4 |
% |
|
|
10.1 |
% |
|
|
10.7 |
% |
|
|
6.5 |
% |
Stock-based compensation |
|
0.6 |
% |
|
|
0.6 |
% |
|
|
0.8 |
% |
|
|
0.6 |
% |
Litigation settlement costs |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.0 |
% |
Special performance bonuses |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.0 |
% |
Litigation expense (recovery) |
|
— |
% |
|
|
0.0 |
% |
|
|
(0.1 |
)% |
|
|
0.1 |
% |
NON-GAAP OPERATING MARGIN |
|
11.0 |
% |
|
|
10.7 |
% |
|
|
11.4 |
% |
|
|
7.2 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP TAX EXPENSE |
$ |
31,302 |
|
|
$ |
25,760 |
|
|
$ |
110,666 |
|
|
$ |
52,876 |
|
Adjustments to tax provision |
|
5,304 |
|
|
|
4,137 |
|
|
|
17,267 |
|
|
|
13,721 |
|
NON-GAAP TAX EXPENSE |
$ |
36,606 |
|
|
$ |
29,897 |
|
|
$ |
127,933 |
|
|
$ |
66,597 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP NET INCOME |
$ |
193,569 |
|
|
$ |
140,822 |
|
|
$ |
639,998 |
|
|
$ |
285,163 |
|
Stock-based compensation |
|
12,786 |
|
|
|
8,884 |
|
|
|
54,433 |
|
|
|
32,816 |
|
Litigation settlement costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,000 |
|
Special performance bonuses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
453 |
|
Litigation expense (recovery) |
|
— |
|
|
|
234 |
|
|
|
(3,770 |
) |
|
|
4,367 |
|
Adjustments to tax provision |
|
(5,304 |
) |
|
|
(4,137 |
) |
|
|
(17,267 |
) |
|
|
(13,721 |
) |
NON-GAAP NET INCOME |
$ |
201,051 |
|
|
$ |
145,803 |
|
|
$ |
673,394 |
|
|
$ |
311,078 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP NET INCOME PER COMMON SHARE – BASIC |
$ |
3.67 |
|
|
$ |
2.70 |
|
|
$ |
12.09 |
|
|
$ |
5.54 |
|
Impact of NON-GAAP adjustments |
|
0.15 |
|
|
|
0.10 |
|
|
|
0.63 |
|
|
|
0.50 |
|
NON-GAAP NET INCOME PER COMMON SHARE – BASIC |
$ |
3.82 |
|
|
$ |
2.80 |
|
|
$ |
12.72 |
|
|
$ |
6.04 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP NET INCOME PER COMMON SHARE – DILUTED |
$ |
3.43 |
|
|
$ |
2.60 |
|
|
$ |
11.43 |
|
|
$ |
5.32 |
|
Impact of NON-GAAP adjustments |
|
0.08 |
|
|
|
0.02 |
|
|
|
0.38 |
|
|
|
0.33 |
|
NON-GAAP NET INCOME PER COMMON SHARE – DILUTED |
$ |
3.51 |
|
|
$ |
2.62 |
|
|
$ |
11.81 |
|
|
$ |
5.65 |
|
|
|
|
|
|
|
|
|
||||||||
WEIGHTED-AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
BASIC – GAAP |
|
52,679 |
|
|
|
52,111 |
|
|
|
52,925 |
|
|
|
51,478 |
|
BASIC – NON-GAAP |
|
52,679 |
|
|
|
52,111 |
|
|
|
52,925 |
|
|
|
51,478 |
|
|
|
|
|
|
|
|
|
||||||||
DILUTED – GAAP |
|
56,505 |
|
|
|
54,260 |
|
|
|
55,970 |
|
|
|
53,615 |
|
DILUTED – NON-GAAP |
|
57,222 |
|
|
|
55,611 |
|
|
|
57,027 |
|
|
|
55,025 |
|
Non-GAAP diluted net income per common share for the third quarter of fiscal year 2023 was |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808659439/en/
Investor Relations Contact
Nicole Noutsios
email: ir@supermicro.com
Source: Super Micro Computer, Inc.
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