Super Micro Computer, Inc. Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Revenue for the quarter was estimated at 788M–798M dollars, above the guidance midpoint of 780M dollars. This compares to 4Q FY19 revenue of approximately 896M dollars (down sequentially due to seasonality and softer industry demand).
  • Non-GAAP gross margin estimated at 15.1%–16.3%, improving year-over-year (vs. roughly 14.8% in the prior year) and slightly up sequentially due to lower component costs and improved mix.
  • Non-GAAP EPS expected to be 0.61–0.65 dollars. This compares to 0.66–0.70 dollars in the prior year (down y/y) but up from 0.57–0.61 dollars in 4Q FY19 (up sequentially).
  • System revenue accounted for about 80% of total revenue. Lower system ASPs year-over-year were driven by falling memory and SSD pricing.
  • The company saw macroeconomic headwinds, customer purchase delays, and lower component prices affecting revenue.
  • Signs of stabilization and early-season strength appeared late in the quarter, with inventory intentionally rebuilt to meet expected demand.

Business & Product Highlights

  • Strong momentum in new product development across AI/ML, 5G, IoT, storage, and data center solutions.
  • Expanded collaborations with Red Hat, VMware, Nvidia, and SAP to offer certified, risk-reducing solutions for customers.

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Operator: Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Super Micro Computer Incorporated First Quarter Fiscal 2020 Business Update Conference Call. The company's news release is issued earlier today are available from its website at www.supermicro.com. During the company's presentation, all participants will be in a listen only mode. Afterwards, securities and analysts will be invited to participate in a question-and-answer session. But the entire call is open to all participants on a listen only basis. As a reminder, this call is being recorded, Thursday, November 14, 2019. A replay of the call will be accessible until midnight, Thursday, November 28, 2019, by dialing 1-844-512-2921 and entering replay pin 9981371. International caller should dial 1-412-317-6671. With us today are Charles Liang, Chairman and Chief Executive Officer; Kevin Bauer, Senior Vice President and Chief Financial Officer; and Perry Hayes, Senior Vice President, Investor Relations. And now I would like to turn the conference over to Mr. Hayes. Mr. Hayes, please go ahead, sir. Perry Hayes: Good afternoon and thank you for attending Super Micro's business update conference call for the first quarter fiscal 2020, which ended September 30, 2019. During today's conference call, Super Micro will address the company's preliminary financial results for the first quarter of fiscal 2020 and the company’s efforts to become current with its remaining SEC filings. References to any fin

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