Super Micro Computer, Inc. Q1 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q1 FY2022 revenue reached $1.03 billion, up 35% year-over-year and slightly down 3% sequentially. This marks the second consecutive quarter above $1 billion.
  • Revenue exceeded guidance of $900 million to $980 million.
  • Non-GAAP EPS was $0.58, up from $0.55 in Q1 FY2021 and above guidance of $0.28 to $0.48.
  • Strong geographic performance: Asia revenue rose 108% year-over-year, Europe up 60%, U.S. up 13%.

Business Performance by Segment

  • Organic Enterprise / Channel AI-ML: $725 million.
  • OEM Appliance & Large Data Center: $250 million.
  • 5G / Telco / Edge-IoT: $58 million.
  • Systems accounted for 82% of revenue; system and node shipments grew year-over-year; ASPs increased both year-over-year and sequentially.

Margin and Profitability Highlights

  • Non-GAAP gross margin was 13.4%, declining 30 basis points sequentially and 370 basis points year-over-year. The year-over-year decline was partially due to a one-time cost recovery benefit in Q1 FY2021.
  • Freight and supply chain cost inflation continues to pressure margins, but management expects margins to improve starting Q2 as freight costs stabilize and new products scale.

Operational and Strategic Updates

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Operator: Ladies and gentlemen, thank you for standing by, and welcome to Super Micro First Quarter Fiscal 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] At this time, I would like to turn the conference over to Nicole Noutsios, Investor Relations for Super Micro. Please go ahead. Nicole Noutsios: Good afternoon, and thank you for attending Super Micro’s call to discuss financial results for the first quarter, which ended September 30, 2021. By now, you should have received a copy of the news release from the Company that was distributed at the close of regular trading and is available on the Company’s website. As a reminder, during today’s call, the Company will refer to a presentation that is available to participants in the IR section of the Company’s website under the Events & Presentations tab. We have also published management’s scripted commentary on our website. Please note that some of the information you’ll hear during our discussion today will consist of forward-looking statements, including without limitation those regarding revenue, gross margin, operating expenses, other income and expenses, taxes, capital allocation, and future business outlook, including guidance for the second quarter of fiscal year 2022 and the full fiscal year 2022, and the potential impact of COVID-19 on the Company’s business and results of operations. There are

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