Super Micro Computer, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2016. For the quarter, the company reported net sales of $651,954,000 compared to $638,964,000 a year ago. Income from operations was $31,763,000 compared to $49,126,000 a year ago. Income before income tax provision was $31,311,000 compared to $48,750,000 a year ago. Net income was $21,996,000 or $0.43 per diluted share compared to $34,689,000 or $0.67 per diluted share a year ago. Non-GAAP income from operations was $36,472,000 compared to $53,132,000 a year ago. Non-GAAP net income was $25,032,000 or $0.48 per diluted share compared to $37,991,000 or $0.73 per diluted share a year ago.

For the six months period, the company reported net sales of $1,180,922,000 compared to $1,158,582,000 a year ago. Income from operations was $51,965,000 compared to $70,566,000 a year ago. Income before income tax provision was $51,212,000 compared to $69,953,000 a year ago. Net income was $35,528,000 or $0.69 per diluted share compared to $48,388,000 or $0.94 per diluted share a year ago. Net cash used in operating activities was $54,870,000 compared to net cash provided by operating activities of $86,922,000 a year ago. Purchases of property, plant and equipment were $17,372,000 compared to $15,235,000 a year ago. Non-GAAP income from operations was $61,178,000 compared to $78,448,000 a year ago. Non-GAAP net income was $41,706,000 or $0.80 per diluted share compared to $54,483,000 or $1.14 per diluted share a year ago.

The company expects net sales of $570 million to $630 million for the third quarter of fiscal year 2017 ending March 31, 2017. The company expects non-GAAP earnings per diluted share of approximately $0.34 to $0.42 for the third quarter. The company expects effective tax rate to be about 25% in the third quarter of fiscal 2017 through the release of liability for completion of an audit -- tax audit and as it continues to improve execution of new corporate structure as it grow business being served offshore.