Super Micro Computer, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2015; Provides Earnings Guidance for the Third Quarter Ending March 31, 2016
January 29, 2016 at 02:35 am IST
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Super Micro Computer, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2015. For the quarter, the company reported net sales of $638,964,000 compared to $503,014,000 a year ago. Income from operations was $49,126,000 compared to $42,885,000 a year ago. Income before income tax provision was $48,750,000 compared to $42,738,000 a year ago. Net income was $34,689,000 or $0.67 per diluted share compared to $31,242,000 or $0.61 per diluted share a year ago. Non-GAAP income from operations was $53,132,000 compared to $46,066,000 a year ago. Non-GAAP net income was $37,991,000 or $0.73 per diluted share compared to $33,504,000 or $0.65 per diluted share a year ago. In the second quarter, free cash flow was $59 million, primarily due to net income of $34.7 million and an increase in accounts payable of $58.4 million, offset in part by increases in inventory of $27.2 million and an increase in accounts receivable of $17.8 million.
For the six months period, the company reported net sales of $1,158,582,000 compared to $946,336,000 a year ago. Income from operations was $70,566,000 compared to $74,511,000 a year ago. Income before income tax provision was $69,953,000 compared to $74,203,000 a year ago. Net income was $48,388,000 or $0.94 per diluted share compared to $52,105,000 or $1.03 per diluted share a year ago. Net cash provided by operating activities was $86,922,000 compared to net cash used in operating activities of $8,687,000 a year ago. Purchases of property, plant and equipment were $15,235,000 compared to $11,031,000 a year ago. Non-GAAP income from operations was $78,448,000 compared to $80,672,000 a year ago. Non-GAAP net income was $54,483,000 or $1.04 per diluted share compared to $56,689,000 or $1.11 per diluted share a year ago. Free cash flow for the six months ended December 31, 2015 was $71.7 million, primarily due to an increase in the company's cash provided by operating activities and partially offset by the cash used in the development and construction of improvements on the company's properties.
The company expects net sales of $530 million to $580 million for the third quarter of fiscal year 2016 ending March 31, 2016. The company expects non-GAAP earnings per diluted share of approximately $0.43 to $0.53 for the third quarter. The company expects effective tax rate on a non-GAAP basis to be approximately 32.2%.
Super Micro Computer, Inc. specializes in the design, manufacture and marketing of high-performance server and storage systems, based on an innovative, modular and open architecture. Net sales break down by family of products as follows:
- servers and data storage systems (92.2%): accelerated computing platforms made up of a combination of servers and storage systems, designed for data centers, cloud computing, enterprise computing, Hadoop/Big Data, high-performance computing, artificial intelligence, 5G/IdO/Edge technologies and embedded systems. The group also offers server management and security software solutions, as well as professional services;
- modular server subsystems and accessories (7.8%): server boards, enclosures, processors, motherboards, power supplies, adapters, switches, networking systems, cables, ventilation systems, etc.
At the end of June 2023, the group has 3 production sites located in the United States, the Netherlands and Taiwan.
Net sales are distributed geographically as follows: The United States (67.9%), Asia (14.7%), Europe (14.1%) and others (3.3%).
Super Micro Computer, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2015; Provides Earnings Guidance for the Third Quarter Ending March 31, 2016