01—Abstract
Summary
Summary of the 8-K filed January 18, 2024. Cited figures are marked; the original filing is the authoritative source.
Super Micro Computer, Inc. furnished this Form 8-K under Item 2.02 (Results of Operations and Financial Condition) to announce preliminary financial information for the second quarter of fiscal year 2024, which ended December 31, 2023.
The attached Exhibit 99.1 press release, titled "Supermicro Provides Second Quarter Fiscal 2024 Business Update," states the company expects to exceed its prior financial guidance. The company anticipates net sales of $3.6 billion to $3.65 billiona, compared with prior guidance of $2.7 billion to $2.9 billion. The company also expects GAAP diluted net income per common share of $4.90 to $5.05, versus prior guidance of $3.75 to $4.24, and non-GAAP diluted net income per common share of $5.40 to $5.55, versus prior guidance of $4.40 to $4.88.
The release attributes the outlook to strong market and end-customer demand for its rack-scale, AI and Total IT Solutions. The company states these figures are unaudited, preliminary, based on management's estimates, and subject to revision during financial closing procedures, and that actual results may differ materially.
The release notes that non-GAAP results add back stock-based compensation of approximately $33 millionb, net of tax effect, and that projections assume a GAAP tax rate of approximately 17.3% and a non-GAAP rate of approximately 17.8%, with fully diluted share counts of 58.1 million (GAAP) and 59.0 million (non-GAAP). A conference call to review the quarter is scheduled for January 29, 2024.
02—Key points
Key Highlights
- Net sales expected at $3.6 billion to $3.65 billion, above prior guidance of $2.7 billion to $2.9 billion.
- GAAP diluted EPS expected at $4.90 to $5.05, versus prior guidance of $3.75 to $4.24.
- Non-GAAP diluted EPS expected at $5.40 to $5.55, versus prior guidance of $4.40 to $4.88.
- Management attributes the strong outlook to market and end-customer demand for rack-scale, AI and Total IT Solutions.
- Stock-based compensation adjustment of approximately $33 million, net of tax, is the reconciling item between GAAP and non-GAAP EPS.
- Projections assume a GAAP tax rate of about 17.3% and non-GAAP rate of about 17.8%, with 58.1 million GAAP and 59.0 million non-GAAP fully diluted shares.
- Results are preliminary and unaudited and may differ materially from final reported figures; a conference call is set for January 29, 2024.
03—Questions
Frequently Asked Questions
What did Super Micro Computer report for the second quarter of fiscal 2024?
The company furnished preliminary results indicating net sales of $3.6 billion to $3.65 billion, GAAP diluted net income per share of $4.90 to $5.05, and non-GAAP diluted net income per share of $5.40 to $5.55 for the quarter ended December 31, 2023.
How do the expected results compare with prior guidance?
The filing states that the expected ranges exceed prior guidance: net sales were previously guided to $2.7 billion to $2.9 billion, GAAP diluted EPS to $3.75 to $4.24, and non-GAAP diluted EPS to $4.40 to $4.88.
What is the difference between the GAAP and non-GAAP figures?
Non-GAAP diluted net income per share adds back stock-based compensation expense of approximately $33 million, net of the related tax effect.
Are these figures final?
No. The figures are unaudited, based on preliminary results and management's estimates, and remain subject to revision during financial closing procedures. The company states actual results may differ materially.
When will the company discuss these results in more detail?
Supermicro will host a live audio webcast of a conference call on Monday, January 29, 2024, at 5:00 p.m. ET / 2:00 p.m. PT, with a replay available afterward.
04—Continue