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Super Micro Computer 8-K Report, Financial Results (Jan 29, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 29, 2024
Period End
January 29, 2024
Securities
SMCISMCIP
In the record · 2016–202610-K1010-Q328-K170

SMCI filed 10 annual reports (10-K), 32 quarterly reports (10-Q) and 170 current reports (8-K) between 2016 and 2026.

  1. Restatement8-K · Nov ’18Nov ’18
  2. Leadership change8-K · Mar ’21Mar ’21
  3. Auditor change8-K · Mar ’23Mar ’23
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed January 29, 2024. Cited figures are marked; the original filing is the authoritative source.

Super Micro Computer, Inc. (Nasdaq: SMCI) furnished an 8-K on January 29, 2024 reporting results for its second quarter of fiscal year 2024, ended December 31, 2023, via a press release attached as Exhibit 99.1.

Net sales were $3.66 billiona, up from $1.80 billion in the same quarter of the prior year and $2.12 billion in the first quarter of fiscal 2024. Gross margin was 15.4%, compared with 18.7% a year earlier, and GAAP net income was $296 million, versus $176 million a year earlier. Diluted GAAP net income per share was $5.10 and non-GAAP diluted net income per share was $5.59.

Cash flow used in operations for the quarter was $595 millionb, with capital expenditures of $15 million. Management, led by CEO Charles Liang, said demand for its AI computer platforms and rack-scale Total IT Solutions drove record revenue and raised fiscal 2024 revenue guidance from a range of $10 billion to $11 billion to $14.3 billion to $14.7 billion. For the third quarter ending March 31, 2024, the company expects net sales of $3.7 billion to $4.1 billion and GAAP diluted net income per share of $4.79 to $5.64.

Balance sheet figures at December 31, 2023 show inventories of $2.47 billionc, up from $1.45 billion at June 30, 2023, and accounts payable of $1.26 billion, up from $777 million. Cash and cash equivalents were $726 million and total bank debt was $376 million.

Total stockholders' equity rose to $3.08 billiond from $1.97 billion. The filing notes that the press release and its information are furnished, not filed, under Section 18 of the Exchange Act.

02—Key points

Key Highlights

  1. Net sales of $3.66 billion for Q2 FY2024, versus $1.80 billion in the year-earlier quarter and $2.12 billion in Q1 FY2024.
  2. Gross margin of 15.4% versus 18.7% in the same quarter last year; non-GAAP gross margin was 15.5%.
  3. GAAP net income of $296 million ($5.10 diluted per share) versus $176 million a year earlier; non-GAAP diluted EPS was $5.59.
  4. Fiscal 2024 revenue guidance raised to $14.3 billion to $14.7 billion from $10 billion to $11 billion.
  5. Q3 FY2024 guidance calls for net sales of $3.7 billion to $4.1 billion and GAAP diluted EPS of $4.79 to $5.64.
  6. Cash used in operations of $595 million in the quarter, with capital expenditures of $15 million; cash and equivalents of $726 million at December 31, 2023.
  7. Inventories rose to $2.47 billion from $1.45 billion at June 30, 2023, and accounts payable rose to $1.26 billion from $777 million.

03—Questions

Frequently Asked Questions

  1. How did Supermicro perform in the second quarter of fiscal 2024?

    Net sales were $3.66 billion, up from $1.80 billion a year earlier. GAAP net income was $296 million, or $5.10 per diluted share, compared with $176 million, or $3.14 per diluted share, in the prior-year quarter.

  2. Why did gross margin decline?

    The filing reports gross margin of 15.4% versus 18.7% a year earlier but does not state a specific cause. Cost of sales rose to $3.10 billion from $1.47 billion.

  3. What changed in the company's full-year outlook?

    Management raised fiscal 2024 revenue guidance to $14.3 billion to $14.7 billion, from the prior range of $10 billion to $11 billion, citing continued demand for its AI computer platforms and rack-scale Total IT Solutions.

  4. What is guided for the third quarter of fiscal 2024?

    The company expects net sales of $3.7 billion to $4.1 billion, GAAP diluted net income per share of $4.79 to $5.64, and non-GAAP diluted net income per share of $5.20 to $6.01 for the quarter ending March 31, 2024.

  5. How did cash flow and working capital develop?

    Operating activities used $325 million in the six months ended December 31, 2023, with the quarter's cash used in operations at $595 million. Inventories and accounts payable both increased substantially from June 30, 2023 levels, and cash and equivalents ended the period at $726 million.

04—Continue

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