01—Abstract
Summary
Summary of the 8-K filed April 30, 2024. Cited figures are marked; the original filing is the authoritative source.
Super Micro Computer, Inc. furnished a press release as Exhibit 99.1 to this Form 8-K reporting results for its third quarter of fiscal year 2024, ended March 31, 2024.
Net sales were $3.85 billiona, versus $3.66 billion in the second quarter of fiscal 2024 and $1.28 billion in the same quarter a year earlier. GAAP net income was $402 million, or $6.56 per diluted share, and non-GAAP diluted net income per share was $6.65. Gross margin was 15.5% on a GAAP basis, compared with 15.4% in the second quarter and 17.6% a year earlier.
Management attributed the results to strong demand for AI rack-scale solutions and its direct liquid cooling (DLC) designs. The company raised its fiscal 2024 revenue outlook to a range of $14.7 billion to $15.1 billionb, from $14.3 billion to $14.7 billion previously. For the fourth quarter ending June 30, 2024, it expects net sales of $5.1 billion to $5.5 billion, GAAP diluted net income per share of $7.20 to $8.05, and non-GAAP diluted net income per share of $7.62 to $8.42.
Its balance sheet shows cash and cash equivalents of $2.12 billionc, inventories of $4.12 billion, and convertible notes of $1.70 billion as of March 31, 2024. Net cash used in operating activities for the nine months was $1.84 billion, and the filing states that the information is furnished under Item 2.02 and is not deemed filed under the Exchange Act.
02—Key points
Key Highlights
- Third-quarter net sales of $3.85 billion, up from $3.66 billion in the second quarter of fiscal 2024 and $1.28 billion in the prior-year quarter.
- GAAP diluted net income per share of $6.56 and non-GAAP diluted net income per share of $6.65, compared with $1.53 and $1.63 in the prior-year quarter.
- Gross margin of 15.5% on a GAAP basis and 15.6% non-GAAP, versus 17.6% GAAP in the same quarter last year.
- Fiscal 2024 revenue guidance raised to $14.7 billion–$15.1 billion from $14.3 billion–$14.7 billion.
- Fourth-quarter guidance calls for net sales of $5.1 billion–$5.5 billion and non-GAAP diluted EPS of $7.62–$8.42.
- Cash used in operating activities was $1.52 billion in the third quarter and $1.84 billion for the nine months ended March 31, 2024.
- Inventories rose to $4.12 billion at March 31, 2024 from $1.45 billion at June 30, 2023, and convertible notes stood at $1.70 billion.
03—Questions
Frequently Asked Questions
How did Super Micro perform in the third quarter of fiscal 2024?
Net sales were $3.85 billion and GAAP net income was $402 million, or $6.56 per diluted share. Non-GAAP diluted net income per share was $6.65. The CEO described the quarter as another record and attributed it to demand for AI rack-scale solutions and DLC designs.
What is the company's revised outlook for fiscal 2024?
Revenue guidance was raised to $14.7 billion–$15.1 billion from $14.3 billion–$14.7 billion. GAAP diluted EPS is projected at $21.61–$22.46 and non-GAAP diluted EPS at $23.29–$24.09.
What does the company expect for the fourth quarter?
Management expects net sales of $5.1 billion–$5.5 billion, GAAP diluted EPS of $7.20–$8.05, and non-GAAP diluted EPS of $7.62–$8.42 for the quarter ending June 30, 2024.
How is the company's cash position and cash flow?
Cash and cash equivalents were $2.12 billion at March 31, 2024, up from $440 million at June 30, 2023. Operating activities used $1.84 billion of cash over the nine months, while financing activities provided $3.65 billion. Total bank debt and convertible notes were $1.86 billion.
Is the press release filed as part of this report?
The information in Item 2.02, including Exhibit 99.1, is furnished and is not deemed filed for purposes of Section 18 of the Exchange Act, and is not incorporated by reference into other filings unless expressly stated.
04—Continue