Skip to content
AnalystLens

Super Micro Computer 8-K Report, Financial Results (Aug 6, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 6, 2024
Period End
August 6, 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 August 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Super Micro Computer, Inc. reported financial results for the fourth quarter and fiscal year ended June 30, 2024 in a press release furnished as Exhibit 99.1 to this Form 8-K.

Fourth-quarter net sales were $5.31 billiona, up from $2.18 billion a year earlier, while gross margin was 11.2% versus 17.0% in the same quarter of last year. Q4 GAAP net income was $353 million, and diluted net income per share was $5.51. For the full fiscal year, net sales were $14.94 billion versus $7.12 billion, and GAAP diluted EPS was $20.09 versus $11.43.

Non-GAAP diluted EPS for the year was $22.09b. Management cited record demand for AI infrastructure. Cash flow used in operations for Q4 was $635 million, and the fiscal year showed net cash used in operating activities of $2.48 billion.

The Board of Directors authorized a 10-for-1 forward split of the common stock, to be effected by a Delaware certificate of amendment that also proportionately increases authorized shares. The filing states that trading is expected to commence on a split-adjusted basis on October 1, 2024. For the first quarter of fiscal 2025 ending September 30, 2024, the company guided to net sales of $6.0 billion to $7.0 billionc and GAAP diluted EPS of $5.97 to $7.66.

For fiscal 2025, it expects net sales of $26.0 billion to $30.0 billiond. Balance sheet items at June 30, 2024 included cash and cash equivalents of $1.67 billion, convertible notes of $1.70 billion (non-current), and inventories of $4.41 billion, up from $1.45 billion a year earlier. The results and the stock split announcement are the principal items for investors in this filing.

02—Key points

Key Highlights

  1. Q4 FY2024 net sales of $5.31 billion, versus $2.18 billion in the same quarter last year; gross margin of 11.2% versus 17.0%.
  2. Fiscal 2024 net sales of $14.94 billion versus $7.12 billion; GAAP diluted EPS of $20.09 versus $11.43, and non-GAAP diluted EPS of $22.09 versus $11.81.
  3. Board authorized a 10-for-1 forward stock split, with split-adjusted trading expected to begin October 1, 2024.
  4. Q1 FY2025 guidance: net sales of $6.0 billion to $7.0 billion and GAAP diluted EPS of $5.97 to $7.66.
  5. FY2025 guidance: net sales of $26.0 billion to $30.0 billion.
  6. Net cash used in operating activities was $2.48 billion for fiscal 2024, compared with $664 million provided in fiscal 2023; Q4 cash used in operations was $635 million.
  7. Inventories rose to $4.41 billion at June 30, 2024 from $1.45 billion, and convertible notes of $1.70 billion were outstanding.

03—Questions

Frequently Asked Questions

  1. What is the stock split and when does it take effect?

    The Board authorized a 10-for-1 forward split of the common stock, effected through an amendment to the certificate of incorporation filed with Delaware after the close of trading on September 30, 2024. Trading is expected to commence on a split-adjusted basis on October 1, 2024. The amendment also proportionately increases authorized common shares.

  2. How did fourth-quarter profitability compare with the prior year?

    Q4 net income was $353 million, or $5.51 diluted EPS, versus $194 million and $3.43 a year earlier. Gross margin narrowed to 11.2% from 17.0%, and non-GAAP diluted EPS was $6.25 versus $3.51.

  3. What guidance did the company give for fiscal 2025?

    For the quarter ending September 30, 2024, the company expects net sales of $6.0 billion to $7.0 billion and GAAP diluted EPS of $5.97 to $7.66. For the fiscal year ending June 30, 2025, it expects net sales of $26.0 billion to $30.0 billion.

  4. How did the company's cash position and cash flow look at fiscal year-end?

    Cash and cash equivalents were $1.67 billion at June 30, 2024. Net cash used in operating activities for fiscal 2024 was $2.48 billion, while financing activities provided $3.91 billion. Total bank debt and convertible notes were $2.17 billion.

  5. What drove the revenue growth according to management?

    CEO Charles Liang cited record demand for new AI infrastructure, which propelled fiscal 2024 revenue up 110% year over year to $14.9 billion. He also pointed to rack-scale DLC liquid cooling and the Datacenter Building Block Solutions, plus investments in Malaysia and Silicon Valley expansions.

04—Continue

← View all 8-K filings