Super Micro Computer, Inc. (Nasdaq: SMCI), a provider of high-performance, high-efficiency server, storage technology and green computing, announced financial results for its third quarter of fiscal year 2020 ended March 31, 2020.
Third quarter of Fiscal year 2020
Third Quarter Fiscal Year 2020 Highlights:
- Net sales of $772 million versus $871 million in the second quarter of fiscal year 2020 and $744 million in the same quarter of last year.
- Gross margin of 17.3% versus 15.9% in the second quarter of fiscal year 2020 and 15.1% in the same quarter of last year.
- Net income of $16 million versus $24 million in the second quarter of fiscal year 2020 and $11 million in the same quarter of last year.
- Diluted net income per common share of $0.29 versus $0.46 in the second quarter of fiscal year 2020 and $0.21 in the same quarter of last year.
- Non-GAAP diluted net income per common share of $0.84 versus $0.57 in the second quarter of fiscal year 2020 and $0.49 in the same quarter of last year.
- Cash flow used in operations of $21 million and capital expenditures of $11 million.
Benefited by a $10.1 million settlement fee
Income from operations in the third quarter of fiscal year 2020 benefited by a $10.1 million settlement fee
Income from operations in the third quarter of fiscal year 2020 benefited by a $10.1 million settlement fee related to a joint product development agreement. After the related tax effect, GAAP and non-GAAP net income per common share on a diluted basis benefited by $0.14.
Non-GAAP gross margin for the third quarter of fiscal year 2020 was 17.7%, which adds back stock-based compensation expenses of $0.4 million and one-time employee performance bonuses of $2.9 million.
Non-GAAP diluted net income per common share for the third quarter of fiscal year 2020 was $0.84, which adds back stock-based compensation expenses of $4.8 million, one-time employee performance bonuses of $10.3 million, legal settlement costs of $17.5 million and other non recurring expenses of $1.4 million less the related tax effects. As of March 31, 2020, total cash, cash equivalents and restricted cash was $319 million and bank debt was $33 million.
Authority comment
“We were pleased to deliver Q3 revenue that grew 4% year-over-year despite the disruptions to our operations from the impact of COVID-19," said Charles Liang, Chairman and CEO. "Our highest priority remains the health and security of our employees, customers and partners and I want to personally thank them all for their perseverance during this challenging time."
"While the business environment remains dynamic, we remain focused on our longer-term priorities and helping our customers capitalise on rapidly growing applications such as Artificial Intelligence, 5G / Edge and Cloud, the adoption of all which is accelerating as a result of the global pandemic."
"Our pipeline of innovation is more vibrant than ever with new server products leveraging the latest generation of Xeon processors from Intel and EPYC processors from AMD, Outdoor Edge systems for 5G and high-volume, cost-effective systems for large Data centre operators. Supermicro remains ready and eager to help its customers meet their evolving strategic priorities, whatever challenges may come."
Fourth quarter Fiscal year 2020 guidance
Given the uncertainties related to COVID-19, Supermicro will not provide guidance for the fourth quarter of the fiscal year 2020.
