Supermicro Announces Fourth Quarter and Full Year Fiscal Year 2020 Financial Results and Stock Repurchase Authorization
SAN JOSE, Calif., Aug. 12, 2020 — Super Micro Computer, Inc. announced fourth quarter and full-year financial results for fiscal year 2020 ended June 30, 2020.
Fourth Quarter of Fiscal Year 2020 Highlights
- Net sales of $896 million versus $772 million in the third quarter of fiscal year 2020 and $854 million in the same quarter of last year.
- Gross margin of 13.8% versus 17.3% in the third quarter of fiscal year 2020 and 15.5% in the same quarter of last year.
- Net income of $18 million versus $16 million in the third quarter of fiscal year 2020 and $24 million in the same quarter of last year.
- Diluted net income per common share of $0.34 versus $0.29 in the third quarter of fiscal year 2020 and $0.46 in the same quarter of last year.
- Non-GAAP diluted net income per common share of $0.68 versus $0.84 in the third quarter of fiscal year 2020 and $0.69 in the same quarter of last year.
- Cash flow used in operations of $96 million and capital expenditures of $9 million.
Non-GAAP gross margin for the fourth quarter of fiscal year 2020 was 14.0%, which adds back stock-based compensation expense of $0.4 million, one-time employee performance bonuses of $1.2 million, and certain other expenses. Non-GAAP diluted net income per common share for the fourth quarter of fiscal year 2020 was $0.68, which adds back stock-based compensation expense of $5.4 million, one-time employee performance bonuses of $17.4 million, controls remediation costs of $1.0 million and other expenses of $0.7 million, less tax effects of $5.1 million.
As of June 30, 2020, total cash, cash equivalents and restricted cash was $212 million and bank debt was $29 million.
Fiscal Year 2020 Summary
Net sales for the fiscal year ended June 30, 2020, were $3.34 billion versus $3.50 billion for the fiscal year ended June 30, 2019. Net income for fiscal year 2020 was $84 million, or $1.60 per diluted share, versus $72 million, or $1.39 per diluted share, for fiscal year 2019. Non-GAAP net income for the fiscal year 2020 was $150 million, or $2.77 per diluted share, versus $134 million, or $2.51 per diluted share, for fiscal year 2019. Non-GAAP net income for the fiscal year 2020 adds back stock-based compensation expense of $20.2 million, one-time employee performance bonuses of $27.7 million, legal settlement costs of $17.5 million, controls remediation costs of $13.9 million, and other expenses of $0.7 million, less tax effects of $14.0 million.
Business Outlook and Management Commentary
The Company expects net sales of $720 million to $800 million, GAAP net income per diluted share of $0.03 to $0.27 and non-GAAP net income per diluted share of $0.10 to $0.35 for the first quarter of fiscal year 2021 ending September 30, 2020. The company’s projections for GAAP and non-GAAP net income per diluted share both assume a tax rate of approximately 18% and a fully diluted share count of 56.3 million shares. The outlook for Q1 of fiscal year 2021 GAAP net income per diluted share includes approximately $5.0 million in expected stock-based compensation expense, one-time employee performance bonuses and controls remediation expenses, and other expense that are excluded from non-GAAP net income per diluted share.
“Our 5% year-over-year Q4 revenue growth in a very dynamic business environment demonstrates our continuing market engagement in Edge applications and with internet data center customers, both of which grew double-digits year-on-year,” said Charles Liang, Chairman and Chief Executive Officer. “We also delivered Q4 non-GAAP EPS that was relatively stable year-on-year despite elevated costs resulting from the impact of COVID-19 on our operations. While our Q1 outlook reflects continued pressures from unprecedented market developments, we are very encouraged as we look to the future, as the digital world continues to progress, evolve, and grow. We are using this period of disruption as an opportunity to invest in long-term growth and optimize our workforce and strategy. A key strategic action we are taking is shifting a greater portion of our operations and R&D to our Taiwan campus, which will result in lower costs. We remain committed to re-accelerating our revenue growth and resuming our long history of market share gain.”
Share Repurchase Authorization
The Company also announced today that, its Board of Directors has authorized a stock repurchase program pursuant to which the Company may repurchase up to $30 million of its common stock. The stock repurchase program is effective until December 31, 2020 or until the maximum amount of common stock is repurchased.
“By implementing this stock repurchase program, we can utilize our cash on hand to increase stockholder value while maintaining sufficient cash resources to fund our operations. The stock repurchase program reflects our ongoing commitment to improving the value of our common stock,” said Charles Liang, Chairman and CEO of the Company.
Stock repurchases may be made from time to time at prevailing prices in the open market, including pursuant to a Rule 10b5-1 plan. There can be no assurance of how many shares will be repurchased, and the repurchase program may be suspended for periods or discontinued at any time. The timing and amount of any shares repurchased will be determined based on an evaluation of market conditions and other factors. Share repurchases will be funded with cash on hand.
The Company had approximately 52,436,981 shares of common stock outstanding on August 10, 2020.
For the full announcement, visit: https://ir.supermicro.com/news-releases/news-release-details/supermicro-announces-fourth-quarter-and-full-year-fiscal-year
About Super Micro Computer, Inc.
Supermicro, the leading innovator in high-performance, high-efficiency server and storage technology is a premier provider of advanced server Building Block Solutions for Enterprise Data Center, Cloud Computing, Artificial Intelligence, and Edge Computing Systems worldwide. Supermicro is committed to protecting the environment through its “We Keep IT Green” initiative and provides customers with the most energy-efficient, environmentally-friendly solutions available on the market.
Source: Super Micro Computer, Inc.
