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Mar 31, 2022

Supermicro Q3 2022 Earnings Report

Supermicro's revenue exceeded one billion dollars for the fourth consecutive quarter, demonstrating robust growth and EPS progress.

Key Takeaways

Supermicro reported Q3 2022 net sales of $1.36 billion, a gross margin of 15.5%, and net income of $77 million, with diluted net income per share of $1.43 and non-GAAP diluted net income per share of $1.55.

Net sales reached $1.36 billion, compared to $896 million in the same quarter last year.

Gross margin was 15.5%, up from 13.7% in the same quarter last year.

Net income increased to $77 million, significantly higher than the $18 million reported in the same quarter of the previous year.

Diluted net income per common share rose to $1.43, a substantial increase from the $0.35 reported in the same quarter last year.

Total Revenue
$1.36B
Previous year: $896M
+51.2%
EPS
$0.155
Previous year: $0.05
+210.0%
Gross Profit
$211M
Previous year: $123M
+71.3%
Cash and Equivalents
$247M
Previous year: $178M
+39.1%
Free Cash Flow
-$239M
Previous year: -$143M
+66.5%
Total Assets
$3.07B
Previous year: $2B
+53.6%

Supermicro

Supermicro

Forward Guidance

For the fourth quarter of fiscal year 2022, Supermicro expects net sales between $1.4 billion and $1.48 billion, with GAAP net income per diluted share between $1.45 and $1.64, and non-GAAP net income per diluted share between $1.51 and $1.69.

Positive Outlook

  • Net sales are projected to be between $1.4 billion and $1.48 billion.
  • GAAP net income per diluted share is expected to be in the range of $1.45 to $1.64.
  • Non-GAAP net income per diluted share is forecasted to be between $1.51 and $1.69.
  • Full fiscal year 2022 net sales guidance raised to a range of $4.96 billion to $5.04 billion.
  • Full fiscal year 2022 GAAP net income per diluted share guidance raised to a range of $4.16 to $4.35.

Challenges Ahead

  • GAAP net income per diluted share includes approximately $8.0 million in expected stock-based compensation expense.
  • GAAP net income per diluted share includes approximately $1.0 million in other expenses.
  • Assumed tax rate of approximately 17.4% for GAAP net income per diluted share.
  • Assumed tax rate of approximately 19.4% for non-GAAP net income per diluted share.
  • Fully diluted share count of 54.3 million shares for GAAP.