Super Micro Computer, Inc.

Ladies and gentlemen, thank you for standing by. My name is Brent and I will be your conference operator today. At this time, I would like to welcome everyone to the Supermicro second quarter 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star 1. Thank you. It's now my pleasure to turn the call over to Nicole Noutius, Investor Relations. Please go ahead.

Good afternoon, and thank you for attending Supermicro's call to discuss financial results for the second quarter, which ended December 31st. With me today are Charles Liang, Founder, Chairman, and Chief Executive Officer, Patrick Wang, President, East Coast and SDP Strategy and Corporate Development, and David Wenglen, Chief Finance Officer. By now, you should receive a copy of the news release from the company that is distributed at the close of regular trading and is available on the company's website. As a reminder, during today's call, the company referred to a presentation that's available to participants on the IR section of the company's website under Events and Presentations tab. We have also published management scripted commentary on our website. Please note that some of the information you'll hear during Our discussion today will consist of four looking statements, including without limitation those regarding revenues, gross margin, operating expenses, other income and expenses, taxes, capital allocation, and future business outlook, including guidance for the third quarter of fiscal year 2022 and the full year 2022, and the potential impact of COVID-19 on the company's business and results of operations. There are a number of risk factors that can cause Supermicro's future results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our most recent 10-K filing for fiscal 2021, and our other SEC filings. All of these documents are available on the IR page of Supermicro's website. We assume no obligation to update any forward-looking statements. Most of today's presentation referred to non-GAAP financial results and business outlook. For an explanation of our non-GAAP financial measures, please refer to the accompanying presentation to our press release published earlier today. In addition, a reconciliation of GAAP to non-GAAP results is contained in today's press release and the supplemental information attached to today's presentation. At the end of today's prepared remarks, we'll have a Q&A session for self-advocates to ask questions. I'll now call over to Charles.

Thank you, Nicole, and good afternoon, everyone. Today, I'm pleased to announce our quarterly revenue of $1.17 billion for fiscal Q2 2022, which was 41% year-over-year growth, and our screenshot growth was 14%. We have seen a strong growth in all our key verticals and geographically despite the challenge of global components shortage and COVID impact. More importantly, our total IT solution strategy has been empowering us to continuously gain market share. All thanks to our dedicated employees, powerful server building block solutions, and finally, our faster-growing solar products. With the bigger temp and potential from total IT solutions, I believe our growth trend will continue for many years to come and getting stronger quarter after quarter. Now, let's look at some key highlights from the quarter. First, again, our fiscal second quarter Net revenue total $1.17 billion, up 41% year-on-year and up 40% quarter-on-quarter. At a higher end of our guidance range of $1.1 to $1.2 billion. It's superman called the first consecutive quarter of faster revenue progression as we continue our growth trajectory at multiple times the industry's growth rate. Our physical second quarter non-GAAP earnings per share was $0.88 compared to $0.63 in the same quarter last year, which was 40% growth and at a higher end of our guidance range of $0.70 to $0.90. Major geography contribute significantly to our year-over-year growth, especially in the APAC region, which grew 76% year-over-year. The Taiwan expansion boosts our APAC and email growth momentum by providing additional capacity and lowering operational costs. We continue to expand our B2B auto-congregator program to service significantly more customers during the quarter. Our innovation command center based on online business system have been improving our sales, FAE, PM, PM efficiency, as well as our key customer satisfaction. Recent market conditions present us with a better opportunity to accelerate our business transition from a hardware company to a total IT solution company. The transition enables Supermicro to offer customers higher value and product availability with optimal hardware, software, service, switches, and more. Our results has shown that we have outperformed our previous $10 billion annual revenue target timeline we shared a few quarters ago. More encouragingly, we are observing diversified growth across our target verticals, which are large enterprise, AI, machine learning, cloud, 5G telco, and IoT. Our design win and engagement with Fortune List customers continue to grow quickly with our total IT solutions. Our push for world total IT solutions is benefiting Supermicro and our customers in multiple ways. Most notably, our customers will receive higher quality plug-and-play radio products. They are fully optimized, integrated, and validated in-house. This effort is also helping Supermicro and our customers mitigate the impact of global supply chain disruptions by accurately forecasting building inventory in scale and prioritizing with our strategic partner. As a result, our total IT solution dramatically improves our customers' time-to-market and increases Supermicro's value. Our total IT solutions are built upon a robust knowledge of system architecture and building blocks that can be optimized for most market protocols. With the advice of Omniverse and Metaverse, We have recently introduced several new architectures to enhance our GPU product offerings. Our new universal GPU architecture allows customers to choose the best CPU, GPU switches, and the IO configuration to fully optimize their applications and workloads. Leveraging either Intel Xeon scaler process or AMD processor. The universal GPU system enables customers to stabilize configuration in their clusters for the desired workload on a single platform. This unique versatile system supports various GPUs, including the NVIDIA A100 GPUs, the newly announced AMD MI200CUS, accelerator, many other LPGA products from different companies and other GPs from other companies. I'm glad to announce that we already have many major customers and industry leaders committing to this new platform. And the only major limitation is the supply chain challenge. Partnering closely with the leading technology provider in the emerging Metaverse and Omniverse ecosystem. Supermicro had double our GPU product line to supply this 3D and immersive workload. Our 2U 2.0 GPU system provided an optimal mix of CPU to GPU ratio with resource saving features. Our high-performance and highly configurable Hyper and Hyper-E servers support multiple GPUs in a single system. And our idea for use cases such as distributed AI influencing application, content delivery, Telco, Macro data center, 5G core, and many other mission-critical enterprise workloads. Along with our NVIDIA 800 Delta and Redstone platforms, Supermicro's comprehensive AI system building blocks support everything from inferencing to a high-performance computing data center for the metaverse or omniverse kind of application and everything in between. Last quarter, we had redefined our growth drivers. to speed up our growth strategy, which includes subsystems and components, computer systems, total IT solutions, and 5S. Our billion block and computer system businesses have been steadily growing over the decades with the help of our partners. And this still serves the backbone of our revenue growth. with other large enterprise customers, top technology leading partners, and appliance customers' engagement. I would like to emphasize again that total IT solution business is our new major growth driver now. Going forward, our investment in software products, service, and networking will be the key to improve our margin and profitability in the coming quarters and years. In summary, Supermicro is rapidly growing and transforming into a total IT solution company from a server hardware company. We are accelerating our design wins and market share again at a key large global cosmos, including enterprise, AI, machine learning, 5G telco, Edge, and IoT. And we are improving our portability and duplicating our market share success in the U.S. to APAC and email with the completion of our APAC expansion and rapid production ramp in Taiwan. Our new command center base auto calculator, and B2B automation platform are improving our operation efficiency and customer satisfaction while accelerating our market share again. In closing, our 41% year-over-year revenue growth is a solid proof that Supermicro's business is taking off quickly now. I am confident that our market presence, time, and profitability will continue to increase strongly. And we invest more, as we invest more resources in SolarWare as a total IT solution company. My team and I have been diligently executing our growth strategy and accelerating the timeline to pull in our $10 billion revenue goal. I will now pass the call to David Wagon, our chief financial officer, to provide additional detail on the quarter. Thank you.