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 Supermicrocomputer Inc. fiscal third quarter 2022 results 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 at that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. It's now my pleasure to turn the call over to Nicole Nuzies, Investor Relations. Please go ahead.

Good afternoon, and thank you for attending Steve and Marco's call to discuss financial results for the third quarter, which ended March 31, 2022. With me today are Charles Liang, Founder, Chairman, and Chief Executive Officer, Patrick Wang, President of East Coast and SVP, Strategy and Corporate Development, and Dave Ringland, Chief Financial Officer. By now, you should have received a copy of the news release from the company that was distributed at the close of regular trading and is available on the company's website. As a reminder, during today's call, the company will refer to a presentation that's available to participants on the IRS section of the company's website. your events and presentations tab. We have also published management scripted commentary on our website. Please note that some of the information here during our discussion today will consist of four looking statements, including without limitation those regarding revenue, close margin, operating expenses, other income and expenses, taxes, capital allocation, and future business outlook, including guidance for the fourth quarter, fiscal year 22, and full year 2022. our long-term revenue goals, 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. The most recent 10-K filing is fiscal 2021. The 10-Q filings made thereafter are other SEC filings. All these documents are available on the IRS section of Supermicro's website. We assume no obligation to update any forward-looking statements. Most of today's presentation refer to non-GAAP financial results and business outlook. For an explanation of our non-GAAP financial measures, please refer to the campaign presentation or 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 supplemental information attached today's presentation. At the end of today's prepared remarks, we'll have a Q&A session for cell site analysts to ask questions. I will now turn the call over to Charles. Charles?

Thank you, Nicole, and good afternoon, everyone. Today, I am pleased to announce our quarterly revenue of $1.36 billion for fiscal year Q3 2022, which was 51% year-over-year growth. and 16% quarter-on-quarter growth, sequentially. These results are way above our guidance given three months ago and above our recently updated range given two weeks ago. Continued five quarters of strong earnings indicate our total IT solution growth strategy is working well, and we are only at the very beginning of the breakout. Now let's look at some of the key highlights from that quarter. First, again, our fiscal third quarter net revenue total 1.36 billion. up 51% year-on-year, and up 16% quarter-on-quarter. We are above our guidance range of $1.1 to $1.2 billion. It's Supermicro's fifth consecutive quarter of faster revenue progression, and we continue to execute our strong growth trajectory at three to four times higher than the overall industry's growth rate. Our fiscal third quarter non-GAAP earning per share was more than triple year over year and was $1.55 compared to $0.50 years ago. This 210% growth was way above the higher end of our guidance range of $0.70 to $0.90 demonstrating strong operating leverages, and the customers accepting the value of our total IT solutions. Growth in our major geographies was well balanced, and our recent Taiwan expansion has contributed to our better operation margin and meeting our growth customer demands. Our results in the past five quarters are showing that we are ahead of our $10 billion annual revenue target that was shared last year March. And our profitability has been improving greatly as well since then. Based on our current demand and capacity, we are forecasting at least $1.45 billion revenue for the coming June quarter to end the fiscal 2022 on a strong note at about $5 billion yearly revenue. Looking further ahead, I believe we will continue to have a strong fiscal year 2023 in the range of $6 billion to $7 billion annually and expect to reach our $10 billion yearly revenue at least one year sooner than the original plan we share back in 2021 March. The fuel that accelerate our revenue came from our success with our total IT solution in AI, Enterprise, Cloud, Edge, Telco, and customers from many other verticals. Riding on the strength and the foundation of Superman Co's optimal building block architecture, Our total IT solutions allow customers to quickly deploy without going through the complications of design, validation, sourcing, and integration. This strategy also positions Shibu Micro very profitably, hence the ongoing supply chain challenge compared to our competition. With our building blocks and fast-growing economy of scale, we can create and deliver workload-optimized solution to customer with time-to-market advantage, quality, performance, cost, and TCO advantages. To grow our solutions and customer base faster and more efficiently, we are on track with our command center base auto calculator, and B2B, B2C automation platforms. Many customers have tried and liked this intelligent database and web-based service for many quarters. This represents our next opportunity to scale up and scale out our application optimization solution to many more customers 24-7 with no downtime and no manpower bandwidth limitation. The B2B and B2C automation program will be greatly launched nationwide in this month. Indeed, next week, I believe. It will dramatically improve our engineering, operation, sales, and service effectiveness and customer satisfaction while accelerating our market share gains. to enrich our total IT solution product portfolio. We have doubled our software engineering resource in the past few years to build new features to power our enterprise data center and OEM customers. Our SuperCloud Composer and other software products manage GPU, compute, storage, and networking building blocks at a cloud scale, including rich analytics, so data center operators can make critical data-driven decisions to improve workload efficiently. In the middle and long term, we see our investment in through our data center management software stack will enable future infrastructure as a service and monitor as a service functionality. And that will further enhance our total IT solution capability and value. Our recent Taiwan and U.S. expansion are focusing on delivering ERROR 10, ERROR 11, and ERROR 12 large-scale total IT solutions Emporium, capable of shipping thousands of racks per month directly from Shibamako campuses. Designed with green computing in mind, these energy saving rack scale solutions leverage our latest free air cooling and liquid cooling technologies. More and more of our customers are able to run their data center with PUE close to 1.06 or even better. Customers can expect lower TCO by saving energy cost while increased performance per megawatt in their facility substantially. In some order cases, our customer increase computing capacity up to 50% with the same energy budget. Many Fortune List customers are quite happy to receive higher-quality, plug-and-play-ready products. They are fully optimized, integrated, and validated by Supermicro. Our R&D organizations are happy and hard at work to expand our new technology product lines with the upcoming new Intel Sapphire Rapids and AMD Genoa processors. We, again, are ready to bring time-to-market advantages to our customers. We are pleased to see a strong trend in terms of customer seeding and early deployment requests. We especially partner closely with NVIDIA and other leading technology partners in the emerging Metaverse and Omniverse ecosystems and double our GPU product line. to support these 3D and immersive workloads. With all of the new technologies, including PCIe Gen 5, CXL, DDR5, the new 350-watt CPU and 700-watt GPU, our portfolio of new platforms for large-scale total IT solutions will continue to evolve and become a key growth driver. for our coming quarters and years. In closing, our 51% year-over-year revenue growth and $1.55 quarterly EPS prove that our Total IT Solutions strategy has been gaining customers' preference and trust. In this growing time, we will continue to enhance our Total IT Solutions capability and value while continuing to lower our operation cost by leveraging our Taiwan production capacity. With our strong technical foundation, dedicated employees, several billion-dollar solutions, and application-optimized green computing products, we are quickly and consistently winning new customers and their satisfaction now. We invest in command center-based B2B and B2C platforms will help us to much efficiently increase our customer base and market share. I and my teams will continue to execute our growth strategies and accelerating the timeline to reach $10 billion revenue target in short term and start to plan and execute Our new $20 billion midterm goal as well. I will now pass the call to David Wagan, our CFO, to provide additional detail on the quarter. David?