超微電腦 (SMCI) 2019 Q3 法說會逐字稿

Good day, ladies and gentlemen.

女士們先生們，美好的一天。

Thank you for standing by.

謝謝你的支持。

Welcome to the Super Micro Computer Inc.

歡迎來到 Super Micro Computer Inc.

Third Quarter Fiscal 2019 Business Update Conference Call.

2019 財年第三季度業務更新電話會議。

The company's news releases issued earlier today are available from its website at www.supermicro.com.

該公司今天早些時候發布的新聞稿可從其網站 www.supermicro.com 獲取。

(Operator Instructions) Afterwards, securities analysts will be invited to participate in a question-and-answer session, but the entire call is open to all participants on a listen-only basis.

（接線員說明）之後，將邀請證券分析師參加問答環節，但整個電話會議以只聽的方式向所有參與者開放。

As a reminder, this call is being recorded, Friday, May 17, 2019.

提醒一下，這個電話正在錄音，2019 年 5 月 17 日，星期五。

A replay of the call will be accessible until midnight, Friday May 31, 2019, by dialing 1 (844) 512-2921 and entering replay pin 3378860.

通過撥打 1 (844) 512-2921 並輸入重播密碼 3378860，可以在 2019 年 5 月 31 日星期五午夜之前重播通話。

International caller should dial 1 (412) 317-6671.

國際來電者應撥打 1 (412) 317-6671。

With us today are Charles Liang, Chairman and Chief Executive Officer; Kevin Bauer, Senior Vice President and Chief Financial Officer; and Perry Hayes, Senior Vice President, Investor Relations.

今天與我們同在的是董事長兼首席執行官 Charles Liang； Kevin Bauer，高級副總裁兼首席財務官；和投資者關係高級副總裁 Perry Hayes。

And now we would like to turn the conference over to Mr. Hayes.

現在我們想把會議交給海耶斯先生。

Mr. Hayes, please go ahead, sir.

海耶斯先生，請繼續，先生。

Good morning, and thank you for attending Super Micro's business update conference call for the third fiscal quarter 2019, which ended March 31, 2019.

早上好，感謝您參加 Super Micro 於 2019 年 3 月 31 日結束的 2019 年第三財季業務更新電話會議。

During today's conference call, Super Micro will address the company's filings of the Form 10-Q/A and Form 10-K for 2017 and efforts to become current with its remaining SEC filings and the company's preliminary financial results for the third quarter of fiscal 2019.

在今天的電話會議上，Super Micro 將討論公司 2017 年 10-Q/A 表格和 10-K 表格的備案，並努力使其與剩餘的 SEC 備案和公司 2019 財年第三季度的初步財務業績保持同步.

References to any financial results are preliminary and subject to change based on finalized results contained in future filings with the SEC.

對任何財務結果的引用都是初步的，可能會根據未來向美國證券交易委員會提交的文件中包含的最終結果進行更改。

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.

到目前為止，您應該已經收到公司在常規交易結束時分發的新聞稿副本，可在公司網站上查閱。

Before we start, I'll remind you that our remarks include forward-looking statements.

在我們開始之前，我會提醒您，我們的言論包含前瞻性陳述。

There are a number of risk factors that could cause Super Micro's future results to differ materially from our expectations.

有許多風險因素可能導致 Super Micro 的未來業績與我們的預期存在重大差異。

You can learn more about these risks in the press release we issued earlier this afternoon, our most recent Form 10-K filing for 2017 and our other SEC filings.

您可以在我們今天下午早些時候發布的新聞稿、我們最近提交的 2017 年 10-K 表格以及我們向美國證券交易委員會提交的其他文件中了解更多關於這些風險的信息。

All of those documents are available from the Investor Relations page of Super Micro's website.

所有這些文件都可以從 Super Micro 網站的投資者關係頁面獲得。

We assume no obligation to update any forward-looking statements.

我們不承擔更新任何前瞻性陳述的義務。

Most of today's presentation will refer to non-GAAP financial results and outlook.

今天的大部分演講將提及非 GAAP 財務結果和展望。

At the end of today's prepared remarks, we will have a Q&A session for sell-side analysts to ask questions.

在今天準備好的評論結束時，我們將有一個問答環節，供賣方分析師提問。

I'll now turn the call over to Charles Liang, Chairman and Chief Executive Officer.

我現在將電話轉交給董事長兼首席執行官查爾斯梁。

Thank you, Perry, and good afternoon, everyone.

謝謝佩里，大家下午好。

Let me first comment on our 10-K filing.

讓我首先評論一下我們的 10-K 申請。

We are pleased to have filed our fiscal 2017 10-K.

我們很高興提交了我們的 2017 財年 10-K。

Not able to ensure the accuracy of our financial reporting has taken more than 18 months of focus and collaborative work between Super Micro's team and our outside adviser teams.

由於無法確保我們財務報告的準確性，Super Micro 團隊和我們的外部顧問團隊花費了超過 18 個月的精力和協作。

It became clear through this effort that some of our process and procedures had not kept up with our faster growth, the size of our company and the pace of our business.

通過這項努力，我們清楚地看到，我們的一些流程和程序跟不上我們更快的增長、我們公司的規模和我們業務的步伐。

The team acknowledged that necessary internal control need to be strengthened for precise revenue recognition quarter-by-quarter.

該團隊承認，需要加強必要的內部控制，以便按季度準確確認收入。

Despite all of our business, transaction result in eventual revenue.

儘管我們有所有業務，但交易會帶來最終收入。

Most importantly, I would like to thank all of our Super Micro employees, partners, customers and investors for their dedication and support during this period.

最重要的是，我要感謝我們所有的超微員工、合作夥伴、客戶和投資者在此期間的奉獻和支持。

Although our sales effort had been certainly impacted by our 10-K filing delay and fourth negative place (inaudible) last year.

儘管我們的銷售工作肯定受到去年 10-K 申請延遲和第四名（聽不清）的影響。

This did not affect our growth plan, and our foundation had been the strongest in our 25 years history.

這並沒有影響我們的增長計劃，我們的基礎是我們 25 年曆史上最強大的。

Now let me comment on the March quarter.

現在讓我對三月季度發表評論。

Our third quarter revenue will be in the range of $742 million to $752 million, which is below our quarterly guidance and represents approximately 5% year-over-year deduction.

我們第三季度的收入將在 7.42 億美元至 7.52 億美元之間，低於我們的季度指引，同比減少約 5%。

The main reasons had been the key components price drop and volatile microeconomic condition.

主要原因是關鍵部件價格下跌和微觀經濟狀況波動。

Earnings per share will be in the range of $0.48 to $0.52 compared to the range of $0.48 to $0.52 last year and the range of $0.57 to $0.61 last quarter.

每股收益將在 0.48 美元至 0.52 美元之間，而去年為 0.48 美元至 0.52 美元，上季度為 0.57 美元至 0.61 美元。

System revenue was approximately 81% of total revenue for at least last year.

至少在去年，系統收入約佔總收入的 81%。

Both system and node ASP were higher year-over-year due to mutual mix of computer system.

由於計算機系統的相互混合，系統和節點 ASP 均同比上升。

Revenue from Global 2000 accounts and accelerated computing were higher year-over-year, offsetting lower storage and IoT revenues.

來自全球 2000 強賬戶和加速計算的收入同比增長，抵消了較低的存儲和物聯網收入。

We are increasing our capacity for future growth.

我們正在增強未來增長的能力。

As our business continue to rapidly scale with over 1.2 million servers and storage systems shipped globally last year, increasing our production and service capacity and capability is vital.

隨著我們的業務繼續快速擴展，去年全球出貨超過 120 萬台服務器和存儲系統，提高我們的生產和服務能力至關重要。

We recently held groundbreaking ceremony for our Asia's Science & Technology Park expansion.

我們最近舉行了亞洲科技園擴建工程的奠基儀式。

It was attended by over 200 business and government officials.

200 多名商界和政府官員出席了會議。

The new 800,000 square feet building will expand our production capacity, hardware and software R&D and our RSD2 methodology based on our resource saving design and rack scale design technologies.

這座佔地 800,000 平方英尺的新大樓將擴大我們的生產能力、硬件和軟件研發以及基於我們的資源節約設計和機架規模設計技術的 RSD2 方法。

RSD2 will enable us to provide a more power efficient, cost effective and flexible data center Building Block Solutions to the market, including application optimized solutions for medium and small-sized customers in data centers.

RSD2 將使我們能夠向市場提供更節能、更具成本效益和更靈活的數據中心構建塊解決方案，包括針對數據中心中小型客戶的應用程序優化解決方案。

We are also expanding our Silicon Valley stakeholders.

我們也在擴大我們的矽谷利益相關者。

Building 23 is the third of 5 new facilities in our San Jose Green Computing Park as the only global Tier 1 server and storage provider to manufacturing Silicon Valley.

23 號樓是我們聖何塞綠色計算園 5 座新設施中的第三座，它是矽谷製造業唯一的全球一級服務器和存儲供應商。

We are aware of producing to provide the best possible solutions to the most innovative enterprise, data centers, channel and cloud customers.

我們知道生產是為了向最具創新性的企業、數據中心、渠道和雲客戶提供最佳解決方案。

Super Micro leads the industry with the second-generation Intel Xeon Scalable processor efforts.

Super Micro 憑藉第二代 Intel Xeon 可擴展處理器的努力引領行業。

The recently launched Xeon processor known as Cascade Lake is a refresh of Skylake launch last year.

最近推出的名為 Cascade Lake 的 Xeon 處理器是對去年推出的 Skylake 的更新。

The frequency of CPU and memory module refresh highlights the importance of our resource saving design to the industry and to the environment.

CPU 和內存模塊的刷新頻率凸顯了我們的資源節約設計對行業和環境的重要性。

Supporting new CPU with new technology, including Intel Optane DC persistent memory NVMe, NF1, and EDSFF.

支持採用新技術的新 CPU，包括 Intel Optane DC 持久內存 NVMe、NF1 和 EDSFF。

The new Super Micro X11 generation (inaudible) put online again is offering leading performance in the base of TCO and TCE, total cost to environment, for all of our data centers around the world empowered by highly efficient, longevity subsystem that lasts over 12 years, the recent service system especially optimum for feed deployment on edge (inaudible) and remote micro data centers.

再次上線的新一代 Super Micro X11（聽不清）在 TCO 和 TCE（環境總成本）的基礎上為我們在世界各地的所有數據中心提供領先的性能，這些數據中心由持續超過 12 年的高效長壽子系統提供支持，最近的服務系統特別適合邊緣（聽不清）和遠程微型數據中心的饋送部署。

Our high-density systems such as BigTwin when you cannot scale NVMe storage, resource saving SuperBlade and MicroBlade have been the preferred choice for many public and private cloud customers.

我們的高密度系統，例如當您無法擴展 NVMe 存儲時的 BigTwin、節省資源的 SuperBlade 和 MicroBlade 已成為許多公共和私有云客戶的首選。

This low-latency, high-frequency, high-density, high-capacity system are exactly the basis of solutions for supporting the strong wave of 5G, deep learning, AI and cloud age applications.

這種低時延、高頻、高密度、大容量的系統正是支撐5G、深度學習、AI和雲時代應用的強勁浪潮的解決方案基礎。

With that, I expect that this optimal server solutions will show strong growth momentum in a way our market growth time faster than the IT hardware industry average.

因此，我預計這種最佳服務器解決方案將以我們的市場增長速度快於 IT 硬件行業平均水平的方式顯示出強勁的增長勢頭。

In summary, we are pleased to have filed the 2017 10-K and began the process of improving our internal controls.

總而言之，我們很高興提交了 2017 年 10-K 並開始了改進我們內部控制的過程。

Now we are able to focus more on the bright future and tremendous opportunities ahead of Super Micro.

現在，我們能夠更加專注於超微的光明未來和巨大機遇。

We are moving towards the meeting with our increased global manufacturing capacity and innovation such as the resource saving design.

我們正在通過提高全球製造能力和資源節約設計等創新來迎接會議。

I'm fully confident that we will continue to rule the market and to provide the best server installing solutions for today and tomorrow's demanding workload.

我完全有信心，我們將繼續統治市場，並為今天和明天要求嚴苛的工作負載提供最好的服務器安裝解決方案。

With 25 years of strong foundation paved by the best engineering minds, enhanced operations and focused sales force, Super Micro is on the rise again.

憑藉 25 年由最優秀的工程人才、增強的運營和專注的銷售團隊奠定的堅實基礎，Super Micro 再次崛起。

For the fourth fiscal quarter ending June 30, 2019, we are guiding net sales in the range of $770 million to $830 million with great position to start our faster growth trend again.

對於截至 2019 年 6 月 30 日的第四財季，我們指導淨銷售額在 7.7 億美元至 8.3 億美元之間，處於有利地位，可以再次開啟我們更快的增長趨勢。

And now, I will hand the section over to Kevin.

現在，我將把這個部分交給凱文。

Thank you, Charles.

謝謝你，查爾斯。

First, I will address the current outlook of the business by providing an overview of our financial performance for the third quarter of 2019.

首先，我將通過概述我們 2019 年第三季度的財務業績來闡述當前的業務前景。

I will then make a few comments about our progress on our SEC filings.

然後，我將就我們在 SEC 備案方面的進展發表一些評論。

As Charles mentioned earlier, we estimate our fiscal third quarter revenue was within the range of $742 million to $752 million.

正如查爾斯之前提到的，我們估計我們第三財季的收入在 7.42 億美元至 7.52 億美元之間。

On a year-over-year basis, EMEA was the weakest geography with a decline of approximately 21% followed by a 10% decline in Asia, offset by a 7% increase in the U.S.

與去年同期相比，EMEA 是最弱的地區，下降了約 21%，其次是亞洲下降 10%，被美國 7% 的增長所抵消。

Our estimated range of gross margin on both the GAAP and non-GAAP basis was from 15.5% to 15.7%.

我們在 GAAP 和非 GAAP 基礎上的毛利率估計範圍為 15.5% 至 15.7%。

Our margin benefited from improved customer and product mix, partially due to lower sales to Asia, lower storage revenue and better component pricing.

我們的利潤率得益於客戶和產品組合的改善，部分原因是對亞洲的銷售額下降、存儲收入下降以及組件定價更好。

Operating expenses were lower this quarter due to lower employee bonuses, offset by an increased reserves for bad debt.

由於員工獎金減少，本季度運營費用較低，但被壞賬準備金增加所抵消。

In this quarter, we released $3.2 million tax reserve related to a lapse in the statutes of limitation in the tax jurisdiction.

本季度，我們釋放了 320 萬美元的稅收儲備金，這些儲備金與稅收管轄區的訴訟時效失效有關。

We estimate non-GAAP diluted EPS this quarter was within the range of $0.48 to $0.52.

我們估計本季度非 GAAP 稀釋每股收益在 0.48 美元至 0.52 美元之間。

We continued to generate cash and estimate cash generated from operations was approximately $112 million.

我們繼續產生現金，估計運營產生的現金約為 1.12 億美元。

After deducting CapEx of $7 million, we estimate free cash flow of approximately $105 million for the quarter.

扣除 700 萬美元的資本支出後，我們估計本季度的自由現金流約為 1.05 億美元。

On a cumulative basis over the last 3 quarters, we estimate free cash flow of approximately $189 million that has allowed us to pay down our loans and reach a positive cash position.

在過去 3 個季度的累計基礎上，我們估計自由現金流約為 1.89 億美元，這使我們能夠償還貸款並達到正現金狀況。

This quarter, our cash conversion cycle increased to 106 days.

本季度，我們的現金周轉週期增加到 106 天。

The increase is primarily due to an increase in inventory days.

增加的主要原因是庫存天數增加。

Based on the methodology of averaging with the previous strong quarter, actual inventory declined sequentially.

根據與上一季度平均的方法，實際庫存環比下降。

Our cash conversion cycle target remains 85 to 90 days.

我們的現金轉換週期目標仍為 85 至 90 天。

Now let me comment on the filing of our fiscal 2017 10-K.

現在讓我評論一下我們 2017 財年 10-K 的備案。

We are very pleased to have filed our Form 10-K of -- for 2017 that included the restatement of our financial statements for fiscal 2015 and 2016.

我們很高興提交了 2017 年的 10-K 表格，其中包括我們 2015 和 2016 財年財務報表的重述。

This was a comprehensive undertaking that involved a detailed and thorough examination of our historical financial statements as well as our accounting policies and procedures and our internal controls.

這是一項全面的承諾，涉及對我們的歷史財務報表以及我們的會計政策和程序以及我們的內部控制進行詳細和徹底的檢查。

The primary cause of restatements and adjustments was the timing of revenue recognition and certain changes to accounting for inventory and other adjustments.

重述和調整的主要原因是收入確認的時間以及庫存會計和其他調整的某些變化。

All the sales that we examined will be ultimately recognized as revenue.

我們檢查的所有銷售額最終都將確認為收入。

As Charles said earlier, in our 2017 Form 10-K, we acknowledge weaknesses in our internal controls that existed as of June 2017.

正如查爾斯早些時候所說，在我們的 2017 年 10-K 表格中，我們承認截至 2017 年 6 月我們的內部控制存在弱點。

I encourage everyone to fully read our report on internal controls over financial reporting where we articulate our remediation plan and progress to date.

我鼓勵大家完整閱讀我們關於財務報告內部控制的報告，我們在報告中闡述了我們的補救計劃和迄今為止的進展。

We're a different company today and are better able to address our remaining challenges.

我們今天是一家不同的公司，能夠更好地應對我們剩餘的挑戰。

So to close, I would like to thank the extended team of devoted employees who put in countless hours to achieve this goal.

最後，我要感謝為實現這一目標付出了無數時間的敬業員工擴展團隊。

We are turning our attention to finishing fiscal 2018 for audit and are remain focused on becoming fully current on our SEC filings.

我們正在將注意力轉向完成 2018 財年的審計工作，並繼續專注於全面了解我們向美國證券交易委員會提交的文件。

And to our shareholders, we appreciate your support through this long process and look forward to updating you again next quarter.

對於我們的股東，我們感謝您在這個漫長的過程中給予的支持，並期待在下個季度再次更新您的信息。

As indicated previously, we will have a Q&A session next where sell-side analysts will be permitted to ask questions.

如前所述，我們接下來將舉行問答環節，允許賣方分析師提問。

Operator, at this time, we are ready for questions.

接線員，這個時候，我們準備好提問了。

(Operator Instructions) And we'll first go to Mehdi Hosseini with Susquehanna Financial Group.

（操作員說明）我們將首先與 Susquehanna Financial Group 一起去 Mehdi Hosseini。

This is David Ryzhik for Mehdi Hosseini.

我是邁赫迪·侯賽尼 (Mehdi Hosseini) 的 David Ryzhik。

First off, congrats on the 10-K filing for fiscal '17.

首先，祝賀 17 財年的 10-K 申請。

So I just wanted to understand March quarter.

所以我只想了解三月季度。

In mid-February, you offered the target of $800 million to $860 million and it came out materially lower.

2 月中旬，你提出了 8 億至 8.6 億美元的目標，但結果卻低得多。

What happened between mid-February and end of March?

二月中旬到三月底之間發生了什麼？

Was it just customers pulling orders?

只是客戶拉訂單嗎？

Or just wanted to learn more about what happened there?

或者只是想了解更多關於那裡發生的事情？

And I have a follow up.

我有跟進。

Kevin, you want to take that one?

凱文，你想拿那個嗎？

Yes, sure.

是的，當然。

So certainly, as we went through the quarter, we saw the same softening that the rest of the industry saw.

因此，可以肯定的是，在我們度過這個季度的過程中，我們看到了與其他行業一樣的軟化。

We did observe customers' behavior towards the end of the quarter.

我們確實觀察了客戶在本季度末的行為。

We've gotten some feedback that they were digesting purchases as regard towards the end of the quarter.

我們收到了一些反饋，他們正在消化本季度末的採購。

And so that was news that we found in that second part of the quarter.

所以這是我們在本季度第二部分發現的消息。

And as Charles articulated earlier, we're giving similar guidance a little bit lower as we go into the next quarter.

正如查爾斯早些時候闡明的那樣，我們將在進入下一季度時給出類似的指導。

So we think that the first half, we will have to go through a period of digestion in the industry that maybe we didn't fully comprehend 90 days ago.

所以我們認為，上半年，我們將不得不經歷一段行業的消化期，這可能是 90 天前我們還沒有完全理解的。

And certainly, we look forward to the second half of '19 depending upon how the macro situation clears up over time.

當然，我們期待 19 年下半年的到來，這取決於宏觀形勢隨著時間的推移如何好轉。

Okay.

好的。

And in storage, Charles, you touched on storage maybe a little softer.

在存儲方面，查爾斯，你談到存儲可能有點軟。

Can you elaborate on the trends there?

你能詳細說明那裡的趨勢嗎？

Was it end demand driven macro or market share driven?

是最終需求驅動宏觀還是市場份額驅動？

Just would love any more info on the storage business?

只是想了解有關存儲業務的更多信息嗎？

I guess, the macroeconomic in the lower key components price as well as the tariff that will have some impact.

我猜想，宏觀經濟在降低關鍵零部件價格以及關稅方面會產生一些影響。

At the same time, we are aggressively moving to a new NVMe storage solution, and we see some signal to recover gradually.

與此同時，我們正在積極轉向新的 NVMe 存儲解決方案，我們看到了一些逐漸恢復的信號。

Got it.

知道了。

And then on gross margins, it looks like a pretty sizable uptick.

然後就毛利率而言，這看起來是一個相當可觀的增長。

Perhaps, maybe you can rank the drivers, mix, components or geographic mix, would love a little more detail there?

或許，也許您可以對驅動因素、組合、組件或地理組合進行排名，是否會喜歡那裡的更多細節？

Kevin, you want to take that one?

凱文，你想拿那個嗎？

Yes.

是的。

In rank order and don't know about the relative materiality of these in the way that they are ranked, but I think really the product mix in terms of storage was probably the most large impact than probably the customer mix and then lastly, the component pricing changes over time.

按排名順序排列，不知道它們的相對重要性，但我認為實際上存儲方面的產品組合可能比客戶組合影響最大，最後是組件定價隨時間變化。

And is it safe to say that we can anticipate this type of level for the June quarter and the balance of the year?

可以肯定地說，我們可以預測 6 月季度和今年餘下時間的這種水平嗎？

Yes.

是的。

I wouldn't necessarily say that.

我不一定會這麼說。

I think we have a very good alignment of vectors in this particular quarter to the extent that we have continued decline in component costs in terms of memory and NVMe.

我認為我們在這個特定季度的矢量對齊非常好，以至於我們在內存和 NVMe 方面的組件成本持續下降。

We will have some continued improvement over the quarter that we have before, which was roughly about 14% or so.

與之前的季度相比，我們將有一些持續改進，大約是 14% 左右。

But certainly, I don't expect that it'll be up to this level.

但當然，我不希望它會達到這個水平。

I think we had a great confluence of events this quarter that put us 1 quarter ahead of what we expect to do in terms of some sustainable, modest improvement in our gross margin profile that -- from our historical patterns over the course of time.

我認為本季度我們發生了很多事件，使我們在毛利率狀況的一些可持續的、適度的改善方面比我們預期的提前了一個季度——從我們的歷史模式來看。

And we'll take our next question from Nehal Chokshi from Maxim Group.

我們將從 Maxim Group 的 Nehal Chokshi 那裡回答下一個問題。

Based on the gross margin approximation and the EPS, it sounds like OpEx was down significantly Q-over-Q, is that correct?

根據毛利率近似值和每股收益，聽起來 OpEx 明顯下降 Q-over-Q，對嗎？

It was modestly down.

它適度下降。

So as we said, the key things were that since we had smaller revenues, we made a lower purchasing for employee bonuses, suffered a little bit in terms of some bad debt, but not significantly on a non-GAAP basis.

正如我們所說，關鍵是由於我們的收入減少，我們減少了員工獎金的採購，在一些壞賬方面遭受了一些損失，但在非 GAAP 基礎上並不顯著。

There are a little bit more spread on GAAP basis and that we had some costs associated with the restatement as well as last quarter's activity related to responding to the article that were less in this quarter.

在 GAAP 基礎上有更多的差異，我們有一些與重述相關的成本以及上一季度與本季度較少的文章回應相關的活動。

Right.

正確的。

So on a non-GAAP basis, R&D would have been about flattish Q-over-Q?

因此，在非 GAAP 基礎上，R&D 的 Q-over-Q 會持平嗎？

And therefore, that's one of the reason why you remain confident in the long-term outlook?

因此，這就是您對長期前景保持信心的原因之一？

If I recall correctly, R&D grew a little bit, but it wasn't tremendous.

如果我沒記錯的話，R&D 有一點增長，但不是很大。

Okay.

好的。

And then there've been some reports, I think, from Bloomberg that Super Micro has asset suppliers to move their supply chain out of China, is that true?

然後有一些報導，我認為，來自彭博社，超微有資產供應商將他們的供應鏈移出中國，這是真的嗎？

And is that -- first address that maybe.

那是-- 可能是第一個地址。

Yes.

是的。

Basically to fulfill our increasing the business, we believe that demand from the market will continue to be strong.

基本上為了滿足我們增加的業務，我們相信市場需求將繼續強勁。

So we are indeed growing our capacity goal in Silicon Valley, in Taiwan and in Netherlands.

因此，我們確實在矽谷、台灣和荷蘭提高了我們的產能目標。

So it's part of our long-term growth plan.

所以這是我們長期增長計劃的一部分。

Nehal, I think that those articles that you've referenced were not accurate in reporting.

Nehal，我認為你引用的那些文章的報導不准確。

We are increasing our capacity, as we mentioned, in our Taiwan facility, primarily for growth as well as for the Building 23 that we're building here in San Jose, again primarily growth, for future expectation on our growth.

正如我們提到的，我們正在增加台灣工廠的產能，主要是為了增長以及我們在聖何塞建造的 23 號大樓，同樣主要是為了增長，以期實現對我們未來增長的預期。

Okay.

好的。

To be clear, I think that the article was saying that Super Micro was asking its motherboard suppliers to move manufacturing out of China, not so much Super Micro's assembly and internal manufacturing capacity.

需要明確的是，我認為這篇文章是在說超微要求其主板供應商將製造業務遷出中國，而不是超微的組裝和內部製造能力。

So...

所以...

Yes.

是的。

We are not going to comment on the stories.

我們不會對這些故事發表評論。

Can you have another question?

你能再問一個問題嗎？

Sure.

當然。

You have thoughts on how HP Enterprise buying Cray may change the competitive dynamics for the high-performance computing portion of Super Micro's business?

您是否想過 HP Enterprise 收購 Cray 可能會如何改變 Super Micro 業務的高性能計算部分的競爭動態？

Indeed, our overall business still are growing well.

事實上，我們的整體業務仍在良好增長。

And we believe with the new Cascade Lake solution, NVMe, as you may know, we are truly build for new generation memory, NVMe, NF1, EDSFF.

我們相信新的 Cascade Lake 解決方案 NVMe，如您所知，我們真正為新一代內存、NVMe、NF1、EDSFF 打造。

So we do believe our growth will be strong in the coming future.

因此，我們確實相信我們的增長在未來會很強勁。

Okay.

好的。

And can you give approximate performance by verticals, those being storage, data center, IoT, high-performance computing, enterprise and channel?

您能否按垂直領域（存儲、數據中心、物聯網、高性能計算、企業和渠道）給出大致的性能？

Nehal, we are not going to break that out at this time.

Nehal，我們現在不打算打破它。

Okay.

好的。

All right.

好的。

And can you provide some guidance as far as what was actually the fully diluted shares outstanding for the March quarter?

您能否就 3 月季度實際已完全稀釋的已發行股票提供一些指導？

I will provide that to you after the call.

我會在通話後提供給您。

Okay.

好的。

Yes, it's still roughly about $50 million or so.

是的，它仍然大約在 5000 萬美元左右。

And we will take our next question from Michael Staiger with Odeon Capital.

我們將接受來自 Odeon Capital 的 Michael Staiger 的下一個問題。

On the gross -- just kind of a clarification on gross margins.

關於毛利率——只是對毛利率的一種澄清。

Are we -- should we expect a similar level?

我們是否應該期待類似的水平？

Or is there a range that you think you can provide movement into the next few quarters?

或者你認為你可以在接下來的幾個季度中提供運動的範圍嗎？

And on top of that if you are expanding capacity, are you expecting, let me just say, radical shift in demand?

最重要的是，如果你正在擴大產能，你是否期望，我只想說，需求發生根本性轉變？

What was the demand pressure look like into the next few quarters?

未來幾個季度的需求壓力如何？

Yes.

是的。

So as I said earlier, we certainly had a great confluence of events this quarter that led us achieve the gross margin results for the quarter.

因此，正如我之前所說，本季度我們確實遇到了很多事件，導致我們實現了本季度的毛利率結果。

We had been, not too many quarters ago, in the mid-13s and last quarter, I think, we hit 14.1%.

就在幾個季度前，在 13 年代中期和上個季度，我們達到了 14.1%。

This quarter we had that sizable jump because of all of those events.

由於所有這些事件，本季度我們實現了大幅增長。

We do have the ability to get cheaper cost for a moment in time before they are passed on to customers and the ramp and severity of those price changes could occur into the future, but maybe not to the extent.

在將成本轉嫁給客戶之前，我們確實有能力在一段時間內獲得更便宜的成本，這些價格變化的幅度和嚴重程度可能會在未來發生，但可能不會達到這種程度。

So to kind of give you some kind of a feeling for that, I think grounding ourselves in that low 14% gross margin and then modest improvement over that is really good trend that we had articulated last quarter.

因此，為了讓您對此有某種感覺，我認為將自己置於 14% 的低毛利率，然後適度改善這一點是我們上個季度闡明的非常好的趨勢。

And I think that, that's still the case today.

我認為，今天仍然如此。

And just as a quick follow-up.

就像快速跟進一樣。

Can we expect the cash flow performance to be in a similar range going forward?

我們能否預期未來的現金流量表現會在類似的範圍內？

Our cash flow is very much tied to our working capital means.

我們的現金流量與我們的營運資金手段密切相關。

So the cash flow probably will consistently work along those lines that we have today until we start to show significant growth.

因此，現金流可能會一直沿著我們今天的路線運作，直到我們開始顯示出顯著的增長。

And when we have significant growth, we will have to reinvest in working capital in order to achieve that.

當我們實現顯著增長時，我們將不得不對營運資金進行再投資以實現這一目標。

And we'll take our next question from John Lopez with Vertical Group.

我們將從 John Lopez 和 Vertical Group 提出下一個問題。

My first question, I think, the first half weakness is certainly understandable given the confluence of things happening around you.

我認為，我的第一個問題是，考慮到您周圍發生的事情的匯合，上半年的疲軟當然是可以理解的。

As far as my question for you here is, as you think about the second half of the calendar year and particularly about the Cascade Lake pipeline, can you just categorize how things are shaping up?

至於我在這裡要問你的問題是，當你想到日曆年的下半年，特別是關於 Cascade Lake 管道時，你能否對事情的進展情況進行分類？

I mean one way to look at this is Intel's implied guidance suggests a very strong second half of the calendar year.

我的意思是看待這個問題的一種方式是英特爾的隱含指導表明日曆年下半年非常強勁。

I'm wondering if that's consistent with how you guys think about the second half of the year or is there something either customer related, mix related, geographically related that may make you marginally different from that implied outlook?

我想知道這是否與你們對下半年的看法一致，或者是否有與客戶相關、混合相關、地理相關的因素可能使你們與隱含的前景略有不同？

Yes.

是的。

We believe second half will be stronger this year for a couple of reasons, one is Cascade Lake system (inaudible) already qualify and it's much better performance (inaudible), which will move that aggressively.

我們相信今年下半年會更強勁，原因有幾個，一個是 Cascade Lake 系統（聽不清）已經符合條件，而且性能要好得多（聽不清），這將積極推進。

And second is the second-generation storage, NVMe including EDSFF and NF1.

其次是第二代存儲，NVMe包括EDSFF和NF1。

We see customer start to ready to move (inaudible) and together with our 10-K delayed program had been almost fit.

我們看到客戶開始準備搬家（聽不清），加上我們的 10-K 延遲計劃幾乎適合。

So that will be a positive trend for us.

所以這對我們來說將是一個積極的趨勢。

Excellent.

出色的。

My second question is, again, I'm obviously not looking for guidance here, but just conceptually, you guys are pretty comfortably outpaced the server market in aggregate for the last multiple quarters.

我的第二個問題是，我顯然不是在這裡尋求指導，而只是從概念上講，你們在過去多個季度的總體上已經輕鬆地超過了服務器市場。

I'm wondering as you think about, say this calendar year, would you expect to continue to be able to do that.

我想知道，在你考慮的時候，比如說這個日曆年，你會期望繼續能夠做到這一點嗎？

Or again sort of same question there may be some geographical product exposure things that may make that different or more difficult in this calendar year versus the prior 2?

或者同樣的問題，可能有一些地理產品曝光的事情可能會使這個日曆年與前 2 年不同或更困難？

Yes, we are prepared for the tariff, the trailer program and continue to make our capacity, our capability and product line ready.

是的，我們為關稅、拖車計劃做好了準備，並繼續使我們的能力、我們的能力和產品線準備就緒。

So we believe the near future and (inaudible) and yet to come future will be great thing for us, especially our internal control system have been tremendously improved and new SAP implement has been much stable now.

因此，我們相信不久的將來和（聽不清）未來對我們來說將是一件好事，尤其是我們的內部控制系統得到了極大的改進，新的 SAP 實施現在已經非常穩定。

So our business is getting ready for another trend of faster growth, I believe.

因此，我相信我們的業務正在為另一種更快增長的趨勢做好準備。

Okay.

好的。

Helpful.

有幫助。

A quick question, I haven't gotten through the refiled document entirely, but my recollection was counter Q3 or so of 2017, China was about 10% of your total revenues.

一個快速的問題，我還沒有完全讀完重新歸檔的文件，但我的記憶是在 2017 年第三季度左右，中國大約佔你們總收入的 10%。

I'm wondering: a, can you just update us at least directionally on what your China exposure is right now?

我想知道：a，你能否至少向我們介紹一下你目前在中國的風險敞口？

And b, well, I guess, b and c; b, any thoughts, I know you just referenced tariffs, but any thoughts in terms of local consumption, what if anything recent developments mean?

還有 b，嗯，我想，b 和 c； b，任何想法，我知道你只是提到了關稅，但是關於本地消費的任何想法，如果最近的事態發展意味著什麼？

And I guess, c, Huawei is, obviously, I believe, the fourth-largest server rendered by units as in the last quarter, not a lot in the U.S., but certainly a lot of European exposure for them.

而且我想，c，很明顯，我相信華為是上個季度按單位提供的第四大服務器，在美國不是很多，但對他們來說肯定有很多歐洲曝光。

I am wondering, just conceptually, what do you think the current developments may mean for perhaps share potential for you in geographies where you overlap?

我想知道，僅從概念上講，您認為當前的發展可能對您在重疊的地區分享潛力意味著什麼？

Basically, we continue to grow globally.

基本上，我們繼續在全球範圍內發展。

I mean U.S.A.

我是說美國

and Russia are our main market, but Europe, Asia, including the Japan, China, we continue our plan to global -- to grow globally.

和俄羅斯是我們的主要市場，但歐洲、亞洲，包括日本、中國，我們繼續我們的全球計劃——在全球範圍內發展。

And we are much (inaudible) forever to grow globally.

我們永遠（聽不清）在全球範圍內發展。

That's helpful.

這很有幫助。

Would you mind just updating on that China exposure specifically though?

不過，您介意專門更新一下在中國的曝光嗎？

China market, indeed, we feel nothing really has changed.

中國市場，確實，我們覺得沒有任何改變。

So we just continue to rollout stable plan and our partnership there also is stable growing.

所以我們只是繼續推出穩定的計劃，我們在那裡的合作夥伴關係也在穩定增長。

John, our China exposure can be in any quarter somewhere between 10% to 15% of the overall revenue.

約翰，我們在中國的風險敞口在任何一個季度都可能佔總收入的 10% 到 15% 之間。

As you know, the March quarter, there is a lot of seasonality with the China's lunar New Year, et cetera, that impacts our revenue for China.

如您所知，在三月季度，中國農曆新年等因素影響了我們在中國的收入。

Sure.

當然。

That's helpful.

這很有幫助。

So my very last question, I understand that -- I don't understand entirely, but it sounds like there's clearly been some working capital held on the cash balance, and I think you guys started to get a bit more proactive on some of those metrics.

所以我的最後一個問題，我明白 - 我不完全明白，但聽起來現金餘額中顯然有一些營運資金，我認為你們開始對其中一些更加積極主動指標。

At the moment you've got over $160 million of cash on the balance sheet and I realized, what you are, I think, effectively telling us is that, that's going to reflect around a little bit as working capital trends up, but I'm wondering just in light of events over the last 2 years or so, any higher appetite for things like share repurchase or some amount of capital return or is that tables until we get some level of visibility into what maybe more sustainable free cash generation looks like?

目前你的資產負債表上有超過 1.6 億美元的現金，我意識到，我認為你有效地告訴我們的是，隨著營運資本趨勢上升，這將反映出一點點，但我'我想知道過去 2 年左右發生的事件，是否對股票回購或一定數量的資本回報等事情有更高的胃口，或者在我們對可能更可持續的自由現金產生有一定程度的了解之前，是否有更高的胃口？

Yes, I think we had a good run over the course of the last 4 or 5 quarters.

是的，我認為我們在過去的 4 或 5 個季度中表現不錯。

And as you said, we've paid more attention to it.

正如你所說，我們已經更加關注它。

We have been able to drive cash flow.

我們已經能夠推動現金流。

I think we need more time to make sure that we go to a few cycles to get a real confident and grow our cash flow and then I think it would be only some later date that we would look to think about those things as being potentials on the table.

我認為我們需要更多時間來確保我們進入幾個週期以獲得真正的信心並增加我們的現金流，然後我認為只有在以後的某個日期我們才會考慮將這些事情視為潛在的桌子。

But at the moment, we don't foresee any repurchase plans that we would take to the Board or suggest to them.

但目前，我們沒有預見到我們會向董事會提出或向他們建議的任何回購計劃。

And it appears at this time, we have no further questions.

而現在看來，我們沒有進一步的問題了。

I would like to turn the call back over to Mr. Liang for any additional or closing comments.

我想將電話轉回給梁先生，徵求任何補充或結束意見。

Yes, thank you for joining us today, and have a great one.

是的，感謝您今天加入我們，祝您生活愉快。

Thank you.

謝謝。

Thank you, ladies and gentlemen.

謝謝你們，女士們，先生們。

That does conclude the Super Micro Third Quarter Fiscal 2019 Business Update Conference Call . We do appreciate your participation.

Super Micro 2019 財年第三季度業務更新電話會議到此結束。我們非常感謝您的參與。

You may disconnect at this time.

此時您可以斷開連接。

Thank you.

謝謝。