Super Micro Computer, Inc. (NASDAQ:SMCI) Q3 2018 Earnings Conference Call - Final Transcript

May 03, 2018 • 05:00 pm ET


Super Micro Computer, Inc. (NASDAQ:SMCI) Q3 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Super Micro Computer, Inc. Third Quarter Fiscal 2018 Business Update Conference Call. The Company's news releases issued earlier today and are available from its website at

During the Company's presentation all participants will be in a listen only mode. [Operator Instructions] As a reminder, this call is being recorded, Thursday, May 3rd, 2018. A replay of the call will be accessible until midnight, Thursday, May 17th, 2018, by dialing 1-844-512-2921 and entering replay pin 2033880. International callers should dial 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. And now, I would like to turn the conference over to Mr. Hayes. Mr. Hayes, please go-ahead, sir.

Perry Hayes

Good afternoon, and thank you, for attending Supermicro's business update conference call for the third quarter fiscal 2018, which ended March 31st, 2018.

As announced in our press release earlier today, the Company has completed the previously disclosed investigation conducted by the audit committee. In furtherance of the preparation of the financial statements, the audit committee is overseeing additional testing that the Company believes is nearing completion.

To date, the Company's cash flows have not been impacted by the findings of the investigation or the additional testing. Additional time is required to analyze any impact of the results of the investigation and additional testing on the Company's historical financial statements as well as to complete additional reviews before the Company will be able to finalize its annual report on Form 10-K for the fiscal year ended June 30, 2017.

Otherwise known as the 2017, 10-K. The Company presented an updated compliance plan to the NASDAQ stock market hearings panel on April 26th, 2018. And the Company requested an additional exception period for continued listing of its common stock on the NASDAQ Global Select Market, through August 24th, 2018, in order for it to complete and file its 2017 10-K and subsequent delinquent SEC quarterly filings.

The Company is unable at this time to provide a date as to when the 2017 10-K will be filed or to predict whether the Company's historical financial statements will be adjusted or, if so, the amount of any such adjustments. The Company intends to file its quarterly reports on Form 10-Q for the quarters ended September 30th and December 31st, 2017, and March 31st, 2018, promptly after filing the 2017's 10-K.

Based on these delays, during today's conference call Supermicro will address business and market trends from the third fiscal quarter of 2018 and will discuss estimated financial results. But reference to any financial results are preliminary and subject to change based on finalized results contained in future filings with the SEC. By now, you should have received a copy of today's news release that was distributed at the close regular trading and is available on the Company's website.

Before we start, I'll remind you,