Super Micro Computer, Inc. (NASDAQ:SMCI) Q1 2019 Earnings Conference Call Transcript
Nov 15, 2018 • 05:00 pm ET
Welcome to the Super Micro Computer, Inc. First Quarter Fiscal 2019 Business Update Conference Call. The company's news releases issued earlier today are available from its website at www.supermicro.com. During the company's presentation, all participants will be in a listen-only mode. Afterwards securities analysts will be invited to participate in the question-and-answer session, but the entire call is opened to all participants on a listen-only basis.
As a reminder, this call is being recorded, Thursday, November 15, 2018. A replay of the call will be accessible until midnight, Thursday, November 29, 2018, by dialing 1844-512-2921 and entering the replay pin 3001732. International callers should dial 1412-317-6671.
With us today are Charles Liang, Chairman and CEO; Kevin Bauer, SVP and CFO; and Perry Hayes, SVP of IR.
And now, I'd like to turn the conference over to Mr. Hayes. Mr. Hayes, please go ahead, sir.
Good afternoon, and thank you for attending Super Micro's business update conference call for the first quarter 2019, which ended September 30, 2018.
During today's conference call, Super Micro will address the company's efforts to become current with its SEC filings, the business and market trends from the first fiscal quarter of 2019 as well as the company's preliminary financial results for the first quarter of fiscal 2019. References 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 the news release and 8-K filing that were distributed at the close of regular trading and are available on the company's website.
(Forward-Looking Cautionary Statements) Most of today's presentation will refer to non-GAAP financial results and outlooks. At the end of today's prepared remarks, we will have a question-and-answer session with sell-side analysts.
I'll now turn the call over to Charles Liang, Chairman and CEO.
Let me first of call comment briefly on our first quarter performance. Our first quarter revenue was in the range of $952 million to $962 million, which compared to our quarterly guidance and represents approximately 20% increase year-over-year. Our momentum in market verticals continue with strong growth, especially in Global 2000, Storage and AI machine learning. Computer system revenue was consistent with last quarter at approximately 34% of revenue and up 56% year-over-year.
Our total ASP growth continues with higher add value sale of our industry-leading technology innovation and more high-end computer systems.
Kevin will provide a more detail on our financial results. The focus of our strategy in the past few years had been our Global 2000 business, which grew 132% year-over-year. Now resource-saving architecture had been the key message of that focus, leveraging our breakthrough product and further to mark advantage to deliver significant saving to customers. We've achieved greater success story with company like NASA, Intel and many other industry leaders.
The resource-saving architecture reduced TCE, total cost to the environment, which brings significant TCO saving along with environmental benefits. The resource-saving chip that might operate this aggregated design enables