Super Micro Computer, Inc. F1Q09 Earnings Call Transcript

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2008-10-29 20:36:10.0

Tags: Merrill Lynch & Co. Inc., Call Transcript, Earnings, Super Micro Computer Inc., Data Centers, Roi/Tco, Processors, Storage, Hardware, Data Management, Finance, Managerial Accounting, Semiconductors, Components, Seeking Alpha, Merrill Lynch & Co. Inc., Call Transcript, Earnings, Super Micro Computer Inc., Data Centers, Roi/Tco, Processors, Storage, Hardware, Data Management, Finance, Managerial Accounting, Semiconductors, Components, Seeking Alpha

Question-and-Answer Session

Operator

Thank you, sir. Ladies and gentlemen, our question-and-answer session will be conducted electronically. (Operator's instruction)

Your first question comes from the line of Jeff Fidacaro - Merrill Lynch

Jeff Fidacaro - Merrill Lynch

Charles, I am wondering if you can talk to us a little bit about the outlook and the IT spending characteristics that you have seen recently. If you look a few past downturns that you have gone through already, have you seen any different behavior in your end customer and what is different this time?

Charles Liang

Yes, thank you for the question. Yes, we had seen some slowdown, a little bit slowdown in the market. Some customers are more price sensitive now and they are more picky for kind of lower power consumption for base TCO so we have something that is happening. However, we are happy to see that because we are very strong in application optimizer as you know. So we continue to satisfy most of the customer in data center and in other application. So although the market may continue to keep soft for a while, with our strong product line, we are quite confident.

Jeff Fidacaro - Merrill Lynch

If I could ask just one quick follow up. If you look at the guidance for the 2% to 10% type revenue growth next quarter, can you talk a little bit about what new products that include?

Charles Liang

As you know, traditionally Intel introduced big product line in summer like in 2002, 2004, 2006; they all introduced new product line in summer of timeframe. However, this time [22.56] our QPR Technology, they shifted announcement and the production for spring '09. So this is one of the factors that with our December quarter may not grow that much as before. However, the growth worksheet to couple of few quarters later, the growth, the advantage is still there. Again, whenever we enter a new technology, really we have a much better growth in the following couple of quarters.

Jeff Fidacaro - Merrill Lynch

And any update in the Itanium?

Charles Liang

Itanium, again its main production also maybe next summer so its long effect to our kind of financial performance for this year. By next year definitely.

Operator

Your next question comes from the line of Alex Kurtz - Merriman, Curhan Ford & Co.

Alex Kurtz - Merriman, Curhan Ford & Co.

So, just a follow up on that QPI question, I was a little bit in the impression that that was really going to help you guys and maybe in the margins June quarter, can you just repeat again, Charles, what you were saying about maybe a push out in QPI regarding your internal forecast?

 

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