Super Micro Computer, Inc. F3Q09 (Qtr End 03/31/09) Earnings Call Transcript

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2009-04-30 07:09:16.0

Tags: Call Transcript, Quarter, Earnings, Super Micro Computer Inc., Servers, Hardware, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator instructions) And we will first go to Alex Kurtz with Merriman Curhan Ford.

Alex KurtzMerriman Curhan Ford

Good evening, gentlemen. Can you hear me okay?

Charles Liang

Yes.

Howard Hideshima

Yes.

Alex KurtzMerriman Curhan Ford

Okay. So, Howard, just real quick on the housekeeping item. Did you give the unit volume for server components and servers in the quarter?

Howard Hideshima

We did not.

Alex KurtzMerriman Curhan Ford

Could you share that with us? You have it on you?

Howard Hideshima

Yes, let me come back to that question.

Alex KurtzMerriman Curhan Ford

Okay. And then the ASP of the server components would be great too. So, just looking at your guidance, expecting sequential growth into June, could you just go into detail what gives you guys that visibility and that confidence because last couple of quarters have been challenging for you guys. Do you have a real sense that a good chunk of business has been pushed out because of Nehalem and you really expect it to fall in the June quarter?

Charles Liang

Yes. Because Nehalem, a big product line, just updated on March 30th, right? So, only true data available to us for last quarter. So, now we have a complete Nehalem product line available with the brand new architecture I just mentioned, 2U Twin2, which has been very attractive to all customers. So, we strongly believe that business in this quarter will surely be better than last quarter.

Alex KurtzMerriman Curhan Ford

Okay. And Howard, on the OpEx line, are you guys taking any actions there to lower your OpEx going into the June quarter?

Howard Hideshima

Yes, I think as we talked about on the call, we have lowered OpEx expense by about $1 million sequentially and we are not stopping there. We are taking further actions to reduce our costs while continuing to invest in the technology that’s setting us apart from the market.

Alex KurtzMerriman Curhan Ford

So, would that come out of G&A or marketing, like where would you find it?

Howard Hideshima

I think you are going to see it all the way across the board.

Alex KurtzMerriman Curhan Ford

Okay. And guys, what have you seen in the first couple of weeks here or in the first month of April? How has activity been compared to March?

 

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