Super Micro Computer, Inc. (NASDAQ:SMCI) Q2 2023 Earnings Call Transcript

Nehal Chokshi: So, now that you guys have worked yourself back to a net cash position with the strong free cash flow that you’ve highlighted over past two quarters, is it reasonable to expect that you guys are going to put that back to work now?

David Weigand: Yes, it’s completely up to the Board, completely up to the Board. But, I think it’s certainly unreasonable.

Nehal Chokshi: We got one Board member here. Charles, your thoughts? Your thoughts on utilizing the buyback?

Charles Liang: You know, as why I say, the PE is still low and cash flow is strong, why not?

Operator: We have a question from Mehdi Hosseini with SIG.

Mehdi Hosseini: Yes. So, just a quick follow-up, just a clarification. David, did you employ or did you say that the 10% plus customers that you had in September quarter of last year is going to come back or you’re going to have another 10% plus customer in the coming quarters? It was very confusing.

David Weigand: Yes. So Mehdi, the 10% customer we had a year ago September is a different customer. Okay? The 22% customer that we had in the recent September quarter, again a different customer, was below was did not constitute 10% of our revenues in Q2. Okay, did I clarify that?

Mehdi Hosseini: Sure. Just as a follow-up, do you expect that particular customer to come back, is that what the confidence behind the June quarter is?

David Weigand: Well, we have — so

Charles Liang: Indeed with our new product, indeed very strong offering. So we expect any time we will have a more new larger customer or old customer coming back is always very high possibility. And we are working with them very closely there, the partnership would come stronger ever.

Mehdi Hosseini: This is dynamic.

Charles Liang: Yes.

David Weigand: We thrive on repeat business.

Mehdi Hosseini: Thank you for clarification.

Operator: There are no further questions at this time. With that said, concludes today’s conference. Thank you for attending today’s presentation. You may now disconnect.