Welcome to the Super Micro fiscal Q3 2021 earnings call.I would like now to turn the conference to the host Mrs. Nicole Noutsios. Good afternoon, and thank you for attending Super Micro's call to discuss financial results for the third quarter of fiscal 2021, which ended March 31st, 2021. By now, you should have received a copy of the news release from the company that was distributed at the close of regular trading and is available on the company's website. As a reminder, during today's call, the company referred to a presentation that's available to participants in the IR section of the company's website under Events and Presentations tab. We've also published management's scripted commentary on our website. Please note that some of the information you hear during the discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expenses, taxes, capital allocation, and future business outlook, including the potential impact of COVID-19 on the company's business and results of operations. There are a number of risk factors that can cause Super Micro's future results to differ materially from our expectations. You can find more about these risks in the press release we issued earlier this afternoon, our most recent 10-K filing for fiscal 2020, and our other SEC filings. All these documents are available on the IR section of Super Micro's website. We assume no obligation to update any forward-looking statements. Most of today's presentation refer to non-GAAP financial results and business outlook. For an explanation of our non-GAAP financial measures, please refer to the accompanying presentation or to our press release published earlier today. In addition, a reconciliation of GAAP to non-GAAP results is contained in today's press release in the supplemental information attached in today's presentation. At the end of today's prepared remarks, we will have a Q&A session for sell-side analysts to ask questions. I'd now like to turn the call over to Charles Liang, Chairman and Chief Executive Officer. Thank you, Nicole. Good afternoon, everyone. Last quarter, we have performed our growth strategy well by winning new key customers, expanded our global operation, and introduced a whole new generation of products. Today, we have released our fiscal 2021 third quarter financial results. Let's take a look at some highlights. Our fiscal third quarter net sales totaled $896 million, up 16% year-over-year and up 8% sequentially. For the first time in our company's history since IPO, the revenue from seasonally weak March quarter significantly surpassed that of December quarter. Our fiscal third quarter non-GAAP earnings per share was $0.50, above the midpoint of our previous guide range of $0.37-$0.57. In this quarter, we also generated record revenue from the Asia Pacific region, demonstrating our continued and expanding traction in Asia. We continue to execute our three-year growth strategy highlights in our recent investor update on March 4th. Our progress, judged by historical industry growth rate, has propelled us to resume the position of the fastest-growing U.S.-based server storage manufacturer. Most importantly, we achieved this despite so much of our focus have been on growing the company's long-term foundation. Earlier this quarter, we introduced the industry's most comprehensive server portfolio, leveraging the latest processors from both Intel and AMD. Our application optimized solutions are gaining traction among the world's most advanced data center and enterprise. We have several committed early ship customers that have deployed thousands of server units led by our Super Micro. We also see our optimized systems for many verticals such as artificial intelligence, Telco, cloud, and more. One successful example is our cooperation with Osaka University in Japan with our liquid-cooled HPC solutions, which take full advantage of the new powerful Ice Lake processors. Hundreds of other customers have already utilized our early sampling program or accessed the new system online through our JumpStart program. These activities to accelerate the deployment ramp of this new generation product and propel growth for this calendar year. In addition to the system based on the new CPUs, we released an innovative new GPU system architecture last quarter, with resource saving in mind. With very strong global demand, the optimized 2U2N GPU solution delivers greater cost saving, utilizes shared power and cooling. This 2U2N system supports three double width or six single width PCI Gen4 GPUs, and is the best platform for video streaming, high-end cloud gaming, and companies' social networking applications. We have been executing a robust manufacturing plan in Taiwan for a few years. With attractive new product lines and a strong customer demand, we recognize the importance of optimizing operational efficiency and reduce cost, especially with a tighter supply chain. As one of the key elements of our strategy, our Taiwan campus expansion will increase our capacity and capability in production, operation, engineering, and sales to deliver more cost optimized offerings. Manufacturing cost has been our painful challenge since the company was founded 27 years ago. Now, with the new 1 million sq ft of manufacturing and office space added to our Taiwan campus this summer, we will become more profitable by having more control over our global supply chain and manufacturing cost. The U.S. campus expansion, which will be online shortly after the completion of the Taiwan expansion, will focus on similar operation goal, but with more emphasis on security and Made in U.S.A initiatives. Again, this expansion will position us well to handle the ongoing logistical challenge and rising cost, while further improve our time to market advantage and production scale and agility. We are making progress in the key growth factors, as I mentioned in our recent investor event, and we are getting greater traction within the critical segment of cloud data center and enterprise accounts. We are securing new design wins and seeing expanded orders from certain high-profile customers. These customers are choosing Super Micro based on the breadth of our portfolio and our ability to deliver the best optimized system for their 5G telco AI and both public and private cloud workflow. We have been efficiently growing our high-profile accounts worldwide, and we aim to double these accounts in the coming two years. Our high-profile customer initiatives is a big portion of our organic growth strategy that has evolved and been fine-tuned over time. We also continue our sales transformation effort by broadly launch our B2B and B2C automation with the auto configurator tool, which is already in use with many selective customers. This tool will make it much easier to share communication, technical data, and product configurations among our sales engineer and customers, which I believe will accelerate revenue and reduce our fulfillment time and cost. Strong positive momentum is building again at Super Micro. I believe our Q3 growth is just the beginning of our journey to gain more market share again. We are returning to our hallmark of consistent growth. To align my interest with the company's growth strategy, the board of directors accept the proposal of reducing my annual salary to $1 and add an equity compensation package tied to very aggressive revenue and stock price target. In our recent investor update, I talk about our path to $10 billion in annual sales in three to six years. Now, I have even stronger confidence to achieve this goal. Over the past years, Super Micro had success in various market segments such as storage, HCI, cloud, AI, machine learning, 5G telco, and others. We have established our technology leadership through optimized server and storage solutions. I'm excited that our recent booking activity, along with our capacity expansion initiative and improving COVID outlook, give us the confidence to provide a strong Q4 guidance. Our coming fiscal Q4 revenue will surpass $1 billion, in the range of $980 million-$1.08 billion. Super Micro is finally back on track for faster growth, and I'm confident that our growth rate will be getting faster and faster in the coming quarters and years. I will now pass the call to David Weigand, our Chief Financial Officer, to provide additional detail on the quarter and our outlook. Thank you, Charles. Since moving to the CFO role at Super Micro last quarter, I'm even more excited about the future of the company than when I joined in 2018. We continued to execute in all major areas of the company this quarter and are pleased with our results and outlook. Our fiscal third quarter revenue totaled $896 million. This reflects a 16% year-on-year increase from the same quarter of last year, and an 8% increase from the second quarter of fiscal year 2021. Systems comprised 77% of total revenue, and the volume of systems and nodes shipped were up sequentially and year-over-year. System ASPs also increased year-over-year and quarter-over-quarter. Geographic performance was strong across all major geographies. On a year-over-year basis, the U.S. increased 18%, Asia increased 29%, and Europe increased 3%. The rest of the world decreased 12%. On a sequential basis, U.S. sales increased 8% quarter-over-quarter, Asia increased 28%, and Europe increased 5%, with the rest of the world decreasing 46%. From a customer point of view, we saw increases in sales to large data center and AI customers. From this point forward, unless otherwise noted, I will be discussing financial metrics on a non-GAAP basis. Working down the P&L, Q3 gross margin was 13.8%, down year-over-year and quarter-over-quarter. In our February earnings call, we stated that we expected gross margin to decline approximately 120-160 basis points sequentially due to the lack of a Q2 discrete cost recovery event and product mix. Due to the very high demand for our products and in our supply chain, we incurred higher transportation and other additional costs. I will further address this in the outlook, as we do expect some of these cost headwinds to abate in the current quarter. Turning to operating expenses, Q3 OpEx on a GAAP basis increased 7% quarter-over-quarter and decreased 10% year-over-year to $106 million. On a non-GAAP basis, operating expenses increased 6% quarter-over-quarter and increased 9% year-over-year to $95 million. Recall last year's operating expenses were offset by $9.5 million related to a joint product development-related settlement fee. After removing this benefit, Q3 OpEx would've been down 1% year-over-year. As outlined in the February earnings call, the sequential increase in non-GAAP OpEx was primarily due to higher payroll taxes and increased R&D product development costs due to the heightened new product activity from the Ice Lake products from Intel, the Milan products from AMD, and the A100 products from NVIDIA. Other income and expense, excluding interest expense, recorded a $1.4 million gain as compared to a $3.1 million loss last quarter. The sequential change is mostly related to FX. This quarter, our tax gain was $0.2 million on a GAAP basis and an expense of $2.2 million on a non-GAAP basis. Our non-GAAP tax rate was 7.6% for the quarter. Our joint venture incurred a loss of $0.3 million this quarter as compared to a loss of $1.5 million last quarter. Q3 non-GAAP diluted earnings per share totaled $0.50 as compared to $0.63 in Q2 of fiscal 2021, and $0.84 in the same quarter of last year. Cash flow used in operations totaled $124 million compared to cash flow from operations of $63 million in Q2. CapEx totaled $19 million, resulting in free cash flow used of $144 million. Key uses of cash during the quarter included increases to inventory and receivables, as well as a capital return to shareholders through $43 million in share repurchases. Our closing balance sheet cash position was $179 million, while bank debt was $85 million, resulting in a net cash balance of $94 million. Turning to working capital metrics compared to last quarter, our Q3 cash conversion cycle was 86 days. That's down from 92 days and within our target range of 85-90 days. While the absolute level of our inventory increased, days of inventory at 99 decreased. Days sales outstanding was 37 days, while days payable outstanding totaled 50 days. Turning to the outlook for our business. We expect net sales for the fiscal fourth quarter ending June 30, 2021, in a range of $980 million-$1.08 billion or $1.08 billion. We expect gross margins to increase approximately 70 basis points sequentially due to both product mix and improved management of our supply chain costs. GAAP operating expenses are expected to be approximately $108 million and include $7 million in stock option compensation expenses and $2 million in other expenses not included in non-GAAP operating expenses. We expect our non-GAAP operating expenses to be up modestly quarter-over-quarter, driven by lower NRE and continued investment in R&D with the rollout of the new product activity from AMD, Intel, and NVIDIA previously mentioned. We expect our GAAP and non-GAAP Q4 tax rate to be approximately 13% and approximately 16% thereafter. We expect other income and expense, including interest expense, to total roughly $1 million and expect a nominal contribution from our JV. We expect fully diluted GAAP EPS to be in a range of $0.56-$0.77 and fully diluted non-GAAP EPS to be in the range of $0.70-$0.90. We expect CapEx for the fiscal fourth quarter of 2021 to be in the range of $15 million-$20 million, inclusive of our ongoing Taiwan building project. Nicole, I'll turn it back over to you for Q&A. Operator, we can start with questions. Ladies and gentlemen, if you have a question at this time, please press star then the number one on your telephone keypad. Again, that is star one. We'll pause for just a moment to compile a Q&A roster. Your first question is from Mehdi Hosseini from SIG. Your line is open. Yes. Thanks for taking my question. A couple of follow-ups. I am just trying to better understand, as you look into the second half, especially given your strong revenue guide for the June quarter, how do you see momentum into September and December quarter, and how do you see some of the demand drivers like new servers, CPU, and other cloud data center-related drivers impacting your revenues into the second half? I have a follow-up. Yeah. As you know, we have spent a lot of effort to engage high-profile accounts in the last 12 months. I like to share with you that we have achieved our achievement. Now we grow a lot of high-profile accounts. Those accounts, lots of them start orders. That's why you see March, we already have a strong quarter. Then June, indeed, our June quarter will be very strong. Will be first time over $1 billion. In September, still we see the pipeline is strong as well. As to the shortage, we working with our long-term partner very closely, and the shortage situation continue very, very tight. But as of today, our promise from our vendor has been pretty good. I feel pretty comfortable. Although there are shortages everywhere. Okay. In that context, how do you see increasing commodity prices, for instance, storage and DRAM, impacting your margin profile into the second half? For most accounts, indeed, our customers are happy to accept the higher price. Basically, we keep around the same profit margin, and whatever higher cost we pay, most of the customers are happy to accept because it's a kind of supplier market, basically. We will do whatever possible to negotiate the best condition for ourselves, for our customers. Recently, most of the customers understand, and we are accept that cost adjustment. Just a quick follow-up. Have you been able to build a strategic inventory, so that you would benefit from lower cost as you think about the shipment over the next, let's say, six months? Do you have to continue to buy higher cost inventory, and then you would pass on that incremental cost to the customer? This is a big question. Indeed, we understand the shortage will happen since many months ago. Yes, you are right. We have increased our inventory since, I would like to say three months ago. We have enough in that area. Still, our inventory is limited. With our growing very strong demand, very soon, we have to Kind of pay higher for the new inventory that you want. Got it. Thank you. Thank you. Your next question is from Ananda Baruah. Your line is open. Yeah, good afternoon. Thanks for taking the question. Congratulations on the results and putting them up just after you'd done the analyst event. That's pretty exciting to see. I guess a couple follow-ons to the direction that Mehdi was kind of asking questions. Could you give a little more context in the key vertical areas where you're seeing the most pronounced order pick-ups? I guess, kind of off the top of my head, I'm thinking hyperscale cloud customers versus large enterprise customers, like on-premise, and also the carriers for 5G. I know there's new activity going on in each of those buckets, just interested in getting context as to where you're seeing the most pronounced pick-up. Appreciate it. I have a follow-up too. Thanks. Yeah, thank you. Yeah, it is. We have been growing very well in 5G telco. We started to ship some volume in March quarter, and we have more and more 5G telco customer continuing to engage or start to grow and ramp up their demand. That's a very good sign for us, and that part of our plan very well. Other than that, our kind of like appliance for kind of semiconductor equipment, for other medical equipment, we also gain some good traction there. High performance cloud, especially a private cloud, and some HPC, especially HPC with new Ice Lake and Milan and NVIDIA new GPU, that consume much more power than before. That's why liquid cooling has become our advantage as well. We started to service lots of HPC customer with our very optimized liquid cooling solution. Charles, in your prepared remarks, you mentioned accelerating revenue growth, I think you said in the coming quarters, as well as kind of in the coming years. I guess coming quarters, I don't want to pin you down too much, but should we expect, can that occur over the next four quarters? How much, I guess, do you have the If it is a situation where you think, like timeline, next, let's say, four quarters, do you feel like you have the account traction currently to do that? Does that involve new account work or sort of new penetration conversations inside of existing accounts that have yet to occur? Very lucky. We saw our existing account growing their demand. That's why we have expanded our capacity, especially in Asia, quickly and with very high scale. Also we are, again, engaged in a lot of high-profile account in those clear minds, and those accounts start to order. We will continue to engage those high-profile accounts. We have enhanced our sales team, including our B2B automation system that will help handle our current sales effort. Our sales can focus more on high-profile account now. I believe very strongly that those will be speeding up quarter-over-quarter and year-over-year. Last one. Thanks, Charles. Last one for me is, am I remembering accurately, it's June that the new Taiwan center is opening up for production? It's June or July. We did not finalize yet. It can be either way. Kind of depends on the situation. Yeah. Okay. That's great. Thanks so much. Thank you. Again, that is star one to ask a question. Your next question is from Jonathan Tanwanteng. Your line is open. Hi, guys. Thank you for taking the questions and very nice quarter. It's nice to see that demand out there. My first question is, what kind of gross margins do you think you can get in the September quarter? I know there's a lot of moving parts, but especially given the inflationary environment, you have your new facility coming online, which should lower your cost. You have the new sales tools, which improve your efficiency. I think you alluded also that you're burning through your strategic inventory. Those are lower cost. I'm just wondering, with all the puts and takes, do you think you can improve from the current quarter into the September quarter and beyond that? Yeah, I can say a little bit and David, you can follow by detail. I mean that March quarter, we have a lot of products shipped by air because customer satisfaction has been our priority. We ship some by air and a lot by speed of production from our vendor. We pay some overhead there for March quarter. Looking forward for June or September, situation will be much improved. David, you can add something. Yeah. Jon, as we mentioned, the ASPs are up quarter-over-quarter and year-over-year. We're looking forward to improving our margins toward our target as we outlined back on March 4th, of 14%-17%. I think that's our general guidance. Okay, great. Thank you for that. David, can you actually talk about your expectations on cash flow as we get through the next couple of quarters? I know you used a lot this quarter. It's nice to see buybacks as well. As demand ramps, do you see yourself using more cash or do you think you'll be able to collect some of that back? Just your general thoughts. Sure. That's a good question because we returned $43 million back to the shareholders this quarter, in addition to growing accounts receivable and inventory, and also continuing our capital improvements in Taiwan. As we complete our build-out in Taiwan, the cash demands will abate over there. Also, we've already grown our inventory now to over $900 million, and so we expect that the growth rate of inventory is not going to be the same as it was during this quarter. This quarter was especially demanding because we had such high demand. The rate of acceleration will not be the same. Got it. Good. Do you think you'll be cash flow positive in the next quarter or after, I guess, the investment in Taiwan? Yeah, it's going to depend on our growth. That's really what it comes down to, is if we exceed our growth targets. I think we will stop buying stock back for this quarter. Our feeling is we are already strong, and we need more cash flow to prepare inventory. Got it. Good problem to have. Last one from me. I think on Intel call, they mentioned a bit more digestion in data center. Are you seeing that at all in your Intel product lineup? If you are, is it your other products, the AMDs or the NVIDIAs, that are driving the strength that you're seeing going forward? Look like they are overly hot. We have a customer kind of require the solution for Intel CPU, AMD CPU, and NVIDIA CPU. At this moment, we feel it's all pretty strong demand. We also see some supply constraints as well this year. Okay, great. Thank you. Your next question is from Nehal Chokshi. Your line is open. Yeah, thank you. Congratulations on the strong results here. It sounds like the drivers of the 8% beat relative to midpoint guidance was the new customers, equally between cloud data center customers and AI. Do these new customers come with the new products, or is it using existing products? It's a combination. We have a lot of customers need a new GPU solution from NVIDIA. That's NVIDIA new GPU, and some need Ice Lake, some need Milan. Yes, most of the growth, I believe, is new product. Even existing product, we see a strong demand. The whole limitation is kind of a shortage. We are working very hard to improve that situation. What about demand on the storage-heavy side of things, next-gen storage and JBOD storage? I would say to us, not as hot as AI and 5G telco. Still, we see a strong demand. Okay. I think there's been a lot of discussion during the call about price inputs and that's been an issue for a lot of companies out there. Sounds like you guys have been able to skirt that issue. Just to be clear, is it because of the strategic inventory reserves, or is it because there's been a more favorable pricing environment such that you can pass on these input price increases to your customers? First, we have a long-term contract and relationship with our supplier. That helps us to keep the cost kind of smooth or at least stable. Yes, most of the customers also accept our pass-through cost. In both situations, I feel we are in good condition. Is that what underpins the confidence in the gross margin will tick back up in the next quarter? The gross margin pretty much because of shipping charge, especially some ship by air. As you know, after COVID-19, the ship by air cost grow about quadruple. I never believe on that. In last few quarters another situation. Also because our demand was strong, so we speed up the production, and in some cases, we have to pay extra to our vendor or to our own employees. Okay, great. Thanks. Good quarter. Thank you. I'm showing no further question at this time. I would like to turn the conference back to the company for any additional or closing remarks. Thank you everyone for joining us today, and have a good one. See you next time. Thank you. Ladies and gentlemen, this concludes today's conference call. You may now disconnect.