Thank you for standing by. My name is Anna, I will be your conference operator today. At this time, I would like to welcome everyone to the Super Micro Computer Fiscal Full Quarter 2023 Results Conference. With us today, Charles Liang, Founder, President, and Chief Executive Officer, David Weigand, CFO, and Michael Staiger, Vice President of Corporate Development. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star 1 on your telephone keypad. If you would like to withdraw your question again, press star 1. Thank you. Michael Staiger, you may begin your conference. Good afternoon, and thank you for attending Super Micro's call to discuss financial results for the fourth quarter and full fiscal year, which ended June 30, 2023. With me today are Charles Liang, Founder, Chairman, and Chief Executive Officer, and David Weigand, Chief Financial Officer. 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 will refer to a presentation that is available to participants in the web investor relations section of the company's website under the Events Presentations tab. We have also published management's descriptive commentary on our website. Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, and other income and expenses, taxes, capital allocation, and future business outlook, including guidance for the first quarter fiscal year 2024 and the full fiscal year 2024. There are a number of risk factors that could cause Super Micro's future results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our most recent 10-K filing for fiscal 2022, and other SEC filings. All these documents are available on the investor relations page of Super Micro's website. We assume no obligation to update any forward-looking statements. Most of today's presentation will 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 and in the supplemental information attached to 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'll now turn the call over to Charles. Thank you, Michael. Good afternoon, everyone. Today, I'm pleased to announce a new record fiscal result of $7.12 billion annual revenue, 37% year-over-year growth rate. We have also achieved our first landmark, $2.18 billion quarterly, which is 34% growth year-over-year and 70% quarter-on-quarter. We are continuing to exceed both top and bottom line results and performing well beyond our previously guided ranges. It's no secret that our strong growth have been driven by the demand for our leading AI platforms in Plug and Play Rack Scale, especially for the large language model, optimized NVIDIA HGX-based Delta Next solution. Our engineering capability enable us to deliver optimized first-to-market AI products and solutions to our customers, distinguishing us from the competition and empowering us to make market share. I'm also proud of our logistic and production team's execution to maintain our time-to-market advantage and deliver our Total IT Solution to our key partners, much sooner than competition. Our investment of 4,000 racks per month stay order up validation and production facility in Silicon Valley is one of the major factors in delivering high-performance AI rack quickly, with both air-cooled and liquid-cooled options. To go over some key financial highlights. First, we enter fiscal year 2024 with record high back orders, many more new design wins, and new customers. Again, our first, our fiscal year 2023 net revenue total, $7.12 billion, up 37% year-on-year, above our midpoint guidance range of $6.7 billion. Fiscal year 2023 non-GAAP earnings per share grew 109% year-over-year to $11.81, compared to $5.65 a year ago, exceeding the higher end of our revised guidance range of $10.50-$11.00. Fiscal Q4 net revenue totaled $2.18 billion, up 34% year-on-year, and up 70% quarter-on-quarter, above our guidance range of $1.7 billion-$1.9 billion. Fiscal Q4 non-GAAP earnings of $3.51 per share, grew 31% year-over-year, compared to $2.62 a year ago, and it was well above the high end of our guidance range of $2.21-$2.71, demonstrating strong operating leverage and continued customer preference towards our Rack Scale Total IT Solutions. For 30 years, we have been diligently building our company's strengths and foundation as the only USA-based, large-scale AI platform designer and manufacturer. We have been shipping our winning products in volume to our partner for more than a quarter. Couple of months ago, I was honored to have my close friend, NVIDIA CEO Jensen Huang, join me on stage at COMPUTEX to highlight our optimized new generation GPU solutions for this AI era. We are deploying not just system, but complete Rack Scale Total Solution to large generative AI innovators, supporting HGX H100 Delta- Next, H100 PCIe GPUs, and the just announced L40S GPUs. Our Delta- Next, Redstone- Next, and 8-GPU OVX systems have become the benchmarks for excellence for our industry. We are also getting good traction on Intel Gaudi 2 and PVC, as well as AMD's MI250 accelerator solutions. The demand for artificial intelligence infrastructure is perfectly addressed by our Building Block server architecture. Due to our Building Block Solution, we are the best and broadest application-optimized GPU solution on the market. We plan to extend this leadership with the upcoming MGX platforms that we announced at COMPUTEX, bringing modular flexibility on acceleration with x86, Grace C2, and Grace Hopper CG1 Superchip. The MGX platform is shared vision of AI computing between NVIDIA and Supermicro, designed to be open, flexible, and future-proof for multiple generation of GPUs, CPUs, and DPUs. We already have many customers engaged with this new MGX platforms as we speak, and soon they will be in volume production. With nearly half of our revenue this quarter based on AI-related designs, I expect this AI growth momentum to continue expanding our TAM across all customer types, from major AI innovators, the super large CSP, Tier 1 data centers, Tier 2 cloud, and to the general enterprise market. As the performance of GPU, CPU, DPU, and memory technology increase, enhanced storage, storage performance is also necessary to feed the massive data set to the application without becoming a bottleneck that slows the entire system down. Supermicro's new PCIe Gen 5-based E1.S and E3.S Petascale all-flash storage server offer industry-leading storage performance and capacity. Together with our U.2 NVMe top-loaded scale-out and traditional storage platforms, we are fulfilling customers' AI compute and storage needs with a one-stop total solution shopping experience, with the best optimization in performance, time to online, and cost. With accelerated computing and storage, the power consumption and thermal challenge of this new technology have reduced dramatically. 40 kW or even 100 kW rack solution demand is rapidly expanding and required for compute-intensive data center, CSP, and other verticals. Having high power efficiency, free air, and liquid cooling expertise have become one of our key differentiators of success. We have made a major investment across a variety of technologies to drive adoption of direct liquid cooling in data center to address the thermal challenges. In addition to increasing computing density and reducing TCO, liquid cooling reduce the environmental impact of data center dramatically, aligning with our green computing mission. Similarly, the liquid immersion solution is making good progress, and we will be happy to provide that option to interested partners soon. The reality is that data center infrastructure is getting more complex, especially with the unprecedented demand of AI. The design complexity and integration scale, along with the requirement to deploy in a timely fashion, are heavy burden to many end customers. Supermicro's Total IT Solution approach save them from the complication of design, validation, sourcing, and integration. It also streamline network switching, firmware, and software management in data center scale. Customer's peace of mind is topped off by the value of our 24/7 global service teams. Given the current infrastructure demand, we have been continuing to evaluate our footprint beyond our recently announced Malaysia expansion. We had recently added another new building close to our Silicon Valley headquarter, and are aimed to further increase our current 4,000 rack per month capacity in this fiscal year to further support the demand from key domestic partners. We are also planning to build another manufacture campus in North America. At this moment, our U.S. headquarter and Taiwan facility can support at least $15 billion in revenue, while the new Malaysia facility will further increase our total revenue capability by serving large-scale product and customer on a reduced cost structure in the coming few quarter. In closing, Supermicro is in a great position to continue our growth momentum with our leading AI portfolio, our infrastructure readiness, and our ability to deliver product in a timely manner. Due to the current key component supply shortage, we forecast revenue in the range of $1.9 billion-$2.2 billion for the September quarter. However, given the record high backlog order, we see our fiscal year 2024 revenue between $9.5 billion-$10.5 billion, which is going to deliver more depending on the availability of supply. Our role as the leader of Rack Scale total AI and IT solutions has just begun. We are ready to deliver optimized AI infrastructure to existing and emerging market, along with our value-added software and service. To say it plainly, our foundation and capacity are fully ready, and our demand is growing strongly. With LLM large language model and other AI applications booming, I now expect the $20 billion annual revenue target to be just a couple of years away. Before passing the call to David Weigand, our Chief Financial Officer, I want to say thank you to our partner, customer, Supermicro employee, and our shareholder for your continuous support. Thank you. David? Thank you, Charles. Fiscal fourth quarter revenues were $2.18 billion, up 34% year-over-year, and up 70% quarter-over-quarter. Q4 revenues exceeded initial guidance range of $1.7 billion-$1.9 billion, and were at the high end of the recently updated range of $2.15 billion-$2.18 billion. For fiscal 2023, we reported revenues of $7.12 billion, representing 37% growth over fiscal year 2022 revenues of $5.2 billion. Next generation CPU and AI platforms continue to drive record levels of design wins and orders. Exiting fiscal year 2023 with a record backlog, we are well-positioned for fiscal year 2024, with an outlook for continued revenue growth and profitability. We expect diversified growth driven by top-tier data centers, emerging CSPs, enterprise AI build-outs, CPU upgrades, and Edge IoT and telco markets. We are also targeting new opportunities in adjacent markets such as storage, switches, software, and services. We note that our shipments against our record backlog may continue to be constrained by supply chain bottlenecks for key new components for our advanced AI server platforms. Q4 results were driven by our high-growth AI GPU and Rack Scale Solutions, which represented 52% of our total revenues. We had 2 10% customers for Q4 and did not have any 10% customers for fiscal year 2023. During Q4, we recorded $976 million in the enterprise and channel vertical, representing 45% of revenues versus 50% last quarter. This was up 19% year-over-year and up 51% quarter-over-quarter as we ramped several key enterprise programs. The OEM appliance and large data center vertical achieved $1.17 billion in revenues, representing 53% of Q4 revenues versus 47% last quarter. Up 59% year-over-year and up 94% quarter-over-quarter, as we gained, gained momentum from existing and new data center, CSP, and OEM cloud appliance customers. Our emerging 5G Telco Edge and IoT segment achieved $43 million in revenues, representing 2% of Q4 revenues versus 3% last quarter. For the fiscal year 2023, organic enterprise channel and AI/ ML revenues grew 10% to represent 48% of total revenues. The OEM appliance and large data center segment grew 102% and represented 49% of total revenues. The emerging 5G Telco Edge IoT segment decreased 36% and represented 3% of total revenues. The mix of complete systems and Rack Scale Total IT Solutions has increased over the last two years. Server and storage systems comprise 93% of Q4 revenue, and subsystems and accessories represented 7%. ASPs continued to increase on a quarter-over-quarter and year-over-year basis, driven by the value and complexity of our Rack Scale Total IT Solutions. By geography, U.S. represented 76% of Q4 revenues, Asia 11%, Europe 10%, and rest of world 3%. On a year-over-year basis, U.S. revenues increased 55%, Asia decreased 17%, and Europe increased 1%. The rest of the world increased 12%. On a quarter-over-quarter basis, U.S. revenues increased 112%, Asia increased 10%, Europe decreased 1%, The rest of the world increased 11%. The Q4 non-GAAP gross margin was 17.1%, down quarter-over-quarter from 17.7% in Q3 as we focused on winning strategic new designs and market share. For fiscal year 2023, the non-GAAP gross margin of 18.1 versus 15.4 for fiscal year 2022, was driven by an increased Rack Scale production and customer mix, and a higher manufacturing efficiency. Turning to operating expenses, Q4 OpEx on a GAAP basis increased by 14% quarter-over-quarter and 19% year-over-year to $145 million, driven by headcount and related expenses. On a non-GAAP basis, operating expenses increased 14% quarter-over-quarter and 17% year-over-year to $133 million. Our non-GAAP operating margin increased significantly to 11% for Q4 versus 8.7% last quarter, due to operating leverage driven by higher revenues that outpaced increases in operating expenses. For fiscal year 2023, we achieved a non-GAAP operating margin of 11.4% versus 7.2% in fiscal year 2023, due to higher gross margins and operating leverage from higher revenues and expense controls. Other income and expense for Q4 was an expense of approximately $1.5 million, consisting of $3.5 million in interest expense, offset primarily by a net foreign exchange gain of $2.0 million. Our interest expense increased sequentially as we utilized our short-term credit lines for working capital requirements, along with higher short-term interest rates on our borrowings. The tax provision for Q4 was $31.3 million on a GAAP basis and $36.6 million on a non-GAAP basis. The GAAP tax rate for Q4 was 13.9%, and the non-GAAP tax rate was 15.4%. The GAAP tax rate was 14.7% for fiscal year 2023 versus 15.7% in fiscal year 2022, and the non-GAAP tax rate was 15.9% versus 17.7% in fiscal year 2022, fiscal year 2022. We delivered strong Q4 non-GAAP diluted earnings per share of $3.51, which exceeded the high end of the original guidance range of $2.21-$2.71, and the recently updated range of $3.35-$3.45. The increase in Q4 EPS was due to a combination of higher revenues and operating leverage. For the full fiscal year 2023, we reported non-GAAP diluted EPS of $11.81, up 109% year-over-year, versus fiscal 2022 non-GAAP diluted EPS of $5.65, and higher than the fiscal year 2023 guidance of $10.50-$11.00. Cash flow used in operations for Q4 was $9 million, compared to cash flow generated by operations of $198 million in Q3, due to higher accounts receivable, offset by lower inventory and higher accounts payable from back-end loaded shipments in the quarter due to supply constraints. CapEx was $8 million for Q4, resulting in negative free cash flow of $17 million versus positive free cash flow of $190 million last quarter. For fiscal year 2023, we had cash flow from operations of $664 million, CapEx of $37 million, resulting in free cash flow of $627 million. We have $50 million remaining under the authorized share buyback program, which expires on January 31st, 2024. The closing balance sheet cash position was $440 million, while bank debt was $290 million, resulting in a net cash position of $150 million, down from a net cash position of $176 million last quarter, as we utilized our bank lines of credit to support higher revenues and accounts receivable. We ramped up production of new AI GPU design wins. Turning to the balance sheet and working capital metrics compared to last quarter, the Q4 cash conversion cycle improved to 77 days versus 126 days in Q3. Days of inventory was 75, representing a decrease of 51 days versus the prior quarter of 126 days. Day sales outstanding was down 13 days, quarter-over-quarter to 38 days, while days payable outstanding came down by 15 days to 36 days. Faster inventory turns contributed to the improvement in our cash conversion cycle. Now, turning to the outlook. We remain enthusiastic about our diversified business model, covering a wide range of AI, core computing, storage, 5G, telco, Edge, and IoT applications. Design wins span across enterprise channel, large data center, and emerging AI, CSP, telco, and OEM customers. We are carefully observing the global macroeconomic situation and continuing supply chain constraints, especially for leading AI platforms. For the first quarter of fiscal 2024, ending September 30, 2023, we expect net sales in the range of $1.9 billion-$2.2 billion. GAAP diluted net income per share of $2.02-$2.80, and non-GAAP diluted net income per share of $2.75-$3.50. We expect gross margins to be similar to Q4 levels. GAAP operating expenses are expected to be approximately $185 million and include $48 million in stock-based compensation and other expenses that are not included in non-GAAP operating expenses. GAAP and non-GAAP operating expenses are expected to increase due to continued investments in R&D and higher personnel costs, adding to our great engineering and sales teams. The outlook for Q1 of fiscal year 2024, fully diluted GAAP EPS, includes approximately $44 million in expected stock-based compensation and other expenses, net of tax effects of $9 million, which are excluded from non-GAAP diluted net income per common share. We expect other income and expense, including ex- interest expense, to be a net expense of approximately $1.5 million. The company's projections for GAAP and non-GAAP diluted net income per common share assume a GAAP tax rate of 14.7%, a non-GAAP tax rate of 15.4%, and a fully diluted share count of 56 million for GAAP and 57 million shares for non-GAAP. We expect CapEx for the fiscal first quarter of 2024 to be in the range of $10 million-$12 million. For the fiscal year 2024, which ends June 30, 2024, we are giving guidance. I'm sorry, the first fiscal year 2024, which ends June 30, 2024. We are giving guidance for revenues in the range of $9.5 billion-$10.5 billion. Okay, Michael, we're now ready for Q&A. Operator? In order for you to queue up in the Q&A panel, please simply press start and number one on your telephone keypad. We have the first question comes from the line of Nehal Chokshi from Northland Capital Markets. Sir, your line is open. Thank you, and congratulations on an amazing quarter and an amazing fiscal year 2024 revenue guidance of $9.5 billion-$10.5 billion. Definitely want to dig into that. First, though, Charles, I think you said you had 50% revenue exposure AI for the June quarter. That's incredible. Makes a very strong statement that Supermicro is indeed the leader in AI systems. What do you think is a sustainable differentiation that you guys are wielding with Rack Scale AI systems that's driving that, you know, incredibly fast increase in revenue exposure AI systems? Yeah, thank you for the question. Yes, AI has been our major focus since a few years ago. We work with AI chip company, kind of like NVIDIA, very closely. We co-develop lots of platform, including our MGX, the coming MGX, as you know, to support C2 and CG1. Our AI solution with Rack Scale or Cloud Scale, Cluster Scale solution, that make our customers deployment much easier, and fully have their solution for energy cost saving for time to online. I believe our AI product line business will continue to grow in the near future, maybe continue to be more than 50% of our revenue. Next question comes from the line of Mehdi Hosseini from Susquehanna International Group. Your line is open. Yes, sir. Thanks for taking my question. Charles, I think it would be very helpful if you could [audio distortion] $10 billion of revenue, and perhaps any kind of color on ASP increase that would capture your increased content would give us an insight, unless you have other ways of explaining to get to $10 billion. We continue to gain lots of new customer. All partner continue to like our solution, and we continue to gain new customer with our Rack Scale, Cloud Scale, Total Solution, including air cool and liquid cool, right? We see a very strong demand and growing very fast back order. $10 billion should be a kind of a short-term target for sure. The question, your competitors, also argue for an innovative cooling, and they also argue for share gain. Is there something with your cooling technology that is better, offers better cost performance compared to some of the immersion cooling that your competitors are marketing or talking about? Yeah, indeed, our engineering team is strong and dedicated. Everyone can design system, but our system simply better than others. Not just better in quality, performance, but also earlier time to market, and together with service, software, system management. It's a total solution and service. We feel pretty confident that we will continue to gain market share. Okay, maybe move on. Because the AI becoming more than 50% of your revenue, how, how is your pipeline as, as you look into second half of calendar year? Do you already have a pipeline that gives you confidence you're gonna hit that 50%+ AI as a mix of revenue, or you still have to go and qualify and win the business to hit that target? Indeed, the pipeline has been very strong. At this moment, the visibility is very clear. We are very confident, especially we continue to gain more customer too. Your next question comes from the line of [Jon Tanwanteng]. Your line is open. Hi, good afternoon. Thank you for taking my questions. Congrats on a really strong quarter and outlook, again. My first one is, I just wanted to dig into your confidence for the outlook. You know, can you just, in various parts, maybe talk about your confidence in supply chain, being able to supply that maybe 40% growth guidance at the midpoint? Maybe talk about your ability to get allocations from key suppliers. Then within your order book and backlog, what is your assurance, or how can you identify if there's double or triple ordering, and, you know, how, how do you protect yourself against that if they do exist? Yeah, it's a complicated question. We have a very good product, many product line for Delta Next, for Redstone Next, for Grace, for Grace Hopper, and other solutions. And including L40S. The solution is really strong and supply chain, we work with our vendor very closely every day. Hopefully, the situation will be consistently improved, but it's not 100% controlled by ourselves. Although we have a good partnership with vendor, with customer, we work together very closely, situation will be continue to improve, I believe. On the order side? Your next question- Are we ready for the next question? John, did you have a follow-up? On order side? Double, protection against double and triple booking. Yeah, indeed, the order side, I mean, the back order have been continuing growing strongly. Every month, I see the, the order grow. John, we have a, we have a lot of NCNR orders as well. That protects against double and triple booking. Your next question comes from the line of Ananda Baruah from Loop Capital. Your line is open. Yeah, good afternoon, guys, and thanks for taking the question. Yeah, congrats on the strong results and the ongoing momentum. I have a couple, if I could. Charles Liang, you talked in the prepared remarks about the, the unprecedented demand you're seeing, and you guys have talked about actually adding new customers, including top-tier data center customers, I think that, I think you mentioned. Some of these, you know, GenAI server forecasts, you know, for 2024 calendar are really, really strong. You're also talking about gaining share, et c, etc. So I guess the, the first quest,ion is you know, what's the opportunity you see to maybe even do achieve stronger than the fiscal 2024 guidance? I guess what would be the puts and takes there? You know, if you were to be able to exceed the 2024 guidance, what would be some of the things you think would need to occur? Then I have a quick follow-up. Thanks. Yeah, thank you. Very good question. Again, we continue to gain generative AI innovator, and we have a very good partnership. We start to ship them some small volume, for sure they need 10 times 20 times more system. We just cannot ship at this moment because of supply chain. At the same time, we also continue to engage with large CSP and large data center. We continue to gain more customer from I would rather say, all different vertical. Just have to work out with supply chain, the three-party relationship, our supplier, our customer, and our sales. That have been our major focus now. Although we continue to improve our software, Total Data Center Solution, including DLC, Direct Liquid-Cooling, and liquid immersion solution. I mean, we are on the right track, just expecting a supply chain can improve so that we can grow our revenue. That's really helpful. Charles, just to make sure that I, I understood that accurately, is that to say if, if the supply chain, you know, so if you can, if you can get more from the supply chain, well, actually, to say this way, you have, you have order visibility such that if you can procure more, you, you would have the ability to, through share gains, exceed, exceed the fiscal 2024 range that you provided? Is it really a supply chain issue, I guess is what I'm asking. Did I hear that accurately? Yeah, absolutely. I mean, we continue to prove to our customer and our vendor that, "Hey, we have a, a basic solution, so work with us." That's a win-win-win for everyone. I got it. Let me just ask a quick follow-up to that one. Is there any way you guys could provide any context for us around, you know, I guess, how constrained you are? You know, like, what might the demand outlook, you know, sort of look like if you were not constrained? You know, not like a guidance, right? Obviously, you gave your guidance, just context for us to really get a sense of what the structural positioning of the company is if there were not constraints. Yeah, I can. We, we have a basic product, and we have a very good partner, customer, and we, we, we push our vendor, and we know our vendor doing their best to support us at the same time as well. We just have to continue work together. All right, Charles. I have one more quick one. I'll move away from demand. I appreciate it. Sounds like the gross margin guidance for the September quarter is a pretty solid, most attractive guide. For fiscal 2024, should we assume that same 17% kind of gross margin range, or what's the, what's the right way to think about that? And that's it for me. Thanks. Sure, Ananda. This is David. We're targeting to hold our margins, and that's all the guidance that we'll, you know, that we'll give right now. Your next question comes from the line of Aaron Rakers from Wells Fargo. Your line is open. Yeah, thanks for taking the questions. And also congrats on the results tonight. So I... First of all, I just want to clarify. I want to make sure I heard the number right. Was it 50% or 52% of the revenue that was from your AI and Rack Scale Solutions this last quarter? Yeah, Aaron, Charles, in his script, said approximately 50%, and I clarified 52%. I guess the question underneath of that is that, you know, one of the questions I get asked a lot about, you know, is, you know, the spend around AI, you know, being so strong, and it sounds like obviously you're carrying a pretty good backlog, you know, looking out over the next several quarters, given the supply dynamics. You know, if I take that number and I say the non-AI business, you know, how has that trended? Or, or basically, are you reallocating capacity away from more of the non- or traditional compute side to satisfy demand on the AI side? Or have you seen spending slow down outside of these AI investments that, that you're clearly benefiting from? Yeah, on, on AI, server storage, IoT, or whatever, we keep about a little bit flat. Understand the industry a little bit declining. We although not declining, but about flat. We try to grow as well, and that's why we are growing in many direction, kind of manufacturing, kind of like Taiwan, Malaysia, and we may have another North America campus. So that's all to increase our capacity so that we can grow traditional data center business as well, instead of to instead of only focus on growing AI. Okay. So, just to be clear, I mean, so you're limited on your supply on the traditional compute side because of the AI demand that you're seeing. Is, is that fair? Not exactly. Impacted, but not exactly. Indeed, as you know, the traditional, server, traditional data center business a little bit flat from the demand side. We are facing to a similar experience as well, but not declining to us. Yep. Okay. Then the final, the final question for me is just thinking about, you know, the AI opportunity, and I think you alluded to this a little bit in your, your prepared comments. You mentioned, you know, positioning around, I think it was the Intel Gaudi chip, and then also, I think you, you know, another vendor coming to market, the MI300 from AMD. How do you see that, you know, playing out, you know, for your opportunity? Does it help satisfy demand, or are you seeing, you know, indicators that, you know, this AI opportunity is going to be much more diversified here as we move into 2024, versus what you've seen on, on the NVIDIA side at this point? Just curious how you're seeing kind of the competitive landscape or maybe opportunity set expand for you guys with those newer, you know, other solutions coming to market? Yeah, NVIDIA solution benefited the leader. People really are waiting for NVIDIA more supply. Other solution from Intel, from AMD, because our Building Block Solution, we have a solution ready for all of them. That's the advantage we have. We just waiting for their solution to be available in production. Yep. Thank you very much, guys. Thank you. Your next question comes from the line of [Jon Tanwanteng]. Your line is open. Hi, thanks for the follow-up. Dave, I was wondering if you could talk about your working capital needs in this sort of environment. Can you generate positive cash flow going forward, or are you going to be using cash as, as, as you try to fulfill this outside demand? Yeah, John, we see, we see the business generating good cash flows as it has historically. We think that the, you know, especially in this constrained supply market, you know, where, where we could deliver, you know, more, if we had more supply. Really, the constrained supply ends up, you know, moderating the working capital. We grew our business last quarter, you know, quite a bit, and grew our ARR, so that utilized a lot of working capital, but we have no concerns about working capital. Okay, great. Then could you guys give a little bit more detail on the capacity expansion and then when those various facilities come online and what exactly they add? Sure. We have Malaysia, which is expected to come online in around 12, you know, to 15 months. That will eventually double our capacity. We also have additional capacity, you know, coming online in our building 23, here in our Silicon Valley campus. We've also added, as Charles mentioned, another site, in, you know, San Jose, with intentions to add another site in the Americas. Got it. Then last one for me, maybe a, a more detailed question. What, what percentage of your AI sales right now are, are liquid cooling-based, and do you expect that percentage to increase as you go forward? This is very new question. We have a very good DLC, Direct Liquid- Cooling Solution ready to go now, and it all depends on customer demand. At the same time, the deep immersion solution also getting ready. We have all three solution and depends on customer's demand. At this moment, for sure, air cool still the majority, as you know. Okay, great. Thanks, Charles. Okay, good. Thank you. Your next question comes from the line of Nehal Chokshi from Northland Capital Markets. Your line is open. Yeah, thank you for the follow-up question. So NVIDIA effectively guided their July quarter data center revenue up 2x Q2Q. What does that mean for Super Micro in terms of, you know, GPU systems? Especially what I'm trying to drive at is that, is there a lag between when NVIDIA gets recognized revenue and when the rest of the server OEMs gets recognized revenue? We believe their capacity are growing, and that's why we talk to them every day, asking for more. Hopefully, we can gather more support from them, and hopefully their capacity can grow mostly, quickly. That's all I can say now. Okay. Do you, do you have a guess on, on, on what is your AI-related market share during the June quarter and whether or not that was up Q2? We don't have we're, we're not going to offer a market share, you know, for the June quarter. You can make some assumptions by looking at, you know, the results of others. You know, we sell different, you know, GPUs, as Charles mentioned. It, there, you know, there is a, it's not a direct correlation. Basically, we have a strong order, back order, and we still have a lot of capacity. They are waiting for more AI chip. That's our situation. Yep, understood. How should we think about distributing the remaining $8 billion across the final three quarters here? We're not going to announce, you know, quarter by quarter our guidance. We're expecting, you know, we're expecting this to be a, you know, a robust year and, you know, as, as tempered, you know, by the natural supply constraints, you know, because of the popularity of these new platforms. Yeah, basically, NVIDIA will have a more capacity for sure, and we're really happy to wait over there. Besides, other than Delta Next, our Redstone Next is completely ready, our GH200 solution is pretty much ready as well. We believe we can ship much more, that's the situation. In next four quarters, I believe we will continue to grow quarter after quarter. Thank you very much. Thank you very much. Even the supply is more, even the supply condition better, I believe we can surpass, $10.5 billion for sure, easily. Thank you everyone for joining. There's no more time for question at this time, this will conclude today's conference call. You may now disconnect.