Thank you for standing by. Welcome to the Super Micro Computer, Incorporated Second Quarter Fiscal 2012 conference call. The company’s new release, issued earlier today, is available from it’s website at www.supermicro.com. In addition, during today’s call, the company will refer to a slide presentation that it has made available to participants, which can be accessed it a downloadable .pdf format on its website at www.supermicro.com in the Investor Relations section under the Events and Presentation tab. (Operator Instructions). As a reminder, this call is being recorded, Tuesday, January 24th, 2012. A replay of the call will be accessible until midnight, February 7th, by dialing 1-877-870-5176 and answering conference ID number 4396394. International callers should dial 1-858-384-5517. With us today are Charles Liang, Chairman and Chief Executive Officer; Howard Hideshima, Chief Financial Officer and Perry Hayes, Senior Vice President, Investor relations. And now, I would like to turn the conference over to Mr. Hayes. Please go ahead, sir.

Good afternoon, and thank you for attending Super Micro’s conference call and financial results for the second quarter fiscal year 2012, which ended December 31, 2011. Before we begin, I’d like to advise you of upcoming investor conferences in which Super Micro will be participating. On February 11th, we will attend the Stifel Nicolaus Technology and Telecom Conference in Dana Point, California where we will present and participate in one-on-one meetings. By now, you should have received a copy of today’s news release 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 Investor Relations section of the company’s website under the Events and Presentation tab. Please turn to Slide 2. Before we start, I’ll remind you that our remarks include forward-looking statements. 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 issued earlier this afternoon, our form 10-K for Fiscal 2011, and other SEC filings. All of those documents are available from the investor relations page of Super Micro’s website at www.supermicro.com. We assume no obligation to update any forward looking statements. Most of today’s presentation will refer to non-GAAP financial results and outlooks. For an explanation of our non-GAAP financial measures, please refer to Slide 3 of this 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. I’ll now turn the call over to Charles Liang, Chairman and Chief Executive Officer.

Thank you, Perry, and good afternoon everyone. Please turn to Slide 4. First, let me provide you with the highlights of our second quarter. The second quarter revenue was 249 million, or 0.8% higher than last quarter, and is 3.8% higher year over year. Non-GAAP income was 11.2 million, or 6.5% higher quarter over quarter and 16.3% lower compared to last year. [Inaudible] non-GAAP earning per share was $0.25 per share compared to $0.74 last quarter or $0.31 last year. Slide 5 please. The [inaudible] and [inaudible] order for our process was strong in the December quarter and at the same time, the December quarter was challenged mainly due to the flooding in Thailand. That affected our [inaudible] supply chain. As a result, we weren’t able to fulfill customer’s demand due to delay of hard drivers. Where we have some hard driver stock at a beginning of a quarter, our sales for hard driver orders aren’t able to fulfill our need and – when we reach the end of the quarter. In the beginning of the new quarter, I mean, the March quarter, the situation, however, had improved a little on recovering of hard driver supply. But it is not expected that the hard driver supply will quickly be sent to a normal space in this quarter. Again, the demand for our product is even stronger as we enter this quarter and we had strong backlog of orders that would depend on hard drives. We are working through this order as the hard driver quantity becomes more available in the near future. In the December quarter, we did a good job of receiving our exceeding our [inaudible] line, Sandy Bridge, [inaudible]. We had many high-volume customers and various interests in evaluation of our new Sandy Bridge space called [inaudible]. This…

Thank you, Charles. Good afternoon everyone. I will focus my remarks on earnings, growth margins, operating expenses and similar items on an non-GAAP basis, which reflects adjustments that include stock compensation and expenses. Reconciliation of GAAP to non GAAP is included in the financial statements of the company’s – in today’s earnings release and in the supplemental detail in the slide presentation accompanying the conference call. Let me begin with the review of the second quarter second quarters income. Please turn to Slide 8. Revenue was $249.9 million, up 3.8% from the same quarter a year ago and up 0.8% sequentially. The increase in revenue from last year was primarily due to Server Solutions, which incorporated out growing storage and blade product lines as well as the ramp of our full rack solutions. The sequential increase in revenue from last quarter was primarily due to the growth in our server solutions such as Blade and our new MicroCloud Solution, also in part by shortages in hard disk drives caused by the Thailand flood. Our percentage basis, Blade and MicroCloud were the fastest growing product lines from the prior quarter. Slide 9. Turning to product mix, a portion of revenues from server systems was 44%, which was an increase from 40.5% a year ago and from 39.4% last quarter. ESP for servers was $1,800 per unit which is up from $1,600 last year and up from $1,700 last quarter. We shipped approximately 62,000 servers in the second quarter and 998,000 subsystems and accessories. We continue to maintain a diverse revenue base with over 500 customers, without any of these customers representing more than 10% of our quarterly revenue. Internet Data Center revenue was 5.7%, which was an increase of 9.2% in the prior quarter. Furthermore, 56.7% of our revenues came from…

Thank you, Howard. In summary, the strong demand from our customer [inaudible] to be closer to market and to demonstrate the power of our brand as technology innovators. We [inaudible] and logistics are fully ready and we feel the upcoming Sandy Bridge [inaudible]. Our investment has almost come to fruition. Calendar 2012 will be the year of technology to Sandy Bridge and Super Micro is ready for a challenge and the opportunity. Operator, at this time, we are ready for questions.

(Operator instructions). And we’ll go first to Mark Kelleher with Dougherty and Company.

Great, thanks for taking the questions. I wanted to start with the hard disk drive shortage. What are you doing with your suppliers to secure that supply? I'm interested in what steps you’re looking at and maybe the tradeoff between buying a higher-priced inventory and passing that along. And do you think – would that hard disc drive shortage in this quarter and the next quarter get in the way of the Romley launch? Is that going to limit what you can do with that Romley launch?

Thank you for the question. Indeed, we saw a completed season about four years ago, so our hard drive relationship with Apia [inaudible] compare with our PO and competitors. However, that relationship has been improving a gradually especially in the last couple months. So we do feel our situation in [inaudible] hard drive is improved today. It’s much better than December timeframe. So we see that improvement, and we will continue to work on that. So for [inaudible] launch, I believe we will be in safe position.

Anything additional, Mr. Kelleher? I'm hearing no response. (Operator instructions). We’ll move next to Glenn Hanus with Needham and Company.

Yes, good afternoon guys. So you have guided a pretty wide range for revenues and EPS. Should I assume that the primary reason for the wide range is the drive situation? And should I assume that you would be towards the upper end of that range if drive supply works out well for you, that that’s more a reflection of the demand?

Yes, the reason why we over the range is because of hard drive deal and not visible. But again, that’s [inaudible]. Spaces today, we feel much better than December timeframe.

So can you address the rest of my question?

Glenn, like I said, I think what we would say is the demand is strong. The backlog is strong, so clearly as Charles mentioned, we’re building our relationships to hard disk drives and we feel it’s better. But again, the wider range is due to the hard disk drive.

Do you have a sense of sort of a timeframe when you feel like it would more or less be maybe some impact this quarter? How are you feeling about as you look out sort of towards the June quarter?

As of this moment, we feel the hard drive condition will be slightly better than December quarter. And again, because of the unknown factor, we are not just sure. That’s why I give a nodule rate.

Okay, I’ll hold it to one question and circle back. Thank you.

(Operator Instructions). We’ll move next to Dan (Doliff) with Morgan Stanley.

Just a quick question. Can you please comment on server demand in the previous quarter? And in the coming quarter, any trends that you’re seeing or anything that you could shed some light on? Thank you.

December quarter indeed, we’ve seen a very strong demand, and that’s why we have big backorders. But because of hard drive supply was not efficient. That’s why we did not ship it that much. However, March quarter, I mean this quarter because Sandy Bridge will be in full production. So we see a strong demand there, and we believe for this quarter will be at least slightly better than our December quarter.

Thank you very much.

And we’ll move next to Matt Nahorski with Stifel Nicolaus.

Hi, guys, a quick question for you around the internet data center verticals. Could you talk about some of the trends that you’re seeing there as well as how that bakes into your guidance going forward? I mean do you continue to see kind of a lumpiness in the revenue stream there? And just any comments around that would be helpful. Thanks.

Matt, this is Howard. Yes, we do see lumpiness. You know, it’s a project base system, so we do see lumpiness there. However as indicated, the Sandy Bridge product is going to be a good product. And so we’ve got a full line of Sandy Bridge products coming out that will take the benefits of that. That should be very appealing to the data center as well as all the other HEC clients that we have. So we see pretty good demand, strong demand in that area.

(Operator instructions). We’ll take a follow up question from Glenn Hanus with Needham and Company.

Hi, again. So just shifting to operating expenses for a minute, it sounds like on the G&A line, you mentioned some moving expenses, so I assume that’s sort of non-recurring. So would we expect lower G&A in the March and June quarters?

Yes, Glenn, you’re exactly right. We won’t incur some of those moving expense. However, I do have some audits and tax fees that I will be paying, so you won’t see as much of a move as you saw in the previous quarter to quarter.

Okay, but it will be lower sequentially in March?

It will be slightly higher.

Slightly higher, okay, and then on the R&D side, this 14ish level, should we think about that now that you’ve gotten over the hump on Romley? That should be trending a little lower, or flattish, or how should we think about that over the next couple quarters?

Yes, indeed we have higher indeed of 15% more engineering head count in the last two quarters. That’s pretty much to meet the Sandy Bridge demand. But now in the next two quarters, we have a pretty much our engineering manpower now, so we won’t increase that much in the near future.

Okay, and then on the gross margin line, could you comment a little bit on how we should think about gross margins in the next couple quarters, puts and takes there? It sounds like the drive situation actually benefitted you in the December quarter if I heard you right. So could you talk about that?

The next few quarters, yes, the hard drive quotient may be not that sexy, but Sandy Bridge put out a new product with good technology, which will help us a little bit.

Okay, all right, thank you very much.

(Operator instructions). We’ll take a follow-up question from Mark Kelleher with Dougherty and Company.

Great, thanks. I just wanted to follow up with Glenn’s question on gross margins. Can you talk about the Taiwan facility, and how we should think about that coming online. And what effect will that have in the March quarter and maybe further out how that should ramp up.

The Taiwan operation was [inaudible] much lower than Bay Area, so eventually, we’ll be able to take that advantage. However for March quarter, because it’s a new facility, so [inaudible]. So I will say that eventually, we’ll have it, but not immediately.

Two quarters, June quarter help?

June may have more. September will have even more.

Okay, thanks.

(Operator instructions). It appears at this time, we have no further questions. I’d like to turn the call back over to Mr. Liang for any additional and closing remarks.

Thank you for joining us today. And we look forward to talking to you again at the end of this quarter. Thank you everyone. Have a great day.