Good day ladies and gentlemen. Thank you for standing by. Welcome to the Super Micro Computer Inc. Third quarter fiscal 2012 conference call. The company’s news release issued earlier today is available on the company’s website at www.supermicro.com. In addition, during today’s call, the company will refer to a slide presentation that has been available to all participants which can be accessed in a downloadable PDF format on its website at www.supermicro.com in the investor relations sections under the events and presentations tab. During the company’s presentation our participants will be in a listen only mode. Afterwards security analysts and institutional portfolio managers will be invited to participate in a question and answer session. But the entire call is open to all participants in a listen only basis. As a reminder, this call is being recorded, Tuesday, April 24, 2012. A replay of the call will be accessible until midnight, May 8th, by dialing 877-870-5176 and entering the conference ID number 6746870. International callers should dial 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. Mr. Hayes, please go ahead, sir.

Good afternoon, and thank you for attending Super Micro’s conference call and financial results for the third quarter fiscal year 2012, which ended March 31, 2012. Before we begin, I’d like to advise you of upcoming investor conferences at which Super Micro will be participating. On May 24th, we will attend the SternAG Technology Conference in New York, 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 two. 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 we issued earlier this afternoon, our form 10-K for Fiscal 2011, and our other SEC filings. All 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 with 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. Let me start by sharing the fact that we grew the Q3 revenue year over year by only 2.5% mainly because of our finance drop that cause quarter wide hard drive shortage which affected us badly while into the quarter. In addition, not long ago, we showed the New Sandy Bridge Xeon platform from coming just before the end of the quarter was there to achieve meaningful revenue lift in the last quarter. Some customers anticipate the technology transition and decide to postpone acquisition until the new product launch. With these issue result is behind us now, we are in a very good position for strong growth for next several quarters. Please come to slide four. Now let me provide you with the financial highlights of our third quarter. The third quarter revenue was $240.2 million, about 3.9% lower than last quarter and 2.5% higher year-over-year. Non-GAAP net income was $8.8 million or 21.1% around quarter-over-quarter and 28.1% compared to last year. Super Micro’s non-GAAP earnings per share was $0.19 per diluted share compared to $0.25 last quarter or $0.28 last year. From a geographic perspective, this quarter in United States account for 56.5% of revenue. Europe was 23% and Asia was 18.1%. Sequentially all our region were essentially flat from the prior quarter. On a year-over-year base, the US was 2.9% higher while Asia was slowed by 1.8%, Europe was basically flat with the year ago. Last of the OEM and direct accounts – and direct customer account for over 47.4% of revenue, and Internet data center was 15.7% of total revenue. Of that result all that strong OEM and direct business. System sales continue to be a strong and reached record high 48.5% over sales. We had many successful deals and…

Thank you, Charles, and good afternoon everyone. I will focus my remarks on earnings, gross margin operating expenses and similar items on a non-GAAP basis which reflects adjustment to exclude stock compensation expenses. Reconciliation of GAAP to non-GAAP is included in the financial statements of the company in today’s earnings release and in the supplemental detail in the slide presentation accompanying this conference call. Let me begin with the review of the third-quarter income statement. Please turn to slide eight. Revenue was $240.2 million up 2.5% from the same quarter a year ago and down 3.9% sequentially. The increase in revenue from last year was primarily due to continuing ramp of new product platforms as we have continued to expand during the past year especially in our (inaudible) product lines as well as ramp of our full rack solutions. The sequential decrease in revenue from last quarter was not only due to the seasonal weakness, our storage and hard disk drive and the Sandy Bridge transition. On a percentage basis, (inaudible) MicroClouds were the fastest growing product lines from the prior quarter. Slide nine. Turning to product mix. The proportion of revenues from server systems was 48.5%, which was an increase from 31.8% a year ago and from 44% last quarter. ASPs for the servers was $2000 per unit, which is up from $1400 last year and from $1800 last quarter. We shipped approximately 57,000 servers in the third quarter and 1,212,000 subsystems and accessories. We continue to maintain a diverse revenue base with over 500 customers with none of these customers representing more than 10% of our quarterly revenues. Internet data center revenue was 15.7%, which was an increase from 9.7% in the prior quarter. Furthermore, 56.5% of our revenues came from the U. S. and 52.6% from our…

Thank you Howard. In summary chip micro ahead spent that’s the many quarters prepare you for the upcoming servers cycle. Based on the Cindy bridge. Our investment in R&D new system architecture there are things sought that we are poor our global production and logistics facility positioned us for our next strong line b’day cycle. We had achievable micro from that beginning to foot to market to Maki advantage of technology transitions. Our engineering team has produced the strongest and above the to put online than in a competition. Later in the year 20trails where the year of technology transition to Sandy bridge and Supermicro is ready for challenge and opportunity. Operator at this time we ready for questions.

All right. Thank you Sir. Well ladies and gentlemen our question-and-answer session will be conducted electronically. (Operator Instructions). I’ll take your first question from Mark Kelleher with Dougherty & Company. Mark Kelleher – Dougherty & Company: Great. Good afternoon. Thanks for taking the question. You mentioned that there were some customer order delays waiting for the new technology transition and you indicated there were some effects on the revenue from the hard disk drive storages. Can you kind of cite those which one had more of an effect?

Hey, Mark. This is Howard. Yeah, we mentioned one customer that we had shipment that was delayed and so it was less than 10% customer per se. So again, we’re not disclosing too much for confidentiality reasons, but it was along that magnitude. The hard disk drives certainly did play also into the some of the delays and shipments that we did have and although not the magnitude of December period time March was more so. Mark Kelleher – Dougherty & Company: All right. And on the gross margin side, the Taiwan opening, the manufacturing, did that have much of an effect either way in the quarter?

It had some. Obviously, we’re not at full capacity there as of yet. So we have more expenses and we’re recovering our investments at SAT, but it is good for us. Mark Kelleher – Dougherty & Company: But it did have much of an effect either way on gross margin?

It did have some on a negative basis. Yeah. Mark Kelleher – Dougherty & Company: Okay. And last question is on R&D. You did ramp that up a bit in the quarter. Is this – as a percentage of sales, this is a sustainable level that we should expect going forward?

Indeed, R&D aggravated in last many quarters. We had grown engineering resource and that for sure have some impact to our financial reports. However, most products have been finished developing. So now we yet start to (inaudible) and our profitability. So R&D basically has much growth in terms of head count and investment now. Mark Kelleher – Dougherty & Company: Okay. Great, thanks.

All right. Thank you very much. Now moving on, we’ll go to Aaron Rakers with Stifel Nicolaus. Aaron Rakers – Stifel Nicolaus: Yeah, thanks for taking my question. On the guidance, let’s just use the midpoint as the basis of your guidance range. How are we thinking about the mix between systems and subsystems in the current quarter?

Looks like the complete the system we are continuing to grow. Again, at Sandy Bridge, we like that system because average being pushed to maximum based on the performance per watt and that’s why companies previously is very beneficial to customer. So next to your customer, when they receive, it’s already optimized reliable system that we have. Aaron Rakers – Stifel Nicolaus: Let me ask you different way maybe. When we look at the last five years, I thing you’ve grown that sequentially about 15%. However, last year you grew that business sequentially in the fiscal fourth quarter about 40%. I’m just still trying to gauge underneath of that and giving the implications for the gross margin. Are we to assume 40% plus sequential growth, or something more normal seasonality. I would assume with the wrong way cycling, you’re assuming something that’s much higher than typical seasonality.

Yeah. Right now, If you take the midpoint of the guidance, I think you’ll see like, as I mentioned, we probably have about 23% increase in revenue sequentially. Aaron Rakers – Stifel Nicolaus: And then, the server mix, it’s trouble eluded to. Again we’re hoping that that’s going to increase, as we go long. Obviously, Sandy Bridge is a tougher product to implement. And so, this is allowing our engineers really to show, and the integrated solution is the best thing for the customers from a quality perspective.

Especially now, we have a much stronger (inaudible) supply contracts and also memory support, the major support from original manufacturer. Aaron Rakers – Stifel Nicolaus: Okay. So it sounds like you’re assuming not much of a change in your mix of the business?

Yeah. Aaron Rakers – Stifel Nicolaus: Okay. Follow-up from me would be is that when we’ve seen – we’ve discussed in the past prior server cycles, obviously in the – kind of the depths or the downturn and you really didn’t get the uplift from a pricing power perspective. I think you made the comment that you’ve taken some discounting of the table. Your ASP’s continued to increase. Is it still fair for us to go back to the (inaudible) and use that as the benchmark for gross margin, potential upside or expansion as we think about the wrong way cycles over the coming quarters, or put more systemically 150, 200 basis points expansion of gross margin, is that a fair assumptions as we work through this wrongly cycle?

I think so. And basically, we have our long-term model out there. We believe it’s achievable, that shows the 19 to 22 gross margin in the next year. So again, as we get into the cycle, as we fully utilize the Taiwan facility in the second half of this year, we see the ramp of the wrongly products or Sandy Bridge products. Those are all beneficial to us.

And fair to be available. Aaron Rakers – Stifel Nicolaus: Okay. Final thing from me would be is on the Internet data center vertical. I think, last time it was just high, I think, there was a somewhat of a large customers within that, that drove that business. How are we thinking about the visibility and that now 16% of revenue and what looks to be somewhat lumpy over the last couple of quarters due slightly the percentage of our datacenter and COU applications we’re continuing as we grow because, again I will put those solution compete or a rack we see even than it has been very attractive to those customer now. Okay. Thanks, guys.

Thank you.

All right. Thank you, we’re moving to we’ll take a question from Rajesh Ghai with ThinkEquity. Rajesh Ghai – ThinkEquity: Thanks. I wanted to dig deeper into what Howard already mentioned about getting into long-term supply contracts with your hard disk drive suppliers. So if we look ahead with your guidance, are you confident that the entire guidance range you will not have any obvious straight supply constraints in your fiscal fourth quarter?

Kind of before we – we now have four more constraints between in – March, early March, finally we have a strong, much stronger partnership that’s what’s why we signed a contract, so I was surprised to be much more stable, and hopefully also stronger support. Rajesh Ghai – ThinkEquity: So, you should be able to deliver everything that you have in your guidance that is one-time, there is no hard disk that could prevent you from hitting any part of your guidance into high end of the guidance?

Yes. It should be much better position now. Rajesh Ghai – ThinkEquity: Okay. And as far as you know the facilities are concerned, Thailand and Netherlands facilities are concerned, you talked about the Thailand facility kind of reaching full capacity by the end of the calendar year ‘12, is that right?

Yeah. Basically, in the meanwhile, because of the hard drive shortage in Asia and in Europe, that is also very soon. Rajesh Ghai – ThinkEquity: How do you expect demand to ramp for you guys after the fiscal Q4 would normally be, do you think it’s going to be – with the end of the year, or do you think demand should continue the ramp beyond the fiscal Q4 or do you think that they might be regular seasonality that you typically see in fiscal Q1?

I guess, the decision we’re continuing for many quarters. Rajesh Ghai – ThinkEquity: Does the ramp for raw material continue to ramp through the manner low three quarters this calendar year?

Yes, it is, hopefully. Rajesh Ghai – ThinkEquity: Okay. Thank you, so much.

Thank you.

All right. Thank you very much. Now we’ll go to Glenn Hanus with Needham. Glenn Hanus – Needham: Thanks. Let’s go back to your business model operating model for a second. You commented on the gross margin side, you think over the next year basically, you can kind of get through your 19% or 20% target there. And then I think your operating model is like 9% to 10% or so, is there a timeframe you think you can get so that? And how do you view the sustainability now if you can of maintaining an operating model up in around 9% or as we get into the next cycle out there, will we go back to something significantly below that, how should we think about that?

Yeah, Glenn. This is Howard. Like I said, one-year target is what we’ve set out there. We’re holding to that basically from now. With regards to the levers to pull I think we are in, as Charles mentioned earlier, we’re in much better position with a variety of different products, technologies, operation perspectives to go off and really get to that operating model that we’ve discussed before or with the next year. And I think after this cycle again, we’re very well positioned and keep on doing the formula that we had here about pulling out the best products, application optimized and then fine tuning our operating model. Glenn Hanus – Needham: Okay. Can we talk about the high-performance computing sector a little bit? You breakdown the Internet data centers as – it’s usually 10 and now this quarter was 15%. Can you talk about what are your other largest verticals and specifically talk about the high-performance computing sector. Obviously Mellanox had some really strong numbers type to that sector and is that a good growth area for you guys, especially over the rest of this calendar year?

Yeah, HPC for sure is an area we focus on a lot. Especially our management software is getting available, just staying, we just start to charge a couple of customer with a colorful array of products. So with a completed solution, not just how do we have it now, some management software and computer rack solution. And our switch, out of mine also spiral high in production so all growth is where our HPC market. Glenn Hanus – Needham: How would you, maybe you could talk about what you’re view as like your top five verticals. I know you’re not going to give numbers or something. But you’re into that data center. With HPC being there may be commented on, what are your top five verticals really from an end-user market perspective and how are they doing?

I can mention some, like the sales into HPC embedded, IPC in that storage. Glenn Hanus – Needham: Okay, thank you.

Thank you.

All right. Thank you. (Operator Instructions) And next moving on, we’ll go to Alex Kurtz with Sterne Agee. Alex Kurtz – Sterne Agee: Yeah, thanks for taking the question, guys. So how are you? I just want to clarify one of Glenn’s question here. Did you say you’re going to hit 19% in the year? Did I hear that right or did I miss you that for gross margin?

I guess it 15 months it’s some time next summer. Alex Kurtz – Sterne Agee: Sometime in fiscal either end of fiscal and getting the fiscal ‘14 you will be hitting the low end of that gross margin range?

That’s correct. Alex Kurtz – Sterne Agee: Okay. So that implies pretty significant ramp from here and I guess that’s stems from the cycle that we are looking at here from Romley and then on top of that, again the Taiwanese build right and we should think about those being sort of equal contributors to that ?

Yeah, if I think that third statement, Alex, again the Thailand facility we talked about the leverage we’re going to get out of that facility as we fill that one up coming into the end of the year and then further expanding that as the demand grows for us and as Charles mentioned, were ramp to beginning of this new technology refresh cycle with Sandy Bridge and we tried very good things there. All right, sorry, Sandy Bridge. So if I look back at the ASPs, Howard, on the component side this quarter it took a pretty big dip sequentially from 104 to like 100 or so if my math is right. Alex Kurtz – Sterne Agee: You sort of take me through the pushes and the polls there on exactly why with that HDD related was as far as like that the drivers of that ASP decline on the – in the March quarter?

Yeah, in the March quarter, I mean, we don’t see on the component side of it, it’s really don’t use that as much because and again it’s a mix of either cable or then you’ve got chip that kind of or the other things, so again it’s a real wide swing about what’s in that bucket, so we are really don’t have to track much on the ASPs on that side ? Alex Kurtz – Sterne Agee: Okay. I guess from a modeling perspective does have an impact, but you also did see an increase sequentially on the server ASP and I guess that was without a full quarter you had some headwinds on HDD market and Sandy Bridge was really out there. So on a lower unit volume quarter-over-quarter, Howard, why was the ASP’s up a little bit?

Yeah again selling more complete systems we had to – we did have some shortages with regards to our HDD so we try to push those and work toward our full service systems that with bare bones, so sell more fully populated system and that leads to higher ASP. Alex Kurtz – Sterne Agee: Okay. It’s on a sequential basis.

That’s correct. Okay. Alex Kurtz – Sterne Agee: All right. Thanks guys.

All right. Thank you very much. We’ll now go back to a follow-up Aaron Rakers. Aaron Rakers – Stifel Nicolaus: Yeah, thanks guys. One point of clarification, you guys have made a comment about hard disk drives having some negative impact on the gross margin. Would you be willing to talk about what the headwind it was, as far as that gross margin related to hard disk drives and do you expect that the lift as, you’ve got an (audio gap) availability becomes more adequate as we progress through the year.

Yeah, for hard drive. Now we have a much more higher and also our boarding we are continuing to grow beginning. All knows we are a mega policy positive from a hard driver point of view. Aaron Rakers – Stifel Nicolaus: But the hard disk drive did that situation is reflected in the 17% gross margin. There was a negative impact in your model because of that this quarter, correct?

That’s correct. I mean, if you think back on the December quarter, we still had some inventory that we’re required at a lower cost right per hard disk drive. And as I stated in the December call, majority of our margin increase was due to a selling – basically gaining a high margin on those hard disk drives we already had an inventory. By the time December rolled around, we add up all that inventory coming into this quarter, we didn’t have that type of inventory and so we didn’t have that margin benefit from – our low-cost inventory. Aaron Rakers – Stifel Nicolaus: And you weren’t able to pass all that the price increases through. Did you pass them?

We are on the past increase, but more remember in December quarter, I had inventory that I required low cost before the flood happened (audio gap) and the prices increases happened, we had lower cost hard disk drives already in our inventory, right. But as I is sold those – I got higher margins on that during the December quarter. And you can look into the March quarter, I didn’t have that low-cost inventory to help my margins out this quarter. Aaron Rakers – Stifel Nicolaus: And so, what I’m asking Howard’s started beating around the bush a little bit. What I’m asking is what was that headwind, on that gross margins in the March quarter?

In the March quarter? Aaron Rakers – Stifel Nicolaus: Yeah.

Again, it was a majority so we had about – I think it was about hundred point basis move in the December quarter. I stated then that it was majority of that move in the December quarter. And so we didn’t have hardly at any of that this quarter. Aaron Rakers – Stifel Nicolaus: Okay.

Is that’s fair. Aaron Rakers – Stifel Nicolaus: Yeah, that helped me a little bit. And then also, how are we modeling OpEx on a total basis going forward and then also how we modeling beyond the June quarter tax rate and then I’ll stop.

Okay. With regards to the tax rate, let’s take that first because it’s little more unpredictable. I guess again, the R&D credit that it did expire in December, and historically they do they have historically re-initiated the R&D credit this year, I am losing a voting year you want to call that election year. So again lot more decreased visibility with regards to what’s going to happen. However, it does happen again there is a catch up in that quarter for the passage of the R&D credit. So we got it this present quarter, the June quarter here for 30% non-GAAP tax rate. And I think if you look back, we have been guiding around 30%, 31% over the past year. Aaron Rakers – Stifel Nicolaus: Okay. And then our OpEx at $28.7 million, I mean strive we continue to increase that in our model assumptions going forward?

I think we’re going to continue invest although not at that rate that Charles mentioned already not at the rates because we’ve just gone through the launch of the Sandy Bridge Park prepared many of our parks for relief, and so we’re not going to go at the same rate that we had previously. Aaron Rakers – Stifel Nicolaus: Okay. I’ll take it off-line, thanks.

Okay.

Thank you very much. (Operator Instructions). All right, great. At this time, we have no further questions I would like to turn the call back over to Mr. Liang for any additional or closing remarks.

Yeah, thank you for joining us today, and we’re looking forward to talking to you again at the end of this quarter. Thank you everyone, have a great day.

Thank you, ladies and gentlemen, that thus conclude the Super Micro third quarter fiscal year 2012 conference call. We do appreciate your participation. You may disconnect at this time. Thank you.