Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Super Micro Computer Incorporated First Quarter and Fiscal 2017 Conference Call. The company's news release issued earlier today is available from its website at www.supermicro.com. In addition, during today's call, the company will refer to a slide presentation that is made available to participants, which can be accessed in a downloadable PDF format on its website at www.supermicro.com in the Investor Relations section under the Events & Presentations tab. During the company's presentation, all 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 on a listen-only basis. As a reminder, this call is being recorded Thursday, October 27, 2016. A replay of the call will be accessible until midnight, Thursday, November 10, 2016, by dialing 1-844-512-2921 and entering replay pin 8620920. International callers should dial 1-412-317-6671. 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'd 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 on financial results for the first quarter fiscal 2017, which ended September 30, 2016. 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 & Presentations 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 and for fiscal 2015, and our other SEC filings. All of those documents are available from the Investor Relations page of Super Micro's website. We assume no obligation to update any forward-looking statements. Most of today's presentation we'll refer to non-GAAP financial results and outlooks. For an explanation of our non-GAAP financial measures, please refer to slide three 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. And now, I'll turn the call over to Charles Liang, Chairman and Chief Executive Officer.

Thank you, Perry, and good afternoon, everyone. Please refer to slide four. Let me provide with summary of our first quarter. Revenue was $529 million. It's 0.9% higher than last quarter and 1.8% higher year-over-year. Non-GAAP net income was $16.7 million. It's 16.9% higher than last quarter and 1.1% higher year-over-year. Non-GAAP earnings per share was $0.32 per diluted share, compared to $0.20 last quarter and $0.32 last year. We are pleased that Super Micro was able to deploy revenues at above and probably at a higher end of our expectation for our first quarter. Last quarter, system sales were 67.6% of revenue, with 50% coming from direct customers. The key large segment that drive our systems business improved, starting with 23.5% of total revenue, up 10% from last year and 24% from last quarter, against average sales to the [indiscernible] decline in market those performed strongly. We are seeing an increased number of customers as up to all fresh NVM solution and expect strong NVM system growth in 2017. Internet data center and cloud comprised 12.8% of total revenue, down from 25% last year and down from 18% last quarter. We took some times in the past couple of quarters to review our pipeline in this segment. Now we are at with product therefore it would nice with better dilute. We are expecting win in this – in the near future in this large board of segment. Despite early fair in some margin pressure, we are confident that how datacenter will continue and grow our economical scale in last year. IoT and embedded comprised 10.7% of total revenue and was up 12.9% over last year and up 10.2% from last quarter. A key driver of our success is been the focus on that case in IoT and embedded themes…

Thank you, Howard. In summary our outlook for December quarter, we had a fixed our seasonality expectations. The backlog in a stronger gross now much segment we expect these quarter see you contribution and nine installment demand for modest always Michael Brady and that's you accelerated computing and not be surgeon not demand in the college and innocent mall over the expecting the completion of our new global operation was we were achieve that and some improvements to our efficiency in the public. Indeed, we are very excited about phase the market opportunity. And at the other companies in a position, we in the idea was special market. Operator, at this time, we are ready for questions.

Thank you, sir. [Operator Instructions] And we'll take our first question from Rich Kugele with Needham & Company.

Thank you. Good afternoon. A few questions, so I guess first clarification, Howard Can you repeat the growth rates for next in enterprise and HPC, HPC particular I didn't catch it sounded like it was some of the hundred percent is clarify that?

Rich, on a year-over-year basis NextGen towards enterprise and HTC in the 36.9% next doors are .7% for 597.5% for the cable and sequential bit NextGen NextGen storage grew at 26.6% and 21.8%. Our practice is to our point okay the PC side is there any commentary you can provide likely the particular environment is going into the unique configurations you can talk to really nice with educational area would think of the 51.

With regards HPC area that was on the out the platform and was very pleased okay. And then in terms of just where we are in the process recycle. Can you talk about demand for the current series of Intel products and any in the early indications on demand for the future launches next year earlier go and 95 most have been?

GPU and 900 and much and then you said available so we have a strong mine oboes the quarter was company and we expect that gross us to in the including not local and ENG for enterprise. We had a strongest product line that will not be the 40 great in growing model okay. And so your sense of how to LNG. Now with Nvidia and until most now we see excellent the queue. Thanks very much.

We'll go next to Nehal Chokshi with Maxim Group.

Thank you. And congratulations on a strong quarter. Great gross margin and good guidance here. impressive the concept of datacenter sales were down 47% year-over-year and 29% to so you talk a little further about why that ourselves continues to decline on a Q-o-Q basis?

Thank you for the kind remarks, we talked about it the quarter as we thought it build out and data centers all last year for cellulose build out that I have been gone for staying Outlook and will technology refresh and demand for your additional client into the data center again audio talk about that within our guided we have great opportunity there to grow as as we go pipeline in that area yeah. So, I like men know you have a one-off most those on the full view quarter. Mike stated, we did not I would say I'm not a couple of floods the site in the private I get into the local and the fees will be.

It appears at this time we have no further questions. I'd like to turn the call back over to Mr. Liang for additional or closing remarks.

Thank you for joining us today and we look forward to talking to you again at end of this quarter. Thank you, everyone, have a great day.

Thank you, ladies and gentlemen. That does conclude the Super Micro first quarter fiscal year 2017 call. We do appreciate your participation. You may disconnect at this time. Thank you.