Super Micro Computer (SMCI) 5 Nov 242025 Q1 Earnings call transcript

Thank you for standing by. My name is Tamia, and I will be your conference operator today. At this time, I would like to welcome everyone to the Super Micro Computer, Inc. SMCI US Q1 FY '25 Business Update Call. With us today are Charles Liang, Founder, President and Chief Executive Officer; David Weigand, CFO; and Michael Senior Vice President of Corporate Development. Instructions] [Operator

With thank Update company Super additional session will first Chief remarks regarding decision Conference have ended in will and XX, and company's analysts. Fiscal First quarter, Executive sell-side for the Charles end September we Q&A Business are of Chief XXXX Call XXXX. At questions Officer, for you David but address XX-K. the of a the afternoon, not Q&A Chairman Financial the to any Micro's attending the Quarter prior of will which Liang, auditor remarks, Weigand, beginning our delay Good Founder of make to today Officer. filing and the I recent the independent me for prepared the today's resign

During current new strategy, Micro call, the and quarter address of market financial economic and and and 'XX, technology and Super its operations, first trends. business and outlook trends including product our our offerings from fiscal competitive industry our today's conference will advantages,

we we after and them. where make today, that posted obligation webcast. are discuss estimated financial subject By the and financial and you this SEC. on as is forward-looking preliminary on with no a close will of change receive of today's filings website that reference Any based of on copy release was to but call should issued based statements future are our results to results finalized now, market any and the simultaneously news is being undertake contained assumptions update results facts in We

indication Form filings, future some be and on with public the differ our results performance. considered A recent may XX-K. annual filings we each risks the our and is as uncertainties including of in results to and the forecasted, refer actual of report relating reported our contained results Our SEC from those discussion should of not of business most an materially

broadcast Super associated of website and being will and metrics be Investor webcast website all on IR on live This other call, growth During being archive this measures recorded purposes. than revenue investments. [indiscernible]. Relations rates Micro and the An the and is cash non-GAAP financial playback are for available is call

second fiscal of close [indiscernible] business at Our it December that, turn begins XXXX. period to With will XXXX quarter Charles. I the XX, Friday, over

Thank you, Michael.

Before we on to share quarter the like company I challenges the into dive that the first some would thoughts recent has experienced. details,

filed the we our auditor. reports since As confident we process emerge. in in financial these We our engaging are previous actively a of have alone previous as emphasized remain new in challenges and

part We special is the to court. yet affect and the the are the patterns grow working company customers. is special that to fraud the future. And We of next. Supermicro service and we with with deliver council, the series complete earnings urgency Directors. The made press I to report Micro's as management again floor following investigation which my oversight that expect is to auditor a independent statement ever. of ongoing, has special has the by strengthen our raised remains the recommending the no by to AI staff provided than on other I'm be do committee act it the that X-month or for full of that not completed committee special its investigation to otherwise The quote. provided with our has is in to done report The set this based reporting. following release. Supermicro, committee become committee and concerns has the also a included and current We or initial to financial our current end The pleased date of misconduct has internal expects stronger challenges for of found the independent there of a any forward look strongly Board its remedial has but the to today complete and committee evidence or measurement in committee's committee and on confidence information. week functions revolution. receiving Super continue near additional believe committed ability committee rapidly governance the work its in world and on the investigation details repo

billion are Despite the to The fiscal improved midpoint, and $X.XX old and GPU and preliminary non-GAAP customer is per the Comision previous it QX year-on-year BLC of range year-on-year was many operating XX.X% QX higher our supply of share by growth first Approximately last It are earnings net preliminary customers driven were than At in the new range of preliminary some highlights. The and in XX% fiscal revenue mix key was the this quarters up as approximately $X X.X%. $X.XX The from for to AI gross quarterly Both shipping customers. is Here approximately non-GAAP XXX% chain was quarter expedite the X components. waiting new-generation strongest Mangat our billion. strong Easter. demand year. $X.X XXX% in chips. costs margin margin rate. for

the also efficiency of online. And a logistics center while large-scale reflects AI record building depleted now Data Building complex driving deploy the helping our This expertise to cost LLC, and DC centers rescale [indiscernible]. time customers' reduce our product TTP, PPD featuring is greener a as to performance improving center AI data leveraging with to as for capabilities achievement achieving X [indiscernible]. engineering GPU roughly case few milestone accelerate quarters, solution, significantly and computing. required solutions delivery new to full-scale have We BBS data largest X,XXX from Nets our build data solution data center to liquid years cool we orders can with time XXX,XXX play for well a at billing center building pro adoption customers CBS to leading -- LLC, supercluster with NVIDIA it technology. time time OpEx, infrastructure deployment, our liquid Block [indiscernible] and cooling are Solutions data reduced our center customers in for

management be at XX% centers expect at of to next year due our last year Super share will The SCC, last least at XX% the PLLC than market mean data growth of composer, months. volume maturity to capable the [indiscernible] in [indiscernible] year. day cloud is product LLC rapid than end-to-end keep LLC performing more XX I will new is XXx the this [indiscernible] at least new adopt base. AI. To of a solutions and [indiscernible] a addition We BLC the automatic simplified the center SCC SCC, infrastructure, management prepared Space many data market changing on to from share. customers with way well the more data making addition data and grow customers market is towers, rapidly supporting to the today. software vision the requirements software-defined of of replead [indiscernible] center cooling with a service the level a center it for all most LLC workload chip of with powerful highly decoding

the the in our where later production campus, begin On of Malaysia are we manufacturing to process we front, this expect new completing quarter.

LRC Silicon stopped rescale Additionally, we now in have capacity. our production our Valley including to increase been expanding facilities

further. XX per able month are megawatts X,XXX they to up plans than more posting scale to with and produce power of Now

are by and we other planning Europe quick locations our Taiwan pace. to are several expand are to near leveraging at Moreover, manufacturing strength production in Our growing in facilities future global a also the our USA chain deployment to into Shimoga well company. design, management, build data pushing and services, quality, AI product center supply goal innovation, as transform IT as technology worldwide infrastructure we leading

We are to a fiscal start in off strong XXXX.

[indiscernible] are Our new smoothly. and are product our development employments total scaling IT rapidly solutions

The our well. also architecture production And to ready. is provides whole near [indiscernible] almost trend. on be are XXX-kilowatt and achieve PUE no fully and and in fan power AI unique MX, broadest the and plus NVIDIA XX AMD Our to part the MXXX core new will to ready new mean rig, for cooling effectiveness, as go It's XX-year XXX% I portfolio, require. able the MX codeveloped complete shipped intel NVIDIA, The architecture solutions right ready. brand that play platforms DLC. close X.X with are systems airport to the which usage ship

attracting to us block before sustainable long-term edge in quality and customers solution class CFO, passing call center scale, and thank we provide of until new to economics Our XX-K customers, and data is employees want information DLC more a with can express Supermicro status. building Regan, all competitive and our and I and given my our investors support about partners, is the David their capacity patience paying off investment our our volume more for appreciation filing

Building Solutions also are believe computing center future healthier growth. green only DLC well reduce Block and to Our customers, foundation but for costs we dual strong I margins. our a data energy leadership for contributed positioned strong not

investors financial remind Thank information this interim in report preliminary. the that you, unaudited is We Charles.

QX quarter-over-quarter net $XX XX% and net million net Growth driven The in The of billion approximately million, AI the $XX in million and diluted markets. is approximately revenues million. up income 'XX to year DLC I interest the income coupled GPU is is estimate expense is XX.X% due expenses non-GAAP. versus expected of expected The to provider in The and EPS efficiencies other for revenues be million. non-GAAP estimate GAAP million range of to tax $XXX in $X.XX billion Non-GAAP -- approximately related $X of cloud in guidance our QX GPU non-GAAP and non-GAAP other versus fiscal million $XXX $X $X.XX. income $X.XX $XX $X liquid million costs guidance $XX compensation over per AI and versus operating enterprise last across tax in diluted product of consisting approximately and year-over-year approximately by compensation scale for net share was service XX% customer strong split of approximately income. The QX is contributed $X.XX and is -- unaudited direct on The prior for the XX% versus manufacturing billion. QX expense to QX billion. expense, $X range of $X.XX X.X% to $XXX clusters. offset XX% XXX% platforms. adjusted and expenses, to X.X% higher $X net and QX earnings GAAP to excluding to GAAP expect for quarter stock-based gross versus income with interest $X.XX. $XXX QX of cooled, is We million, AI margin XX.X% $X.XX to rack range effects for is demand $X.XX excludes stock-based rate a guidance $X.X of margin million non-GAAP mix up lower QX. by to QX

quarter. the for of We billion expect was for free balance flow million, negative an a closing net The count $X.X an billion cash debt with bank $XXX is bond quarter-over-quarter. $X.X of QX $XXX of position million QX of Positive approximately $XXX million. debt position QX was last inventory and $X.X approximately billion GAAP negative $X improved position $X.X of diluted was share cash of sheet total resulting billion convertible improvement approximately and diluted QX debt versus $X.X of cash million. $XXX was net was a million QX billion non-GAAP flow share billion $X Operating a cash count quarter. $X.X billion cash in closing and $XX billion,

the QX working balance to QX was last was and days XX was quarter. metrics outstanding to XX The sales days days. QX. versus cycle cash conversion days versus sheet days for quarter, XX XX last to Turning from of compared days compared inventory was capital days in Days of while XX the last days XX prior outstanding days quarter. quarter XX payables days XX

quarter we billion expect to the range in $X.X of $X.X XXXX, the of billion. second sales net For fiscal

and mix. and product to points GAAP due gross margin sequentially basis XXX expect non-GAAP We customer down

million million. other non-GAAP and sequentially expect and non-GAAP a to GAAP expense expense We approximately be income and operating approximately $X net $XX expenses GAAP of and up

fiscal count related XX%, share income and for $X.XX. assume and of to and for million expect per to share expected in excluded be stock-based on this of million differ income $XX a accounting rate XXX results outlook non-GAAP of million non-GAAP net GAAP GAAP income The XXXX net effects company's shares year diluted of diluted net income from the a and share. The appointed. approximately and of GAAP new tax for We share projections QX a diluted reported of per here respectively, GAAP non-GAAP. The XXX diluted diluted from XX% share of to diluted shares of share compensation million independent net diluted expense period financial count for net which includes non-GAAP per $X.XX share and $XX expenses based per the per net tax other by registered may $X.XX reported income $X.XX for results the review public firm final are

'XX to complete our registered year We accounting audit. we're are a and independent firm fiscal select working diligently Michael, new ready. public

David. you, Thank

may questions into findings We're questions as line. about appreciate we the the our not time a have audit you we address questions, those well position call committee's get today. Before to special on further as in

with that, take first we'll operator, So a question.

[Operator Goldman Instructions] with Michael Sachs. from Ng first comes The

gating guidance feel up $XX customers out? you to occurs, on and the resolution is of some of the Just And hearing market losses previously at that as whether about in are once lower the the any that full the fundamentals, end of gave this some you billion business able from orders? you share was their a revenue it they'll wondering that you guidance. financial And filings? came I a to could do seeing step to result $XX Or speak year factor? if revenue you're delayed how billion any be of

Okay. revenue our bit. for chip, GPXXX reduced and some ready. new for guess are reason we in the last do on I Michael. the little new I the people solution, Thank [indiscernible] a or you That's so what the for because quarter, new the customers solution Indeed, achieve. are mean major the waiting the there [indiscernible] question, solution within

And guess we related. reg major I months we coating liquid our Again, So can for [indiscernible] and reason. now. that's our produce continue is solution capacity to fully grow, the --

ready. can after the to doing available. market we So chip new and And That's our very are we're revenue what I for believe that. share then we grow be

on just guidance. David, year And full for the Great.

we're Michael, annual guidance providing on call. this not Yes,

The from Samik comes JPMorgan. next with question Chatterjee

sort here. maybe about of guess to gross talk I the margins

base margins robust bit in mix. gross sort that be gross more Or remain getting you the guiding you a had still progression but seems are sort down. to more case? to in or terms discount about You the depending earlier to you're it's It back the sort XX% of XX% having on quarter, of like it choppy of before Does the talked margins of maybe customer more about in you're financial more you more how of or aggressive things products? just the sort a thinking of that or sort to not side on generation in getting operate filings, management around but of current on the planning control and disciplined any any pricing separate on as changes of reporting? sort terms related overall question, more know improve you're to the And around commenting I changes

it chip mean available. on I GPU right? Yes, new new Samik. you, products, Thank depends When

our share As Block to have and then you our solution, will margin for whenever full [indiscernible] know, profitability. sure, a are provide At end-to-end new of [indiscernible], generation same Solution they gross technology, we advantage center Building grow gradually time, and we margin. grow with our the net data that market

a this grew management a And have yes, more growing to team, will XX% XXXX, big we growth. above. then XXXX, we always we double. are grew than And As faster again, -- we year,

management. people, are when continue So senior companies to going, more add faster we including

the as including the -- to continue by well. special team grow we nature, senior possibility, evaluating committee. are the we management [indiscernible] we So And

comes with Fargo. question next Wells Aaron Rakers The from

as -- Charles, Yes. A if just I well. to I can go want back. couple I

I I $X this billion. originally think when had range guided is think the billion to like you guys $X guidance quarter,

Or demand came You something guess, at to just prior you timing there. or of are in the timing of last million the I'd assigning [indiscernible]? about $XXX midpoint add was that. of deployments also the at in the given changed in that comments question, that short to quarter? I this the there the

set think that you guide. had last I when quarter

I'm into to and just being like was as between to me business all $XXX trying out the for alluded of had Did you relative last first that that I fiscal guide that sales think close? quarter. the gap the today. bridge quarter delta million pushed there of update to the

Good. this complicated question. mean Okay. I

thing will chip QX believe QX are I is much higher So And much sure [indiscernible] cheap a like right? for new And is the volume gradually. major become performance this much hopefully, is we [indiscernible] dollars, because better. available impact performance better be availability for

that's I so the And major believe. factor,

certain yet, XX-K a a hopefully for little but big. our I not too delay sure, know don't bit to As much impact how may impact but

year, As our with for very X,XXX annual I a not few to the the months, than provide last guidance right. whole believe, [indiscernible] [indiscernible]. That, market. high today, In do we whole yes, edge, we delivered basically [indiscernible] is percentage more

So for the very future growth, optimistic. is still

Yes.

then And can. Okay. X other questions, I if quick

out going first you not then thoughts of that any provided you're anything much this inventory an outlook So auditor that asking, curious, mentioned an that I that can sign you that of this thoughts that, coming any quarter. appreciate the auditor of not might out on I And front? all, on comments special quarter trend you of front. mean, in that didn't we're dynamic. But I -- I the today? talking know of of embedded Any ask $X but to billion next apologize coming of timing you for where -- committee address share or getting on you about I'm your

Okay.

answer I the grow, company maybe I can will I bit. to inventory, continue For mean believe. a little

level very them, share believe very as results we for I'm from to billion inventory, innovation available will detail once committee I market. will with investigation as of it's the continue. today, $X So And the special some positive share happy to

line that mentioned, diligently I done, working And update we we to as possible. we respect earlier. the with Aaron, quickly as no that have get talked to as time mentioned We're as about,

Capital. Baruah with Ananda Loop From Instructions] [Operator

fiscal first is guess really it -- -- were as year is, gross question improve should still Two on we sort margin I previously of the we if the Dave, to expect I guess go expect I well, could. anticipating? the we through as you should

Yes.

in margin. our way, guided on cautiously the quarter this by we So first

glad to were be it. exceed to able we So

guiding second quarter. conservatively like the And fashion, we're into so in

have for. target that still still our -- so we we're margin And it's shooting

And that doing so improve to we we're that. can everything

you and that or SCC, Yes. from ]. including very I new whole competition push some space optimistic chip putting to pressure, center the mentioned, center mean data Blackwell, The tends building management we feel [indiscernible] solution And but grow. product to still a know, as [ as rack end-to-end technology the I provide data to level scale

And help able also on-site of provide service. the start will provide to on-site deployment, customer believe then growth. and cable all I to -- our So those we

So business. all very positive are of our to those

business [indiscernible]. to I grow So feel positive very continue

appreciate general us financing Yes. Thanks I comes lot investors. This -- capital with just that. I And -- forward? capital just working is the a community a to situation? the come give question. the as can question with really, question is of to the I how about margin explain would up situation you guess context. the to capital just for guess, the follow-up you really, And sort think like And has could go up you access we investment access

Sure.

X from X, $X working convert. we Ananda, billion X one into months, in last and equity put So raises the capital

really it left working that's a around capital rate of run with so $X -- of And us billion good situation billion. $X at exiting really -- QX a

in So down again, little QX. forecasting a we're

working that needs for care while. of capital takes a So our

So access, we have profitable a very strong, growing company. and

we'll And working so capital. don't believe we to any impediments that raising have

net making -- quarterly reasonable Yes, we every a profit, quarter, though. are good

good should shape. in basically, So we be a

with Barclays. next George The question from Wang comes

I have two ones. quick

of guys in which alluded Blackfoot you quarter can June time Firstly, revenue? start kind Last the on to the think sometime do you that you quarter. double-click will booking you

is that still whether track. curious on Just

the do Just level P&L? [indiscernible] is to show think going in you in the any of up when kind terms of high

InvIT Yes, Indeed, asking day. we're very big question. every

And have hope smooth are for [indiscernible]. and I go go solutions they cheap their our production high-volume available, can medicine. once So

current very a XX designed and enhance work we So MVL direct to also solution. continue And them scale some to really [indiscernible]. develop with we closely

chip. of offering, we the very in total terms a have waiting So strong solution, for

we the quickest approval. So media live

Got it. That's helpful.

one, a if quick I Just can.

in how area think to of [indiscernible]. Just the about versus Blackwell gross margin

the reference profile? curious we as relation from the XXX, you profitability in to takes of kind the kind the design the to from and can Just if GB [indiscernible] incremental any just on light puts for just NVIDIA, hand talk about Supermicro especially in margin kind add value margin of and of of gross

We know [indiscernible] are people more market [indiscernible] competitive, now. right? Because so estimate big is

data back the the on-site at Block with deployment, cabling prepared But expect Solutions. center we and our with our cloud with So also more Building were service time, end-to-end our business. where competition. super composer by same we

new. delivery very to provide I a are time unique, those are to very to So to And customers. we online efficient advantage believe time able

strong, is but competition in a position. good we I yes, So believe are

following Nehal Chokshi The from comes with Northland.

please. A couple of questions,

customer quarter? XX% the exposures quarter any Dave, and the First, in upcoming

will have customers, Indeed, we Nehal. XX%

you Could the revenue September detail far represent quarter? as some in overall customers of as to XX% us percent due what give

Yes.

release So we're data today. not that going to

But in continue to Yes. at especially Asia. same new customers, the Europe time, in more we gain

So a I able believe will keep to be we LC ratio.

then benefit be Micro community perspective, And strong the that Great. a From to Charles, beneficial separating what if CEO and I investment Chairman in Super could Okay. Supermicro. is separated, roles, there's quite think feeling the your roles. the these

[indiscernible] consideration. That's my

day, question every thinking years every and every the it have week, about been So since ago. I day many

And what of were again, base so business. the

and mind personally the for consideration I But and and overall guy very still, in my shareholders best interest. technology company. benefit the open is So best technology

interest just to potentially you clear, being the that And in roles best see there? of these separating the do of shareholder it be

moment, this at but [indiscernible]. comment No I'm

year, year will X Hopefully, in retire. X it. I someday, [indiscernible] not retire And

sure family for and our for those for a my is changes So of I mean company. natural shareholders base too. And

comes from question with Mizuho. Vijay next The Rakesh

December? Charles, in September in cool how December, wondering are and [indiscernible] liquid on just September many quarter [indiscernible] the in shipping racks we

number have Maybe some you do year? this

just quarter don't was have exact... little but It below last the a I

to have company liquid ship market of cooling to would I the a [indiscernible] had recently. say, most we

liquid the in And because cooling the our quarter. market. September example, ahead of For

and of trend. requirements like So power safe -- kind the and their save customers and energy water because [indiscernible]

we continue I believe grow depicting percentage. to will So

much when is say December on down on that And sequentially? the how sequentially idea Any it. quarter into you Got [indiscernible].

promote very [indiscernible] share this will continue to that I quickly. believe number, but grow And very we did happy not We to cooling are

Sorry.

file you are the I NASDAQ? auditor the and plan think, on David, that an a guys you comfortable have deadline, to will #XX

answering not questions those today. we're So

quickly I and possible. -- we diligently with to regarding auditor indeed we're as plan will be said, filing like as -- the NASDAQ we extension. looking replace a And we're So an

have And about to so that. say that's we but all --

The comes CJS Tanwanteng from next question Jon Securities. with

or I Charles the first could in implied out QX and you you be this David, your expected supposed supply orders and risk see back guidance issue, or QX just [indiscernible] in possibly through from maybe the with all? was and figure to and due especially until would what finance, new out? Or some of just And to what filing technology? especially it just allocations then have guidance this your wondering, second, auditor of was hold revenue NVIDIA, they the are break in you they supporting you meeting you do a

decades. Yes, growth multiple our And NVIDIA X been with enhance. of cooperation companies between relationship continue our to kind has

[indiscernible] product negative and So I important allocation don't have many expect from we them. then called

according to seems moment, our relationship this according at our So communication, to very positive.

Great. guess, implied guidance? and the this quarters that last And quarter then the in I were [indiscernible] numbers

NVIDIA, know volume don't have what's we -- we the because answer to every rate how hard That's available month.

and them common with very [indiscernible] solution customer. co-develop work solutions, we So the closely service and

So once I good have no volume product they percentage mix. a our have believe in will we available,

capacity sneak Got more in efficiency it. could. chain? production and your supply in you supply to in issues chain cooling Is if mostly there? the be liquid resolved unlocked And your one then if ramping Or have more there I could I there,

we months, happy. more satisfaction [indiscernible] We X,XXX very And far, on, the Indeed, customers much that from [indiscernible] I are feedback recs, earlier than few we're already right? than the better last shipped the quality, solution. so even our than focused So right? customer the think industry, in

we a So bit are excited.

total the including other that whole advantage, data be will to major in aware. service [indiscernible] Again, [indiscernible] paying the Our years the not last harden continue X off. the is we end-to-end our center so and believe management solutions.

for are excited we customer [indiscernible]. and So very our solution [indiscernible]

The Mehdi Hosseini SIG. following with comes from

did cash positive went correct? seems from onetime cash days inventory operating your what flow? item the understand -- flow, you was I it a up, but significantly hear David, Can you And flow. that like cash is you impact if there helped increase able so, positive you were regarding with of to I your what operating Yes.

Sure.

I really hundreds is, million the had answer as well to been of what's that's been into rate into think high accounts our such growing of a Mehdi, impacting flow that we've is quarters over dollars we've the cash our that pour operating that inventory at as past receivable.

a to $X coming dramatic off we able of increase generate were in So where of we such billion a of basically improved flows. lot of quarter revenue, a worth have cash, kind didn't cash

So so mentioned, as really was fact it the reasons just wasn't was the it really high yes, growth -- that [indiscernible] the Charles for

but days your up. I understand, from I'm sorry, your of went went -- DSO your didn't And up change. I I DSO inventory think you, from what heard

So capital in there outside Or operating improvement reduction? was capital something by of driven that was all to cash working flow working help you?

inventory reason. really No, it really for was for those reasons. just It was

XXX% right? then I sure, for So customer become more year-over-year. And we to have sure higher see right? So -- maybe it. when grow, growth much mean, when about and demand. XXX% Many, not our for grow support inventory year-over-year, we I to continue normal, need our more we can

grow much have that our cash of will XXX% we to have example, flow. XX%, that and inventory, then don't For or

[indiscernible] a So it's

Got update maybe on an global give total then, your help with us utilization should tracking? how it. how Charles, of the And us you the installed is capacity, can -- And Malaysia capacity especially the expansion?

good question. Very

grow very Taiwan we continue That's in will Malaysia. huge have to capacity in Valley, preparing in especially now expect and fast. Silicon a We why we been

chip. in capacity. enough I is low like stay new because to this rate utilization terms long ready, a But moment, at we those such capacity So would needed of little no bit term, but no

XX%. in chip. low, maybe relatively only new our say why that, variation now you That's no, is As rate

you on This cash is flow. Dave. Yes, couple of I was going tips give a other to

You'll probably notice a non-GAAP million $XX more gross this had because improved on of margin, we basis, quarter. almost that profit an

again, accounts to payable by our metrics, going hundred several that, working to million increased dollars. we back addition In capital

those -- are into improved that flow. So other go factors operating cash

progress, [Audio have now have we've to confirmed and strong decades and expect projects back them [indiscernible] allocations, It technology changes to deepest clarify, relationship they've goes we NVIDIA maintained in at relationships the change. And we multiple with with been Gap] we NVIDIA a there and the don't spoken with that no level. state-of-the-art and

to I that clarified. So was make just sure wanted

actually [indiscernible]. our last Next question question

Absolutely.

question comes & final Our from with Quinn Bolton Company. Needham

NBL you guys I for the in follow sounds kind that expected for know first but nice than those you're confidence slightly it black be or guess Are chips. half Obviously, I rack weaker for it's just the so on stronger well just new the those a POs early chips, you backlog you'll Blackwell backlog guys you the show books, see that orders like up up starting a to meaning when at is getting wanted starts you really customers this ship? to to building to get you don't point? waiting second either half much order too actually the for or for Or systems. of once building seeing [indiscernible] gives

Yes.

is solution of customers site end allocate solution NVIDIA very satisfaction customers. strong. mostly with end-to-end on we to work overall, customers. the old best attractive is on-site believe And common a Our solution that's provide very our their would new to lot company, to continue solution started solution And company, who at the very So provide user to -- new deployment and faced to hopefully, NVIDIA total why have continue every to on-site to closely we solution will aim cabling service. I total those important I say is and very the strong, And because have the right? customer all, to

coming comfortable very to feel new for we a So solution. chip the

you're that [indiscernible], for on backlog the your order books? seeing building So

remote provided We of now. POC [indiscernible]. kind

David. for Okay. And question second, a follow-up

banks at debt address risk Just that any able the both if prescribed bank if have Wondering after financials agreements you convertible You've just to audited would of agreements? Do with what recently when you credit provide extent that call audited new time. those right to new setting Do credit the term a hit just you be the To date date, sort the happens? renegotiate financials. point, the effectively what don't provide both within and you with that debt to if banks of the you happens there's go your might to don't loans? have filed the

Yes.

to So refer I just filings. we'll think our X-K you

relationships We have banks. long-term and with the good

mentioned waivers. will as ability And access as the extensions, markets. so like necessary, we capital yes, not to the file about concerned get or And we're earlier, I company's

to no remarks. in currently turn back There it for over the queue, team are closing questions I now so other management will

you soon. Thank to conference joining to today, forward and our call you talking look we for

This concludes today's your conference call. Thank participation. you for

now may lines. You disconnect your