Please standby. Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Super Micro Computer Incorporated Second Quarter Fiscal 2014 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 it has 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 and Presentations tab. During the company's presentation, all participants will be in a listen-only-mode. Afterwards, securities 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, Tuesday, January 21, 2014. A replay of the call will be accessible until midnight February 4th by dialing 1 (877) 870-5176 and entering conference ID number 9732681. International callers should dial 1 (858) 384-5517. With us today is 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 on financial results for the second fiscal year 2014 which ended December 31, 2013. 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. Please turn to slide two. Before we start, I’ll remind you that our remarks include forward-looking statements. There are 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 2013 and our 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 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. 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 four. First, let me provide you with the highlights of the second fiscal quarter. We are pleased that our second quarter revenue was $356.4 million. It’s 15.3% higher quarter-over-quarter and 22.3% higher year-over-year. Non-GAAP net income was $15.9 million or 60.9% higher quarter-over-quarter and 103% higher compared to last year. Super Micro’s non-GAAP earnings per share was $0.35 per diluted share, compared to $0.22 last quarter and $0.18 last year. Slide five and six please. Super Micro’s second quarter was record high for revenue and earnings. We grew again in market products or industries gross rate. Our foundation in product innovation and global operation came together this quarter to produce these record results. Here is a fiscal breakdown of last quarter’s revenue, our server system contribute 48.8% of our total revenue. 46.6% of our business last quarter came from OEM and Direct customers, with the Internet Data Center accounting for 12.9% of sales, which increased 55.4% from last quarter. Our continued focus on offering completed systems and total solutions is again showing strong progress. More partners from both channel and Direct are moving toward taking completed system from Super Micro because of its higher product quality, greater time-to-market, optimized product performance and power efficiency and available global logistics support. Geographically, revenue in North America was 50.4% and Europe was 23.9% of total sales. Notably, Asia jumped to 23% of our total revenue, contribution which was up from 17.8% last quarter and 20.7% last year. As I have said before, Asia will become a large part of our revenue story, due to our readiness at Taiwan facility. We are able to scale and deliver high quality product for Asia and certain world-wide customer base. Europe revenue also was up approximately…

Thank you Charles and good afternoon everyone. I will focus my remarks on earnings, gross margins, operating expenses and similar items on the non-GAAP basis which reflects adjustments 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 second quarter income statement. Please turn to Slide 11 -- 7. Revenue was a record $356.4 million, up 22.3% from the same quarter a year ago and 15.3% sequentially. The increase in revenue from last year was primarily due to our increase in server solution sales particularly in our innovative product such as Storage, FatTwin, GPU/Xeon Phi, Racks and Switches. This couple with our management software and support services has further opened opportunities in the market for us. On geographical basis, we had strong growth around the world with Asia leading the way. A sequential increase in revenue was primarily due to seasonal strength in the industry and continued strength in our innovative product above. In addition, Ivy Bridge which was launched on September 10 continue to ramp nicely, benefited by a broad product line. Turning to product mix, a portion of revenues from server systems was 48.8% of total revenues which was up from 43.3% for same quarter a year ago and from 46.4% last quarter. ASP for servers was $2700 per unit which is up from $2100 last year and up from $2600 last quarter. We shipped approximately 63,000 servers in the second quarter and 1,173,000 subsystems and accessories. We continue to maintain a diverse revenue base with over 600 customers and none of these customers are representing more than 10% of our quarterly revenues. Internet…

Thank you, Howard. Again, last quarter was a record quarter of revenue and earnings for Super Micro, providing that Super Micro is leading server, storage and competitive solution company and a strong competitor. We believe that we are well-positioned for a very strong calendar year 2014 and possibly reaching the $2 billion run rate very soon. Operator, at this time, we are ready for questions.

Thank you, sir. (Operator Instructions) And we will first go to Mark Kelleher from D.A. Davidson.

Great. Thanks for taking the questions. Congrats on a great quarter there, guys. Want to talk about Ivy Bridge contribution in the quarter. Can you quantify how strong that was in the quarter, can you quantify where we are in that product cycle and how that should rollout over the next couple quarters?

Yeah. Ivy Bridge is still a pretty new product. Again, they are available for about one and half quarters and quarter-to-quarter, we grew about 70% for Ivy Bridge.

As far as -- yeah, of volumes.

So kind of new products, so I believe we are continuing to grow.

Okay. And I will -- my follow-up question kind of unrelated, the competitive landscape, clearly you are growing faster than just about every other vendor out there. How do you think that landscape might change if IBM were to divest their x86 business as was no more today?

Yeah. For sure, it’s an not an easier task and that’s why we have spend lots of efforts to build our foundation in terms of engineering capability, in terms of global operation cost and all of those investment were been heavily in the last three years, have been pretty ready. And that’s why we start to see the advantage to grow stronger than others.

Okay. Thanks.

Thank you.

And we’ll now go to Aaron Rakers from Stifel Nicolaus.

Yeah. Thank you for taking the question and then also congratulations on the quarter. I would like to talk a little bit about gross margin. Some of the levers that you still see in front of you, I guess starting with where you stand today on the Taiwan facility in terms of utilization where we expect that to be trending out over the next couple of quarters and then on top of that just remind us again if what other levers you have to kind of attaining your target model?

Yeah, Aaron, this is Howard. With regards to utilization on Taiwan, that was still about 41% for the December quarter and growing. Obviously it’s a record for us, previous record for us was about 36%. So that’s one of the levers we talked about with investors all the way along as far as increasing the utilization for not only the Taiwan facility but obviously our operations worldwide. So that’s one of the important levers for our gross margins. We also hit a couple of other levers that we’ve talked about in the past. Product mix, as we drive towards more complete server solutions, it would be beneficial to our margins, growing our scale of business. Again that contributed during the quarter to improvement in margins and to a lesser extent we talked about software and support services. And I’m glad to see that they are starting to contribute a little, albeit little but just starting to contribute for us. So the levers that we’ve talked about in the past are -- it's quite gratifying to see some real numbers pulling behind.

Yeah. They all factor in, but it is still about one-year old new product. They continue to grow strongly. And we just announced our TwinPro, which is another kind of performance per watt enhance Twin Architecture. And just ramping up now quickly and follow by our MicroBlade in next few months. So, I mean, new product, new architecture, outperform competition that [help us a lot].

Okay. And then as a follow up, I'd like to maybe understand a little bit better your Asia-Pac growth in particular was obviously notably impressive this quarter, especially in the context of what IBM just reported tonight. Can you talk about your exposure in Asia-Pac and in particular your positioning, how meaningful China is in your positioning specifically within China?

Yeah. I mean, Asia is relatively a new market for us, right. We started to focus on Asia aggressively about two to three years ago and now we have getting stronger foundation there, especially a production ready in Taiwan. So, I mean, we continue gaining good customer in both, China, Japan and Korea. So that's very solid trend to go I believe.

And how big is China of Asia-Pac, can you help us understand that?

It's still roughly a majority of the Asia-Pac area.

Okay. I'll get back in queue. Thank you.

Thank you.

(Operator Instructions) We'll now go to Glenn Hanus from Needham.

Good afternoon. Liang, your Data Center business was up strongly. Can you talk about what the trend -- what was behind the trend there this quarter and maybe what to expect over the next few quarters?

Yeah. I guess, the major reason because our capacity in logistic global have been getting very strong. So we are much more ready to approach those huge Data Center now. So I believe we are continuing growing in that territory quickly.

So with some of the Data Center wins over in Asia or can you characterize maybe geographically where the growth really came from this quarter and was it sort of highly concentrated in a couple of large deals?

Yeah. Glenn, this is Howard. With regards to where it was -- we saw some nice deals in Asia, that grow some of the percentage is in Asia up during the quarter. We also saw some continued growth in the U.S. which was nice to see also.

And Europe as well.

And Europe as well.

Pleasantly, yeah.

And what's your outlook for the next few quarters there?

I guess we'll continue evenly growing, although, Asia will be a little faster.

Okay. Thank you.

Thank you.

And it appears there are no further questions at time. So I will turn the conference back over to our presenters for any additional or closing remarks.

Thank you for joining us today and we are 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. And that does conclude the Super Micro’s second quarter fiscal year 2014 conference call. We do appreciate your participation. You may disconnect at this time. Thank you.