Super Micro Computer Inc (NASDAQ: SMCI) Q2 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Michael Steger — Investor Relations
Charles Liang — CEO
David Weigand — CFO
Analysts:
Anando Borrower — Analyst
Sonic Chatterjee — Analyst
ASEA Merchant — Analyst
Chokshi — Analyst
Quinn Bolton — Analyst
John Tomlinson — Analyst
Malik Newman — Analyst
branding — Analyst
Presentation:
operator
Thank you for standing by. My name is Matt and I’ll be your conference operator today. At this time I would like to welcome everyone to the Supermicro Computer Inc. Q2 Fiscal Year 26 Financial Results Call. With us today are Charles Liang, Founder, President and Chief Executive Officer David Quegan, CFO, and Michael Steger, Senior Vice President of Corporate Development. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. All lines if you need it during the presentation portion of the call. An opportunity for questions is answered at the end.
If you would like to ask a question, please press Star one on your telephone keypad. Over to you, Michael.
Michael Steger — Investor Relations
Thank you. Good afternoon and thank you for attending Supermico’s call to discuss financial results for the second quarter full year fiscal 2026 which ended December 31, 2025 with me today as you know as Charles Liang, Founder, Chairman, Chief Executive Officer and David Wiegand, Chief Financial Officer. By now you should have received a copy of the press release from the company 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 is available to participants in the IR section of the Company’s website under Events and Presentations tab.
We’ve also published management’s scripted commentary on our website. Please note that some of the information you’ll hear during the discussion table consists of forward looking statements including without limitation, those regarding revenue, gross margin, operating expenses, other income expenses, taxes, capital allocation and future business outlook, including guidance for the third quarter of fiscal 2026 and full fiscal year 2026. These statements and other comments are based on management’s current expectations and assumptions involve material risks and uncertainties that could cause actual results or events to materially different from those anticipated, and you should not place undue reliance on forward looking statements.
You can learn more about these risks and uncertainties in the press release we issued earlier this afternoon, Our most recent 10K filing, fiscal 2025 and other SEC filings. All these documents are available available on the IR page of Supermico’s website. We assume no obligation to update any forward looking statements. Most of today’s presentation refer to non GAAP Financial Results and Business Outlook. For an explanation of our non GAAP financial measures, please refer to accompanying presentation or to our press release published earlier today. The non GAAP measures are presented as we believe that they provide investors the means of evaluating understanding the company’s management evaluates the Company’s operating performance.
These non GAAP measures should not be considered in isolation from, as substitutes for or superior to financial measures prepared in accordance with US gaap. In addition, a reconciliation of GAAP to non GAAP results as contained in today’s press release and in the supplemental information attached to today’s presentation. At the end of today’s prepared remarks, we will have a Q and A session for sell side analysts. Our third quarter fiscal 2026 quiet period ends at the close or begins at the close of business Friday, March 13, 2026. And for now I will turn the call over to Charles.
Charles Liang — CEO
Thank you Michael and thank you all for joining today’s call. ShipHub Micro delivered a strong fiscal Q2 as AI Infrastructure demand continues to accelerate across every major customer segment. For the quarter we achieved a record 12.68 billion in revenue including 1.5 billion before the former type of account last quarter representing 123% year over year growth. This strong performance reflects the sustained momentum of our AI solutions and large scale systems as customers view our next generation AI factories. Singh Micro has been developing some of the largest and most complex AI cluster ever built, highlighting our unmatched capability in large scale manufacturing on site deployment and integration.
Most notably our data center building block solution or DCBPS has started to gain some key customers preference as they look for quicker time to deployment and quicker time to online tto. This pre design pre validate infrastructure building blocks not only speed up customers data center builds but they also save cost. With better workload optimization and with minimal power and water consumption, bcpps will significantly help us gain market share in large, medium and small AI infrastructure deployments with GP300, B220, B320 and Mi350 platforms. We are also preparing for the upcoming Nvidia Vera Rubin and AMD Helios solutions for the second half this year.
While we continuously growing AI factory build out customer and product mix shift more to a large model builder who had pricing leverage pressuring Gross margin in Q2, especially the expedited transportation cost, ongoing components shortage and their volatile pricing. Among these tariffs impact our short term gross margin. As such, I would like to take a moment to highlight our key strategies to address this and efficiently strengthen our long term possibilities. First and foremost, Supermicro undergoes its fourth phase of product evolution with DCPPS as its key focus. As this data center deeper scale DCPPS is and will become an increasingly important part of our value.
In the first half of fiscal year 26 ECPPS Solutions account for 4% of our profit. We expect this part of our profit to grow and meaningfully contribute to the second half of fiscal 26 and we see that growth accelerated to at least double digit contribution by end of calendar 2026. With complex GPU CPU life cycle CCPPS become critical helpful to the value of our server and storage products by enhancing the data center infrastructure, time to delivery and time to online, reducing power and water consumption and cost efficiently simplifying data center management and maintenance. In just about one year, our TCPPS product lines grew from more than grew to more than 10 key subsystems including CDU, L2A, heater, exchanger, trio doors, power cells, battery backup, water tower, dry towers, high speed switching, data center management, software and service.
We are expanding this product line to include more new categories such as transformer, next generation power generators, device for energy backup and grid power replacement, further strengthening customer value, accelerating deployment and supporting long term profit margin. Improving pursuit for micro other than developing BCPPs for better value and portability, we are also sharpening our focus on traditional enterprise cloud and edge IoT customers to further diversify revenue with higher margin. In addition, we have introduced our X14 and H14 Go series solutions featuring pre configured systems that ship directly from our factory enabling rapid deployment optimized for specific AI, cloud storage and telco edge workloads.
These servers are ready to power immediately and reinforce shipamaico’s core value time to market advantage for enterprise, customer channel, partner and SMB end users. We are also driving meaningful cost improvement through enhanced design for manufacturing, DFM and quality driven engineering. We have introduced more modularized subsystems and expanded automation across our facilities. These efforts increase error rate, reduce rework and enable us to bring new platform to boolean production even faster and with higher quality. As product cycle shorten and technical complexity increase, these design for manufacturing advancement are essential for scale efficiency and long term margin improvement.
While executing these DFM initiatives, we are also continuous to expand our global manufacturing footprint aggressively and strategically. Our Silicon Valley facility remains the CornerStone of our U.S. operation, delivering faster time to market, strong security and higher quality integration internationally. New production site in Taiwan, Malaysia and Nestled and soon the Middle east are ramping to increase capacity, support regional solving AI requirement and most importantly optimize our overall cost structure. In summary, as the only company with more than 32 years of robust server and storage focus, ChipHumanCo is quickly evolving into a leading AI platform and data center infrastructure, total solution provider, strong Q2 performance, rapid expansion of DCBBs product line, deeper and more customer engagement and the global capacity investment position us well for long term growth while near term margin pressure from customer mix tariff, international facility expansion and key components shortage like memory and storage shortage.
Our focus on enterprise business designed for manufacturing improvement and the faster growing ECBS portfolio all help us gain new customer support, higher growth and net margin going forward. Lastly, based on our broader customer backorder forecast and commitment, we believe demands for AI and IT infrastructure remain unprecedentedly strong. Our TCPP as a solution is exactly what customer need to build out their AI and cloud much faster, greener and lower total cost. With that in mind, I’m confident to guide at least 12.3 billion for Q3 and up our full year revenue guidance back to at least $40 billion.
I look forward to sharing our progress with you next quarter. Thank you. Now I will turn it over to.
David Weigand — CFO
David thank you Charles we achieved record Q2 fiscal year 26 revenue of 12.7 billion, up 123% year over year and up 153% quarter over quarter. Compared to our guidance of 10 billion to 11 billion. Q2 revenue included approximately 1.5 billion in delayed Q1 shipments due to customer readiness. Growth was driven this quarter by the rapid ramp and deployment of our Rackscale AI solutions. Despite supply chain challenges in the industry, our global manufacturing team executed well in delivering record revenue. Order strength remains strong from global, large data center and enterprise customers. AI GPU platforms, which represent over 90% of Q2 revenue, continue to be the key growth driver during Q2.
The Enterprise Channel Revenue segment totaled $2 billion, representing about 16% of revenue versus 31% in the prior quarter. That’s up 42% year over year and up 29% quarter over quarter. The OEM appliance and large data center Segment revenue was 10.7 billion, representing approximately 84% of Q2 revenue versus 68% in the last quarter. This was up 151% year over year and up 210% quarter over quarter. For Q2 FY26, one large data center customer represented approximately 63% of total revenue. By geography, the US represented 86% of Q2 revenue, Asia 9%, Europe 3% and the rest of the world 2%.
On a year over year basis, US revenue increased 184%, Asia grew 53%, Europe decreased 63% and the rest of the world increased 77%. On a quarter over quarter basis, US revenue increased 496%, Asia decreased 49%, Europe decreased 51 percent and the rest of the world increased 53%. The Q2 non GAAP gross margin was 6.4% versus 9.5% in Q1. Gross margins were impacted by customer and product mix as well as higher freight production and expedite costs. As we began to ship new platforms on a large scale, we had significant operating leverage during the quarter with total non GAAP operating expenses representing 1.9% of revenue versus 4.1% last quarter.
Q2 GAAP operating expenses were 324 million, up 14% quarter over quarter and up 8% year over year. On a non GAAP basis, operating expenses were 241 million which was up 18% quarter over quarter and up 6% year over year. Operating expenses were up quarter over quarter largely due to higher sales expenses. Non GAAP operating margin for Q2 was 4.5% compared to 5.4% in Q1. Other income and expense for Q2 totaled a net income of 26 million, reflecting 51 million in interest income on higher cash balances, partially offset by 25 million in interest expense primarily related to our convertible notes.
The tax provision for Q2 was $99 million on a GAAP basis and 122 million on a non GAAP basis, resulting in a GAAP tax rate of 19.8% and a non GAAP tax rate of 20.6%. Q2 GAAP EPS was $0.60 compared to guidance of $0.37 to $0.45 and and non GAAP diluted EPS was $0.69 versus guidance of $0.46 to $0.54 due to higher revenue and operating leverage. The GAAP fully diluted share count increased sequentially from 663 million in Q1 to 673 million in Q2 and the non GAAP share count increased from 677 million to to 688 million over the same period.
Cash flow used in operations for Q2 was $24 million compared to 918 million used in the prior quarter. On a quarter over quarter basis, Q2 operating cash flow reflected higher net income offset by higher accounts receivable and inventory levels and aided by higher accounts payables. Q2 closing inventory was 10.6 billion, up from 5.7 billion in Q1. As we prepared for continuing strength in Q3 shipments, CapEx for Q2 totaled 21 million, resulting in negative free cash flow of 45 million for the quarter. During the December quarter we expanded our access to working capital to fund growth, executing a $2 billion cash flow based secured revolving credit facility in the US in January we also closed an approximately $1.8 billion secured Taiwan revolving Debt Facility at quarter end, our cash position totaled 4.1 billion while bank and convertible note debt was 4.9 billion, resulting in a net debt position of 787 million compared to a net debt position of 579 million in the prior quarter.
Turning to the balance sheet and working capital metrics, the cash conversion cycle Significantly improved from 123 days in Q1 to 54 days in Q2. Days of inventory decreased by 42 days to 63 days versus 105 days in the prior quarter. Days sales outstanding increased by 6 days to 49 days versus 43 days in Q1, while days payables outstanding increased by 32 days to 58 days versus 26 days in Q1. Turning to the outlook for Q3 FY26, we expect net sales to be at least 12.3 billion GAAP diluted net income per share of at least $0.52 and non GAAP diluted net income per share of at least $0.60.
We expect gross margins to be up 30 basis points relative to Q2 FY26 levels. GAAP operating expenses are expected to be around 354 million, which include approximately 74 million in stock based compensation expenses that are excluded from non GAAP operating expenses. The outlook for Q3 of fiscal year 2026 fully diluted GAAP EPS includes approximately 62 million in expected stock based compensation expenses net of the tax effects of 19 million which are excluded from non GAAP diluted net income per common share. We expect other income and expenses, including interest expense to result in a net expense of approximately 22 million.
The company’s projections for Q3 FY26 GAAP and non GAAP diluted net income per common share assume a tax rate of 19.6%, a non GAAP tax rate of 20.2%, and a fully diluted share count of 684 million for GAAP and 699 million shares for non GAAP. Capital expenditures for Q3 are expected to be in the range of 70 to 90 million dollars. For full fiscal year 2026, we expect at least 40 billion in net sales. Michael, we’re now ready for Q and A. Great.
Charles Liang — CEO
Matthew, can you roll the queue?
Michael Steger — Investor Relations
If you would like to ask a question, please press STAR followed by one on your telephone keypad. If for any reason you’d like to remove that question, please press STAR followed by two again. To ask a question, press Star one. As a reminder, if you’re using a speakerphone, please remember to pick up Your handset before asking your question. We will pause here briefly as questions registered. First questions from the line of Anando Borrower with Loop Capital. Your line is now open.
Anando Borrower — Analyst
Hey. Yeah, thanks guys. Good afternoon. Thanks for taking the question. And yeah, congrats on the solid results here relative to the guide. I want to just ask about margins and have a few days questions I want to ask you here but they’re all margin related. I guess the first is with regards to you mentioned I think 90 days ago that December quarter you expected to be the sort of the low watermark quarter in gross margins and you’re guiding for Q over Q improvement for the March quarter. Do you still think that things progress expansive from here? Charles, you made some comments around customer mix.
It’s been a headwind. Do you think it continues to improve? And I have two quick follow ups. Dave, just margin related after that. Thanks.
Charles Liang — CEO
Yeah, thank you for the question. Yes, the customer mix we are improving quarter out of the quarter. Now we have many more large scale customers. I would like to say so that way improve our profitability. The other factor is last quarter, I mean December quarter GB3 entry was a little bit new to us. So lots of expedite transportation cost and now I mean product is getting mature. So those expedite transportation costs will be dramatically reduced and tariff impact also improvement. And so overall especially DCPP is also increasing for our net for our gross margin. So I believe our gross margin will start to improve quarter after quarter.
Anando Borrower — Analyst
Charles, that’s great context, really appreciate it. And actually Charles, one of my two clarifications here is from something you said in your prepared remarks. You said higher net margin and so I guess you just clarified you expect gross margin to go up. Maybe this is a Charles, Dave question. Dave, you mentioned OPEX leverage. The OPEX as a percentage of sales was really attractive this quarter. It’s like one and a half percent. That’s I guess less than 2%. But should we expect I think it’s the second quarter in a row. You drove OPEX leverage last quarter this September quarter for the first time in a while.
But now you have this really attractive, the most attractive OPEX percentage of revenue in a while. So are you is the company entering a period of not only gross margin expansion but OPEX dollar leverage as well structurally. And that’s it from you guys. Thanks.
Charles Liang — CEO
Yes, exactly. I mean economical scale will help us to improve the cost, our cost. Right. So that will impact our gross margin and especially our operation margin. And again TCPPS Green Supermarket for more business in service in software, in overall infrastructure, service to customer. So all those factors are positive to our margin improvement.
Anando Borrower — Analyst
Very helpful context. Thank you guys, really appreciate it.
Charles Liang — CEO
Thank you.
operator
Thank you for your question. Next question is from the line of Sonic Chatterjee with JP Morgan. Your line is now open. Hi, this is mp.
Sonic Chatterjee — Analyst
On behalf of Summit Chatterjee, I just wanted to double click on your full year guidance. You said 40 billion dollar for FY26. If I back into the implied 4Q number that implies significant quotable quarter moderation. So is that just conservatism being embedded into the full year outlook or like do you see definite indications from your order trends that 4Q will imply sequential moderation? And I have a follow up as well.
Charles Liang — CEO
Yeah, I believe we say minimum 40 billion is a relatively conservative number. So our business indeed will continue to grow. Especially our DC DPS that attract lots of customers who want to build a data center quicker. Less power consumption, less cost, I mean better cost and also more reliable and easy for management. So we are getting more and more customers come to us.
Sonic Chatterjee — Analyst
Thank you. And for my follow up I wanted to ask about DCBBS. You highlighted it being 4% of profits in first half. Can you please help us understand the contribution in terms of revenues? And then you also said it will increase to double digit contribution by end of calendar year. So how does that translate to overall gross margin trajectory? Thank you.
Charles Liang — CEO
Yeah, thank you. I mean as you know TCPPS is still a new product line to us. We officially introduced that product about six months ago. So the first two quarter, I mean September quarter plus December quarter indeed is our first two quarter. So the revenue still relatively small but because the poor fee is much better. So Oboe is a contributor about 4% to our overall profit in last six months. And looking forward it will continue to grow very quickly. So we are very happy to see more and more customers like DCPPS to speed up their data center view out with easier for management, easier for maintenance.
And our powerful will continue to follow because of TCPPS especially.
Sonic Chatterjee — Analyst
Thank you.
Michael Steger — Investor Relations
Thank you for your question. Thank you. Next question is from the line of ASEA Merchant with Citi. Your line is now open.
ASEA Merchant — Analyst
Great, thank you for taking my question and good results here relative to the guide. I just had two quick ones. One just, you know there’s a lot of discussion about component availability, supply constraints. If you could just talk to us about your guide. And relative to that, you know, is that minimum 40 billion guide, you know a constraining number given the supply constraints. In other words, if supply wasn’t an issue, could that Number be greater and then just on customer concentration, you know, I think the commentary suggested that some of the geos did decline on a year on year basis as well as on a quarter on quarter basis.
So again, relative to the guide, how should we think about the ramp of DCBF across. Various geographies for the back?
Michael Steger — Investor Relations
Chokshi with Northland, your line’s now open.
Chokshi — Analyst
Yeah, thank you. Congrats on a strong result and guidance. A little bit of different question here. So look, Super Microbot brought DLC to the market one generation faster than when it became part of Nvidia reference architecture. It’s now apparent that Supermicro is brought to the market 1 generation faster dry cooling towers which is related to higher inlet temperatures as part of Ruben reference design. My question is that do you expect Supermicro to continue to bring to market one generation faster these power efficiency advantages before Nvidia makes it part of their reference architecture? Is this going to be part of Supermicro’s branding?
Charles Liang — CEO
Yeah, as you know, Nvidia a very strong company and we work with them very closely. And however, because our strong engineering background, our big engineering team. So before we are able to make our total solution one generation or six months earlier than others now and in the future, I believe we will be still able to bring a total solution to market earlier than others. Especially help customer build a data center, build their cloud, AI cloud time to online quicker than others. Even now six months earlier, at least three months or four months earlier and that’s still a big help.
So I’m very confident that our future growth should be still very strong.
Chokshi — Analyst
Great. And then for my follow up question, your 10% customer, was that the primary driver of the upside that you saw in the quarter? Do you expect them to remain a 10 plus percent customer in the March quarter? How should they project? And then you also did sign Data Vault, a pretty big contract with datavault to six or nine months ago. Is that starting to ramp in as well?
Charles Liang — CEO
Basically because our foundation is getting much stronger than before ever. Especially our kind of total solution data center filling broker total solution is strong. So we are gaining broadly the customer on the territory. So more than 10% or not is hard to say because now our revenue will grow very fast very soon. I hope I can say we have more than 50 or 60 billion dollars revenue. Not today, but hopefully very soon. So more and more large customer is working with us. So that’s a very exciting condition.
Chokshi — Analyst
Thank you.
Michael Steger — Investor Relations
Thank you, thank you for your question. Next question is from the line of Quinn Bolton with Needham Co. Your line is now open.
Quinn Bolton — Analyst
I guess. Let me add the congratulations on the nice outlook. I guess Charles stated you had a 63% customer in the December quarter. As you look at sort of the second half of fiscal 26, do you expect revenue to diversify significantly or do you think. Concentrated in the March and the June quarters and then have got a follow up?
Charles Liang — CEO
Sometimes it’s not easy to predict because customers sometimes shift their schedule of pushing out. So but overall we are very happy that now we have many more large scale customers so the customer is more diversified and overall revenue will grow quickly and at the same time PCPS and Solidware grow our value. So overall we are on a very healthy track now.
Quinn Bolton — Analyst
Got it. So understanding that the customers can push in and pull out right now the forecast shows increasing diversification over the next couple of quarters.
Charles Liang — CEO
Yeah, I mean because of growth still very fast. So that’s why now we are focusing more about how to kind of maybe what should I say, kind of how to grab more money to grow even faster. Right. So if we have more cash for sure we can grow even faster. But even if we do not grab more money I guess because more diversified customer base and also more higher value system, more higher value totals solution. So that will help us grow feasibly.
Charles Liang — CEO
Understood. And my follow on Charles in your prepared comments you mentioned the upcoming platform transitions to Vera Rubin and the Helios system from amd. I’m just wondering, have you guys started to get orders for those systems for delivery in the second half or is it too early to start to get orders for those systems?
Charles Liang — CEO
Yes, we have a lot of highly interested customers, some already engaged and we hope we can deliver as soon as possible. But still it depends on our partner, depends on when their Vera Rubin or AMD solution will be ready. So we are working very closely with them. Once they are available, we like to deliver to customer quickly. And yes, today we already have some good commitment from customer.
Quinn Bolton — Analyst
Excellent.
Charles Liang — CEO
Thank you. Thank you.
operator
Thank you for your question. Next question is from the line of John Tomlinson with CJS Securities. Your line is now open.
John Tomlinson — Analyst
Hi, thank you for taking my questions and congrats on a nice quarter and outlook there. I just wanted to ask a little. Bit more about the big versus smaller customer mix that you’re expecting in the future and the pipeline that you see. Are you expecting smaller customers to become a greater percentage of sales or is it the opposite? And the reason I ask that is because these bigger customers seem to have that pricing leverage you mentioned. If you could have any color. That would be helpful. Thank you.
Charles Liang — CEO
Yeah, thank you for the question. Yes, we understand we need more customer, especially a more diversified customer base enterprise. So we are very aggressively growing enterprise mid size or even kind of enterprise customers. Well, so I mean our customer diversify is very important direction to us now. So I guess we work robust, large customer and lots of kind of high number of enterprise accounts.
John Tomlinson — Analyst
Okay, got it. And then just on the Vera Rubin question and I guess the migration to it to the 800 volt data center, I was wondering if there’s any opportunity for you to drive greater differentiation in this next cycle upgrade compared to the past couple. Is there anything about the whole platform and data center architecture that gives you more or less opportunity compared to the last cycle of Blackwell and Hopper?
Charles Liang — CEO
Yeah, I mean that’s why I say Nvidia provide a very good solution. And based on that we optimize the whole data center building power solution for our customer and aim to help them the data center quicker and more reliable, easy for management and lowering cost including energy consumption, including energy backup and maybe too early to say, including energy kind of green power replacement. So we have a complete plan for the whole solution. But some other system are still too early to say too much and at this moment.
John Tomlinson — Analyst
Okay, thank you very much.
Charles Liang — CEO
Thank you.
operator
Thank you for your question. Next question is from the line of Malik Newman with Bernstein. Your line is now open.
Malik Newman — Analyst
Hi, yes, Mark Newman, thanks for taking my question and congrats on great quarter and great outlook. Just curious. Just take a step back. I mean what’s changed? You’ve got a big step up here in sales. Gross margins down quite a lot. But you’re guiding forward for solid sales to continue. So is this just a reflection of a tougher pricing environment and supermicro having to react to tougher pricing environment and thus winning back more share? Or is this just catching up to as you refer to the previous quarter, previous couple of quarters. You mentioned about a few orders getting pushed out. So is this just catch up of the orders or is this a reflection of a more aggressive pricing strategy? And I guess importantly for me like trying to think about forward estimates going forwards.
I mean you guided for the short term, but how do we think about gross margins longer term? Is this kind of range here to stay or are we looking at getting back to the high single digit, low double digit range versus margin like you were before? Thanks very much.
Charles Liang — CEO
Yeah, thank you. As an engineering company, you know we for sure have some choice. We can continue grow larger time aggressively or spend more effort to develop technology, good product and to grow more enterprise account. So we are doing both ways basically. And so the gross margin, net margin ratio, we are expecting to grow to a double digit as soon as possible. David, you may add something.
David Weigand — CFO
Sure. We think that, you know, we’ve established ourselves with a number of deployments that we’ve made as being really the premier provider of the, of the most current technologies that are available on the market. And we think with those strong installations we have, you know, we’ve broadened our reach into the market. And so we think that, you know, we’re trying to target, you know, both, as Charles mentioned, both large scale and you know, smaller scale customers and mid tier customers. But we want to serve, you know, all of our, all the customer bases that are out there and that are attracted to our products with, and bring them the very best technologies.
We think ultimately that drives margins. Yes.
Charles Liang — CEO
Go ahead.
Michael Steger — Investor Relations
Thank you for your question.
David Weigand — CFO
Well, we just think that’s the.
Michael Steger — Investor Relations
Next question is from the line of branding visible with Key Corp Airlines now open.
branding — Analyst
Guys, just I think a couple of quick clarification questions. One for David. David, you raised some new capital this quarter. Maybe just help us understand how you’re thinking about working capital for the rest of this year. And then other income came in about $50 million above your guide. Really what drove that? And then just one quick follow up question. Thanks.
Charles Liang — CEO
Sure. The other income was just was higher interest income that we had because our cash reserves had, you know, had grown and so we were earning good interest income. However, that was quickly taken up by the fact that as I mentioned last quarter we had well in excess of 13 billion of orders for, you know, for purchase orders for delivery. And so we immediately had to use that. That’s why the, you know, our accounts receivable, our inventory went up and so we took in not only, you know, two different $2 billion or 2 and $1.8 billion credit facilities, we also set up an accounts receivable, you know, factoring so we have access to, you know, over 5 billion of additional capital.
And you know, if we continue to have growth then we have access to additional capital in the marketplace. But right now we think that, you know, for the current outlook we have adequate capital to meet our needs. And when I say current, I mean.
branding — Analyst
I appreciate the color. Got it just on the factoring the securitization facility. Did you utilize that at all this quarter? And then on the 63% customer, was that a previous 10% customer? Thanks.
Charles Liang — CEO
So to the first question, we did not use it during the December quarter. But we have subsequently. To your second question. Supermicro does most of its business with repeat customers. So I’ll just, I’ll just leave it at that.
branding — Analyst
But at the same time we added lots of.
Charles Liang — CEO
We’ve added a lot of. We’ve added a lot of new logos at the same time. That’s right. And it’s because of those successful customers.
branding — Analyst
Okay, but. Okay, but we don’t know if the 63% of customer is new to the 10% customer mix or if it’s an ex. A previous 10% customer.
Charles Liang — CEO
Is that right? Yeah, I’ll just refer you to the, to the 10Ks and Qs on that.
branding — Analyst
Okay, thanks for taking the question.
Charles Liang — CEO
Yeah, yeah, yeah. By the way, I do want to clarify one thing in my narrative regarding the fully diluted share count. So the gap fully dualed share count increased sequentially from 663 to 694 million shares. So. And then the non GAAP share count increased from 677 million to 709 million. So there was just a noticed a typo on there. So please forgive the correction.
Charles Liang — CEO
All right, thank you everyone for joining us. Want to just inform you that we had heard there were some technical difficulties with our webcast provider. A replay will be provided after the call so you can catch up on that. Thank you for joining today.
operator
That concludes the conference call. Thank you for your participation. You may now disconnect your lines.