EARNINGS REVIEW
Volume and pricing grow while cash conversion lags
Historical earnings report · Management guidance reflects expectations at the time of the release, not subsequent outcomes. The financial comparison uses the site’s normalized dataset, including comparative figures restated in later filings.
Sequential revenue growth and margin recovery are positive, but negative operating cash flow and higher net borrowings raise funding requirements. Cash turnover deserves the same attention as growth.
Assessment · Sequential revenue growth and margin recovery are positive, but negative operating cash flow and higher net borrowings raise funding requirements. Cash turnover deserves the same attention as growth.
01 Results and comparisons
Filed revenue was $1.172 billion, operating income $0.051 billion, operating margin 4.35% and net income $0.042 billion. Against the preceding quarter, revenue changed by $+0.140 billion (+13.5%), operating income by $+0.022 billion and margin by +1.53 percentage points. Against the same quarter a year earlier, revenue changed by $+0.342 billion (+41.2%), operating income by $+0.014 billion and margin by -0.15 percentage points.
Against the prior quarter, net income changed by +0.016 B$, OCF by +0.081 B$, cash CapEx by +0.002 B$, and analytical FCF by +0.080 B$.
02 Business drivers and management commentary
Server and storage revenue was $0.986 billion and subsystems and accessories $0.186 billion. Server compute-node volume rose 30.7% and average prices rose 19.5%. Accessories experienced falling volume that offset higher prices, so growth was not equally strong across all product categories.
03 Earnings quality and special items
Gross margin recovered from 13.4% in the preceding quarter to 14.0%, but remained below 16.4% a year earlier. Higher operating profit did not produce positive operating cash flow; margin recovery and working-capital conversion remain separate issues.
04 Cash flow, investment and financial position
Quarterly OCF was $-0.053 billion, cash PP&E purchases $0.012 billion and analytical FCF $-0.066 billion. Cumulative flows sharing the same fiscal-year start were subtracted, without allocating annual rounding residuals. A separate company-defined FCF was not verified and is left blank.
At period end, cash and cash equivalents were $0.247 billion; liquid financial assets including separately disclosed marketable equities were $0.247 billion. Interest-bearing debt was $0.316 billion, including $0.177 billion of current bank borrowings. Liquid assets less borrowings were $-0.069 billion. Restricted cash, illiquid equity holdings and operating leases are excluded. Total accounting liabilities of $1.490 billion are not substituted for debt.
05 RPO and contract scope
Disclosed remaining performance obligations (RPO) was $0.2526 billion. The disclosure applies the exemption for contracts with an original duration of one year or less. It is therefore neither total server backlog nor guaranteed next-year sales, and is not added to orders as if they were the same measure.
06 Guidance and assessment at release
Next-quarter revenue guidance was $1.1–1.2 billion, while FY22 revenue guidance remained $4.2–4.6 billion. These are the forecasts issued then, not later realized results.
Sequential revenue growth and margin recovery are positive, but negative operating cash flow and higher net borrowings raise funding requirements. Cash turnover deserves the same attention as growth.
Quarterly results · CY-aligned view
| Metric · B$ | 2021 total of 2 included quarters | 3Q FY22 Q1 2021-09-30 | 4Q FY22 Q2 2021-12-31 | QoQ Δ | YoY Δ |
|---|---|---|---|---|---|
| Revenue | 2.205 | 1.033 | 1.172 | 0.140 | — |
| Operating income | 0.080 | 0.029 | 0.051 | 0.022 | — |
| Operating margin (%) | 3.636 | 2.820 | 4.354 | 1.534 pp | — |
| Net income | 0.067 | 0.025 | 0.042 | 0.016 | — |
| FCF · company definition | — | — | — | — | — |
| Operating cash flow · total | −0.188 | −0.135 | −0.053 | 0.081 | — |
| Net cash CapEx · common | 0.023 | 0.011 | 0.012 | 0.002 | — |
| Cash CapEx · Chinese company definition | — | — | — | — | — |
| FCF · total calculation | −0.211 | −0.145 | −0.066 | 0.080 | — |
| Net cash · liquid assets less borrowings | −0.069 | −0.009 | −0.069 | −0.060 | — |
| Liquid assets · including short-term investments | 0.247 | 0.270 | 0.247 | −0.023 | — |
| Borrowings · interest-bearing debt | 0.316 | 0.279 | 0.316 | 0.037 | — |
| Cash and cash equivalents | 0.247 | 0.270 | 0.247 | −0.023 | — |
| Total liabilities · accounting liabilities | 1.490 | 1.294 | 1.490 | 0.196 | — |
CY denotes the calendar quarter with the greatest overlap with the fiscal period. If the first period has no start date, 89 days before its end is used only for calendar mapping. Financial values are not recalculated into calendar quarters. Incomplete years show totals of included quarters; cash, liabilities, borrowings and net cash use the last period-end balance. QoQ and YoY show absolute changes; margin changes are percentage points. Dashes indicate missing evidence or incomparable periods or definitions. Total liabilities never substitute for borrowings.
Definitions and evidence coverage
A dash means unavailable or undisclosed, not zero. Company-defined FCF may differ from total operating cash flow less common-basis CapEx. Total liabilities are accounting liabilities, not interest-bearing debt.
This missing historical report was prepared from official earnings releases and SEC documents. Financial tables follow the latest verified filed comparatives, while guidance retains the announcement date above. Reviewing management remarks in a release is distinct from completing a full conference-call and Q&A review; this report makes no claim of call completion.