Strong annual growth with softer sequential momentum

01 Results and comparisons

Filed revenue was $1.803 billion, operating income $0.215 billion, operating margin 11.93% and net income $0.176 billion. Against the preceding quarter, revenue changed by $-0.049 billion (-2.6%), operating income by $-0.005 billion and margin by +0.05 percentage points. Against the same quarter a year earlier, revenue changed by $+0.631 billion (+53.8%), operating income by $+0.164 billion and margin by +7.58 percentage points.

Against the prior quarter, net income changed by -0.008 B$, OCF by -0.152 B$, cash CapEx by -0.001 B$, and analytical FCF by -0.152 B$.

Against the year-earlier quarter, net income changed by +0.134 B$, OCF by +0.214 B$, cash CapEx by -0.003 B$, and analytical FCF by +0.217 B$.

02 Business drivers and management commentary

Server and storage revenue was $1.661 billion and accessories $0.142 billion. Server volume was up 20.6% and average prices 41.1% year on year. Annual expansion coexisted with a sequential sales decline; neither comparison alone captures momentum.

03 Earnings quality and special items

Gross margin was 18.7%, above 14.0% a year earlier and close to the preceding quarter’s 18.8%. Non-GAAP adjustments included litigation-expense recoveries as well as stock compensation, so adjusted profit is not entirely recurring cash earnings.

04 Cash flow, investment and financial position

Quarterly OCF was $0.161 billion, cash PP&E purchases $0.010 billion and analytical FCF $0.151 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 $0.305 billion; liquid financial assets including separately disclosed marketable equities were $0.305 billion. Interest-bearing debt was $0.170 billion, including $0.028 billion of current bank borrowings. Liquid assets less borrowings were $0.134 billion. Restricted cash, illiquid equity holdings and operating leases are excluded. Total accounting liabilities of $1.256 billion are not substituted for debt.

05 RPO and contract scope

Disclosed remaining performance obligations (RPO) was $0.2800 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

Guidance was $1.42–1.52 billion for the next quarter and $6.5–7.5 billion for FY23. The softer near-term run rate and the full-year target require separate interpretation.

Positive cash flow and a move into net cash improve resilience, but do not erase sequentially lower revenue and operating profit. Growth and cash protection must both hold through the product transition.

Quarterly results · CY-aligned view

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.