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SMCI · Super Micro Computer

22 filings

10-K

SMCI 10-K Annual Reports

Super Micro Computer - 22 annual reports

Filing record · 2016–202610-K1010-Q328-K170

2026
Super Micro Computer Annual Report, Year Ended Jun 30, 2026
Super Micro Computer, Inc. (Nasdaq: SMCI) reported net sales of $39.06 billion for fiscal year 2026 (ended June 30, 2026), up from $21.97 billion in fiscal 2025, with net income of $2.23 billion versus $1.05 billion. Gross margin declined to 10.8% from 11.1%, which management attributed to competitive pricing to gain share, product and customer mix, and higher manufacturing-related expenses. Income from operations rose to $2.77 billion, and diluted EPS was $3.26 compared with $1.68. Growth was driven primarily by shipments of GPU servers and rack-scale solutions (GB200 and GB300 systems) for customer data center deployments, including large design wins from a few customers. One customer accounted for 28.1% of fiscal 2026 net sales. Balance sheet and liquidity changed substantially. Total assets rose to $29.95 billion from $14.02 billion, with inventories of $12.90 billion and accounts receivable of $6.13 billion. Operating cash flow was negative $6.81 billion, driven by inventory and receivable build-up, while financing provided $9.48 billion, including $5.64 billion of equity offering proceeds in June 2026 and a 7.00% Series A Mandatory Convertible Preferred Stock issuance. Total indebtedness was approximately $8.7 billion, and the company stated that current resources should be sufficient for the next 12 months. The filing discloses significant governance and legal risk. Management concluded that internal control over financial reporting was not effective as of June 30, 2026, due to one remaining material weakness in information technology general controls, and BDO USA, P.C. issued an adverse opinion on internal control. The company disclosed an indictment of three former associates (including former SVP and director Yih-Shyan (Wally) Liaw) on export control charges, which states the company is not named as a defendant, and multiple ongoing SEC, DOJ, and BIS inquiries in which the company is cooperating. Securities class actions and derivative suits are pending.
Aug 31, 2026
2025
Super Micro Computer Annual Report, Year Ended Jun 30, 2025
Super Micro Computer, Inc. (Nasdaq: SMCI) reported net sales of $21.97 billion for fiscal year 2025 (ended June 30, 2025), up from $14.99 billion in fiscal 2024, driven by demand for GPU servers, HPC and rack-scale solutions from large enterprise and data center customers. Gross margin declined to 11.1% from 13.8%, citing competitive pricing to gain market share and changes in product and customer mix. Net income was $1,048.9 million, down from $1,152.7 million, and diluted EPS was $1.68 versus $1.92 a year earlier. The filing discloses material weaknesses: management concluded that internal control over financial reporting and disclosure controls were not effective as of June 30, 2025, and BDO USA, P.C. issued an adverse opinion on internal control. The company was previously delinquent in its SEC reporting after EY resigned in October 2024, and it describes ongoing securities class actions, derivative litigation, and DOJ and SEC subpoenas tied to a August 2024 short seller report. Related-party dealings with Ablecom and Compuware, both affiliated with the CEO's family, represented 3.3% of cost of sales in fiscal 2025. Balance sheet and financing changed significantly: cash and cash equivalents rose to $5.17 billion from $1.67 billion, and convertible notes of $4.65 billion were carried at year-end, following the issuance of $700.0 million 2028 Convertible Notes and $2.3 billion 2030 Convertible Notes. The company also repurchased 4,891,171 shares for about $200.0 million in June 2025. Operating cash flow was $1.66 billion, compared with negative $2.49 billion in fiscal 2024.
Aug 28, 2025
2024
Super Micro Computer Annual Report, Year Ended Jun 30, 2024
Super Micro Computer, Inc. (Nasdaq: SMCI) filed this Form 10-K for fiscal year ended June 30, 2024 on February 25, 2025, after missing its original filing deadline following the resignation of its former auditor Ernst & Young LLP in October 2024. A Special Committee review completed December 2, 2024 found no substantial concerns about senior management's integrity or the Audit Committee, and the Company received a Nasdaq exception to file all delinquent reports by February 25, 2025. BDO USA, P.C. was appointed as the new auditor; BDO issued an unqualified opinion on the financial statements but an adverse opinion on internal control over financial reporting, and management identified five material weaknesses that had not been remediated as of the filing date. Fiscal 2024 results were strong on the top line: net sales rose to $14.99 billion from $7.12 billion (up 110.4%), and net income reached $1.15 billion, compared with $640.0 million in fiscal 2023. However, gross margin fell to 13.8% from 18.0%, which management attributed to competitive pricing to gain share, product and customer mix, and higher manufacturing costs. Operating cash flow was negative $2.49 billion, driven by a $3.0 billion increase in inventories and a $1.28 billion increase in accounts receivable. Total debt rose to approximately $2.2 billion at June 30, 2024, including $1.7 billion of 2029 Convertible Notes, and the Company issued $700.0 million of 2.25% 2028 Convertible Notes on February 20, 2025. The filing also discloses a U.S. Department of Justice and SEC subpoena, multiple securities class actions and derivative suits, and a Vernon, California data center lease with an estimated obligation of over $600 million that has been sublicensed to a third party. Customer concentration increased: one customer accounted for 20% of net sales in fiscal 2024, and one supplier accounted for 65.4% of total purchases.
Feb 25, 2025
2023
Super Micro Computer Annual Report, Year Ended Jun 30, 2023
Super Micro Computer, Inc. (Nasdaq: SMCI) reported fiscal 2023 (year ended June 30, 2023) results with net sales of $7.12 billion, up 37.1% from $5.20 billion in fiscal 2022, and net income of $640.0 million, compared with $285.2 million a year earlier. Gross margin rose to 18.0% from 15.4%, and income from operations reached $761.1 million versus $335.2 million. Growth was driven by server and storage systems, whose sales rose 47.2% to $6.57 billion and now make up 92.2% of net sales, while subsystems and accessories fell 24.4% to $553.7 million. Net sales to customers in the United States grew 59.3% to $4.83 billion, while Asia declined 7.8% to $1.05 billion. Cash and cash equivalents ended the year at $440.5 million, up from $267.4 million, after operating cash flow of $663.6 million. Financing activities used $448.3 million, including net debt repayments and $150.0 million of stock repurchases. Total debt was $290.3 million at June 30, 2023, down from $596.8 million. The company repurchased 1,553,350 shares during the year and had $50.0 million remaining under its repurchase program. Management expects fiscal 2024 capital expenditures of $105.0 million to $115.0 million, including $75.0 million for a Malaysia land and manufacturing initiative. The filing also highlights ongoing risks: concentrated supplier purchases (two suppliers accounted for 30.7% and 13.5% of purchases in fiscal 2023), related-party dealings with Ablecom and Compuware (6.6% of cost of sales), and the CEO's 2021 performance award, for which four of five revenue milestones have been achieved and the final $8.0 billion goal remains. The company paused sales to Russia, Belarus and restricted areas of Ukraine. Deloitte & Touche LLP's audit opinion was unqualified, and Ernst & Young was engaged as auditor for fiscal 2024.
Aug 28, 2023
2022
Super Micro Computer Annual Report, Year Ended Jun 30, 2022
Super Micro Computer, Inc. (Supermicro) reported fiscal year 2022 (ended June 30, 2022) net sales of $5.20 billion, up 46.1% from $3.56 billion in fiscal 2021, with net income of $285.2 million versus $111.9 million a year earlier. Gross margin rose to 15.4% from 15.0%, while operating expenses grew 13.2% to $464.8 million, and income from operations reached $335.2 million, or 6.5% of revenue. Server and storage systems made up 85.9% of net sales, and the company stated that management attributed the sales increase to higher average selling prices per compute node and more units shipped. The balance sheet and cash flow show the pressure of growth. Inventories rose to $1.55 billion and accounts receivable to $834.5 million, and operating activities used $440.8 million of cash. To fund this, total debt increased to $596.8 million from $98.2 million, with $449.1 million classified as short-term, and the company describes multiple Taiwan and U.S. credit facilities, including a $132 million Cathay Bank line of credit. Cash and cash equivalents ended the year at $267.4 million. The filing also highlights governance and risk items for investors. Related-party dealings with Ablecom and Compuware are significant, representing 8.3% of cost of sales, and the CEO, Charles Liang, holds a performance-based option award tied to revenue and stock price milestones. The company disclosed a $200 million share repurchase program approved on August 3, 2022, and reported that Deloitte & Touche LLP issued an unqualified opinion on internal control over financial reporting.
Aug 29, 2022
2021
Super Micro Computer Annual Report, Year Ended Jun 30, 2021
Super Micro Computer, Inc. (Nasdaq: SMCI) reported fiscal 2021 (year ended June 30, 2021) net sales of $3,557.4 million, up 6.5% from $3,339.3 million in fiscal 2020, with net income of $111.9 million versus $84.3 million. Gross margin declined to 15.0% from 15.8%, primarily due to product and customer mix and increased logistics costs, while operating expenses fell 6.8% to $410.6 million, largely due to lower special performance bonuses and the prior-year SEC settlement accrual. Income from operations rose to $123.9 million from $85.7 million. Cash flow and balance sheet items improved: cash and cash equivalents rose to $232.3 million, and operating cash flow was $123.0 million, compared with negative $30.3 million in fiscal 2020. The company repurchased $130.0 million of common stock during the year and had $150.0 million remaining under its $200.0 million program, which runs through July 31, 2022. Total debt was $98.2 million, and inventories increased to $1,040.964 million from $851.5 million, with noncancelable purchase commitments of $569.8 million. The filing states that management concluded internal control over financial reporting was effective as of June 30, 2021, that prior material weaknesses have been remediated, and that the company is subject to ongoing securities class actions and derivative suits. Key risks include concentration of supplier purchases (one supplier at 20.3% of purchases), related-party dealings with Ablecom and Compuware (7.8% of cost of sales), and CEO Charles Liang's performance-based option award tied to revenue and stock price goals.
Aug 27, 2021
2020
Super Micro Computer Annual Report, Year Ended Jun 30, 2020
Super Micro Computer, Inc. (Nasdaq: SMCI) filed its Form 10-K for the fiscal year ended June 30, 2020. Net sales declined 4.6% to $3.34 billion from $3.50 billion, while gross margin improved to 15.8% from 14.2% and net income rose to $84.3 million from $71.9 million. The improvement in net income was driven largely by a lower effective tax rate of 3.4%, compared with 16.6% in fiscal 2019. Server and storage systems sales fell 8.3% to $2.62 billion, while subsystems and accessories rose 12.0% to $718.5 million. Indirect sales channel revenue grew 28.7% and now accounts for 53.1% of net sales, compared with 39.3% a year earlier. The filing discloses a material weakness in IT general controls, so management concluded that internal control over financial reporting was not effective as of June 30, 2020, and Deloitte issued an adverse opinion on internal control. The company recorded a $17.5 million accrual for its SEC settlement, which resolves the investigation into its accounting for fiscal years 2014 to 2017 and other matters. Cash and cash equivalents fell to $210.5 million from $248.2 million, and operating cash flow was negative $30.3 million, primarily because inventories increased by $181.3 million. The company also disclosed pending securities class action litigation, with a motion to dismiss the further amended complaint scheduled for hearing on September 23, 2020. In August 2020, the Board approved a share repurchase program of up to $30.0 million, effective until December 31, 2020. The filing also reports that the company's stock was relisted on the Nasdaq Global Select Market in January 2020 after a suspension and delisting that began in 2018.
Aug 31, 2020
2019
Super Micro Computer Annual Report, Year Ended Jun 30, 2019
Super Micro Computer, Inc. (SMCI) filed this comprehensive Form 10-K for the fiscal year ended June 30, 2019, together with expanded disclosures covering fiscal 2018 and the prior-period quarters, in lieu of separate filings. The company reported net sales of $3,500,360 thousand in fiscal 2019, up from $3,360,492 thousand in fiscal 2018, with gross profit of $495,522 thousand, income from operations of $97,233 thousand and net income of $71,918 thousand (diluted EPS $1.39). Server and storage systems made up 81.7% of net sales, and cash and cash equivalents rose to $248,164 thousand from $115,377 thousand. Operating cash flow was $262,554 thousand. The filing's central message for investors is the company's ongoing reporting and control problems. Management concluded that internal control over financial reporting was not effective as of June 30, 2019, citing material weaknesses across all five COSO components, and Deloitte & Touche issued an adverse opinion on internal control. The company's common stock was suspended from Nasdaq trading on August 23, 2018 and formally delisted on March 22, 2019, and it now trades on the OTC Market under the symbol "SMCI." The filing states that the company expects to file its Form 10-Q for the quarter ended September 30, 2019 in or before January 2020. It also describes professional fees of approximately $67 million in fiscal 2019 and $42 million in fiscal 2018 tied to the investigation and remediation, along with pending securities class actions and SEC subpoenas. The filing also highlights a Bank of America credit facility that expires June 30, 2020 and, if the company does not become current in its SEC filings by that date, may not be convertible to a five-year revolving facility. As of November 30, 2019, no principal was outstanding under that facility.
Dec 19, 2019
2017
Super Micro Computer Annual Report, Year Ended Jun 30, 2017
Super Micro Computer, Inc. (Supermicro) filed this Form 10-K for fiscal year ended June 30, 2017 on May 17, 2019, nearly two years late. The filing follows an Audit Committee investigation, begun in August 2017, into accounting and internal control matters focused principally on revenue recognition. That investigation led the Board on November 14, 2018 to conclude that certain previously filed financial statements should no longer be relied upon, and the filing includes restated financial statements for fiscal 2016 and 2015. Deloitte & Touche LLP issued an adverse opinion on internal control over financial reporting as of June 30, 2017, citing material weaknesses in the control environment, risk assessment, control activities, information and communication, and monitoring, including revenue recognition and IT general controls. Fiscal 2017 net sales were $2,484.9 million, up from $2,225.0 million in fiscal 2016, and net income was $66.9 million, down from $72.1 million. Gross margin declined to 14.1% from 14.9%, driven by memory and SSD component shortages and a mix shift toward lower-margin sales in Asia. Cash used in operating activities was $96.2 million, driven by a $235.6 million increase in inventories and a $149.5 million increase in accounts receivable. Cash and cash equivalents fell to $110.6 million, and total debt rose to $161.9 million. The filing highlights significant ongoing risks. The common stock was suspended from Nasdaq on August 23, 2018 and delisted on March 22, 2019, and now trades on the OTC Market under 'SMCI.' The company is a defendant in securities class actions, is cooperating with SEC subpoenas, and reports professional fees related to the investigation of $40.6 million in fiscal 2018 and $50.7 million through the third quarter of fiscal 2019. Its 2018 Bank of America credit facility carries a delivery covenant tied to timely SEC filings, and the company states it cannot ensure timely filing of future reports.
May 17, 2019
2016
Super Micro Computer Annual Report, Year Ended Jun 30, 2016
Super Micro Computer, Inc. (Nasdaq: SMCI) reported fiscal year 2016 (ended June 30, 2016) net sales of $2,215.6 million, up from $1,991.2 million in fiscal 2015, and net income of $72.0 million, down from $101.9 million. The filing attributes the net income decline mainly to higher operating expenses from headcount growth and a $9.3 million out-of-period adjustment to extended warranty revenue recorded in the quarter ended September 30, 2015. Gross margin was 15.0% versus 16.1% in fiscal 2015, and income from operations fell to $106.9 million from $146.7 million. Server systems grew to $1,525.6 million (68.9% of net sales) while subsystems and accessories fell to $690.0 million. Management reported that the material weakness related to extended warranty revenue recognition identified in November 2015 was remediated as of June 30, 2016, and Deloitte & Touche LLP gave an unqualified opinion on internal control. Balance sheet and liquidity improved over the year. Cash and cash equivalents rose to $180.96 million from $95.44 million, operating cash flow was $107.5 million versus negative $44.6 million in fiscal 2015, and total debt was $93.6 million. The company disclosed a new $100 million share repurchase program adopted in July 2016, under which it bought 513,194 shares for approximately $10.3 million. Customer concentration and related-party exposure remain significant: one customer (SoftLayer, a division of IBM) represented 10.9% of net sales, and Ablecom, a related party controlled by the family of the CEO, accounted for 12.8% of cost of sales.
Aug 26, 2016
2015-A
Super Micro Computer Annual Report (Amendment), Year Ended Jun 30, 2015
Super Micro Computer, Inc. filed this Form 10-K/A for the fiscal year ended June 30, 2015 to revise its Item 9A and the related auditor's report. Management concluded that a material weakness existed as of June 30, 2015: the company lacked a control to review sales contracts for extended warranty deliverables, so extended warranty revenue recorded in prior periods should have been deferred and recognized over the warranty term. Deloitte & Touche LLP now expresses an adverse opinion on internal control over financial reporting, though its opinion on the financial statements is unchanged. Management stated that the revenue misstatements did not have a material impact on previously issued consolidated financial statements, and it has begun remediation through reviews of extended warranty and other deliverables. The financial statements show fiscal 2015 net sales of $1,991,155 thousand, up from $1,467,202 thousand in fiscal 2014, with gross profit of $320,231 thousand and net income of $101,863 thousand, compared with $54,157 thousand the prior year. Diluted earnings per share were $2.03. Cash and cash equivalents were $95,442 thousand at year end, while operating cash flow was negative at $(44,636) thousand, reflecting growth in accounts receivable and inventory. Inventory rose to $463,493 thousand and total debt to $94,412 thousand, most of which is current. Related-party dealings are significant. Deloitte's opinion includes an explanatory paragraph on significant purchases from and sales to a related party, Ablecom Technology Inc., which purchased $227,562 thousand of products from the company in fiscal 2015 and sold $58,013 thousand to it. Customer concentration is also notable, with one supplier accounting for 28.7% of purchases and one customer for 10.1% of net sales.
Nov 16, 2015
2015
Super Micro Computer Annual Report, Year Ended Jun 30, 2015
Super Micro Computer, Inc. (SMCI) reported fiscal year 2015 (ended June 30, 2015) net sales of $1,991.2 million, up from $1,467.2 million in fiscal 2014 and $1,162.6 million in fiscal 2013, and net income of $101.9 million, up from $54.2 million. Gross profit rose to $320.2 million, with gross margin of 16.1% versus 15.4% in fiscal 2014. Growth was driven mainly by complete server systems, which rose to 60.9% of net sales from 50.5%, with server systems net sales up 63.8% to $1,213.6 million. Diluted EPS was $2.03, compared with $1.16 in fiscal 2014. Cash generation weakened sharply. Operating cash flow was negative $44.6 million, versus positive $6.5 million in fiscal 2014. The company cited a $153.6 million inventory build and a $110.2 million increase in accounts receivable. Inventory rose to $463.5 million from $315.8 million, DSO increased to 48 days from 44, and total debt reached $94.4 million, up from $46.3 million, largely from bank line-of-credit borrowings. Purchase commitments were $378.3 million, including $185.7 million of hard disk drive commitments. Concentration and related-party exposure remain significant. One customer, SoftLayer (a division of IBM), accounted for 10.1% of net sales. Ablecom Technology, a related party controlled in part by the CEO's family, supplied 13.6% of cost of sales, and the auditor's report notes significant related-party transactions. Management reported internal control over financial reporting as effective as of June 30, 2015.
Sep 10, 2015
2014
Super Micro Computer Annual Report, Year Ended Jun 30, 2014
Super Micro Computer, Inc. (Nasdaq: SMCI) reported its 10-K for fiscal year ended June 30, 2014. Net sales rose to $1,467.2 million from $1,162.6 million in fiscal 2013, and net income increased to $54.2 million from $21.3 million. The Company states it has been profitable every year since its 1993 inception. Gross profit was $225.5 million (15.4% of net sales) versus $160.1 million (13.8%) a year earlier, and income from operations was $80.3 million versus $27.2 million. Growth was driven mainly by server systems, which rose to 50.5% of net sales from 43.2%, and by higher average selling prices. Balance sheet and liquidity remained modest. Cash and cash equivalents were $96.9 million, inventory $315.8 million, and accounts receivable $212.7 million. Total debt was $46.3 million, and operating cash flow was only $6.5 million, held down by growth in receivables and inventory. Capital spending of $40.6 million included a $30.2 million purchase of real property in San Jose for a planned Green Computing Park. Stockholders' equity reached $469.2 million. Investors should note the significant related-party relationship with Ablecom Technology Inc., a contract manufacturer whose founder's family is linked to the CEO. Purchases from Ablecom were $201.8 million, or 16.3% of cost of sales, and the auditor's report carries an explanatory paragraph on these related-party transactions. Customer concentration is low, with no customer at 10% or more of net sales, but the Company relies on indirect channels for 54.1% of sales and on a few suppliers, and notes that quarterly results may fluctuate.
Sep 15, 2014
2013
Super Micro Computer Annual Report, Year Ended Jun 30, 2013
Super Micro Computer, Inc. reported fiscal 2013 (year ended June 30, 2013) net sales of $1,162.6 million, up from $1,013.9 million in fiscal 2012, but net income fell to $21.3 million from $29.9 million. The filing attributes the decline primarily to lower gross profit from higher sales of subsystems and accessories, which carry higher content of lower-margin hard disk drives and memory, plus higher research and development expenses. Gross profit was $160.1 million versus $165.4 million, and cost of sales rose to 86.2% of net sales from 83.7%. Diluted earnings per share were $0.48, compared with $0.67 in fiscal 2012. Server systems represented 43.2% of net sales and subsystems and accessories 56.8%. The company's balance sheet and liquidity remained stable. Cash and cash equivalents were $93.0 million at June 30, 2013, and total stockholders' equity was $373.7 million. Net cash provided by operating activities was $13.6 million, and the company stated it has sufficient cash on hand to operate for at least the next 12 months. Total debt was $35.2 million, and the company has a hard disk drive purchase commitment of approximately $132.1 million running through December 2014, which is expected to weigh on future margins. The company is also exposed to related-party dealings with Ablecom Technology Inc., a major contract manufacturer, which accounted for 17.9% of cost of sales in fiscal 2013. Investors should note that the company's management stated that its operating results have historically been subject to quarterly fluctuation and that customers largely place purchase orders rather than long-term contracts. Revenue is recognized on a sell-in basis to distributors, and the Asia region's revenue grew 35.1% during the year. The company also disclosed that its founder and CEO, Charles Liang, is critical to the business and that no succession plan is currently in place.
Sep 11, 2013
2012
Super Micro Computer Annual Report, Year Ended Jun 30, 2012
Super Micro Computer, Inc. reported fiscal year 2012 (ended June 30, 2012) net sales of $1,013.9 million, up from $942.6 million in fiscal 2011, and net income of $29.9 million, down from $40.2 million. The filing attributes the net sales increase primarily to higher server system sales, with the average selling price of server system units rising 18.8% to $1,900, while subsystems and accessories sales declined 4.1%. Gross profit rose to $165.4 million, but operating expenses grew to $119.4 million, led by research and development expense of $64.2 million (up 33.5%), which the company tied to Sandy Bridge product launches and FatTwin costs. Income from operations fell to $46.0 million from $58.7 million. The company said the Thailand flooding disrupted hard disk drive supply, and it entered purchase agreements for hard disk drives totaling approximately $223.4 million, which drove total purchase commitments to $355.6 million, up from $91.8 million a year earlier. Balance sheet and liquidity were stronger at year-end. Cash and cash equivalents were $80.8 million, inventory rose to $276.6 million from $192.7 million, and total assets reached $589.1 million. Operating cash flow was $16.5 million, and management stated it had sufficient cash to operate for at least the next 12 months. Total debt, including short-term debt, was $32.8 million. Stockholders' equity increased to $338.4 million. Days sales of inventory rose to 100 days from 75 days. The filing also highlights significant related-party exposure. Ablecom Technology Inc., a Taiwan contract manufacturer whose owners include the CEO's family, accounted for 19.9% of cost of sales, and purchases from Ablecom totaled $168.7 million. Customers outside the United States represented 41.8% of net sales. The company reported no customer at 10% or more of net sales.
Sep 13, 2012
2011
Super Micro Computer Annual Report, Year Ended Jun 30, 2011
Super Micro Computer, Inc. reported fiscal 2011 (year ended June 30, 2011) net sales of $942.6 million, up from $721.4 million in fiscal 2010, and net income of $40.2 million, up from $26.9 million. The company states it has been profitable every year since it commenced operations in 1993. Gross profit rose to $151.1 million from $115.0 million, and income from operations was $58.7 million versus $40.7 million. Management attributes the growth primarily to the server refresh cycle and increased sales across product lines, with the largest gains in SuperBlade, GPU and storage solutions. Server systems were 37.3% of net sales and subsystems and accessories were 62.7%. Balance sheet and liquidity items were mixed. Inventory increased to $192.7 million from $135.6 million, and operating cash flow was $8.5 million, compared with $(2.2) million in fiscal 2010. Total debt rose to $28.2 million, including building loans, and the company reported it was not in compliance with an investment covenant at June 30, 2011, for which it obtained waivers from lenders in August 2011. The company plans to spend approximately $16.9 million over the next twelve months on Taiwan facilities and a San Jose headquarters expansion, financed through operating cash flow and bank borrowings. The filing also highlights concentration and related-party exposure. Ablecom Technology, a related party controlled in part by the CEO's family, accounted for 19.6% of cost of sales in fiscal 2011, and the auditor's report notes significant related-party purchases and sales. Sales to customers outside the United States were 41.7% of net sales. The filing discloses risk factors including reliance on Intel, AMD and Nvidia as the only microprocessor suppliers, the sell-in revenue model, and $5.2 million of auction rate securities.
Sep 2, 2011
2010
Super Micro Computer Annual Report, Year Ended Jun 30, 2010
Super Micro Computer, Inc. filed its annual report on Form 10-K for fiscal year ended June 30, 2010. The company describes itself as a global leader in server technology and green computing innovation, selling rackmount, blade, workstation, storage and GPU server systems plus subsystems and accessories, mainly through distributors. Net sales rose to $721.4 million in fiscal 2010 from $505.6 million in fiscal 2009, and net income increased to $26.9 million from $16.1 million. Subsystems and accessories generated $476.2 million of net sales versus $245.2 million from optimized server systems, and gross margin declined to 15.9% from 17.5% as the company grew market share during the economic recovery. Cash flow from operations was negative at ($2.2) million in fiscal 2010, compared with $21.8 million in fiscal 2009, as inventory rose to $135.6 million from $90.0 million and accounts receivable increased. The company bought three San Jose buildings in June 2010 using $18.6 million drawn on a $25.0 million revolving line of credit, which it must replace with a mortgage loan by December 2010. Related-party dealings with Ablecom Technology, a contract manufacturer partly owned by the CEO's family, accounted for 20.5% of cost of sales in fiscal 2010, and the auditor noted the significance of these related-party transactions. The filing also reports a Digitechnic litigation loss provision of $1.1 million, which was settled and paid in December 2009, and $6.7 million of auction rate securities still held. Management concluded internal control over financial reporting was effective as of June 30, 2010.
Sep 7, 2010
2009
Super Micro Computer Annual Report, Year Ended Jun 30, 2009
Super Micro Computer, Inc. (Nasdaq: SMCI) reported net sales of $505.6 million for fiscal year 2009 (ended June 30, 2009), down from $540.5 million in fiscal 2008, with net income of $16.1 million compared with $25.4 million a year earlier. The filing attributes the sales decline primarily to reduced information technology spending during the global economic downturn, with delayed customer orders ahead of Intel's Nehalem launch also cited. Gross margin fell to 17.5% of net sales from 19.2%, driven by competitive pricing pressure, while research and development spending rose to $34.5 million, or 6.8% of net sales, reflecting continued investment in in-house product development. The company states it has been profitable every year since it commenced operations in 1993. The balance sheet remained solid, with cash and cash equivalents of $70.3 million, total assets of $283.1 million and stockholders' equity of $178.6 million at June 30, 2009. Operating cash flow was $21.8 million. Inventory rose to $90.0 million and days sales of inventory increased to 76 days from 63, while days sales outstanding rose to 34 days from 28. The company repurchased 445,028 shares for $2.0 million and paid off its building loans in July and August 2009. Roughly $14.6 million of auction rate securities remain illiquid, though about $3.2 million were redeemed at par in July and August 2009. Key risk areas disclosed include heavy reliance on related-party contract manufacturer Ablecom Technology, which accounted for 22.1% of cost of sales, dependence on Intel and AMD as sole microprocessor suppliers, a pending Digitechnic lawsuit in France with a hearing held June 15, 2009, and concentration of ownership, with insiders beneficially owning approximately 38.3% of common stock.
Aug 31, 2009
2008
Super Micro Computer Annual Report, Year Ended Jun 30, 2008
Super Micro Computer, Inc. (Nasdaq: SMCI) reports its fiscal 2008 annual results for the year ended June 30, 2008. The company designs, develops, manufactures and sells application optimized, high performance x86 server systems and components, selling primarily through distributors. Net sales rose to $540.5 million from $420.4 million in fiscal 2007, and net income increased to $25.4 million from $19.3 million. Gross profit was $103.6 million, and income from operations was $40.3 million. Diluted earnings per share were $0.65, compared with $0.57 a year earlier. Sales growth was driven mainly by higher unit volumes and average selling prices, with server systems accounting for $209.1 million of net sales, up from $152.5 million. Cost of sales rose to 80.8% of net sales from 82.2%, and research and development expense increased to $30.5 million. Cash and cash equivalents were $51.5 million at year end, and cash provided by operating activities was $18.5 million. Ablecom Technology, a related party, supplied 24.3% of cost of sales, and the company disclosed significant related-party purchases and sales with it. The filing also flags several risks for investors, including $16.1 million of auction rate securities that became illiquid in February 2008, a Nasdaq independent director and audit committee compliance deficiency following a director's death, and a material weakness in cash flow statement classification that management reports as remediated as of June 30, 2008. The Digitechnic litigation in France remains pending.
Sep 2, 2008
2007-A2
Super Micro Computer Annual Report (Amendment), Year Ended Jun 30, 2007
Super Micro Computer, Inc. filed Amendment No. 2 on Form 10-K/A on December 17, 2007, to amend its Annual Report for the fiscal year ended June 30, 2007. The amendment adds Part III information (directors, executive officers, compensation, security ownership, related-party transactions, and accountant fees) and includes currently dated Section 302 and Section 906 certifications. It states that the disclosures are otherwise unchanged and that it does not reflect events after the original Form 10-K filed August 28, 2007. Financial statements were included in that original filing and are not refiled here. The filing shows a founder-led board and management team. Charles Liang serves as Chairman, President and CEO, and Howard Hideshima as CFO. As of November 30, 2007, Charles Liang and Chiu-Chu (Sara) Liu Liang are each shown as beneficially owning 30.3% of common stock, and all directors and executive officers as a group are shown as owning 41.8%, based on 31,172,605 shares outstanding. The board has seven directors, and the board determined that Charles Liang, Chiu-Chu (Sara) Liu Liang and Yih-Shyan (Wally) Liaw are not independent. The filing also details significant related-party dealings. For fiscal 2007, the company purchased about $95,673,000 of products from Ablecom Technology Inc., a contract manufacturer whose chief executive is the brother of Charles Liang, and sold about $7,320,000 to Ablecom. It purchased about $23,312,000 of contract manufacturing services and products from Tatung Company and sold about $5,739,000 to Tatung. Fiscal 2007 Deloitte & Touche audit-related fees were $1,313,000, against total fees of $1,757,000.
Dec 17, 2007
2007-A
Super Micro Computer Annual Report (Amendment), Year Ended Jun 30, 2007
Super Micro Computer, Inc. filed this Amendment No. 1 on Form 10-K/A for the fiscal year ended June 30, 2007. The amendment solely re-files the CEO and CFO Section 302 certifications (Exhibits 31.1 and 31.2) to add a Section 5 that had been omitted from the original August 28, 2007 filing; the financial statements and other disclosures are unchanged. The full annual report reflects a company that designs and sells application optimized x86 server systems and components, primarily through distributors, with net sales of $420.4 million in fiscal 2007, up from $302.5 million in fiscal 2006, and net income of $19.3 million, up from $16.9 million. Gross margin was 17.8% of net sales versus 19.9% a year earlier, while operating expenses rose to 10.7% of net sales from 10.8%. The company completed its initial public offering on April 3, 2007, selling 6,400,000 shares at $8.00 per share, with net proceeds to the company of $42,981,000. Cash and cash equivalents increased to $50.9 million at June 30, 2007 from $16.5 million, and total stockholders' equity rose to $115.9 million from $47.8 million. Key risks disclosed include heavy reliance on related-party contract manufacturer Ablecom Technology (27.7% of cost of sales in fiscal 2007), concentration of ownership by insiders, past export-control settlements with the U.S. Department of Justice, BIS and OFAC, and a pending Digitechnic litigation in France.
Sep 25, 2007
2007
Super Micro Computer Annual Report, Year Ended Jun 30, 2007
Super Micro Computer, Inc. (filed under the name Super Micro Computer, Inc.; trades on The Nasdaq Global Market as "SMCI") designs, develops, manufactures and sells application optimized, high performance x86 server systems and components. For fiscal 2007 (year ended June 30, 2007), net sales were $420.4 million, up from $302.5 million in fiscal 2006, and net income was $19.3 million versus $16.9 million. Gross profit was $75.0 million, with a gross margin of 17.8% of net sales versus 19.9% in the prior year, as cost of sales rose on higher inventory write-downs and a mix shift toward X7 and PD series motherboards. Operating income was $29.9 million, and diluted EPS was $0.57. The company stated it has been profitable every year since its 1993 inception. The company completed its initial public offering on April 3, 2007, selling 6,400,000 shares at $8.00 per share, with net proceeds to the company of $42,981,000. Proceeds are earmarked for repaying building loans of about $11.6 million and purchasing a property at 880 Fox Lane, San Jose, for about $11.3 million. Cash and cash equivalents rose to $50.9 million at June 30, 2007, from $16.5 million, and total stockholders' equity increased to $115.9 million from $47.8 million. The filing highlights notable risk concentrations. Ablecom Technology Inc., a related party controlled by members of the founding Liang and Liaw families, accounted for 27.7% of fiscal 2007 cost of sales. Approximately 67% of net sales came through third-party resellers and distributors. The filing also discloses prior export-control settlements with the U.S. Department of Justice, the Bureau of Industry and Security, and OFAC relating to 2001 to 2003 shipments, with fines totaling roughly $150,000, $125,000 and $179,000, respectively. Insiders and 5% holders were expected to own about 47.8% of common stock as of August 20, 2007.
Aug 28, 2007