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SMCI · Super Micro Computer

50 filings

10-Q

SMCI 10-Q Quarterly Reports

Super Micro Computer - 50 quarterly reports

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

SMCI filed 10 annual reports (10-K), 32 quarterly reports (10-Q) and 170 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’17Oct ’17
  2. FY2019 annual report10-K · Dec ’19Dec ’19
  3. Leadership change8-K · Apr ’22Apr ’22
  4. Leadership change8-K · Jan ’26Jan ’26
  1. 2026-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2026

    Super Micro Computer, Inc. reported a sharply higher third quarter of fiscal 2026 (three months ended March 31, 2026), with net sales of $10.24 billion versus $4.60 billion a year earlier and net income of $483.4 million versus $108.8 million. Gross profit rose to $1.02 billion from $440.2 million, and income from operations reached $625.9 million versus $146.8 million. For the nine months, net sales were $27.94 billion versus $16.22 billion and net income was $1.05 billion versus $853.7 million. The filing attributes the growth primarily to fulfillment of orders supporting customers' data center deployments, including large design wins from a few customers, with AI GPU related product sales up $5.16 billion year over year in the quarter. Cash flow and balance sheet trends warrant close attention. Net cash used in operating activities was $7.56 billion for the nine months, compared with $795.9 million provided a year earlier, driven by higher inventories ($11.10 billion versus $4.68 billion at June 30, 2025), accounts receivable ($8.41 billion versus $2.20 billion) and working capital needs. Cash and cash equivalents fell to $1.29 billion from $5.17 billion. Lines of credit and term loans totaled $4.11 billion, including a $2.00 billion JPMorgan revolving facility and $1.76 billion outstanding under CTBC revolving facilities, and convertible notes were carried at $4.66 billion. The filing discloses that management concluded disclosure controls and procedures were not effective as of March 31, 2026, due to material weaknesses in internal control over financial reporting that remain unremediated. Legal and regulatory matters are significant: multiple securities class actions and derivative lawsuits are pending, an SEC subpoena was received, and a March 19, 2026 indictment by the U.S. Attorney's Office for the Southern District of New York concerns three individuals formerly or previously associated with the Company. The Company is not named as a defendant in the indictment, and it has launched an independent investigation, with no conclusion reached.

    May 11, 2026
  2. 2026-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2025

    Super Micro Computer, Inc. reported a sharply higher top line for the quarter ended December 31, 2025, with net sales of $12.68 billion versus $5.68 billion a year earlier, driven mainly by fulfillment of orders for customers' datacenter deployments, including a large design win from one customer. Gross profit was $798.6 million, but gross margin fell to 6.3% from 11.8%, which management attributes to competitive pricing to gain market share, a change in product and customer mix, higher production and expedite costs, tariff expenses, and inventory write-downs. Net income was $400.6 million, compared with $320.6 million a year earlier, and diluted EPS was $0.60 versus $0.51. Balance sheet and cash flow shifted materially over the six months. Accounts receivable rose to $11.00 billion and inventories to $10.60 billion from June 30, 2025, while accounts payable rose to $13.75 billion. Net cash used in operating activities was $941.4 million for the six months, compared with $169.1 million provided a year earlier. Cash and cash equivalents declined to $4.09 billion from $5.17 billion. The company entered a $2.0 billion JPMorgan revolving credit facility on December 29, 2025, with no borrowings outstanding at quarter end, and disclosed subsequent January 2026 CTBC credit agreements totaling $1.8 billion in lender commitments. The filing states that disclosure controls and procedures were not effective as of December 31, 2025, due to material weaknesses in internal control over financial reporting that remain unremediated, including IT general controls, segregation of duties, and related party transaction identification. Several securities class action and derivative lawsuits are pending, and the company is responding to an SEC Enforcement subpoena; the company states it cannot estimate possible losses at this stage.

    Feb 6, 2026
  3. 2026-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2025

    Super Micro Computer, Inc. reported net sales of $5.02 billion for the three months ended September 30, 2025, down from $5.94 billion a year earlier, and net income of $168.3 million compared with $424.3 million. Diluted EPS was $0.26 versus $0.67. The filing attributes the decline mainly to the timing of several substantial customer orders received only in late September, which could not be shipped in the quarter, along with product mix changes and modestly lower average selling prices as the company priced competitively. Gross margin fell to 9.3% from 13.1%, and operating expenses rose 7.0% to $285.1 million. Cash flow was weak in the quarter. Net cash used in operating activities was $917.5 million, driven by a $1.09 billion increase in inventories, which reached $5.73 billion. Cash and cash equivalents declined to $4.20 billion from $5.17 billion at June 30, 2025. Convertible notes carried at about $4.65 billion, and total lines of credit and term loans were $125.8 million. The company stated its cash and borrowing capacity should be sufficient for the next 12 months, and it has $11.6 billion of non-cancelable purchase commitments. The filing states that disclosure controls were not effective as of September 30, 2025. Four material weaknesses in internal control over financial reporting, first identified in the fiscal 2024 Form 10-K, remain unremediated, though management reports significant remediation progress. Litigation includes securities class actions, derivative suits, a Canadian class action, and DOJ and SEC subpoenas, for which the company cannot estimate a loss.

    Nov 7, 2025
  4. 2025-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2025

    Super Micro Computer, Inc. reported net sales of $4.60 billion for the three months ended March 31, 2025, up from $3.85 billion a year earlier, while net income fell to $108.8 million from $402.5 million. For the nine months, net sales rose to $16.22 billion from $9.63 billion and net income was $853.7 million versus $855.4 million. Gross margin compressed to 9.6% in the quarter from 15.5% a year earlier, driven by competitive pricing, increased competition, a product mix shift, and a $109.6 million increase in inventory write-downs. The company attributed the sales growth to demand for GPU servers, HPC, and rack-scale solutions, which carry higher average selling prices. Balance sheet and financing activity were significant during the period. Cash and cash equivalents rose to $2.54 billion from $1.67 billion at June 30, 2024, and convertible notes increased to $2.39 billion. Inventories declined to $3.87 billion from $4.33 billion, while accounts payable fell to $643.1 million from $1.47 billion. In February 2025 the company issued $700.0 million of 2.25% Convertible Senior Notes due 2028 and amended its 3.50% 2029 Convertible Notes, recognizing a $30.3 million loss on extinguishment. Operating cash flow was $795.9 million for the nine months, compared with an outflow of $1.84 billion a year earlier. The filing states that disclosure controls were not effective as of March 31, 2025, due to material weaknesses in internal control over financial reporting that remained unremediated. The company also disclosed several putative securities class actions, derivative lawsuits, and a Department of Justice and SEC document subpoena, none of which it could estimate a loss for. Management is implementing remediation measures, including hiring a Vice President for technical accounting and external reporting.

    May 12, 2025
  5. 2025-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2024

    Super Micro Computer, Inc. filed this Quarterly Report on Form 10-Q for the three and six months ended December 31, 2024, which was delayed by an independent review and the resignation of its former auditor, Ernst & Young LLP. The Special Committee's review concluded on December 2, 2024 without finding substantial concerns about management integrity or the Audit Committee, and the Company appointed BDO USA, P.C. as its new independent registered public accounting firm on November 18, 2024. The filing's Item 4 states that disclosure controls were not effective due to material weaknesses in internal control over financial reporting, including IT general controls, segregation of duties, manual journal entries, and documentation of control procedures. Financially, net sales for the three months ended December 31, 2024 were $5.68 billion, up from $3.66 billion, and net income was $320.6 million, compared with $296.0 million a year earlier. Gross margin fell to 11.8% from 15.4%, reflecting competitive pricing and a shift in product and customer mix. For the six months, net sales reached $11.62 billion and net income $744.9 million. Cash and cash equivalents declined to $1.43 billion, and operating cash flow was $169.1 million for the six months, versus a $324.6 million outflow a year earlier. Total debt was $208.4 million, and the 2029 Convertible Notes carried a value of $1.70 billion. Subsequent events include a February 20, 2025 amendment of the 2029 Convertible Notes, which added a 3.50% interest rate and reset the conversion price to approximately $83.44 per share, and the issuance of $700.0 million of 2.25% Convertible Senior Notes due 2028. The Company also disclosed several pending shareholder class actions and derivative lawsuits, as well as subpoenas from the Department of Justice and the Securities and Exchange Commission, with no charges brought as of the filing date.

    Feb 25, 2025
  6. 2025-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2024

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended September 30, 2024, delayed by the departure of its former auditor, Ernst & Young LLP, and a Special Committee review that concluded in December 2024. For the three months ended September 30, 2024, net sales were $5.94 billion versus $2.12 billion a year earlier, with server and storage systems making up $5.75 billion of that. Gross margin declined to 13.1% from 16.7%, while operating expenses were 4.5% of net sales versus 8.5%. Net income was $424.3 million compared with $157.0 million, and diluted earnings per share were $0.67 versus $0.27 (adjusted for the ten-for-one forward stock split effective September 30, 2024). Balance sheet and cash flow figures show cash and cash equivalents rising to $2.09 billion, inventories increasing to $4.93 billion from $4.33 billion, and total debt of $559.5 million. Net cash from operating activities was $408.9 million. The filing discloses that management concluded disclosure controls were not effective due to multiple material weaknesses in internal control over financial reporting, and it describes several pending securities class actions, derivative suits, and a DOJ and SEC document subpoena process. Subsequent events include the February 2025 issuance of $700.0 million of 2.25% convertible notes due 2028 and an amendment of the 2029 convertible notes, which now bear 3.50% interest and carry a conversion price of approximately $83.44.

    Feb 25, 2025
  7. 2024-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2024

    Super Micro Computer, Inc. filed this Quarterly Report on Form 10-Q for the third quarter of fiscal 2024, ended March 31, 2024. Net sales for the three months rose to $3.85 billion from $1.28 billion a year earlier, and net income reached $402.5 million versus $85.8 million. For the nine months, net sales were $9.63 billion against $4.94 billion, and net income was $855.4 million against $446.4 million. Gross margin narrowed to 15.5% from 17.6% for the quarter, which the company attributes mainly to competitive pricing to win new design wins and to product and customer mix. Management expects net sales and average selling prices to keep increasing, driven by demand for GPU servers, high performance computing and rack-scale solutions. The balance sheet and cash flow changed substantially during the period. Inventories grew to $4.12 billion from $1.45 billion at June 30, 2023, and net cash used in operating activities was $1.84 billion for the nine months, compared with $672.9 million provided a year earlier. The company raised funds through $1.73 billion of convertible senior notes due 2029, $1.70 billion of net proceeds from the notes issued in February 2024, and a $1.73 billion common stock offering in March 2024. Cash and cash equivalents rose to $2.12 billion from $440.5 million, while convertible notes outstanding were carried at $1.70 billion. The filing also discloses concentration and related-party exposure. Supplier A accounted for 69.8% of total purchases in the quarter, and customer A accounted for 21.2% of quarterly net sales. Related parties Ablecom and Compuware manufacture a significant share of the company's chassis and power supplies. The company reported noncancelable purchase commitments of $2.9 billion and recorded a supplemental risk factor on its indebtedness and the convertible notes.

    May 6, 2024
  8. 2024-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2023

    Super Micro Computer, Inc. reported its second quarter of fiscal 2024 (three and six months ended December 31, 2023) in this Form 10-Q. Net sales for the quarter were $3.66 billion, up 103.2% from $1.80 billion a year earlier, and for the six months were $5.78 billion, up 58.3% from $3.66 billion. Gross margin fell to 15.4% from 18.7% in the prior-year quarter, while net income rose to $295.97 million from $176.17 million. Diluted EPS was $5.10 versus $3.14. Growth was attributed mainly to strong demand for GPU, high performance computing, and rack-scale solutions from data center customers, which carry higher average selling prices. The balance sheet expanded considerably. Inventories rose to $2.47 billion from $1.45 billion at June 30, 2023, and accounts receivable rose to $1.50 billion. Operating cash flow was negative $324.6 million for the six months, compared with positive $474.7 million a year earlier, driven by a $945.1 million increase in net working capital. The company raised $582.8 million in net proceeds from a December 2023 public offering of 2,315,105 shares at $262.00 per share. Total debt was $375.6 million, and cash and cash equivalents were $725.7 million. Subsequent events include an agreement to buy real estate in San Jose, California for $80.0 million, expected to close in the third quarter of fiscal 2024, and a lease of approximately 260,000 square feet in San Jose for 79 months at about $0.6 million per month. Two customers accounted for 25.5% and 10.4% of net sales in the quarter, and one supplier accounted for 68.1% of total purchases.

    Feb 2, 2024
  9. 2024-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2023

    Super Micro Computer, Inc. reported net sales of $2.12 billion for the three months ended September 30, 2023, up 14.4% from $1.85 billion a year earlier, driven mainly by strong demand for GPU, high performance computing (HPC) and rack-scale solutions that carry higher average selling prices. Net income was $156.995 million, or $2.75 per diluted share, down from $184.4 million ($3.35 diluted) in the prior-year quarter. Gross margin fell to 16.7% from 18.8%, and operating expenses rose 42.2% to $181.2 million, with research and development up 49.6% to $111.0 million, largely from higher compensation and equity award costs. Stock-based compensation expense increased to $57.4 million from $11.0 million. The balance sheet expanded materially. Inventories rose to $2.05 billion from $1.45 billion at June 30, 2023, and accounts payable increased to $1.08 billion from $776.8 million. Cash and cash equivalents were $543.2 million, up from $440.5 million, while total debt declined to $146.2 million from $290.3 million after $138.9 million of repayments. Operating cash flow was $270.5 million, down from $313.6 million, mainly because of a $416.8 million increase in cash used to purchase inventory. Management stated that current resources should be sufficient for the next 12 months. Concentration risk increased: one supplier accounted for 55.1% of total purchases, reflecting GPU purchases, and one customer accounted for 25.0% of net sales. Remaining noncancelable purchase commitments were $1.4 billion. On September 28, 2023, the Taiwan subsidiary entered into a new CTBC Bank credit agreement that aggregates borrowings of up to $105.0 million, and the company had $50.0 million of share repurchase authorization remaining.

    Nov 3, 2023
  10. 2023-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2023

    Super Micro Computer, Inc. reported net sales of $1,283.3 million for the three months ended March 31, 2023, down from $1,355.5 million a year earlier, a decrease the filing states as 5.3%. Net income rose to $85.8 million from $77.0 million, supported by gross margin of 17.6% versus 15.5% in the prior-year quarter and an effective tax rate of 11.1% versus 17.4%. For the nine months, net sales were $4.94 billion versus $3.56 billion, and net income was $446.4 million versus $144.3 million. The company attributes the quarterly sales decline mainly to lower Asia sales, partly offset by higher U.S. sales driven by demand for GPU-based server and storage systems. Server and storage systems rose 1.6% in the quarter, while subsystems and accessories fell 42.9%. Cash flow and balance sheet strength improved over the nine months. Net cash provided by operating activities was $672.9 million, compared with cash used of $415.7 million a year earlier. Cash and cash equivalents were $362.8 million, and total debt was $187.2 million, down from $596.8 million at June 30, 2022. During the quarter the company repurchased 1,553,350 shares for $150 million under a $200 million program, leaving $50.0 million available. Remaining performance obligations were $309.9 million, with about 48% expected to be recognized in the next 12 months. The filing also notes ongoing dependencies and risks. Two suppliers accounted for 16.9% and 26.9% of purchases in the quarter, and related parties Ablecom and Compuware remain significant contract manufacturers. Noncancelable purchase commitments totaled $932.8 million. The company disclosed filings made with Russia's FSB on its behalf during fiscal 2023, while stating that no sales occurred in Russia and that its last recorded revenue from Russia was on February 23, 2022. A securities class action settlement of $18.25 million has preliminary approval, with the court indicating it planned to grant final approval.

    May 5, 2023
  11. 2023-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2022

    Super Micro Computer, Inc. reported results for its second fiscal quarter of 2023, the three months ended December 31, 2022. Net sales rose to $1.80 billion from $1.17 billion in the prior-year quarter, and net income increased to $176.2 million from $41.9 million. Gross margin improved to 18.7% from 14.0%, and operating expenses were 6.7% of net sales versus 9.6% a year earlier. For the six months, net sales were $3.66 billion and net income was $360.6 million. Growth was driven mainly by higher-priced GPU-based server and storage systems, with server and storage systems making up 92.1% of quarterly net sales. Balance sheet and cash flow improved meaningfully. Cash and cash equivalents were $304.6 million, and net cash provided by operating activities for the six months was $474.7 million, compared with net cash used of $187.7 million a year earlier. Total debt fell to $170.1 million from $596.8 million at June 30, 2022, as short-term debt was reduced from $449.1 million to $27.9 million. The company's $200 million share repurchase program, authorized in August 2022, ran through January 31, 2024, and no shares were repurchased during the quarter. The filing also flags several items for investors. Two suppliers accounted for 15.3% and 22.3% of total purchases for the six months, and Ablecom and Compuware, both related parties, were a combined 6.6% of cost of sales for the six months. One customer accounted for 15.8% of net sales for the six months. A securities class action settlement of $18.25 million, of which $2.0 million is funded by the company, awaited final court approval at a hearing scheduled for March 2, 2023. The company also reported $422.9 million in noncancelable purchase commitments.

    Feb 3, 2023
  12. 2023-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2022

    Super Micro Computer, Inc. reported a strong first quarter of fiscal year 2023, ended September 30, 2022, with net sales of $1,852.1 million, up 79.3% from $1,032.7 million in the prior-year quarter. Gross margin rose to 18.8% from 13.4%, and income from operations increased to $220.1 million from $29.1 million. Net income was $184.4 million, compared with $25.4 million a year earlier, and diluted earnings per share were $3.35 versus $0.48. Growth was driven mainly by server and storage systems, which rose to $1,713.1 million from $849.9 million, with the filing citing higher demand for GPU-based products and higher average selling prices. The balance sheet shows inventories rising to $1,736.1 million from $1,545.6 million, and accounts payable rising to $785.0 million from $655.4 million. Total debt fell to $249.7 million from $596.8 million, largely because short-term lines of credit were repaid, and operating cash flow was $313.6 million, compared with negative $134.6 million a year earlier. Cash and cash equivalents declined to $238.3 million from $267.4 million. Deferred revenue increased by $86.0 million, and remaining performance obligations were $319.8 million. The filing also discloses several items for investors to weigh. One customer accounted for 21.9% of net sales, and two suppliers accounted for 16.1% and 25.7% of total purchases. Related-party dealings with Ablecom and Compuware remain significant, and the company noted that Ablecom has advised that its underlying agreements to acquire land near the Bade, Taiwan campus have been terminated. The board approved a new share repurchase program of up to $200 million, but no shares were repurchased in the quarter. Management also reported a $1.6 million legal settlement funding commitment within a securities class action that is pending final court approval.

    Nov 4, 2022
  13. 2022-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2022

    Super Micro Computer, Inc. reported its third-quarter fiscal 2022 results for the three and nine months ended March 31, 2022. Net sales for the quarter were $1.36 billion, up 51.3% from $895.9 million a year earlier, and net income rose to $77.0 million from $18.4 million. Gross margin improved to 15.5% from 13.7%, and income from operations was $89.8 million versus $17.1 million. For the nine months, net sales were $3.56 billion and net income was $144.3 million, compared with $72.7 million in the prior-year period. Cash flow and balance sheet trends warrant attention. Net cash used in operating activities was $415.7 million for the nine months, compared with $59.4 million provided a year earlier, which the filing attributes primarily to a $552.5 million increase in net working capital to meet customer demand and mitigate supply chain risk. Inventories rose to $1.59 billion from $1.04 billion at June 30, 2021. Total debt increased to $547.5 million from $98.2 million, and short-term debt reached $403.0 million. Cash and cash equivalents were $247.4 million. The filing also discloses a pause in sales to Russia, Belarus and restricted areas of Ukraine, and a $18.25 million Hessefort securities class action settlement, of which the Company funds $2.0 million. The Company repurchased no shares during the quarter, with $150.0 million of remaining authorization under its program.

    May 6, 2022
  14. 2022-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2021

    Super Micro Computer, Inc. reported net sales of $1.17 billion for the three months ended December 31, 2021, up from $830.3 million a year earlier, with net sales increasing 41.2% per the filing. Net income rose to $41.9 million from $27.7 million, and diluted EPS was $0.78 versus $0.52. Gross margin declined to 14.0% from 16.4%, as the filing attributes to sales prices rising more slowly than costs of sales, while operating expenses grew 14.1% and represented 9.6% of net sales. For the six months, net sales were $2.21 billion and net income was $67.4 million. Balance sheet and liquidity shifted notably. Inventories rose to $1.39 billion from $1.04 billion at June 30, 2021, and total debt increased to $315.9 million from $98.2 million, with short-term debt at $176.9 million. Operating cash flow was negative $187.7 million for the six months, compared with positive $183.8 million a year earlier, due mainly to a $388.2 million increase in net working capital to meet customer demand and mitigate supply chain risk. Management states it believes existing cash, borrowing capacity and internally generated cash flows will be sufficient for the next twelve months. The filing also covers ongoing pending securities class action litigation (Hessefort and related matters) that the company intends to defend vigorously, a $50 million portion of a $200 million share repurchase program with $150 million remaining, and a Tripartite Agreement under which the Taiwan subsidiary expects to fund an estimated US$28.3 million share of a land purchase. The company's revenue-based CEO performance stock option milestone of $4.0 billion annualized revenue is described as achieved, based on four-quarter reported revenue of $4.17 billion.

    Feb 4, 2022
  15. 2022-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2021

    Super Micro Computer, Inc. reported net sales of $1,032.7 million for the three months ended September 30, 2021, up 35.5% from $762.3 million in the year-earlier quarter. Gross margin fell to 13.4% from 17.0%, and net income declined to $25.4 million from $26.6 million. Diluted earnings per share were $0.48 versus $0.49. Operating expenses rose 9.6% to $109.0 million, and income from operations was $29.1 million compared with $30.4 million. The company attributed the margin decline mainly to sales prices rising more slowly than cost of sales, with higher materials, freight and excess inventory charges. Cash flow and liquidity moved sharply. Net cash used in operating activities was $134.6 million, compared with $120.6 million provided in the prior-year quarter, driven by a $259.6 million increase in net working capital investment. Inventories rose to $1,184.6 million from $1,041.0 million at June 30, 2021. Total debt increased to $278.8 million from $98.2 million, funded largely by new and amended credit facilities with Bank of America, CTBC Bank, E.SUN Bank, Mega Bank and Chang Hwa Bank. Cash and cash equivalents were $270.0 million, and $150.0 million remained available under the share repurchase program, with no repurchases in the quarter. The filing also discloses ongoing securities class action and derivative litigation related to revenue recognition and internal controls, with the company stating it intends to defend these lawsuits vigorously. The Board reduced the CEO's first-tranche performance bonus to approximately $2.0 million from the $8.1 million maximum, which led to a $1.6 million benefit in the quarter. Management stated it believes current cash, borrowing capacity and internally generated cash flows will be sufficient for the next twelve months.

    Nov 5, 2021
  16. 2021-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2021

    Super Micro Computer, Inc.'s Form 10-Q for the quarter ended March 31, 2021 reports net sales of $895.9 million for the three months, up 16.0% from $772.4 million a year earlier, and net sales of $2.49 billion for the nine months, up 1.9%. Net income for the quarter rose to $18.4 million from $15.8 million, while gross margin fell to 13.7% from 17.3%, reflecting sales prices rising more slowly than component costs and higher freight costs. Operating expenses declined 10.1% in the quarter, largely due to lower professional fees tied to the prior SEC-related delay and restatement. Cash and cash equivalents were $177.9 million at March 31, 2021, and total debt rose to $85.4 million from $29.4 million at June 30, 2020. The company repurchased $118.0 million of stock in the nine months under its programs, including a $200.0 million authorization approved January 29, 2021, with $40.7 million of that repurchased during the quarter. Operating cash flow for the nine months was $59.4 million. The company disclosed a continuing material weakness in internal control over financial reporting (IT general controls), and its disclosure controls were concluded to be not effective as of March 31, 2021. The filing also describes a 2020 SEC cease-and-desist order with a $17.5 million civil penalty, several pending shareholder lawsuits, and a CEO performance bonus of approximately $8.1 million expected within the next year.

    May 7, 2021
  17. 2021-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2020

    Super Micro Computer, Inc. reported its Form 10-Q for the second quarter of fiscal 2021 (three and six months ended December 31, 2020). Net sales for the quarter were $830.3 million, down 4.7% from $870.9 million a year earlier, while net income rose to $27.7 million from $23.7 million. Gross margin improved to 16.4% from 15.9%, and operating expenses fell 10.7% to $98.7 million. For the six months, net sales were $1.59 billion and net income was $54.3 million, compared with $50.1 million a year earlier. Net cash provided by operating activities was $183.8 million for the six months, versus $87.2 million a year earlier. The company repurchased 1,580,207 shares for $47.0 million in the quarter under a $50.0 million program, and on January 29, 2021 its board approved a new program of up to $200.0 million running through July 31, 2022. The company also paid a $17.5 million civil penalty to the SEC in connection with the August 2020 settlement. Management disclosed that disclosure controls were not effective as of December 31, 2020 because of a material weakness in IT general controls over privileged access, with remediation dependent on controls operating effectively as of June 30, 2021. Litigation remains active, including a securities class action in the U.S. District Court for the Northern District of California, which the company says is without merit, and a derivative action in Santa Clara County Superior Court. Cash and cash equivalents rose to $315.6 million from $210.5 million at June 30, 2020, and total debt was $45.5 million, with the company stating that its resources should be sufficient for the next twelve months.

    Feb 5, 2021
  18. 2021-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2020

    Super Micro Computer, Inc. reported net sales of $762.25 million for the three months ended September 30, 2020, down from $799.80 million a year earlier, with net income rising slightly to $26.60 million from $26.35 million. Gross margin improved to 17.0% from 16.4%, while operating expenses rose to 13.0% of net sales from 12.3%. Diluted earnings per share were $0.49 versus $0.51 in the prior-year period, reflecting a higher diluted share count of 54.4 million versus 51.7 million. Net cash provided by operating activities increased to $120.6 million from $5.6 million, driven primarily by working capital changes, with cash and cash equivalents rising to $300.1 million from $210.5 million at June 30, 2020. The filing discloses that the Company paid a $17.5 million civil money penalty to settle SEC investigations, recorded in general and administrative expense, and that its Chief Executive Officer reimbursed $2.1 million in profits under Section 304 of the Sarbanes-Oxley Act. Management concluded that disclosure controls were not effective as of September 30, 2020 due to a material weakness in IT general controls, and remediation is expected to depend on controls operating effectively as of June 30, 2021. The Company also faces a securities class action (Hessefort/United Union of Roofers, now at the fourth amended complaint stage) that management believes is without merit, and a derivative lawsuit filed October 27, 2020. Subsequent to quarter end, the Board approved a share repurchase program of up to $50 million effective until October 31, 2021. The Company completed a $30.0 million repurchase program during the quarter, repurchasing 1,142,294 shares. Total debt was $36.0 million at September 30, 2020, and the Company had $243.6 million of available borrowing capacity under its Bank of America credit facility.

    Nov 6, 2020
  19. 2020-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2020

    Super Micro Computer, Inc. filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, the third quarter of fiscal year 2020. Net sales were $772.4 million for the three months ended March 31, 2020, up from $743.5 million a year earlier, and net income rose to $15.8 million from $10.6 million. For the nine months, net sales declined to $2,443.2 million from $2,646.1 million, while net income was $65.9 million versus $48.2 million. Gross margin improved to 17.3% in the quarter from 15.1%, largely due to favorable geographic, customer and product mix, while operating expenses grew 18.4% to $117.8 million, including a $17.5 million accrual for a potential SEC settlement. The balance sheet shows total assets of $1.96 billion at March 31, 2020, with cash and cash equivalents of $300.9 million and inventories rising to $866.2 million from $670.2 million at June 30, 2019. Operating cash flow for the nine months fell to $65.7 million from $180.7 million, driven by a $129.7 million increase in net working capital. Short-term debt was $33.2 million, and the 2018 Bank of America Credit Facility, which expires June 30, 2020, was under negotiation for extension. Management disclosed that disclosure controls were not effective as of March 31, 2020 due to material weaknesses in internal control over financial reporting. The filing also describes COVID-19 disruptions to operations, supply chain and collections, a $25.3 million one-time employee performance bonus program, and pending SEC and securities class action matters.

    May 11, 2020
  20. 2020-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2019

    Super Micro Computer, Inc. filed this Quarterly Report on Form 10-Q for the second quarter of fiscal 2020, covering the three and six months ended December 31, 2019. Net sales for the quarter were $870.9 million, down from $931.5 million a year earlier, while net income rose to $23.7 million from $18.2 million. Gross margin improved to 15.9% from 13.7%, driven by lower key component costs and a favorable geographic, customer and product mix. Diluted earnings per share were $0.46 versus $0.36 in the prior-year quarter. For the six months, net sales were $1.67 billion versus $1.90 billion, and net income was $50.1 million versus $37.6 million. The company reported that its disclosure controls and procedures were not effective as of December 31, 2019, because of material weaknesses in internal control over financial reporting, and it describes ongoing remediation. The filing notes expected one-time charges of $35.0 million to $40.0 million in the third or fourth fiscal quarter of 2020, tied to residual clean-up from the extended filing delay. Cash and cash equivalents rose to $309.0 million, and the company had no outstanding borrowings under its $250.0 million Bank of America credit facility as of December 31, 2019. The filing also discloses a putative securities class action filed in February 2018, which the company says is without merit, and a new risk factor on the coronavirus outbreak and its potential effect on operations in China. Average selling prices per compute node fell about 20% in the quarter, offset by roughly a 10% increase in units shipped. Related-party transactions with Ablecom and Compuware remain significant, representing 10.3% of cost of sales in the quarter. Remaining noncancelable purchase commitments totaled $579.2 million.

    Feb 7, 2020
  21. 2020-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2019

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended September 30, 2019, its first quarter of fiscal year 2020. Net sales were $799.8 million, down 17.6% from $971.1 million in the prior-year quarter, mainly due to lower server and storage volume, lower average selling prices per compute node, and lower sales in Asia and Europe. Gross margin rose to 16.4% from 12.7%, and net income increased to $26.3 million from $19.3 million, with diluted EPS of $0.51 versus $0.37. Management attributed the margin improvement to favorable geographic, customer and product mix and lower key component costs. Balance sheet and liquidity remained steady but cash flow weakened. Cash and cash equivalents were $239.3 million at September 30, 2019, versus $248.2 million at June 30, 2019. Net cash provided by operating activities fell to $5.6 million from $37.7 million, driven by higher working capital needs. Total debt was $22.5 million, and the Bank of America credit facility had no outstanding borrowings at quarter end, with $246.8 million of available capacity. The filing discloses that management concluded disclosure controls and procedures were not effective as of September 30, 2019, due to material weaknesses in internal control over financial reporting. The company also reports that its common stock was delisted from Nasdaq and now trades on the OTC Market under the symbol SMCI, and that a securities class action remains pending with a motion to dismiss outstanding. This filing was submitted alongside the comprehensive Form 10-K for fiscal 2019, filed December 19, 2019.

    Dec 20, 2019
  22. 2019-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2019

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended March 31, 2019 (its third fiscal quarter of 2019). Net sales for the three months fell to $743.5 million from $835.1 million, a decrease the filing states as 11.0%. Gross margin rose to 15.1% from 12.7%, which the filing attributes to lower prices for key components, a favorable geographic mix, and higher-margin service revenue. Operating expenses rose to 13.4% of sales from 10.1%, driven mainly by professional fees tied to the delayed SEC filings and restatement. Net income for the quarter was $10.6 million, down from $14.6 million, while nine-month net income rose to $48.2 million from $19.9 million. Nine-month operating cash flow was $180.7 million, compared with $19.4 million a year earlier. The filing reports that management concluded disclosure controls and procedures were not effective as of March 31, 2019, due to material weaknesses in internal control over financial reporting. Nasdaq suspended trading in the company's common stock effective August 23, 2018 and formally delisted it effective March 22, 2019; the stock now trades on the OTC Market under the symbol SMCI. The company states that its audited annual financial statements and its 2019 Comprehensive 10-K are still to be filed, and it faces a pending securities class action in which it has filed a motion to dismiss. At March 31, 2019, cash and cash equivalents were $169.7 million, up from $115.4 million at June 30, 2018. Short-term debt fell to $22.7 million from $116.2 million, and inventories declined to $761.1 million from $853.3 million. The company states that its cash, credit lines and internally generated cash flows should be generally sufficient for the next twelve months.

    Dec 19, 2019
  23. 2019-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2018

    Super Micro Computer, Inc. reported net sales of $931.5 million for the three months ended December 31, 2018, up 12.6% from $827.0 million a year earlier, and $1.90 billion for the six months, up 23.2% from $1.54 billion. Net income was $18.2 million for the quarter, compared with a net loss of $0.8 million in the prior-year quarter, and $37.6 million for the six months, compared with $5.3 million. Growth was driven mainly by server and storage systems, which made up 81.9% of net sales in the quarter versus 76.1% a year earlier. Gross margin rose to 13.7% from 12.8%, which the company attributed to lower prices for key components, a favorable geographic mix, and higher-margin service revenue. Operating expenses rose 23.1% for the quarter to 11.0% of net sales, driven primarily by professional fees incurred to investigate, assess and begin remediating the causes of the delay in filing periodic reports with the SEC and the associated restatement of previously issued financial statements. Cash and cash equivalents were $109.8 million at December 31, 2018, and short-term debt declined to $48.2 million from $116.2 million at June 30, 2018. Net cash provided by operating activities was $81.1 million for the six months. The filing discloses significant governance and reporting issues. Nasdaq suspended trading in the common stock effective August 23, 2018 and formally delisted it effective March 22, 2019, after which the stock has traded on the OTC Market under the symbol SMCI. Management concluded that disclosure controls and procedures were not effective because of material weaknesses in internal control over financial reporting. The company also faces a securities class action filed in February 2018, on which a motion to dismiss was pending at the time of filing, and it notes that its audited financial statements for fiscal 2018 and 2019 were still to be delivered under extended bank-facility deadlines.

    Dec 19, 2019
  24. 2019-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2018

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended September 30, 2018, presenting unaudited condensed consolidated financial statements. Net sales were $971.1 million, up from $716.7 million in the prior-year quarter, with server and storage systems making up 83.0% of net sales (versus 75.7%). Gross profit rose to $123.2 million, and net income was $19.3 million, or $0.37 per diluted share, compared with $6.1 million a year earlier. Operating expenses increased to $94.7 million, which the filing attributes primarily to professional fees tied to investigating and remediating the causes of the delayed SEC filings and the associated restatement. The balance sheet shows cash and cash equivalents of $105.8 million, inventories of $821.0 million, and short-term debt of $79.3 million, down from $116.2 million at June 30, 2018. Operating cash flow was $37.7 million. Total stockholders' equity was $875.3 million. The company reports that its disclosure controls were not effective as of September 30, 2018 due to material weaknesses in internal control over financial reporting. Its common stock was suspended from Nasdaq trading effective August 23, 2018 and formally delisted effective March 22, 2019, and it now trades on the OTC Market under the symbol "SMCI." The filing also discloses related-party dealings with Ablecom and Compuware, which together accounted for 9.2% of cost of sales, and a securities class action filed in February 2018 that the company believes is without merit. The company states that its 2019 Comprehensive 10-K, which will include audited financial statements for fiscal years 2019 and 2018, is expected to follow this filing.

    Dec 19, 2019
  25. 2017-Q1-A

    Super Micro Computer Quarterly Report (Amendment) for Q1 Ended Sep 30, 2016

    This Form 10-Q/A from Super Micro Computer, Inc. covers the quarter ended September 30, 2016, and presents restated condensed consolidated financial statements. The restatement follows an Audit Committee investigation into revenue recognition and related accounting matters, which the Board concluded on November 14, 2018 required previously filed financial statements to no longer be relied upon. For the three months ended September 30, 2016, net sales were $528.8 million (versus $539.1 million in 2015, as restated), gross profit was $82.6 million, operating expenses were $60.1 million, and net income was $15.4 million (previously reported as $13.5 million). Operating cash flow was negative at $(10.8) million, and cash and cash equivalents fell to $144.6 million from $178.8 million at June 30, 2016. The filing discloses material weaknesses in internal control over financial reporting, and management concluded that disclosure controls were not effective as of September 30, 2016. The weaknesses span the control environment, risk assessment, control activities, information and communication, monitoring, revenue recognition accounting and IT general controls. The company describes remediation steps taken to date, including a restructured sales organization, new finance and compliance leadership, and revenue recognition training, along with several remaining remediation activities. The filing also notes that the company faces Section 10(b) securities class actions filed in February 2018, a 2015 securities suit that ended in November 2018, and ongoing SEC subpoenas and cooperation. Common stock was suspended from Nasdaq in August 2018, delisted in March 2019, and now trades on the OTC Market as "SMCI." Debt facilities were extended into mid-2019, and the company intends to negotiate further extensions for its delayed audited financial statements.

    May 17, 2019
  26. 2017-Q2-A

    Super Micro Computer Quarterly Report (Amendment) for Q2 Ended Dec 31, 2016

    Super Micro Computer, Inc. filed this Form 10-Q/A for the quarter ended December 31, 2016, restating previously issued condensed consolidated financial statements. The restatement, which the Audit Committee's investigation prompted, corrects premature product revenue recognition, misclassified services revenue (extended warranties and on-site services deferred rather than recognized at sale), inventory accounting errors, and other items. For the three months ended December 31, 2016, net sales are restated to $663.2 million (previously $651.954 million) and net income to $22.9 million; for the six months, net sales are $1.19 billion and net income is $38.2 million. Gross margin was 14.5% for the quarter versus 16.1% a year earlier, and operating expenses rose 12.6% to $62.6 million. The company reports that its disclosure controls were not effective as of December 31, 2016, due to material weaknesses in the control environment, risk assessment, control activities, information and communication, monitoring, revenue recognition accounting, and IT general controls. Operating cash flow was negative $55.2 million for the six months, driven by a $156.8 million increase in inventories and a $75.5 million increase in accounts receivable, partly offset by higher accounts payable. Cash fell to $126.6 million from $178.8 million at June 30, 2016, while total debt was $127.5 million. The filing also discloses that the company's audited financial statements for fiscal 2017 and 2018 remain outstanding, that its common stock was suspended from Nasdaq trading in August 2018 and delisted in March 2019 (now quoted on the OTC Market as SMCI), and that it faces securities class action litigation alleging misrepresentations about revenue recognition, as well as SEC subpoenas. The company's management believes the allegations are without merit.

    May 17, 2019
  27. 2017-Q3-A

    Super Micro Computer Quarterly Report (Amendment) for Q3 Ended Mar 31, 2017

    This Form 10-Q/A for the quarter ended March 31, 2017 from Super Micro Computer, Inc. is an amended quarterly report that restates previously issued condensed consolidated financial statements as of March 31, 2017 and June 30, 2016 and for the three and nine months ended March 31, 2017 and 2016. The restatement follows an Audit Committee investigation into revenue recognition matters, concluded November 14, 2018. For the three months ended March 31, 2017, net sales were $614.8 million (restated, versus $631.1 million as previously reported), net income was $15.4 million (restated, versus $16.7 million as previously reported), and diluted EPS was $0.30. For the nine months ended March 31, 2017, net sales were $1.81 billion and net income was $53.6 million, versus $52.2 million previously reported. Cash and cash equivalents were $105.2 million at March 31, 2017, and the Company reported net cash used in operating activities of $90.5 million for the nine months, driven largely by a $210.1 million increase in inventories. Management concluded that disclosure controls and procedures were not effective as of March 31, 2017 because of material weaknesses in internal control, spanning the control environment, risk assessment, control activities, information and communication, monitoring, revenue recognition accounting, and IT general controls. Remediation actions are described as ongoing. The filing also discloses that the common stock was suspended from Nasdaq trading effective August 23, 2018 and delisted effective March 22, 2019, and now trades on the OTC Market under the symbol "SMCI." Liquidity depends on bank facilities, including a 2018 Bank of America credit facility of up to $250.0 million that matures June 30, 2019, and total debt of $145.8 million at March 31, 2017. The financial statements include a going-concern assumption, and the Company states that cash is adequate for the next twelve months. Litigation includes putative securities class actions filed February 8, 2018 alleging violations of Section 10(b) over revenue recognition statements, which the Company believes are without merit. The Company also reports cooperation with SEC subpoenas, and an SEC subpoena following an October 2018 Bloomberg Businessweek article.

    May 17, 2019
  28. 2017-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2017

    Super Micro Computer, Inc. reported net sales of $631.1 million for the three months ended March 31, 2017, up from $532.7 million a year earlier, and $1,812.0 million for the nine months, up from $1,691.3 million. Net income was $16.7 million for the quarter, flat with the prior-year quarter's $16.7 million, and $52.2 million for the nine months, down from $65.1 million. Gross margin narrowed to 14.0% in the quarter from 14.9% and to 14.4% for the nine months from 15.2%, which the company attributes mainly to higher memory and SSD component costs and a greater mix of late life-cycle processor systems. Diluted earnings per share were $0.32 for the quarter and $1.01 for the nine months. Cash flow and working capital weakened. Net cash used in operating activities was $90.3 million for the nine months, compared with $92.8 million provided in the prior year period. Inventory rose to $642.3 million from $449.0 million, and accounts receivable rose to $391.3 million from $288.9 million. Cash and cash equivalents fell to $107.8 million from $181.0 million. Total debt rose to $145.8 million from $93.6 million, and the company borrowed $170.4 million while repaying $119.9 million during the nine months. Management attributes the inventory build to memory and SSD shortages, new SkyLake product lines and the seasonally strong June quarter. The company repurchased 888,097 shares for $18.5 million during the nine months under a $100 million program adopted in July 2016, leaving approximately $81.5 million available. Purchase commitments were $412.5 million, up from $334.0 million at June 30, 2016. In May 2017, a second amendment to the Bank of America credit agreement increased the revolving line from $45.0 million to $85.0 million, and the company drew $20.0 million under it.

    May 10, 2017
  29. 2017-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2016

    Super Micro Computer, Inc. reported net sales of $651.954 million for the three months ended December 31, 2016, up from $638.964 million a year earlier, and $1,180.922 million for the six months, compared with $1,158.582 million. Net income fell to $21.996 million for the quarter from $34.689 million, and to $35.528 million for the six months from $48.388 million. The filing attributes the decline primarily to lower gross margins on complete server systems, driven by higher costs for memory and solid state drive shortages, along with higher operating expenses. Gross margin was 14.3% for the quarter versus 16.6% a year earlier. Cash flow and working capital were a notable concern in the period. Net cash used in operating activities was $54.9 million for the six months, compared with $86.9 million provided in the prior-year period. Inventory rose to $599.3 million from $449.0 million at June 30, 2016, and accounts receivable rose to $366.9 million from $288.9 million. Cash and cash equivalents declined to $128.8 million, and the company repurchased 888,097 shares for $18.5 million under its $100 million program. Total debt was $127.5 million, and purchase commitments were $402.2 million. Management states it has sufficient cash to operate for at least the next 12 months and expects to fund growth through operations and additional bank borrowings. Subsequent to the period, the company drew $10.0 million from a Bank of America line in February 2017 and $8.0 million from a CTBC Bank line in January 2017, both to support expansion in the Netherlands.

    Feb 7, 2017
  30. 2017-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2016

    Super Micro Computer, Inc. filed this Quarterly Report on Form 10-Q for the first quarter of fiscal 2017, the period ended September 30, 2016. Net sales were $528,968 thousand, up from $519,618 thousand a year earlier, driven mainly by higher sales of subsystems and accessories to distributors. Gross profit rose to $80,064 thousand from $72,215 thousand, while operating expenses increased to $59,862 thousand from $50,775 thousand, largely from research and development and general and administrative costs. Net income was $13,532 thousand, compared with $13,699 thousand in the prior-year quarter, and diluted earnings per share were $0.26 versus $0.27. Cash flow was weaker. Net cash used in operating activities was $11,043 thousand, compared with $20,306 thousand provided a year earlier, as inventory rose to $499,987 thousand and accounts receivable rose to $328,267 thousand. Cash and cash equivalents fell to $146,696 thousand from $180,964 thousand at June 30, 2016. The company repurchased 888,097 shares for $18,461 thousand under a $100,000 thousand program adopted in July 2016, and total debt rose to $98,560 thousand from $93,589 thousand. Management states the company has sufficient cash to operate for at least the next 12 months. The filing also reports that non-cancellable purchase commitments increased to $354,796 thousand from $334,010 thousand, and that the company was in compliance with its Bank of America financial covenants as of September 30, 2016. Ablecom Technology Inc., a related party partly owned by the Liang family, remained a major contract manufacturer, accounting for $50,205 thousand of purchases in the quarter.

    Nov 7, 2016
  31. 2016-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2016

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended March 31, 2016. Net sales were $532.7 million for the three months and $1,691.3 million for the nine months ended March 31, 2016, compared with $471.2 million and $1,417.6 million in the prior-year periods. Net income was $16.7 million for the quarter, down from $23.1 million, and $65.1 million for the nine months, down from $75.2 million. The filing attributes the nine-month decline mainly to a $9.3 million out-of-period adjustment for extended warranty revenue that was deferred from prior periods, which reduced net income by $5.9 million. Gross margin was 14.9% for the quarter and 15.2% for the nine months, versus 16.3% in both prior-year periods. Cash flow and liquidity improved. Net cash provided by operating activities was $92.8 million for the nine months, compared with $9.1 million a year earlier. Cash and cash equivalents rose to $176.4 million from $95.4 million at June 30, 2015. Inventory was $479.3 million and days sales of inventory rose to 97 days from 83 days, while days sales outstanding were 51 days versus 43 days. Total debt was $93.8 million, almost all of it short-term under bank lines of credit and term loans. The company disclosed a material weakness in internal control over financial reporting related to the accounting for extended warranty contracts, and management concluded that its disclosure controls were not effective as of March 31, 2016. Management states that remediation steps are underway. Ablecom Technology Inc., a related party controlled by the CEO's family, remained a major contract manufacturer, accounting for 13.0% of cost of sales in the nine months.

    May 6, 2016
  32. 2016-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2015

    Super Micro Computer, Inc. reported net sales of $638,964 thousand ($639.0 million) for the three months ended December 31, 2015, up from $503,014 thousand, and $1,158,582 thousand ($1,158.6 million) for the six months, up from $946,336 thousand. Net income was $34,689 thousand for the quarter and $48,388 thousand for the six months, compared with $31,242 thousand and $52,105 thousand a year earlier. The filing attributes the six-month net income decline mainly to a $9.3 million out-of-period adjustment for extended warranty revenue, which reduced six-month net income by $5.9 million. Gross margin was 16.6% for the quarter and 15.4% for the six months, the latter reflecting that adjustment, which the filing says would have made it 16.1%. The company's cash and cash equivalents rose to $169,892 thousand from $95,442 thousand at June 30, 2015, driven by operating cash flow of $86,922 thousand for the six months. Inventory was $486,531 thousand and non-cancellable purchase commitments were $399,120 thousand, including $160,930 thousand of hard disk drive commitments. Short-term debt was $94,233 thousand, mostly drawn on lines of credit with Bank of America and CTBC Bank, and the Bank of America revolving line was extended to February 15, 2016 while renewal was under negotiation. Management concluded that disclosure controls and internal control over financial reporting were not effective as of December 31, 2015, because of a material weakness in controls over revenue recognition for extended warranty contracts. The filing describes remediation steps, including reviewing extended warranty and other deliverables across products and increasing management oversight. Related-party dealings with contract manufacturer Ablecom Technology Inc. remain significant, with purchases of $71,451 thousand in the quarter, representing 13.4% of cost of sales.

    Feb 4, 2016
  33. 2016-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2015

    Super Micro Computer, Inc. reported net sales of $519.6 million for the three months ended September 30, 2015, up from $443.3 million a year earlier, driven mainly by server systems, which rose to $356.2 million from $255.6 million. Net income fell to $13.7 million from $20.9 million, and diluted earnings per share were $0.27 compared with $0.42. The decline was primarily attributed to a $9.3 million out-of-period adjustment that reduced net sales and net income by $9.3 million and $5.9 million, respectively. The adjustment corrected extended warranty revenue recorded in prior periods that should have been deferred over the contractual warranty period. Gross margin was 13.9% versus 15.6%, and the filing states it would have been 15.4% without the adjustment. The company reported operating cash flow of $20.3 million and cash and cash equivalents of $110.9 million at September 30, 2015. Inventory was $461.4 million, days sales outstanding rose to 55 days from 43 days at fiscal year-end 2015, and days sales of inventory rose to 95 days from 83 days. Non-cancellable purchase commitments were $392.0 million, including $201.6 million of hard disk drive commitments. Total debt was $94.8 million, and the Bank of America revolving line of credit was extended to February 15, 2016, with renewal under negotiation. Management concluded that internal control over financial reporting and disclosure controls were not effective as of September 30, 2015, citing a material weakness in controls over revenue recognition for contracts with extended warranties. Management described remediation steps, including reviewing extended warranty and other deliverables and increased oversight. One customer, SoftLayer, a division of IBM Corporation, accounted for 12.2% of net sales in the quarter.

    Nov 16, 2015
  34. 2015-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2015

    Super Micro Computer, Inc. reported net sales of $471.2 million for the three months ended March 31, 2015, up from $373.8 million a year earlier, and net sales of $1,417.6 million for the nine months, up from $1,039.1 million. Net income was $23.1 million for the quarter, compared with $16.6 million, and $75.2 million for the nine months, compared with $37.6 million. Gross profit rose to $76.8 million for the quarter and $230.5 million for the nine months. The filing attributes the sales increase primarily to higher average selling prices and unit volumes of server systems, which made up 64.1% of net sales in the quarter compared with 50.1% a year earlier. Cash flow and working capital warrant attention. Net cash provided by operating activities was only $9.1 million for the nine months, versus $12.5 million a year earlier, as inventory rose to $430.4 million from $315.8 million at June 30, 2014, in anticipation of the June quarter and amid timing effects of a February 2015 west coast port strike. Non-cancellable purchase commitments grew to $491.2 million from $211.1 million, including hard disk drive commitments of approximately $237.4 million. Days sales of inventory were 96 days, compared with 77 days at fiscal year-end 2014. Total debt was $46.5 million, and cash and cash equivalents were $109.2 million. The filing states the company has sufficient cash on hand to operate for at least the next 12 months. It also notes concentration risk, with one customer representing 13.9% of net sales in the quarter, and related-party exposure to Ablecom Technology Inc., which accounted for 14.7% of cost of sales in the quarter.

    May 7, 2015
  35. 2015-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2014

    Super Micro Computer, Inc. filed this Form 10-Q for the second quarter of fiscal year 2015 (three and six months ended December 31, 2014). Net sales were $503.0 million for the quarter, up from $356.4 million, and $946.3 million for the six months, up from $665.4 million. Net income was $31.2 million for the quarter versus $13.3 million a year earlier, and $52.1 million for the six months versus $21.0 million. The filing attributes the growth mainly to higher average selling prices of server systems based on Intel's DP Haswell processor, along with scale benefits and higher utilization of Taiwan manufacturing. Cash flow and working capital were weaker. Net cash used in operating activities was $8.7 million for the six months, compared with $18.4 million provided a year earlier. Inventory rose to $409.2 million from $315.8 million at June 30, 2014, and accounts receivable rose to $258.8 million from $212.7 million. The company attributes the inventory increase to the transition to Haswell-based products. Non-cancellable purchase commitments grew to $564.6 million from $211.1 million, including $294.3 million of hard disk drive commitments running through January 2017. Cash and cash equivalents were $83.2 million at December 31, 2014. Debt totaled $35.8 million at quarter end, and the company drew an additional $15.0 million on its Bank of America line of credit in January 2015. The company reports it is in compliance with its Bank of America financial covenants and states it has sufficient cash to operate for at least the next 12 months. One customer accounted for 15.1% of net sales in the quarter, and Ablecom, a related party controlled by the CEO's family, supplied 13.8% of cost of sales.

    Feb 9, 2015
  36. 2015-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2014

    Super Micro Computer, Inc. filed this Form 10-Q for the first quarter of fiscal year 2015, covering the three months ended September 30, 2014. Net sales rose to $443.3 million from $309.0 million a year earlier, and net income increased to $20.9 million from $7.7 million. Diluted earnings per share were $0.42 compared with $0.17. Management attributed the growth primarily to higher sales of complete server systems, which made up 57.7% of net sales versus 46.4% a year earlier, along with higher utilization of manufacturing facilities in Taiwan and a $1.9 million refund of value added taxes on research and development expenses. Gross profit increased to $69.2 million from $46.8 million, with gross margin of 15.6% compared with 15.1%. Operating expenses rose to $37.6 million from $34.7 million, and income from operations was $31.6 million versus $12.0 million. Cash and cash equivalents were $117.5 million at September 30, 2014, up from $96.9 million at June 30, 2014. Operating cash flow was $27.0 million, and inventory increased to $341.5 million from $315.8 million to support anticipated growth. Total debt was $37.5 million, down from $46.3 million. The filing also highlights concentration and related-party exposures. Ablecom Technology Inc., a related party and major contract manufacturer, accounted for 14.5% of cost of sales, and amounts owed to Ablecom were $45.1 million. The company is negotiating renewals of its Bank of America revolving line of credit, which matures November 15, 2014, and its CTBC Bank credit agreement, which matures November 30, 2014. Hard disk drive purchase commitments totaled approximately $29.2 million, and total non-cancellable purchase commitments were $226.5 million.

    Nov 6, 2014
  37. 2014-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2014

    Super Micro Computer, Inc. reported its third quarter of fiscal year 2014 (three months ended March 31, 2014) in this Form 10-Q. Net sales rose to $373.8 million from $278.0 million in the prior-year quarter, and net income increased to $16.6 million from $7.0 million. For the nine months ended March 31, 2014, net sales were $1,039.1 million (versus $840.2 million) and net income was $37.6 million (versus $12.9 million). The filing attributes the growth primarily to higher average selling prices of server systems, particularly complete integrated high-end systems sold to internet data center customers, and to a technology refresh cycle including Intel's Ivy Bridge processor. Gross profit improved to 15.3% of net sales for both the three and nine months ended March 31, 2014, compared with 14.0% and 13.6% in the prior-year periods. Operating income for the quarter was $21.5 million versus $5.4 million a year earlier. Operating cash flow for the nine months was $12.5 million, reduced in the quarter to negative $5.9 million. Investment in working capital and property was significant: inventory rose to $295.1 million, receivables to $182.0 million, and purchases of property, plant and equipment were $36.8 million for the nine months, including a $30.2 million real property purchase in San Jose. Total debt was $46.6 million at March 31, 2014, and the company stated it has sufficient cash to operate for at least the next 12 months. Key concentration and risk points include related-party contract manufacturer Ablecom Technology Inc., which supplied 14.4% of cost of sales in the quarter, and purchase commitments of $271.2 million, including $72.4 million of hard disk drive commitments. Management reported that disclosure controls were effective as of March 31, 2014.

    May 7, 2014
  38. 2014-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2013

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended December 31, 2013, its second fiscal quarter of fiscal year 2014. Net sales were $356.4 million for the three months ended December 31, 2013, up from $291.5 million a year earlier, and $665.4 million for the six months, up from $562.2 million. Gross profit rose to $55.1 million for the quarter from $40.1 million, and net income was $13.3 million versus $4.9 million. The filing attributes the growth mainly to higher average selling prices of server systems, including the Twin family, FatTwin, storage, GPU/Xeon Phi and Rack solutions, and to Ivy Bridge-based products launched in September 2013. The company states it has been profitable every year since its 1993 inception. Cash flow and balance sheet trends warrant attention. Net cash provided by operating activities was $18.4 million for the six months, with inventory rising to $290.9 million from $254.2 million and accounts receivable increasing as well. Cash and cash equivalents fell to $89.9 million from $93.0 million, largely because of $34.0 million of property, plant and equipment purchases, including a $30.2 million San Jose real property acquisition. Total debt rose to $42.3 million from $35.2 million, and purchase commitments were $257.7 million, including $89.8 million of hard disk drive commitments payable through December 2014. Management states it has sufficient cash to operate for at least the next 12 months. The filing discloses significant related-party dependence on Ablecom Technology Inc., a major contract manufacturer whose ownership is linked to the company's CEO and President, Charles Liang. Purchases from Ablecom were $54.4 million for the quarter and $99.7 million for the six months, and amounts owed to Ablecom were $48.2 million at December 31, 2013. The company also reports that no customer represented 10% or more of net sales, and that its auction rate securities of $2.6 million remain illiquid and classified as long-term investments.

    Feb 7, 2014
  39. 2014-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2013

    Super Micro Computer, Inc. reported net sales of $309.0 million for the three months ended September 30, 2013, up from $270.7 million a year earlier, an increase of $38.3 million, or 14.2%. Net income rose to $7.7 million from $0.9 million. The filing attributes the sales increase primarily to a higher average selling price of server systems, which rose 30.0% to $2,600 per unit, while server system units were 55,000 in both periods. Gross profit was $46.8 million, or 15.1% of net sales, compared with 12.9% a year earlier, and the company stated that higher sales of server systems, which carry higher margins, drove the improvement. Operating income was $12.0 million versus $1.7 million, with research and development expenses of $20.2 million, or 6.5% of net sales. Net cash provided by operating activities was $18.3 million, compared with a use of $26.6 million in the prior-year quarter. Cash and cash equivalents increased to $111.5 million from $93.0 million at June 30, 2013. Total debt was $34.7 million, and inventory was $254.3 million, with days sales of inventory at 89 days versus 84 days at the end of fiscal 2013. Days sales outstanding were 42 days, compared with 38 days at fiscal year-end 2013. Subsequent to the quarter, the company completed the purchase of real property in San Jose, California for $30.1 million on October 31, 2013, and amended its credit agreement with CTBC Bank in November 2013 to increase the facility and extend maturity to November 30, 2014. Non-cancellable purchase commitments totaled $245.3 million, including $113.0 million of hard disk drive commitments payable through December 2014. Management stated it has sufficient cash on hand to operate for at least the next 12 months.

    Nov 7, 2013
  40. 2013-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2013

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended March 31, 2013 (third quarter of fiscal 2013). Net sales were $278.0 million for the three months and $840.2 million for the nine months, compared with $240.2 million and $738.0 million a year earlier. Net income was $7.0 million for the quarter, essentially flat versus $7.1 million, and $12.9 million for the nine months, down from $24.3 million. The filing attributes the lower profit mainly to a decline in gross profit, which it ties to higher sales of subsystems and accessories carrying lower-margin hard disk drives and memory, plus higher research and development spending. Gross profit was $38.9 million for the quarter, or 14.0% of net sales, versus 17.0% a year earlier. A tax benefit of $2.9 million from the reinstated U.S. federal R&D credit and a $2.0 million benefit from IRS audit resolution partly offset these pressures. Balance sheet and cash flow were steady. Cash and cash equivalents rose to $94.0 million from $80.8 million at June 30, 2012, and net cash from operating activities was $13.6 million for the nine months. Inventory declined to $257.3 million from $276.6 million, while accounts receivable rose to $122.3 million. Days sales outstanding increased to 39 days from 33 days. Total debt was $36.0 million, and the company stated it was in compliance with its Bank of America financial covenants. Non-cancellable purchase commitments were $315.9 million, of which $183.2 million related to hard disk drives; the filing notes a May 2013 amendment that reduced the hard disk drive commitment to $179.3 million. Related-party dealings with Ablecom Technology Inc., a contract manufacturer whose principal owner is related to the company's CEO, remain significant. Purchases from Ablecom were $132.7 million for the nine months, and amounts owed to Ablecom were $40.5 million at March 31, 2013. The company reports one operating segment and states that it has been profitable every year since its 1993 inception.

    May 10, 2013
  41. 2013-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2012

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended December 31, 2012, its second quarter of fiscal year 2013. Net sales were $291.5 million for the three months and $562.2 million for the six months ended December 31, 2012, compared with $249.9 million and $497.8 million a year earlier. Net income fell to $4.9 million for the quarter and $5.8 million for the six months, down from $8.8 million and $17.3 million. The filing attributes the profit decline primarily to lower gross profit, driven by higher sales of storage solutions with hard disk drives and memory that carry lower margins, along with higher research and development spending on new Intel Sandy Bridge products and overseas and U.S. expansion costs. Gross profit was $40.1 million for the quarter, or 13.8% of net sales, compared with 17.1% a year earlier. The balance sheet shows cash and cash equivalents of $88.4 million and inventory of $243.6 million, down from $276.6 million at June 30, 2012. Net cash provided by operating activities was $5.6 million for the six months, versus $36.9 million a year earlier, and the company cited a reduction in inventory offset by a reduction in accounts payable. Total debt and short-term borrowings rose, with short-term debt and current portion of long-term debt at $29.2 million. Non-cancellable purchase commitments totaled $289.3 million, including $157.9 million for hard disk drives. Management stated it has sufficient cash on hand to operate for at least the next 12 months. The filing notes that a tax benefit of approximately $2.5 million is expected in the third quarter of fiscal 2013 following the retroactive extension of the federal research credit. It also discloses material related-party dealings with Ablecom Technology Inc., which supplied 15.4% of cost of sales in the quarter, and reports that customer concentration was not a factor, as no customer accounted for 10% or more of net sales.

    Feb 6, 2013
  42. 2013-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2012

    Super Micro Computer, Inc. filed this Form 10-Q for the first quarter of fiscal year 2013, ended September 30, 2012. Net sales were $270.7 million, up from $247.9 million in the prior-year quarter, driven mainly by higher average selling prices of server systems and higher unit volumes of subsystems and accessories. Profitability fell sharply: gross profit declined to $35.0 million from $39.6 million, as gross margin compressed on hard disk drive and memory costs, and operating expenses rose to $33.3 million from $26.1 million on higher R&D (up 31.8%) and G&A. Income from operations dropped to $1.7 million from $13.5 million, and net income fell to $0.9 million, or $0.02 per diluted share, from $8.5 million, or $0.19 per diluted share. Cash position weakened. Operating cash flow was negative $26.6 million, mainly due to a $34.7 million reduction in accounts payable. Cash and cash equivalents fell to $58.3 million from $80.8 million at June 30, 2012. Inventory decreased to $263.2 million from $276.6 million, while accounts receivable rose to $112.8 million. Non-cancellable purchase commitments totaled $286.9 million, including $180.5 million of hard disk drive commitments running through March 2014. Total debt was $38.1 million, and the company stated it had sufficient cash to operate for at least the next 12 months. The filing also highlights ongoing related-party dependence on Ablecom Technology Inc., which accounted for 20.9% of cost of sales, and concentrated insider ownership of 45.7% of common stock. Management reported disclosure controls as effective as of September 30, 2012.

    Nov 7, 2012
  43. 2012-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2012

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended March 31, 2012 (third quarter of fiscal 2012). Net sales were $240.2 million for the three months and $738.0 million for the nine months ended March 31, 2012, compared with $234.3 million and $682.3 million a year earlier. Net income fell to $7.1 million for the quarter from $10.7 million, and to $24.3 million for the nine months from $29.5 million. Management attributes the profit decline mainly to higher research and development spending ahead of product launches and to overseas and U.S. expansion costs, partly offset by higher gross profit from server solutions. Management states that net sales were continuing to be adversely affected by disruption to the hard disk drive supply chain caused by flooding in Thailand. The balance sheet shows cash and cash equivalents of $88.9 million, inventory of $228.9 million (up from $192.7 million at June 30, 2011), and total debt of $36.1 million. Non-cancellable purchase commitments rose to $438.1 million from $91.8 million at fiscal year-end 2011, including about $276.3 million of hard disk drive commitments tied to new supplier agreements. Operating cash flow for the nine months was $19.0 million, compared with a use of $1.8 million in the prior-year period. Related-party contract manufacturer Ablecom accounted for 18.8% of cost of sales for the nine months. The company states it has sufficient cash to operate for at least the next 12 months.

    May 7, 2012
  44. 2012-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2011

    Super Micro Computer, Inc. filed this Form 10-Q for the quarter ended December 31, 2011, reporting net sales of $249.9 million for the three months ended December 31, 2011, up from $240.8 million a year earlier, and $497.8 million for the six months, up from $448.0 million. Net income was $8.8 million for the quarter, down from $11.6 million, and $17.3 million for the six months, down from $18.8 million. The company attributes the profit decline mainly to higher research and development spending ahead of upcoming product launches and costs of expanding overseas and U.S. operations, partly offset by higher gross profit from favorable hard disk drive pricing following flooding in Thailand and growth in server solutions sales. Balance sheet and cash flow data show cash and cash equivalents rising to $102.4 million from $69.9 million at June 30, 2011, with operating cash flow of $36.9 million for the six months. Total debt, including the line of credit and building loans, was $34.7 million at December 31, 2011, and inventory was $193.4 million. Management says the company has sufficient cash to operate for the next 12 months. The filing also notes that the Thailand flooding disrupted hard disk drive supply and adversely affected quarterly net sales, and that a related party, Ablecom Technology, supplied about 18.5% of cost of sales in the quarter. The filing discloses that about $3.7 million of auction rate securities remain illiquid and classified as long-term investments, and that the company has purchase commitments of $119.5 million due within a year. Management concluded disclosure controls were effective as of December 31, 2011.

    Feb 6, 2012
  45. 2012-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2011

    Super Micro Computer, Inc. reported net sales of $247.9 million for the first quarter of fiscal year 2012 (three months ended September 30, 2011), up from $207.2 million a year earlier, and net income of $8.5 million compared with $7.2 million. Gross profit was $39.6 million and income from operations was $13.5 million. The filing states the company has been profitable every year since its 1993 inception. Management attributed the higher profit to increased gross profit from server solutions sales, partly offset by higher research and development spending. Diluted earnings per share were $0.19, compared with $0.17 a year earlier. Cash and cash equivalents rose to $92.3 million at September 30, 2011, from $69.9 million at June 30, 2011, and operating cash flow was $25.1 million. Inventory fell slightly to $189.0 million, while accounts receivable and accounts payable both increased. Total debt was $30.6 million, and the filing reports a $7.9 million unused revolving line of credit. The company reports $98.9 million in non-cancelable purchase commitments. Management highlighted several risks and events. Ablecom Technology Inc., a related party controlled by the family of CEO Charles Liang, supplied 18.0% of cost of sales. Auction rate securities of $3.7 million remain illiquid. The filing also discloses a new October 2011 credit agreement with Bank of America, N.A. that expanded the revolving line to $40.0 million and added a $14.0 million term loan, and it flags supply chain risk from flooding in Thailand.

    Nov 7, 2011
  46. 2011-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2011

    Super Micro Computer, Inc. reported net sales of $234.3 million for the three months ended March 31, 2011, up from $189.3 million a year earlier, and $682.3 million for the nine months, up from $519.8 million. Net income was $10.7 million for the quarter and $29.5 million for the nine months, compared with $7.7 million and $19.2 million in the prior-year periods. The filing attributes the sales growth primarily to the server refresh cycle and increased sales across product lines, including SuperBlade, GPU and storage solutions, with subsystems and accessories purchases in the quarter partly tied to supply-chain concerns after the earthquake in Japan. Cash flow and working capital bear watching. Net cash used in operating activities was $1.8 million for the nine months, versus $8.2 million a year earlier, driven by a $71.6 million increase in inventory. Inventory rose to $205.6 million from $135.6 million at June 30, 2010, and days sales of inventory increased to 92 days from 67 days. Cash, cash equivalents and short-term investments were $68.2 million at March 31, 2011. Total debt was $28.1 million, including a line of credit and a term loan secured by three San Jose buildings, and the company drew $9.7 million on its line of credit in March 2011 to fund a $9.0 million deposit on land in Taiwan. The filing also highlights related-party exposure: Ablecom Technology Inc., controlled in part by the CEO's family, supplied 20.3% of cost of sales for the quarter and 21.5% for the nine months, and amounts owed to Ablecom rose to $37.2 million. The company holds $5.4 million of auction rate securities that are classified as long-term and not currently liquid. Management stated that the disclosure controls were effective as of March 31, 2011.

    May 10, 2011
  47. 2011-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2010

    Super Micro Computer, Inc. filed this Form 10-Q for the second quarter of fiscal 2011, ended December 31, 2010. Net sales were $240.8 million for the three months ended December 31, 2010, up from $182.0 million a year earlier, and $448.0 million for the six months, up from $330.5 million. Net income was $11.6 million for the quarter and $18.8 million for the six months, compared with $7.6 million and $11.5 million in the prior-year periods. Gross profit was $40.2 million for the quarter, and income from operations was $16.9 million. The filing attributes the sales growth primarily to the server refresh cycle, increased sales across product lines, and a continuing improvement in the global economy. Cash flow from operations was $20.9 million for the six months, against $11.5 million a year earlier, but the company cited a $52.6 million increase in inventory. Inventory rose to $187.6 million from $135.6 million at June 30, 2010, and days sales of inventory were 78 days versus 67 days at fiscal year-end. Accounts payable increased to $144.0 million, including $38.3 million owed to related party Ablecom Technology Inc. Cash and cash equivalents were $87.2 million at December 31, 2010. Total debt was $18.6 million, following a $13.9 million term loan secured by three San Jose buildings that replaced part of a revolving line of credit. The filing also discloses $5.4 million of auction rate securities, classified as long-term after failed auctions, with a $0.2 million accumulated unrealized loss recorded in other comprehensive loss. Ablecom accounted for 23.1% of cost of sales in the quarter, and the company notes significant influence by its chairman and CEO Charles Liang over that related party. Purchase commitments with contract manufacturers and suppliers were $106.9 million at quarter end.

    Feb 9, 2011
  48. 2011-Q1

    Super Micro Computer Quarterly Report for Q1 Ended Sep 30, 2010

    Super Micro Computer, Inc. reported its first-quarter fiscal 2011 results for the three months ended September 30, 2010 in this Form 10-Q, filed November 8, 2010. Net sales rose to $207.2 million from $148.5 million a year earlier, and net income increased to $7.2 million from $3.9 million. Gross profit was $33.0 million, or 15.9% of net sales, compared with 16.5% a year earlier, as cost of sales grew faster than revenue. Diluted earnings per share were $0.17 versus $0.10. The company attributed the sales growth primarily to the economic recovery and increased sales of its 2U Twin, 2U Twin², GPU and storage solutions, and noted that these percentage increases are not expected to continue as a trend. Cash flow from operations was $16.9 million, up from $9.7 million, and cash and cash equivalents reached $83.5 million. Inventory rose to $151.5 million, with days sales of inventory at 76 days versus 67 days at fiscal year-end 2010, which management attributed partly to preparation for anticipated growth. Purchase commitments with contract manufacturers and suppliers were $107.6 million. The company bought land in Taiwan for $6.1 million and carries an $18.6 million line of credit used to purchase three San Jose buildings, which it must refinance with a mortgage loan by December 2010. Investors should note the concentration of related-party activity: Ablecom Technology Inc., controlled in part by the family of the CEO, supplied 20.9% of cost of sales, and amounts owed to Ablecom rose to $30.5 million. The company also holds $5.8 million of auction rate securities that are classified as long-term and illiquid, with an accumulated unrealized loss of $0.2 million.

    Nov 8, 2010
  49. 2010-Q3

    Super Micro Computer Quarterly Report for Q3 Ended Mar 31, 2010

    Super Micro Computer, Inc. reported net sales of $189.3 million for the three months ended March 31, 2010, up from $109.5 million a year earlier, and net sales of $519.8 million for the nine months, up from $382.2 million. Net income was $7.7 million for the quarter, compared with $1.2 million in the prior-year quarter, and $19.2 million for the nine months, compared with $13.7 million. Gross profit for the quarter was $29.3 million, and income from operations was $10.5 million. The company stated it has been profitable every year since its 1993 inception and attributed the profit increase mainly to higher sales of subsystems and accessories and server systems, partly offset by lower gross margins as it grew market share. Cash flow and working capital were weaker. Net cash used in operating activities was $8.2 million for the nine months, versus $13.4 million provided a year earlier, as inventory rose to $144.4 million from $90.0 million and accounts receivable rose to $63.9 million from $45.7 million. Cash and cash equivalents were $66.7 million at March 31, 2010. The company also disclosed approximately $6.4 million of auction rate securities, of which $6.0 million are classified as long-term, and it repaid its building loans in July and August 2009. Management stated it has sufficient cash to operate for the next 12 months. The filing also discloses a May 2010 agreement to buy about 167,000 square feet of land and buildings adjacent to headquarters in San Jose for approximately $18.5 million, with closing expected in June 2010 and financing to be obtained. Management expects investing cash outflows to increase significantly in the June 2010 quarter. The company recorded a $1.1 million provision for the Digitechnic litigation, which was settled and paid in December 2009. Related-party purchases from Ablecom Technology Inc. were $99.3 million for the nine months, about 22.8% of cost of sales.

    May 7, 2010
  50. 2010-Q2

    Super Micro Computer Quarterly Report for Q2 Ended Dec 31, 2009

    Super Micro Computer, Inc. filed this Form 10-Q for the second quarter of fiscal year 2010, covering the three and six months ended December 31, 2009. Net sales were $182.0 million for the quarter, up from $128.6 million, and $330.5 million for the six months, up from $272.6 million. Net income was $7.6 million for the quarter and $11.5 million for the six months, compared with $5.3 million and $12.5 million a year earlier. The filing attributes the six-month decline in profitability to lower gross margins as the company grew market share during the economic recovery, plus a $1.1 million provision for the Digitechnic litigation loss. Balance sheet and liquidity figures grew over the period. Inventory rose to $134.3 million from $90.0 million at June 30, 2009, and accounts payable rose to $112.6 million from $73.5 million, while cash and cash equivalents reached $82.3 million. The company repaid its $10.0 million of building loans during July and August 2009 and held approximately $6.6 million of auction rate securities that remain illiquid. Ablecom Technology Inc., a related party controlled by the CEO's family, was a major contract manufacturer, accounting for 26.5% of cost of sales in the quarter. Management states that it has sufficient cash to operate for the next 12 months and that it expects working capital to be a material use of cash as the business grows. The filing also reports that disclosure controls were effective as of December 31, 2009, and that no material subsequent events occurred through the February 8, 2010 issuance date.

    Feb 8, 2010