Super Micro Computer manufactures high-performance server products based on open standard components (including Intel, AMD, and NVIDIA processors). Its nearly 7,000 offerings include motherboards and serverboards, blade servers, rackmounts, GPU systems, chassis, and Ethernet switches and network adaptors. The company also sells a host of subsystems and accessories. Super Micro markets its products -- primarily through distributors and resellers such as Ingram Micro and Arrow Electronics -- to customers in some 90 countries; nearly half its sales are generated outside the US.
The company generates nearly 60% of its sales from the US, with Europe and Asia contributing 22% and 17%, respectively. All of these regions saw solid year-over-year growth in fiscal 2012. Super Micro has operations in The Netherlands and Taiwan that support its international customers.
Sales and Marketing
The company sells primarily through distributors, resellers, and systems integrators (about 55% of sales), but it also markets to OEMs and directly to end users. Leading distributors and resellers include Ingram Micro, Avnet, MA Labs, Tech Data, and ASI.
Super Micro has seen strong revenue growth over the past decade, with the exception of 2009 when the recession led to a small decline. In fiscal 2012 (ended June) it reported sales of $1 billion, up 8% from 2011. The growth in 2012 was primarily the result of increased server system sales and a jump of nearly 20% in the average selling price for server systems. Net income in fiscal 2012 fell about a quarter to nearly $30 million as expenses rose by double digits, driven by personnel growth.
Key to Super Micro's strategy is the expansion of its product portfolio as technology evolves. The company works closely with AMD, Intel, and others to make sure its offerings are compatible with the standards. In addition, it puts a special focus on energy efficient products, such as its SuperBlade line of blade server products.
The company also wants to further expand into Asia and Europe. In 2012 it opened the Science and Technology Park in Taiwan to increase capacity and better serves its customers in the Asia-Pacific region.
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CEO Charles Liang and his wife, VP Sara Liang, together own about 22% of Super Micro Computer.