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About Super Micro Computer, Inc.

Super Micro Computer manufactures high-performance server products based on open standard components (including Intel, AMD, and NVIDIA processors). Its nearly 5,000 offerings include motherboards, 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, sold directly and through distributors and resellers, to customers in some 100 countries; about 40% of its sales are generated outside the US. Manufacturing is handled in-house and through contractors.

Operations

Super Micro sells server systems and subsystems and accessories. The company offers more than 1,200 server systems, which account for about 70% of the total revenue.

The company’s server subsystems and accessories products, about 30% of revenue, range from the entry-level single and dual processor server segment to the high-end multiprocessor market.

Geographic Reach

Super Micro is based in San Jose, California and has an office in Jersey City, New Jersey. Its European operations are centered in the Netherlands while it maintains a research and development operation in Taiwan with sales and service facilities in China.

The company generates nearly 60% of its sales from the US, with Europe and Asia contributing about 15% each.

Sales and Marketing

Super Micro Computer sells directly to OEMs and end-users, which account for more than half of sales, and through distributors, resellers, and systems integrators. Customers include Apple and Amazon.

Financial Performance

Super Micro has not filed financial documents with the SEC since 2016 as it investigates accounting issues. In 2019, the company said it would release restated earnings for 2015-2017.

Super Micro’s notched annual sales increases from 2012-2016. Sales reached $2.2 billion in 2016, an 11% increase from 2015, from higher sales of server systems to OEMs and direct customers and for cloud and data center computing applications.

Net income dropped to $72 million in 2016 from $101 million in 2015 due to higher operating costs that went toward hiring additional employees.

The company had $181 million in cash and equivalents in 2016 compared to about $95 million in 2015. In 2016, operating activities provided $107 million in 2016, financing activities provided $13 million, and investing activities used about $35 million.

Strategy

Super Micro has had some issues in the past couple of years. The company has investigated problems with its financial reports and has not filed forms 10-k or 10-q with the Securities and Exchange Commission since 2016. That led to the delisting of the company’s shares from the Nasdaq index. In 2019, the company indicated it would restate earnings for 2015, 2016, and 2017.

Another issue arose in 2019 when Super Micro was accused in a Bloomberg article of placing chips that could compromise computer networks on boards sold to its customers including Apple and Amazon. Super Micro denied doing so and its customers also have denied that their products contain malicious chips.

Super Micro has continued to roll out new products, working with companies like Intel to ensure compatibility with other systems. In late 2018, the company released servers designed to optimize the performance of Intel’s Xeon E processor. It also introduced a line of systems for high-performance computing applications and systems designed for 5G networks.

In 2018, the company opened a new US-based engineering, manufacturing, and service facilities to support growth.

Super Micro Computer, Inc.

980 ROCK AVE
San Jose, CA 95131-1615
Phone: 1 (408) 503-8000

Stats

Employer Type: Publicly Owned
CFO: Howard Hideshima
Chairman, President and CEO: Charles Liang
VP Operations, Treasurer and Director: Chiu-Chu Liu Liang
Employees (This Location): 1,131
Employees (All Locations): 2,996

Major Office Locations

San Jose, CA

Other Locations

Fremont, CA
San Jose, CA
Tulare, CA