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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 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 over 110 countries; less than 60% of its sales are generated outside the US. Manufacturing is handled in-house and through contractors.

Operations

Super Micro offer a broad range of application-optimized server solutions, including storage, rackmount and blade server and storage systems and subsystems and accessories. The company's server systems account for more than 80% of the total revenue.

The company's server subsystems and accessories products, about 20% 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 20% each.

Sales and Marketing

Super Micro Computer sells directly to OEMs and end-users, which account for about 60% of sales, and through distributors, resellers, and systems integrators. In 2019, the company sold to over 850 direct customers in over 110 countries.

Financial Performance

Super Micro's notched annual sales increases from 2015-2019. Sales reached $3.5 billion in 2019, 4% increase from 2018, from higher sales of server systems to OEMs and direct customers and for cloud and data center computing applications.

Net income increased to $71.9 million as compared to $46.2 million in fiscal year 2018, which was primarily due to a reduction in our effective tax rate to 17% as compared to 44% in fiscal year 2018 and a $1.3 million increase in income before taxes.

The company had $262.1 million in cash and equivalents in 2019 compared to about $120.4 million in 2018. In 2019, operating activities provided $262.6 million in 2019, financing activities used $95.8 million, and investing activities used about $24.8 million.

Strategy

The company's objective is to be the world's leading provider of application-optimized, high-performance server, storage and networking solutions. Achieving this objective requires continuous development and innovation of their solutions with better price-performance and architectural advantages compared with their prior generation of solutions and with solutions offered by their competitors. They believe that their ability to innovate and execute will enable them to maintain or improve their relative competitive position in many product areas and provide us with additional long-term growth opportunities. Key elements of their strategy include sustaining our time-to-market advantage, enhancing their software management solutions, expanding their service and support offerings, further optimizing the company's global operating structure and deepening their relationships with customers, partners, suppliers and manufacturers.

Super Micro Computer, Inc.

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

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: SMCI
Stock Exchange: , NASDAQ
CFO: Howard Hideshima
Chairman, President and CEO: Charles Liang
VP Operations, Treasurer and Director: Chiu-Chu Liu Liang
Employees (This Location): 2,281
Employees (All Locations): 3,987

Major Office Locations

San Jose, CA

Other Locations

Fremont, CA
San Jose, CA
Tulare, CA