Sector: Technology|Industry: Computer Hardware|Market Cap: $21.34B|Employees: 5K
Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.
Net sales increased by 103.2% to $3.66 billion for the three months ended December 31, 2023, compared to $1.80 billion for the same period last year. This growth was primarily driven by strong demand for GPU, HPC, and rack-scale solutions.
Gross margin decreased to 15.4% for the three months ended December 31, 2023, from 18.7% for the same period last year. This decline was attributed to product and customer mix, partially offset by lower cost of goods sold from manufacturing efficiency.
Operating expenses increased by 57.8% to $192.9 million for the three months ended December 31, 2023, compared to $122.2 million for the same period last year. However, operating expenses remained a relatively small percentage of net sales, at 5.3% and 6.7%, respectively.