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.
The 10-K filing states that net sales increased by 110.4% in fiscal year 2024 as compared to fiscal year 2023. This significant increase suggests a robust expansion in the company's revenue generation capabilities.
The filing indicates a decrease in gross margin to 13.8% in fiscal year 2024 from 18.0% in the previous year. This contraction in margin could be indicative of rising costs or pricing pressures affecting the company's profitability.
Net income increased to $1,152.7 million in fiscal year 2024, up from $640.0 million the previous year. This substantial increase in net income demonstrates the company's ability to convert increased sales into higher profits, despite the margin contraction.