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Super Micro Computer, Inc. (SMCI) is a Silicon Valley-based company specializing in accelerated compute platforms, providing high-performance and high-efficiency server and storage systems tailored for various markets such as enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing . The company offers a wide range of products under its Total IT Solutions, including complete servers, storage systems, and modular blade servers, emphasizing flexibility and customization to meet diverse computing needs . Server and storage systems are the primary revenue drivers, with subsystems and accessories also contributing to the company's sales .
- Server and Storage Systems - Offers high-performance and high-efficiency servers and storage solutions optimized for enterprise data centers, cloud computing, AI, 5G, and edge computing.
- Subsystems and Accessories - Provides server boards, chassis, and accessories that complement the main server and storage offerings.
- Modular Blade Servers - Delivers flexible and scalable blade server solutions for various computing environments.
- Blades - Supplies individual blade components for integration into modular server systems.
- Workstations - Designs high-performance workstations for professional and enterprise use.
- Full Rack Scale Solutions - Provides comprehensive rack-scale solutions for large-scale data center deployments.
- Networking Devices - Offers networking hardware to support server and storage connectivity.
- Server Sub-Systems - Supplies essential components for server assembly and customization.
- Server Management and Security Software - Develops software solutions for managing and securing server operations.
- Given the resignation of your independent auditor and the delay in filing your 10-K, are you experiencing any market share losses or customer hesitancy due to these issues, and how are you mitigating potential impacts on your business?
- Can you provide more specifics on the initial concerns raised by your previous auditor that prompted the special committee's investigation, and what remedial measures are being implemented to strengthen your internal governance and oversight functions?
- With the delays in providing audited financial statements, what are the risks associated with your credit agreements if you fail to meet the new deadlines, and could this impact your access to capital markets or trigger covenants in your convertible debt?
- You previously gave full-year revenue guidance of $26 billion to $30 billion but did not reaffirm it on this call; do you still stand by this outlook, and what key factors could affect your ability to achieve these targets?
- Your gross margin is expected to contract in the upcoming quarter; is this a result of increased competition or pricing pressures, and what strategies are you employing to sustain or improve profitability amidst these challenges?
Competitors mentioned in the company's latest 10K filing.
- Cisco: Global technology vendor .
- Dell: Global technology vendor .
- Hewlett-Packard Enterprise: Global technology vendor .
- Lenovo: Global technology vendor .
- Foxconn: ODM (Original Design Manufacturer) .
- Quanta Computer: ODM .
- Wiwynn Corporation: ODM .
- Inspur: OEM (Original Equipment Manufacturer) .
Recent developments and announcements about SMCI.
Financial Actions
Debt Issuance
Super Micro Computer, Inc. (SMCI) has recently entered into significant financial agreements that may impact its financial health.
On November 14, 2024, SMCI's subsidiary in Taiwan amended its credit agreements with E.SUN Bank. These amendments include financial commitments related to the current ratio, net debt ratio, and interest coverage multiple. Failure to meet these commitments could result in a shortened amortization period for current balances, potentially affecting the company's cash flow and financial stability .
Additionally, on November 15, 2024, SMCI entered into a Fourth Amendment to its Loan Agreement with Cathay Bank. This amendment reduces the revolving line and letter of credit sublimit to $458,000, which may limit the company's liquidity and financial flexibility .
These financial obligations and amendments could have significant implications for SMCI's balance sheet and overall financial health, depending on the company's ability to meet the specified financial commitments and manage its reduced credit facilities.
Dividend Policy
Super Micro Computer, Inc. (SMCI) has announced a significant change in its dividend policy. On December 5, 2023, the company completed the sale and issuance of 2,315,105 shares of Common Stock, resulting in net proceeds of approximately $582.9 million. This move is part of a broader financial strategy, although specific details on dividend changes were not disclosed in the announcement .
Financial Reporting
Auditor Changes
Super Micro Computer, Inc. (SMCI) Auditor Change
On November 18, 2024, Super Micro Computer, Inc. announced the appointment of BDO USA, P.C. as its new independent auditor. This change was made by the Audit Committee of the Board of Directors and is effective immediately. BDO USA is part of BDO International, a top global accounting network. This move is part of Supermicro's efforts to bring its financial statements current and comply with Nasdaq listing requirements .