Key TakeawaysSuper Micro Computer shares surged after the company submitted its delayed financial reports just ahead of a deadline late Tuesday to avoid being delisted by the Nasdaq. The stock had tumbled during Tuesday's regular session amid concerns about whether the deadline would be met.The stock lost about half its value over the past year through Tuesday’s close. Super Micro Computer (SMCI) shares rocketed higher after the company submitted its delayed financial reports late Tuesday, just beating its ...

Financial Performance - Net income for the three months ended September 30, 2024, was $424.3 million, compared to $157.0 million for the same period in 2023, reflecting a significant increase [204]. - Net sales increased by 180.1% to $5,937.3 million for the three months ended September 30, 2024, compared to $2,119.7 million in the same period of 2023 [210]. - Sales of server and storage systems reached $5,747.8 million, a 192.3% increase from $1,966.6 million in the prior year [215]. - For the three months ended September 30, 2024, cost of sales increased to $5,161.7 million, a 192.3% increase from $1,766.0 million in 2023 [223]. - Gross profit for the same period was $775.6 million, up 119.3% from $353.7 million in 2023, resulting in a gross margin of 13.1%, down from 16.7% [222]. Sales and Market Performance - The United States accounted for 71.4% of total net sales, with sales increasing by 161.9% to $4,241.3 million [219]. - Asia saw a 323.3% increase in sales, reaching $954.6 million, representing 16.1% of total net sales [219]. - The increase in net sales was primarily driven by higher demand for GPU servers and high-performance computing solutions [218]. Expenses and Costs - Operating expenses increased by 47.0% year-over-year, representing 4.5% of net sales in Q1 2025 compared to 8.5% in Q1 2024 [210]. - Research and development expenses rose to $132.2 million, a 19.1% increase from $111.0 million in 2023, representing 2.2% of total net sales [229]. - Sales and marketing expenses increased by 85.2% to $68.9 million from $37.2 million in 2023, accounting for 1.2% of total net sales [229]. - General and administrative expenses grew by 98.5% to $65.3 million from $32.9 million in 2023, making up 1.1% of total net sales [229]. - Interest expense increased significantly to $17.4 million for the three months ended September 30, 2024, from $1.9 million in 2023, reflecting higher borrowing costs [233]. Taxation - The effective tax rate increased to 15.0% in Q1 2025 from 11.4% in Q1 2024 [210]. - The income tax provision for the three months ended September 30, 2024, was $74.7 million, a 269.8% increase from $20.2 million in 2023, with an effective tax rate of 15.0% [236]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by $138.4 million to $408.9 million for the three months ended September 30, 2024, compared to $270.5 million in 2023 [240]. - Cash and cash equivalents were $2.1 billion as of September 30, 2024, up from $1.7 billion as of June 30, 2024 [237]. - The company anticipates capital expenditures for the remainder of fiscal year 2025 to be between $98.0 million and $108.0 million, focusing on global manufacturing capabilities and IT investments [246]. Internal Controls and Compliance - Management identified material weaknesses in internal controls over financial reporting, including issues with IT general controls and segregation of duties [256]. - The company is committed to remediating identified material weaknesses and plans to hire additional qualified personnel and conduct more training sessions for accounting staff [260]. - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected the internal control environment [259]. - Management concluded that the condensed consolidated financial statements fairly present the company's financial position in conformity with GAAP despite the identified weaknesses [258]. - The company is evaluating its internal control environment to enhance its effectiveness and ensure timely and accurate financial reporting [260]. Foreign Exchange and Investments - The company reported a realized and unrealized foreign exchange loss of $0.3 million for the three months ended September 30, 2024, compared to a gain of $7.5 million for the same period in 2023 [253]. - The company maintains its investment portfolio primarily in money market funds, certificates of deposit, and auction rate securities [251]. - The company does not currently engage in foreign currency hedging transactions, limiting exposure to foreign currency exchange rate fluctuations [253]. - A 10% change in interest rates is believed to have no significant impact on the company's results of operations [252].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ Form 10-K ______________________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________to___________ Commission F ...

Super Micro Computer shares fell as much as 10% during trading on Tuesday as the company nears a deadline to file audited financial reports or be delisted from the Nasdaq exchange.Earlier this month, Super Micro CEO Charles Liang told investors that he was "confident" that the company could file those reports to the Securities and Exchange Commission by Feb. 25, a deadline set by Nasdaq. The company must file its audited annual report for fiscal 2024 and the first two quarters of fiscal 2025.If Super Micro ...

Core Viewpoint - Philippe Laffont, a notable investor and founder of Coatue Management, has made significant investments in Super Micro Computer, a company facing scrutiny and potential delisting from Nasdaq due to financial reporting issues [1][3][4]. Company Overview - Super Micro Computer manufactures high-end servers for data centers, crucial for supporting generative AI applications [5]. - The company has experienced a tumultuous period, including a nearly 27% decline in market cap during the fourth quarter, despite a 10-for-1 stock split [5]. Recent Developments - Coatue Management's recent 13F filing indicates a substantial increase in its stake in Super Micro Computer, holding over 8.8 million shares, which is nearly 1% of its $27 billion equities portfolio [4]. - Supermicro is under pressure to file its audited annual financial statements by a specific deadline to avoid delisting from Nasdaq [3][9]. Financial Performance - Supermicro's preliminary earnings report for Q2 of fiscal 2025 showed adjusted earnings and revenue below expectations, but management projected $40 billion in revenue for fiscal 2026, significantly above analyst estimates [10]. - The stock has more than doubled year-to-date, benefiting Laffont and Coatue, but recent trading sessions have seen a loss of over 14% in stock value [14][11]. Analyst Sentiment - Analysts are divided on Supermicro, with three firms rating it a buy, two a hold, and two a sell, while the average 12-month price target is over 40% below its trading price as of February 20 [12]. - Some analysts have raised their price targets following positive updates, but others, like JPMorgan Chase, maintain an underweight rating, citing the need for more evidence of the company's ability to meet its fiscal 2026 guidance [13].

Core Viewpoint - Super Micro Computer Inc (SMCI) has experienced a significant rally, increasing by 90.7% since the beginning of February, but is currently facing a potential decline after reaching a five-month peak [1]. Stock Performance - SMCI is on track for a third consecutive daily loss after a substantial rise [1]. - The stock is currently on the short sell restricted (SSR) list due to its volatility [1]. Options Trading Activity - SMCI has gained popularity among options traders, ranking among the stocks with the highest options volume in the past 10 days [2]. - A total of 12,786,779 calls and 6,860,390 puts were exchanged, with the February 60 call being the most active [2]. - The stock's 50-day call/put volume ratio is 2.08, indicating a strong preference for calls, sitting in the 98th percentile of its annual range [3]. Volatility and Performance - SMCI has historically outperformed options traders' volatility expectations, reflected in its Schaeffer's Volatility Scorecard (SVS) of 94 out of 100 [4]. Short Interest - Despite the positive price movement, short interest in SMCI has increased by 18.8% over the past two weeks, now representing 18.3% of the stock's available float [5].

Core Insights - Super Micro Computer (NASDAQ: SMCI) has shown significant stock performance, with a 34% return since the last coverage on December 4, and the stock price has nearly doubled since the initial investment [1] Company Overview - The company is focused on GARP (Growth at a Reasonable Price) and value investing, targeting high-quality, reasonably priced businesses with strong competitive advantages and substantial growth potential [1] - The investment strategy emphasizes fundamental analysis, seeking stocks that are trading at a discount to their intrinsic value, ensuring a clear margin of safety [1] Investment Approach - The long-term investment horizon is set at 5-7 years, aiming for wealth accumulation through compounding while also prioritizing downside protection [1] - The approach may involve taking contrarian views during periods of market uncertainty, indicating a flexible investment strategy [1]

Core Viewpoint - Coatue Management's billionaire chief Philippe Laffont has significantly reduced his stake in Nvidia while investing in Super Micro Computer, a volatile AI infrastructure company with potential for high sales growth [1][5][14] Group 1: Nvidia Stake Reduction - Laffont reduced Coatue's stake in Nvidia by over 75%, from approximately 43.2 million shares to about 10 million shares, representing a reduction of roughly 33.2 million shares [6][7] - The decision to sell Nvidia shares may be attributed to profit-taking, as the stock had increased tenfold since the beginning of 2023 [8] - Concerns regarding trade policies, tariffs, and increasing competition in the AI chip market may have influenced Laffont's decision to exit Nvidia [10][12][13] Group 2: Investment in Super Micro Computer - Laffont opened a new position in Super Micro Computer, acquiring approximately 8.87 million shares, valued at over $525 million as of February 20 [15] - Super Micro Computer has shown impressive growth, with a projected 54% year-over-year revenue growth for its fiscal second quarter and potential sales growth from $23.5 billion to $40 billion between fiscal 2025 and 2026 [17] - Despite its growth potential, Super Micro Computer has faced controversy, including allegations of accounting manipulation and regulatory scrutiny, although an internal probe found no evidence of fraud [19][20][21]

Core Viewpoint - Super Micro Computer (SMCI) has seen its shares more than double year-to-date, recovering from previous accounting uncertainties, raising questions about whether this recovery is sustainable or a temporary spike [1] Company Overview - Founded in 1993, Super Micro Computer is a prominent Silicon Valley maker of server and data center hardware, experiencing a significant stock increase following the rise of AI technologies like ChatGPT [2] - The company specializes in converting GPUs from manufacturers like Nvidia and AMD into operational servers, focusing on energy-efficient designs that reduce costs for clients running AI algorithms [3] Accounting Concerns - The stock's upward momentum faced challenges in mid-2024 due to a report from Hindenburg Research alleging accounting manipulation and other infractions, leading to a delay in filing its annual report [4] - Supermicro has a history of regulatory issues, including a $17.5 million fine from the SEC in 2020 and a previous delisting from Nasdaq in 2018 due to financial reporting lapses [5] - Despite fears of potential delisting due to filing delays, management is optimistic about filing the delayed reports by February 25, asserting that prior filings will not require restatement [6][10] Business Performance - Supermicro's fiscal second-quarter sales are expected to grow by 54% year-over-year, reaching between $5.6 billion and $5.7 billion, driven by demand for data-center liquid cooling systems and AI servers [8] - The company has entered full production of servers utilizing Nvidia's new Blackwell-based chips, which is anticipated to boost its position in the competitive generative AI market [9] Valuation and Outlook - Despite ongoing accounting and legal uncertainties, Supermicro's current valuation, with a forward price-to-earnings multiple of 23, is lower than the Nasdaq average of 28, suggesting potential for growth [10]

Core Insights - Super Micro Computer is at a critical juncture, having faced significant stock declines due to financial reporting concerns and potential Nasdaq delisting risks [1][2][8] - The company has made strides towards recovery, including an independent review that found no wrongdoing and a new auditor to help meet filing deadlines [3][10] Company Overview - Supermicro has been in operation for over 30 years, with substantial earnings growth driven by the AI boom, as it provides essential servers and solutions for data centers [4] - The company has gained popularity for its ability to quickly deliver customized equipment, leveraging partnerships with chip manufacturers like Nvidia and AMD [5][6] Financial Performance - Supermicro's revenue has seen remarkable growth, with a preliminary report indicating over $5 billion in revenue for the most recent quarter, compared to $3.5 billion for the entire year of 2021 [7] - The stock experienced a 188% increase in the first half of the previous year, outperforming Nvidia during that period [7] Recent Developments - Following the Hindenburg report, Supermicro's stock faced negative sentiment, but the company has taken steps to address these issues, including an independent review of its accounting practices [8][9] - The Nasdaq has set a deadline of February 25 for Supermicro to file its audited reports, which is crucial for maintaining its listing [8][12] Market Sentiment - Investors have shown optimism, with the stock climbing over 80% this year, although it has not fully recovered from previous declines [9] - If Supermicro meets the filing deadline and maintains strong revenue growth, there is potential for further stock recovery [10][11]