Super Micro Computer Reports 46.6% Increase in Net Sales

By Ahmed Jameison • Friday, August 29 12:05 • Permanent Link

Super Micro Computer, Inc. has recently released its 10-K report, detailing its operations and financial performance. The company, founded in 1993 and headquartered in San Jose, California, is a global leader in Application-Optimized Total IT Solutions. It develops and sells high-performance server and storage solutions, offering a wide range of products including AI servers, blade and multi-node systems, storage systems, embedded systems, and remote system management solutions. Super Micro serves enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing markets through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers.

In the 10-K report, the company's financial highlights for fiscal years 2025 and 2024 were detailed. In fiscal year 2025, net sales increased by 46.6% compared to fiscal year 2024, reaching $21,972,042. Gross profit was $2,429,922, and income from operations was $1,252,994. However, the gross margin decreased to 11.1% in fiscal year 2025 from 13.8% in fiscal year 2024. The net income for fiscal year 2025 was $1,048,854, a decrease from $1,152,666 in fiscal year 2024.

The report also discussed the company's critical accounting estimates, including revenue recognition and inventories. Super Micro applies judgment in determining the transaction price and estimates reserves for future sales returns based on historical experience. Additionally, the company evaluates inventory on a quarterly basis for lower of cost or net realizable value and excess and obsolescence, requiring management judgment. Super Micro also receives various rebate incentives from suppliers based on contractual arrangements, which are recognized as a reduction of the cost of inventories.

Furthermore, the report highlighted the company's income tax estimates, indicating that significant judgment is required in determining the provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.

Today the company's shares have moved -1.76% to a price of $43.97. For the full picture, make sure to review Super Micro Computer's 10-K report.

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