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And looking at company records, Vanguard own 12% of the entire company(today) so we are in good company with SM.
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Almost better late than never. SM file their 10-k. The stock is up 15% after hours. I gave it a quick flick-it’s 208 pages-it’s been one of those days. The after hours lunatics seem to like it.
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The after hours is now 55. Quite clearly they’ve redeemed themselves and ruled out any question of malfeasance. The future looks very bright for the business.
I want to say- they say asset managers don’t have an edge. I agree. The same information is out there for all to see. We worked very hard on this company. Because it is a great business and our 2 years of research told us the naysayers were wrong. I congratulate all the stock holders. And to the contrarians
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That’s great news …..
I’m sure I speak for quite a few of us ….really appreciate the updates etc
Hope your getting the overtime slip authorised
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Hi C, honestly, seeing this result is reward enough. As you can imagine the market can be very cruel at times. It makes the often heavy burden worth it.
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From the ceo…… The Company is now current with its SEC financial reporting obligations. There were no restatements of previously filed financial statements. The Company has received correspondence from the Nasdaq staff that the Company has regained compliance with the filing requirements, and the matter is now closed.
“Today’s filings represent an important milestone,” said Charles Liang, Founder, President, and CEO. “With our financial reporting now current, we can now fully focus on executing our proven winning growth strategy through technology, product and solution innovations, time-to-market advantage, global footprint, and green computing. We are investing extensively in people and processes across our engineering, sales, finance, accounting, compliance, and operations to achieve our great mission in DLC, Data Center Building Block Solution (Supermicro 4.0) as well as our revenue target. Supermicro is accelerating at the forefront of the AI revolution, helping our customers, partners and driving strong returns for investors.”
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SM announce a major expansion to their San Jose headquarters. Campus 3 will start construction in 2025 and once complete (multiple years) it will add 3M square feet. San Jose Mayor, Matt Mahan is quoted as saying ' We are proud to be the home of SM, the fastest growing and innovative San Jose business, this defines what 'Made in America' looks like. Charles Liang said the new facility is required to fuel the need for DLC.
PG&G, the utilities infrastructure giant is providing the massive power needs. You may read about server rack factories running out of power or hotting the max. This is in relation to testing. SM have a unique testing system where the entire cluster is plugged in and optimised before shipping-it's deployed ready to run and obviously large systems of 100s of racks draw a lot of power. At the Burn-In testing phase the full stack is run hard to ensure it is operating as intended.
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PG&G?
Did you mean PG&E - Pacific Gas & Energy?
I recall our place being a case study for them with our ‘hot aisle/cold aisle’ cooling config, probably about 10 years ago.
Oooh, the excitement I used to have, roaming around our datacenters and pretending to be all technical! Good times.
Here, some clips from our RTP (North Carolina) state of the art Datacenter from about 8 years ago, surrounded by primeval swamps
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E yes. Carolina, Louisiana are still hot spots for big DC. It's all to do with access to plenty of water, cheap land and big power.
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Iceland is amongst the cheapest places to run DCs. It's naturally cold and they generate an abundance of renewable energy from hydro and geothermal. The thing is DLC is even cheaper and that is why we are invested in the space.
From the above table. Last quarter there was a mere 230k Blackwell chips in circulation. We know Msft/Goog/AWS received the first ones for their 'Big Iron' (Foxconn ref design). It's just a matter of 1 or 2 quarters until supply is much bigger. SMCI has stated many times that they expect to consume 100k blackwell/month on average through 2025. Obviously that will be skewed to the H2 period. This is a supply issue not a demand issue.
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Mike, re your question.
Senior management receive compensation via stock awards. It's part of their employment contract. They know when these shares will vest and invariably they are sold the day they vest because as said, it's their salary and they are taxed heavily on them on vesting not sale. It makes perfect sense to sell them, otherwise you pay the tax out of your own pocket.
The Liangs hold around 150 million shares and have not sold any shares (these sales are compensation awards), not even when the stock flew to $120. So if he was going to cash-in don't you think he would have back then. it's just dog whistle nonsense repeated by idiots. We will see who is right in the second half of this year
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Mike,
The Liangs sold their stock via a 10b5-1 plan agreed January 2024 which stipulated a schedule of shares and sale dates. The delayed filings prevented these planned sales.
A- One can not modify any 105b-1 if any sales under said plan have been actioned(they had, October 24).
B-If a sale is not able to be actioned on a prescribed date (the case due to the delayed 10-k), the stock is to be sold at the earliest opportunity. This would be the day following the filing. The 26thThere was absolutely nothing the officers could have done to stop the sale. To do so would break the law and in the very least could be construed to be insider trading. Fyi Liangs 10b5-1 provides for 300k shares total sales to june 2025. It's all disclosed in the 10k. This sale was a mere 46,293 shares.
I hope that clears this up. The ultracrepidarian is again, off the mark.
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Here is a work in progress (above) detail my forward looking figures. Underlying it is a correlation to Nvidia revenue-it's all about the access to silicon. The dip in operating margin (7.9%) is clear as to the reasons but has historically been around the 10% mark and with scale imo will expand well above 10%
The 10-k late filing cost them around $30M in additional costs
R&D shot up by $60M in the quarter which is all the upfront Blackwell preparation
I suspect a lot of that is also staff hires in Malaysia and the DLC build out-it won't all be capex X
The point being, I would now expect a more normalised margin, at least post Q3(March)Note: The company guided $40B for fiscal 26 and above we are estimating $50.85B, yes a large beat but we have good reason to take this view. We will soon find out whether the quarterly revenue is aligned to this target. -
Late next month they will update for the current quarter. The guide was $5-$6. Above we have 6,165K and I would speculate that the new norm is to guide conservatively. In this example $7-$8B and we expect 8,505K.
This is the sort of trend we would want to see.
Posted for posterity. Today the company trades, based on the above at 4.6X June 26 Operating income. Will it age well -
Disclosure of our historical and current position
