Summary by Futu AI
Super Micro Computer, Inc. (Supermicro) reported a significant increase in net sales for the quarter ended December 31, 2023, with a 103.2% rise compared to the same period in 2022. However, gross margin declined to 15.4% from 18.7% year-over-year. Operating expenses saw a 57.8% increase, and the effective tax rate rose to 17.3% from 14.3% in the previous year. The company's income tax provision also increased to $61.5 million for the quarter, up from $29.6 million in the prior year. Supermicro's business development continued with the acquisition of real estate for $80.0 million and a new lease for warehouse space in San Jose, California. The company operates in a single segment, providing high-performance server and storage solutions, and has been profitable every year since its inception in 1993. Looking ahead, Supermicro plans to use its own cash for the property acquisition and intends to utilize the proceeds from a recent public offering to support operations, expand manufacturing capacity, and increase R&D investments.