3SOF

http://ir.supermicro.com/
http://biz.yahoo.com/prnews/070605/aqtu111.html?.v=8


They are new on NASDAQ (IPO this year), they have debts, but it is the last pick of some websites.
They are going up recently.
What do you mean it about?

really like the company, strong IBD EPS rating, here is some more DD that i found :
* Super Micro Computer has been in business since 1993 and achieved profitability every year since inception.

* Price/Sales Ratio is ~ .76, showing a severe discount to other companies with similar server offerings such as HPQ (p/s 1.26), DELL (p/s 1.4), RACK (p/s 1), SUNW (p/s 1.3).

* 39% year over year revenue growth with an extensive customer base. No single customer accounts for more than 10% of their business, which indicates revenue stability.

* The single analysts currently following it (Needham), maintains a buy rating with a $14.00 price target. Merrill Lynch and UBS were also part of the IPO underwriting team with Needham, and could initiate coverage of the stock at any time. Additionally, the low institutional ownership reported most recently, indicates they would have to buy in as growth continues. This situation presents the classic case of a very stable and expanding company that simply lacks coverage. These are precisely the types of opportunities we look for.

* Three new and innovative product offerings: SuperBlade(TM) servers, the 1U Twin(TM) server (recognized for the excellence of innovation by Intel), and the newly defined Universal I/O(TM) (UIO) architecture for optimized storage and networking flexibility. Their SuperServer 5015M-MR also earned the top honor from CRN 2006 Products of the Year in the Server category. * The CEO owns a substantial amount of the outstanding shares, which gives an added incentive for the company's stock to perform.

* Future plans for assembly/production in China which should cut costs and expand margins accordingly.

Super Micro Computer's products are based on processors from Intel Corp. and Advanced Micro Devices Inc. and can run on the Linux and Windows operating system. This gives it the flexibility for any customer to implement with their preferred chip vendor and operating system.

The company has also begun to shift their product mix more toward the higher margined server offerings. Their new products should continue to enhance this shift and add to the bottom line.

They are very active in promoting the benefits of their offerings and becoming a public company further solidifies the confidence that is instilled in potential customers. They will be presenting at Computex Taipei 2007 in Taipei, Taiwan on June 5th - 9th .

Super Micro Computer emphasizes superior product design and uncompromising quality control to produce industry-leading serverboards, chassis and server systems. These mission-critical Server Building Block solutions provide benefits across many environments, including data center deployment, high-performance computing, high-end workstations, storage networks and standalone server installations.

source: ringtheregister.com

Investor's Business Daily
Nimble Super Micro Steals Market Share From Giants
Monday June 18, 7:00 pm ET
Kevin Harlin


The server market today is dominated by big names.
But Super Micro Computer (NasdaqGM:SMCI - News) has held its own as a niche custom player.

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The San Jose-based company makes modular servers, chassis, power supplies and other equipment for server farms and businesses with complex computing needs.

Giants such as Hewlett-Packard (NYSE:HPQ - News) and IBM (NYSE:IBM - News) dominate the industry.

Super Micro has been nimble. It's quick to get new servers to market after Intel (NasdaqGS:INTC - News) or Advanced Micro Devices (NYSE:AMD - News) comes out with new chips.

It's also developing new products,including a new line of blade servers -- more svelte than traditional rack components. They squeeze more computing might out of a smaller package that uses less energy.

Blade servers make up a small but fast-growing industry segment.

Company officials weren't available to comment, but in a conference call with analysts, the company's president and chief executive, Charles Liang, said new products were part of the strategy.

"Super Micro needs to continue its tradition of innovation, and being first to market with the latest in technology to offer a most optimized solution to our customers," he said.

Blade systems aren't expected to contribute much to Super Micro's revenue this year.

But Needham analyst Glenn Hanus says they could account for 20% of sales in three to five years.

Meanwhile, the entire server market is growing. Companies are upgrading IT systems, looking for efficiency and revenue growth, according to research firm IDC.

Big Growth

Worldwide sales for volume systems -- those priced above $25,000 -- will grow from $29.7 billion last year to $37.7 billion in 2007, says IDC. That's about a 4.9% annual growth rate.

Super Micro uses the X86 programming structure of Intel and Advanced Micro Devices. That subset of the market is expected to grow slightly faster, by about 5.2% a year, to $33.9 billion in 2011, IDC says.

"The next-generation infrastructure will be denser, more energy-efficient, easier to manage, better integrated, more virtual and much more resilient," IDC server analyst Matt Eastwood wrote.

Liang, who emigrated from Taiwan to the U.S. about 20 years ago, founded Super Micro in 1993. It has been profitable ever since, with 36% average annual revenue growth over the past five years.

It went public in April, netting $43.6 million in its offering.

But Super Micro is still a small player.

Hewlett-Packard and IBM held 29.2% and 28.9% of market share in the first quarter, according to IDC. Sun Microsystems (NasdaqGS:SUNW - News) and Dell (NasdaqGS:DELL - News) followed, each with about 11%.

But those companies largely sell stock systems. Super Micro deals in highly specialized custom jobs. It configures the memory, processing power and component inputs to give customers a more efficient system.

While the giants might offer a few dozen different server configurations, Super Micro offers thousands.

Customers such as the Lawrence Livermore Laboratory use its servers to support scientific research. Siemens uses them in its medical imaging systems. And original equipment manufacturers such as Juniper Networks incorporate Super Micro's servers into their larger systems.

Super Micro now has 400 customers in about 70 countries, with more than 40% of revenue coming from outside the U.S. No customer accounts for more than 10% of revenue. Distributors and resellers accounted for 73% of revenue in the last quarter.

In his note, Hanus said most clients are pleased with what they get.

"This diverse group generally commented favorably on Super Micro's flexibility and time-to-market advantage, strong technology, solid product quality and reliability, ease of doing business, competitive pricing, and increasing brand reputation," he wrote.

In April, Intel gave Super Micro an innovation award for a rack system that uses its chips and that Intel says increases "computing density while reducing cost, power and space requirements."

Still, there are risks.

Stiff Competition

The biggest trouble could be the reach and pricing power of the giants Super Micro competes against.

There are also periodic intellectual property disputes. In May, the firm settled a patent infringement claim brought by competitor Rackable Systems (NasdaqGS:RACK - News). Super Micro wouldn't give details but said the settlement didn't cost it anything.

The company reported earnings per share of 14 cents in its fiscal third quarter ended in March. That was 8% above a year ago.

Thomson Financial looks for EPS of 12 cents in the fourth quarter. That would bring the year's earnings to 55 cents per share, down from 59 cents in fiscal 2006.

But the company said it faced margin pressure earlier this year by selling entire systems to some customers -- including lower-margin items such as memory and hard drives. It's steering away from that now.

Analysts see earnings per share of 69 cents in fiscal 2008.













   

It will go up on that report IMO.