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| The Taiwanese ODM is a big volume to the value add from Super Micro kind of pricing power? And also with additional overseas capacity coming on, much 50% or 60% lower labor cost by our estimates should lead to better OPM going forward |
| So whatever the application is we're going to bring the best -- the very best technology |
| So I think our engineering capabilities and our abilities in design help us to -- have helped us to make it through several different shortage situations, and we think that, that will continue to help us, as we -- as technologies become even more complicated and also, as the technology cycle has shortened and gets faster |
| And so for us, we believe that it will give the ability to -- because certain CPUs and certain GPUs will have better performance in certain applications |
| And so it gives us the ability to offer the very best performance in -- based on the workload |
| So we think that we're excited about the AMD technologies that are coming out, and so we're very glad to offer those products |
| So Super Micro's strength, its moat is the fact that we are approximately 50% engineers |
| And so that's really what it comes down to is being able to have the, what we call, the optimization, across the application optimization to give the customer the very best experience |
| And so, this -- our ability to provide liquid cooled solutions and what we call green computing or the lowest amount of heat dissipation allows us to have a competitive edge |
| And we think that we have a -- it is an advantage to be close to where a lot of the server technologies are developed, and it gives us -- gives our engineers a chance to work directly, not just on current product solutions but on future product solutions |
| And so Super Micro is in a unique position to be able to quickly redesign the very best motherboards |
| We also think that liquid cooling is, again, going to be something that is -- that helps our -- helps the attractiveness of our solutions as companies both seek to reduce their electricity costs, as well as try to reduce their carbon footprint, because a lot of companies do have ESG as a target |
| And so we are doing everything that we can to do that by bringing the very best products to market |
| We doubled our profits the last -- our EPS the last two years going in fiscal year ‘21 from 2.58 up to 5.65, and 5.65 to 11.81 on a non-GAAP basis |
| And so during the pandemic, even though we had -- even though everyone in the industry had supply shortages, we were able to grow |
| So it's nice to see kind of improving from 4K rack scale per month to 5K next year |
| But we largely will recommend to a customer the very best top performing solution for their particular application, whether it's online gaming, online payment processing |
| And this differentiates us from both the ODMs as well as the other Tier 1 server manufacturers who try to offer a select number of SKUs to address all of -- a broader part of the market |
| We are adding another site that we've broken ground on and are starting to make good progress on that should be done toward the back half of next calendar year |
| And we think that margins will continue to we believe be within our target range of 14% to 17%, because of our speed, our building block solution approach to engineering, as well as our speed to market and that gives us an edge |
| This also gives us -- it also gave us a chance to add some additional coverage from analysts, some really good analysts to the company, to better get the story out to the investment community and also get some very good shareholders as well, expand our shareholder base and the broader coverage and holding of our company |
| And we know they will do well because they're a good engineering company, and they're [Multiple Speakers] |
| So last two years we grew it 42% and we gave a guide, which was at the midpoint higher than that 42% for the year |
| And so we think there are some really good inferencing, like the L40S, there's some really good inferencing solutions that are coming out and those have particular desire or their particular appeal in certain workloads |
| We started by selling motherboards to Citibank for use in their ATMs, and so this helped us |
| And so I guess, it’s remarkable kind of Super Micro grew revenue rapidly through different cycles, right, if you look at last five to 10 years irrespective of macro |
| We are going to bring about, number one, what we think are the highest performing solutions for a particular workload |
| Whereas we go in and we design something unique for a customer that not only gives them the very best cost performance metric, but it also gives them the lowest total cost of ownership, because we have designed our servers to be low power consumption and to manage heat |
| We moved our operating margin up 300 -- 700 basis points, and we moved our gross margin up 300 basis points |
| So on the supply side, the supply is improving |
| Statement |
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| We do have low exposure, because as everyone knows, GPU sales in China were unfortunately stopped |
| Second question is, more seriously, he's at the AMD event and obviously, you've been pretty supply constrained with NVIDIA GPUs |
| I think, some of the investors may misunderstood the story kind of used to be a lower margin business |
| For instance, at one point, when there was a shortage on switches, we built our own switches, not because we wanted to be a switch company but because there was a shortage |
| So those are kind of impediments to adoption |
| We were constrained during the pandemic by supply for different reasons |
| And we even wonder if warranties will start to come into play by not -- we don't know that at all |
| We came out of the pandemic and we went right into different kind of constraint with constraint for silicon, as well as for GPUs because of demand |
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