Item 5. Market for Registrant’s Common Equity
Item 5.
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
We became a public company in March 2007, prior to which there was no public market for our common stock. From March 29, 2007 through August 22, 2018, our common stock traded on the Nasdaq Global Select Market. Effective at the open of business on August 23, 2018, our common stock was suspended from trading on the Nasdaq Global Select Market. Effective March 22, 2019, our common stock was delisted from the Nasdaq Global Select Market, whereupon our common stock was quoted on the OTC Market and traded under the symbol “SMCI.” On January 14, 2020, our common stock was relisted on the NASDAQ Global Select Market under the symbol “SMCI".
Holders
As of July 31, 2020, there were 30 registered stockholders of record of our common stock. Because most of our shares are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of beneficial stockholders represented by these holders of record.
Dividend Policy
We have never declared or paid cash dividends on our capital stock. We intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future. Under the terms of the credit agreement with Bank of America, as amended, we may not pay any dividends.
Equity Compensation Plan
Please see Part III, Item 12, “ Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ” of this Annual Report for disclosure relating to our equity compensation plans.
Stock Performance Graph
This performance graph shall not be deemed “soliciting material” or to be "filed" with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of Super Micro Computer, Inc. under the Securities Act of 1933, as amended, or the Exchange Act.
The performance graph used in our Annual Report on Form 10-K for the year ended June 30, 2019 (the "FY2019 Annual Report") included the cumulative total shareholder return of our peer issuers’ common stock for comparing against the cumulative total shareholder return on our common stock as our common stock had been delisted from the Nasdaq Global Select Market. On January 14, 2020, our common stock was relisted on the Nasdaq Global Select Market. For the Annual Report on Form 10-K for the fiscal year ending June 30, 2021 (the "FY2021 Annual Report") and onward, we will no longer use the performance of our peer issuers’ common stock to compare against the performance of our common stock, and we will use the NASDAQ Composite Index and NASDAQ Computer Index for comparing against the performance of our common stock beginning with the performance graph contained within this Annual Report on Form 10-K.
The following graph compares our cumulative five-year total stockholder return on our common stock with the cumulative return of the Nasdaq Computer Index, the Nasdaq Composite Index and an industry peer group, which we refer to as the FY2020 Peer Group, consisting of: Cray Inc., Extreme Networks, Inc., Infinera Corporation, NetApp, Inc., and NetGear, Inc. Such FY2020 Peer Group is the same as the peer group used in the FY2019 Annual Report to allow easier comparability to the prior year given we do not intend to use such peer group for the FY2021 Annual Report as described above. Cray Inc. was acquired in September 2019. In selecting the companies for inclusion, we considered and selected companies with similar industry comparability, net revenues, and operating income as our company.
The graph reflects an investment of $100 (with reinvestment of all dividends, if any) in our common stock, the Nasdaq Computer Index, the Nasdaq Composite Index and the FY2020 Peer Group, on June 30, 2015 and our relative performance tracked through June 30, 2020 . The stockholder return shown on the graph below is not necessarily indicative of future performance, and we do not make or endorse any predictions as to future stockholder returns.
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6/30/2015
6/30/2016
6/30/2017
6/30/2018
6/30/2019
6/30/2020
Super Micro Computer, Inc.
100.00
84.01
83.33
79.95
65.42
95.98
FY2020 Peer Group
100.00
96.08
103.58
159.66
132.35
83.55
Nasdaq Composite Index
100.00
97.11
123.13
150.60
160.55
201.71
Nasdaq Computer Index
100.00
101.41
138.22
178.95
193.66
277.44
Recent Sales of Unregistered Securities
None.
Issuer Purchases of Equity Securities
None.
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Item 6. Selected Financial Data
The following selected consolidated financial data should be read in conjunction with Part I, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and the notes thereto included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Annual Report to fully understand factors that may affect the comparability of the information presented below. We derived the selected consolidated balance sheet data as of June 30, 2020 and 2019 , the consolidated statement of operations data and the stock-based compensation data for the years ended June 30, 2020 , 2019 and 2018 from our audited consolidated financial statements and accompanying notes included in this Annual Report. The consolidated balance sheet data as of June 30, 2018, 2017 and 2016, the consolidated statement of operations data and stock-based compensation data for the years ended June 30, 2017 and 2016 are derived from our audited consolidated financial statements which are not included in this Annual Report. Operating results for any year are not necessarily indicative of results to be expected for any future periods.
Years Ended June 30,
2020
2019
2018
2017
2016
(in thousands, except per share data)
Consolidated Statements of Operations Data:
Net sales
$
3,339,281
$
3,500,360
$
3,360,492
$
2,484,929
$
2,225,022
Cost of sales
2,813,071
3,004,838
2,930,498
2,134,971
1,894,521
Gross profit
526,210
495,522
429,994
349,958
330,501
Operating expenses:
Research and development
221,478
179,907
165,104
143,992
124,223
Sales and marketing
85,137
77,154
71,579
66,445
58,338
General and administrative
133,941
141,228
98,597
44,646
40,449
Total operating expenses
440,556
398,289
335,280
255,083
223,010
Income from operations
85,654
97,233
94,714
94,875
107,491
Other income (expense), net
1,410
(1,020
)
(773
)
(984
)
1,507
Interest expense
(2,236
)
(6,690
)
(5,726
)
(2,300
)
(1,594
)
Income before income tax provision
84,828
89,523
88,215
91,591
107,404
Income tax provision
(2,922
)
(14,884
)
(38,443
)
(24,434
)
(35,323
)
Share of income (loss) from equity investee, net of taxes
2,402
(2,721
)
(3,607
)
(303
)
—
Net income
$
84,308
$
71,918
$
46,165
$
66,854
$
72,081
Net income per common share:
Basic
$
1.65
$
1.44
$
0.94
$
1.38
$
1.50
Diluted
$
1.60
$
1.39
$
0.89
$
1.29
$
1.39
Shares used in per share calculation:
Basic
50,987
49,917
49,345
48,383
47,917
Diluted
52,838
51,716
52,151
51,679
51,836
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As of June 30,
2020
2019
2018
2017
2016
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents
$
210,533
$
248,164
$
115,377
$
110,606
$
178,820
Working capital
885,126
815,802
719,321
588,636
544,698
Total assets
1,918,646
1,682,594
1,769,505
1,515,130
1,191,483
Long-term obligations
145,304
135,449
114,296
68,754
85,200
Total stockholders’ equity
1,065,707
941,176
843,652
773,846
696,653
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