That very large number for fixed costs at
end 0f 03/31/2024 resembles about
what they may be paying NVDA for
GPUs in each of last two quarters...
$2.9 billion sounds like a lot when you
have to pay what the Big seller wants
for Ai chips in big demand...
rough estimate example...100,000 GPUs
in 1st quarter,2025 that were bot at say?,
$30,000 each in fixed cost agreement...
one year ago, 2024 1st quarter, 09/30/2024
Certain materials used by the Company in the manufacturing of its products are available from a limited number of suppliers. Shortages could occur in these materials due to an interruption of supply or increased demand in the industry. Two suppliers accounted for 55.1% and 10.3% of total purchases for the three months ended September 30, 2023, and the same two suppliers accounted for 25.7% and 16.1% of total purchases for the three months ended September 30, 2022.
The increase in concentration of total purchases to one of the Company's suppliers to 55.1% of total purchases for the three months ended September 30, 2023 is as a result of the purchase of GPUs to build its solutions for the Company's customers.
Purchases from Ablecom, and Compuware, related parties of the Company (see Part I, Item 1, Note 8, "Related Party Transactions") accounted for a combined 6.4% of total cost of sales for both the three months ended September 30, 2023 and 2022.[/]
comparison, 3rd quarter,2024, 03/31/2024...
The increase in the concentration of the Company's total
purchases from supplier A for 69.8% and 65.8% of total
purchases for the three and nine months ended March 31,
2024, respectively, is as a result of the purchase of key
components to build its solutions for the Company's customers.
All the inter company dealings with relatives
involved has been going on for years
and is how SMCI operates...
Ablecom agreement...
The Company retains full ownership of any
intellectual property resulting from the design
of these products and tooling.
The author you noted was very thorough...
https://orcafin.substack.com/p/smci-an-intriguing-story
But you keep dealing with the smartest
people that you know like in past history
and stay ahead of competition with tight
corporate protection on intellectual property!
gray line sales...SMCI saw 10 fold decrease
in sales 800,000 regarding a China entity in
1st quarter,2024, sales, 09/30/2023...
In October 2016, the Company entered into agreements pursuant to which the Company contributed certain technology rights in connection with an investment in a privately-held company (the “Corporate Venture”) located in China to expand the Company’s presence in China. The Corporate Venture is 30% owned by the Company and 70% owned by another company in China. The transaction was closed in the third fiscal quarter of 2017 and the investment is accounted for using the equity method. As such, the Corporate Venture is also a related party.
The Company recorded a deferred gain related to the contribution of certain technology rights. There was no balance in the deferred gain in the consolidated balance sheets as of September 30, 2023 and June 30, 2023.
The Company monitors the investment for events or circumstances indicative of potential impairment and makes appropriate reductions in carrying values if it determines that an impairment charge is required. In June 2020, the third-party parent company that controls the Corporate Venture was placed on a U.S. government export control list, along with several of such third-party parent’s related entities and a separate listing for one of its subsidiaries. The Corporate Venture is not itself a restricted party. The Company has concluded that the Corporate Venture is in compliance with the new restrictions. The Company does not believe that the equity investment carrying value is impacted as of September 30, 2023. No impairment charge was recorded for the three months ended September 30, 2023 or 2022.
The Company sold products worth $0.8 million and $11.3 million to the Corporate Venture during the three months ended September 30, 2023 and 2022, respectively. The Company’s share of intra-entity profits on the products that remained unsold by the Corporate Venture as of September 30, 2023 and June 30, 2023 have been eliminated and have reduced the carrying value of the Company’s investment in the Corporate Venture. To the extent that the elimination of intra-entity profits reduces the investment balance below zero, such amounts are recorded within accrued liabilities. The Company had $0.2 million and $1.9 million due from the Corporate Venture in accounts receivable, net as of September 30, 2023 and June 30, 2023, respectively.
The Company sold products worth $4.3 million and $6.4 million to the Corporate Venture during the three months ended March 31, 2024 and 2023, respectively, and $16.5 million and $23.6 million to the Corporate Venture during the nine months ended March 31, 2024 and 2023, respectively.
That .04% of sales revenue isn't something
that the company needs to be fooling with
and should just out for a loss on investment,,,
too many hassles with it...
FREE CASH FLOW in quarter two and three
of 2024 were negative due to spending on
new inventory increasing at a fast pace while
waiting for closed sales to catch up...
1st quarter, 2025 free cash flow moved back
to positive for quarter ended, 09/30/2024,,,
which helped gross margin increase...
Higher Pay Grades will have to determine if
SMCI has Three Independent Directors on
the Audit Committee,,,
and if not, changes will Have to be made...
No exceptions to that rule...
Charles, of SMCI, stated in CC the guidance
ahead is cloudy because no new Blackwell
chips were being delivered yet...
NVDA pr about Softbank confirmed that they
Blackwell chips aren't being delivered yet...
My losses incurred are still hindenburg
Caused until an Auditor with grit steps
in to say different...
so we watch...LJ
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