Server Upgrade Cycle Boosts Super Micro

In a cycle with many buyers looking to save money on server upgrades, Super Micro and its resellers are chosen over Hewlett-Packard, Dell, IBM, or Fujitsu, reports The Register. Super Micro, a server and system component maker, is able to meet the needs of price-sensitive buyers and boost its profits. The company's move into power-efficient servers for hyperscale data centers has also contributed to the profit climb.

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In a wave of buyers looking for cheaper upgrades, Super Micro sees a profit climb.

"Neither Liang nor Hideshima were not much interested in making prognostications about where industry-wide server shipments and revenues might be, and they dodged several questions on that issue. They did say that they are preparing for the launch of mobos and systems based on Intel's single-socket "Sandy Bridge" Xeon chips, coming in February, and two-socket variants for later this year. They also said that they expected revenues for the fiscal this quarter would be somewhere between $235m to $245m, which works out to year-on-year growth of between 24 and 30 per cent; earnings are expected to be in the same range as this quarter on a non-GAAP basis."

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