INDUSTRY

Super Micro Computer, a leader in application optimized, high performance server solutions, today announced financial results for the third quarter of fiscal year 2007. This marked the Company’s first reporting of quarterly financial results since its initial public offering on March 29, 2007. Q3 Fiscal 2007 Highlights: * Quarterly revenue of $105.7 million, up 39% compared to Q3 FY06 * Net income of $4.1 million, or $0.13 per diluted share, up $0.02 compared to Q3 FY06 * Server Solutions accounted for 37% of revenues, up from 35% in Q3 FY06 * Introductions of new products including Universal Input/Output servers. "This quarter, we continued our tradition of innovation with the addition of new products such as our Universal Input/Output (“UIO”) servers and their associated I/O carding including LSI 1068 SAS card, Intel Sun Rise Lake SAS RAID 5 card and 4-port Gigabit Ethernet LAN card. These products exemplify our commitment to empowering our partners with the very best in server technology and providing them with customizable configurations and optimizations for a wide range of application requirements with exceptional scalability," said Charles Liang, President and Chief Executive Officer of Super Micro Computer. "Our continuing strong financial performance demonstrates how customers value our innovative solutions which provide a much more competitive price/performance ratio and reduce customers TCO." Q3 Fiscal 2007 Financial Results Net revenue for the third quarter ended March 31, 2007 was $105.7 million, up 39% from $75.9 million in the third quarter of fiscal year 2006. Net revenue from server solutions comprised 37% of net revenues, up from 35% in the third quarter of fiscal year 2006. No customer accounted for more than 10% of net revenues during the quarter. Net income for the third quarter of fiscal year 2007 on a generally accepted accounting principles (GAAP) basis was $4.1 million or $0.13 per diluted share compared to net income of $3.6 million, or $0.11 per diluted share in the same period a year ago. Included in GAAP net income for the quarter was $0.7 million of stock-based compensation expense. Excluding stock-based compensation expense and related tax effect, non-GAAP net income for the third quarter was $4.5 million, or $0.14 per diluted share, compared to non-GAAP net income of $3.8 million, or $0.12 per diluted share, in the same period a year ago. GAAP gross margin for the third quarter was 17.1%, compared to 19.5% in the same period a year ago. Non-GAAP gross margin for the third quarter was 17.2% compared to 19.5% in the same period a year ago. Third quarter of fiscal year 2007 gross margin was lower than the same period a year ago due to lower margins on more mature products offset in part by a higher mix of server revenue which had higher margins than components. During the third quarter of fiscal year 2006, the Company introduced and began delivering new products based on dual core technology from Intel, which benefited gross margins. Net revenue for the nine months ended March 31, 2007 was $309.4 million, up 46% from $212.5 million for the first nine months of fiscal year 2006. GAAP net income for the first nine months of fiscal year 2007 was $13.8 million or $0.43 per diluted share, compared to $10.6 million or $0.34 per diluted share in the same period a year ago. Excluding stock based-compensation expense and related tax effect, non-GAAP net income for the first nine months was $15.3 million or $0.47 per diluted share, compared to $11.2 million or $0.36 per diluted share in the same period a year ago. The Company ended the quarter with $20.8 million in cash and cash equivalents. On April 3, 2007, the Company received net proceeds of approximately $43.6 million through the issuance of 6.4 million shares from its initial public offering. In the first quarter of fiscal 2007, Super Micro Computer adopted Statement of Financial Accounting Standards No. 123R, Share-Based Payments (FAS 123R), which requires that stock-based compensation be recorded in its financial statements. The Company's non-GAAP financial measures exclude the stock-based compensation expense and the related tax effect of the applicable items. The reconciliation between GAAP and non-GAAP net income, gross margin and net income per share is provided in the financial tables accompanying this press release. Business Outlook Super Micro Computer expects net revenue to be in the range of $106 million to $111 million for the fiscal fourth quarter ending June 30, 2007. Mr. Liang concluded, "We expect to see further growth through the continued expansion of our already-broad product line, the additional working capital and enhanced credibility provided by the IPO, and continued diversity of our customers and markets we serve.”