SMCI — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-11

• •Gross margin remained relatively flat in the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.

• Other Income (Expense), Net, Interest Income, and Interest Expense

• Other income (expense), net, interest income, and interest expense consists primarily of interest earned on our investments and cash balances, interest incurred on our debt, and foreign exchange gains and losses.

• Share of (loss) income from equity investee, net of taxes(0.7)(0.5)(1.3)2.0

• The following table presents certain items of our condensed consolidated statements of operations expressed as a percentage of net sales for the three and nine months ended March 31, 2026 and 2025:

Text removed vs the prior filing · source: 10-Q · 2026-02-06

• •Gross margin decreased to 6.3% in the three months ended December 31, 2025 from 11.8% in the three months ended December 31, 2024, primarily due to our strategy to offer competitive pricing to gain market share and a change in product and customer mix.

• Other income, net, interest income, and interest expense consists primarily of interest earned on our investments and cash balances, interest incurred on our debt, and foreign exchange gains and losses.

• Three Months Ended December 31,Six Months Ended December 31,

• Share of (loss) income from equity investee, net of taxes(0.5)2.4 (0.7)2.5

• The following table presents certain items of our condensed consolidated statements of operations expressed as a percentage of net sales for the three and six months ended December 31, 2025 and 2024:

Text added vs the prior filing · source: 10-Q · 2026-05-11

• •Continued to successfully monitor and make enhancements as appropriate to the design and effectiveness of our Enterprise Resource Planning (“ERP”) system security role structure and segregation of duties (“SOD”) rulesets, to eliminate or minimize SOD conflicts related issues that collectively contr…

• •Over the last few months starting in the quarter ended September 30, 2025 and in particular in the quarter ended March 31, 2026, we have continued to evaluate and review our overall IT architecture, including the composition, appropriateness and upgrades required to our IT organization and applicat…

• •Continuing to enhance our accounting policies and related information provided by entity (“IPE”) documentation, and, as part of the financial reporting process, implementing the use of supplementary checklists as well as conducting additional reviews and evaluations of transactions to improve the a…

Text removed vs the prior filing · source: 10-Q · 2026-02-06

• •Successfully implemented a full redesign of our Enterprise Resource Planning (“ERP”) system security role structure and segregation of duties (“SOD”) rulesets, to address issues relating to access which were not appropriately aligned with the defined role, including lack of visibility into SOD conf…

• •Continued to implement enhancements to our global learning management and communication system, to develop and roll out numerous compliance and other mandatory training courses, across various areas, including Finance, Compliance, Information Technology and Sales, to our global workforce with an ex…

• •Successfully completed a transition to a best in class Information Technology Service Management (“ITSM”) tool thereby enhancing change management practices across all our IT applications, including our infrastructure and security thereby ensuring standardization of processes, applying a risk based…

• •Continuing to enhance our accounting policies and related information provided by entity (“IPE”) documentation, and, as part of the financial reporting process, implementing the use of supplementary checklists as well as conducting additional reviews and evaluations of transactions to improve the a…

Text added vs the prior filing · source: 10-Q · 2026-05-11

• If negative publicity arises with respect to us, our employees, our third-party service providers or our partners, our business and operating results could be adversely affected, regardless of whether the negative publicity is true.

• Negative publicity about us or our products, even if inaccurate or untrue, could adversely affect our reputation and confidence in our products, which could harm our business and operating results. For example, on August 27, 2024, a news article was published by a short seller alleging evidence of a…

• On March 19, 2026, the U.S. Attorney’s Office for the Southern District of New York unsealed an indictment of three individuals either employed or associated with the Company at the time in connection with an alleged conspiracy to commit export control violations (the “Indictment”). Although the Com…

• Harm to our reputation has in the past, and may in the future, arise from many other sources, including employee misconduct, such as in connection with the alleged conduct described in the Indictment involving individuals associated with the Company at the time, and misconduct by our partners, consu…

• Our operations are impacted by complex laws, rules and regulations related to import and export controls to which our business is subject, and rapid changes in such laws, rules, and regulations as well as political and other actions related thereto may adversely impact our business.