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  "docSlug": "81a891429a42",
  "documentTitle": "Super Micro Computer, Inc. (SMCI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-01-10 00:00:00",
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  "notes": "Includes a screenshot of an SEC press release and excerpts from an SEC order.",
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      "kind": "callout",
      "text": "Super Micro has a documented history of pressing employees to maximize revenues in order to prematurely recognize revenue, while also understating expenses. These tactics result in overstatement of Net Income and EPS. Spruce Point observes that since 2015 (the earliest its results have been restated), we see that it has reported cumulative revenues of $27.4bn, GAAP Net Income of $1.0bn, Adjusted Cash from operation (CFO) of $164m and Adjusted Free Cash Flow of (FCF) -$142m. We caution investors not to rely on Net Income since CFO and FCF are both materially below Net Income.",
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      "text": "We caution investors not to rely on Net Income since CFO and FCF are both materially below Net Income.",
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      "text": "SEC Press Release screenshot",
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      "text": "Net Income: $1.0bn",
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      "kind": "paragraph",
      "text": "Facts: A. Premature Revenue Recognition and Reporting... B. Super Micro Understated Certain Expenses...",
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      "kind": "quote",
      "text": "\"Reporting revenue in the wrong period gives investors a distorted view of a company's financial condition\" — Melissa Hodgman, Associate Director in the SEC's Division of Enforcement.",
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      "text": "Source: SEC Press Release, Aug 25, 2020. Red emphasis by Spruce Point",
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      "kind": "title",
      "text": "SMCI's Documented Widespread Accounting Violations And Troubles With The SEC",
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