The effect of the Restatement described above on the accompanying consolidated statements of operations for the fiscal years ended June 30, 2016 and 2015 is as follows (in thousands, except per share amounts):



	For the Year Ended June 30, 2016
	As Previously Reported			Product Revenue			Services Revenue		Inventories			Other			Income Taxes			As Restated
Net sales (1)	$	2,215,573		$	5,582		$	3,867	$	—		$	—		$	—		$	2,225,022
Cost of sales (1)	1,884,048			11,410			—		(926		)	(11		)	—			1,894,521
Gross profit	331,525			(5,828		)	3,867		926			11			—			330,501
Operating expenses:
Research and development	123,994			—			—		(367		)	596			—			124,223
Sales and marketing	62,841			(4,255		)	—		(364		)	116			—			58,338
General and administrative	37,840			—			—		—			2,609			—			40,449
Total operating expenses	224,675			(4,255		)	—		(731		)	3,321			—			223,010
Income from operations	106,850			(1,573		)	3,867		1,657			(3,310		)	—			107,491
Other income (expense), net	171			—			—		—			1,336			—			1,507
Interest expense	(1,594		)	—			—		—			—			—			(1,594		)
Income before income tax provision	105,427			(1,573		)	3,867		1,657			(1,974		)	—			107,404
Income tax provision	33,406			—			—		—			—			1,917			35,323
Net income	$	72,021		$	(1,573	)	$	3,867	$	1,657		$	(1,974	)	$	(1,917	)	$	72,081
Net income per common share:
Basic	$	1.50																$	1.50
Diluted	$	1.39																$	1.39
Weighted-average shares used in calculation of net income per common share:
Basic	47,917																	47,917
Diluted	51,836																	51,836

__________________________

(1) Transactions with related parties are included in the line items above as follows:



	Year Ended June 30,
	2016				2016
	As Previously Reported		Adjustments		As Restated
Net sales	$	19,453	$	9,657	$	29,110
Cost of sales*	241,836		802		242,638

* Represents purchases from related parties.



	For the Year Ended June 30, 2015
	As Previously Reported			Product Revenue			Services Revenue			Inventories			Other			Income Taxes			As Restated
Net sales (1)	$	1,991,155		$	(25,542	)	$	(11,260	)	$	—		$	—		$	—		$	1,954,353
Cost of sales (1)	1,670,924			(23,229		)	—			(13		)	87			—			1,647,769
Gross profit	320,231			(2,313		)	(11,260		)	13			(87		)	—			306,584
Operating expenses:
Research and development	100,257			—			—			501			644			—			101,402
Sales and marketing	48,851			(1,814		)	—			386			73			—			47,496
General and administrative	24,377			—			—			—			663			—			25,040
Total operating expenses	173,485			(1,814		)	—			887			1,380			—			173,938
Income from operations	146,746			(499		)	(11,260		)	(874		)	(1,467		)	—			132,646
Other income (expense), net	115			—			—			—			841			—			956
Interest expense	(965		)	—			—			—			—			—			(965		)
Income before income tax provision	145,896			(499		)	(11,260		)	(874		)	(626		)	—			132,637
Income tax provision	44,033			—			—			—			—			(3,951		)	40,082
Net income	$	101,863		$	(499	)	$	(11,260	)	$	(874	)	$	(626	)	$	3,951		$	92,555
Net income per common share:
Basic	$	2.19																	$	1.99
Diluted	$	2.03																	$	1.85
Weighted-average shares used in calculation of net income per common share:
Basic	46,434																		46,434
Diluted	50,094																		50,094

__________________________

(1) Transactions with related parties are included in the line items above as follows:



	Year Ended June 30,
	2015					2015
	As Previously Reported		Adjustments			As Restated
Net sales	$	58,013	$	(10,329	)	$	47,684
Cost of sales*	227,562		99			227,661

* Represents purchases from related parties.

Impact on Consolidated Balance Sheet

The effect of the Restatement described above on the accompanying consolidated balance sheet as of June 30, 2016 is as follows (in thousands):



	As of June 30, 2016
	As Previously Reported			Product Revenue			Services Revenue			Inventories			Other			Income Taxes			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	180,964		$	—		$	—		$	—		$	(2,144	)	$	—		$	178,820
Accounts receivable, net (1)*	288,941			(60,590		)	—			—			(53,418		)	—			174,933
Inventories	448,980			48,714			—			18,205			908			—			516,807
Prepaid income taxes	5,682			—			—			—			—			(1,341		)	4,341
Prepaid expenses and other current assets (1)	13,435			—			—			—			65,992			—			79,427
Total current assets	938,002			(11,876		)	—			18,205			11,338			(1,341		)	954,328
Long-term investments	2,643			—			—			—			—			—			2,643
Property, plant, and equipment, net	187,949			—			—			—			—			—			187,949
Deferred income taxes, net	28,460			—			—			—			—			5,218			33,678
Other assets	8,546			—			—			—			4,339			—			12,885
Total assets	$	1,165,600		$	(11,876	)	$	—		$	18,205		$	15,677		$	3,877		$	1,191,483
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable (1)	$	249,239		$	5		$	—		$	2,981		$	15,166		$	—		$	267,391
Accrued liabilities (1)	55,618			(128		)	9,313			16,251			2,542			—			83,596
Income taxes payable	5,172			—			—			—			—			(118		)	5,054
Short-term debt and current portion of long-term debt	53,589			—			—			—			—			—			53,589
Total current liabilities	363,618			(123		)	9,313			19,232			17,708			(118		)	409,630
Long-term debt	40,000			—			—			—			—			—			40,000
Other long-term liabilities	40,603			—			4,597			—			—			—			45,200
Total liabilities	444,221			(123		)	13,910			19,232			17,708			(118		)	494,830
Stockholders' equity:							—
Common stock and additional paid-in capital	277,339			—			—			—			2,067			59			279,465
Treasury stock	(2,030		)	—			—			—			—			—			(2,030		)
Accumulated other comprehensive loss	(85		)	—			—			—			—			—			(85		)
Retained earnings	445,971			(11,753		)	(13,910		)	(1,027		)	(4,098		)	3,936			419,119
Total Super Micro Computer, Inc. stockholders' equity	721,195			(11,753		)	(13,910		)	(1,027		)	(2,031		)	3,995			696,469
Noncontrolling interest	184			—			—			—			—			—			184
Total stockholders’ equity	721,379			(11,753		)	(13,910		)	(1,027		)	(2,031		)	3,995			696,653
Total liabilities and stockholders' equity	$	1,165,600		$	(11,876	)	$	—		$	18,205		$	15,677		$	3,877		$	1,191,483

__________________________

* Previously reported allowances for accounts receivable as of June 30, 2016 were $2,721, now corrected and restated to $2,413.

(1) Transactions with related parties are included in the line items above as follows:



	As of June 30, 2016
	As Reported		Adjustments			As Restated
Accounts receivable, net	$	4,678	$	(4,629	)	$	49
Prepaid expenses and other current assets	—		9,622			9,622
Accounts payable	39,152		5,789			44,941
Accrued liabilities	—		5,354			5,354

Cumulative Effect of Prior Period Adjustments

The following table presents the impact of the Restatement on the beginning stockholders’ equity as of June 30, 2014 (in thousands):



	Common Stock and Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Loss			Retained Earnings			Total Super Micro Computer Stockholders’ Equity			Non-controlling interest		Total Stockholders’ Equity
Balance, June 30, 2014 (As previously reported)	$	199,062	$	(2,030	)	$	(63	)	$	272,087		$	469,056		$	175	$	469,231
Adjustments:
Product revenue recognition	—		—			—			(9,681		)	(9,681		)	—		(9,681		)
Service revenue	—		—			—			(6,518		)	(6,518		)	—		(6,518		)
Inventory	—		—			—			(1,809		)	(1,809		)	—		(1,809		)
Other	531		—			—			(1,498		)	(967		)	—		(967		)
Restatement tax impacts	—		—			—			1,902			1,902			—		1,902
Cumulative restatement adjustments	531		—			—			(17,604		)	(17,073		)	—		(17,073		)
Balance, June 30, 2014 (As Restated)	$	199,593	$	(2,030	)	$	(63	)	$	254,483		$	451,983		$	175	$	452,158

Other changes to the consolidated statements of stockholders’ equity for the years ended June 30, 2016 and 2015 as a result of the Restatement are due to the changes in net income and changes to additional paid in capital related to the impact of the correction of errors to stock-based compensation expense.

Impact on Consolidated Statements of Comprehensive Loss

The only change to the consolidated statements of comprehensive loss for the years ended June 30, 2016 and 2015 as a result of the Restatement is due to the changes in net income.

Impact on Consolidated Statements of Cash Flows

The effect of the Restatement described above on the accompanying consolidated statements of cash flows for the years ended June 30, 2016 and 2015 is as follows (in thousands):



	Year Ended June 30, 2016
	As Previously Reported			Restatement Adjustments			As Restated
OPERATING ACTIVITIES:
Net income	$	72,021		$	60		$	72,081
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	13,282			—			13,282
Stock-based compensation expense	16,131			799			16,930
Excess tax benefits from stock-based compensation	(2,855		)	43			(2,812		)
Allowance for doubtful accounts	1,278			(62		)	1,216
Provision for excess and obsolete inventories	9,313			71			9,384
Foreign currency exchange gain	(1,233		)	(106		)	(1,339		)
Deferred income taxes, net	(6,133		)	921			(5,212		)
Changes in operating assets and liabilities:
Accounts receivable, net (1)	32,375			21,200			53,575
Inventories	5,200			2,509			7,709
Prepaid expenses and other assets (1)	(8,210		)	(15,329		)	(23,539		)
Accounts payable (1)	(54,301		)	(11,534		)	(65,835		)
Income taxes payable	(3,260		)	2,874			(386		)
Accrued liabilities (1)	9,027			3,884			12,911
Other long-term liabilities	24,874			(4,852		)	20,022
Net cash provided by operating activities	107,509			478			107,987
INVESTING ACTIVITIES:
Purchases of property, plant and equipment (1)	(34,108		)	—			(34,108		)
Change in restricted cash	(1,020		)	—			(1,020		)
Net cash used in investing activities	(35,128		)	—			(35,128		)
FINANCING ACTIVITIES:
Proceeds from debt, net of issuance costs	34,200			—			34,200
Repayment of debt	(34,100		)	—			(34,100		)
Proceeds from exercise of stock options	12,186			—			12,186
Excess tax benefits from stock-based compensation	2,855			(43		)	2,812
Payments of obligations under capital leases	(189		)	—			(189		)
Payments under receivable financing arrangements	(21		)	—			(21		)
Payment of withholding tax on vesting of restricted stock units	(1,786		)	—			(1,786		)
Net cash provided by financing activities	13,145			(43		)	13,102
Effect of exchange rate fluctuations on cash	(4		)	(57		)	(61		)
Net increase in cash and cash equivalents	85,522			378			85,900
Cash and cash equivalents at beginning of year	95,442			(2,522		)	92,920
Cash and cash equivalents at end of year	$	180,964		$	(2,144	)	$	178,820
Supplemental disclosure of cash flow information:
Cash paid for interest	$	1,632		$	—		$	1,632
Cash paid for taxes, net of refunds	$	36,951		$	—		$	36,951
Non-cash investing and financing activities:
Equipment purchased under capital leases	$	299		$	—		$	299
Unpaid property, plant and equipment purchases (1)	$	10,888		$	(39	)	$	10,849

__________________________

(1) Transactions with related parties are included in the line items above as follows:



	Years Ended June 30,
	2016						2016
	As Reported			Adjustments			As Restated
OPERATING ACTIVITIES:
Changes in operating assets and liabilities:
Accounts receivable, net	$	8,508		$	(8,428	)	$	80
Prepaid expenses and other assets	—			652			652
Accounts payable	(19,863		)	(2,024		)	(21,887		)
Accrued liabilities	—			(340		)	(340		)
INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(4,641		)	(4,641		)
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Unpaid property, plant and equipment purchases	—			2,246			2,246



	Year Ended June 30, 2015
	As Previously Reported			Restatement Adjustments			As Restated
OPERATING ACTIVITIES:
Net income	$	101,863		$	(9,308	)	$	92,555
Reconciliation of net income to net cash used in operating activities:
Depreciation and amortization	8,133			(39		)	8,094
Stock-based compensation expense	13,699			737			14,436
Excess tax benefits from stock-based compensation	(8,089		)	43			(8,046		)
Allowance for doubtful accounts	326			(246		)	80
Provision for excess and obsolete inventories	5,928			2			5,930
Foreign currency exchange gain	(675		)	(155		)	(830		)
Deferred income taxes, net	632			(4,208		)	(3,576		)
Changes in operating assets and liabilities:
Accounts receivable, net (1)	(110,182		)	31,996			(78,186		)
Inventories	(153,584		)	(23,973		)	(177,557		)
Prepaid expenses and other assets (1)	(2,741		)	(8,585		)	(11,326		)
Accounts payable (1)	75,520			6,181			81,701
Income taxes payable	11,951			(2,972		)	8,979
Accrued liabilities (1)	9,551			4,342			13,893
Other long-term liabilities	3,032			4,696			7,728
Net cash used in operating activities	(44,636		)	(1,489		)	(46,125		)
INVESTING ACTIVITIES:
Purchases of property, plant and equipment (1)	(35,100		)	—			(35,100		)
Change in restricted cash	(416		)	—			(416		)
Investment in a privately held company	(661		)	—			(661		)
Net cash used in investing activities	(36,177		)	—			(36,177		)
FINANCING ACTIVITIES:
Proceeds from debt, net of issuance costs	84,900			—			84,900
Repayments of debt	(36,000		)	—			(36,000		)
Proceeds from exercise of stock options	23,338			—			23,338
Excess tax benefits from stock-based compensation	8,089			(43		)	8,046
Payment of obligations under capital leases	(134		)	—			(134		)
Advances under receivable financing arrangements	33			—			33
Payment of withholding tax on vesting of restricted stock units	(175		)	—			(175		)
Net cash provided by financing activities	80,051			(43		)	80,008
Effect of exchange rate fluctuations on cash	(668		)	400			(268		)
Net decrease in cash and cash equivalents	(1,430		)	(1,132		)	(2,562		)
Cash and cash equivalents at beginning of year	96,872			(1,390		)	95,482
Cash and cash equivalents at end of year	$	95,442		$	(2,522	)	$	92,920
Supplemental disclosure of cash flow information:
Cash paid for interest	$	933		$	—		$	933
Cash paid for taxes, net of refunds	$	30,671		$	—		$	30,671
Non-cash investing and financing activities:
Equipment purchased under capital leases	$	442		$	—		$	442
Unpaid property, plant and equipment purchases (1)	$	6,826		$	236		$	7,062

__________________________

(1) Transactions with related parties are included in the line items above as follows:



	Years Ended June 30,
	2015						2015
	As Reported			Adjustments			As Restated
OPERATING ACTIVITIES:
Changes in operating assets and liabilities:
Accounts receivable, net	$	(12,565	)	$	13,057		$	492
Prepaid expenses and other assets	—			(10,274		)	(10,274		)
Accounts payable	10,046			12,142			22,188
Accrued liabilities	—			1,364			1,364
INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(4,070		)	(4,070		)
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Unpaid property, plant and equipment purchases	—			724			724