UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 90313 / November 2, 2020 

ADMINISTRATIVE PROCEEDING

File No. 3-19927

In the Matter of

SUPER MICRO 

COMPUTER, INC.,

Respondent.

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EXTENSION ORDER

ADMINISTRATIVE PROCEEDING 

File No. 3-19928

In the Matter of

HOWARD HIDESHIMA,

Respondent.

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The Division of Enforcement (“Division”) has requested an extension of time until 

April 30, 2021 to submit a Proposed Plan of Distribution under Rule 1101(a) of the 

Commission’s Rules on Fair Fund and Disgorgement Plans, 17 CFR 201.1101(a).

On August 25, 2020, the Commission issued the SMC Order1against Super Micro 

Computer, Inc. (“SMC”). In the SMC Order, the Commission determined that SMC, a 

producer of computer servers headquartered in California, engaged in improper accounting—

prematurely recognizing revenue and understating expenses from at least fiscal year (“FY”) 

 

1 See Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and 

Section 21C of the Securities Exchange Act of 1934 Making, Findings, and Imposing a Cease-and-Desist Order, 

Securities Act Rel. No. 10822 (Aug. 25, 2020).
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2015 through FY 2017. As a result, SMC filed with the Commission materially misstated 

financial statements in its annual, quarterly and current reports during the period. 

As a result of the conduct described in the SMC Order, the Commission ordered SMC 

to pay a civil money penalty of $17,500,000.00 to the Commission. In the SMC Order, the 

Commission created a Fair Fund (the “Fair Fund”), pursuant to Section 308(a) of the 

Sarbanes-Oxley Act of 2002, so the penalties collected could be distributed to investors 

harmed by the conduct described in the SMC Order. 

Simultaneously therewith, the Commission brought the related administrative 

proceeding against Howard Hideshima (“Hideshima”), the former Chief Financial Officer of 

SMC for his actions related to the misconduct described in the SMC Order.2 Hideshima was 

ordered to pay disgorgement of $260,844.00, prejudgment interest of $40,212.00, and a civil 

money penalty of $50,000.00 to the Commission. Pursuant to Section 308(a) of the SarbanesOxley Act of 2002, the funds paid by Hideshima were ordered to be added to the Fair Fund 

established in the related administrative proceeding, In the Matter of Super Micro Computer, 

Inc., Admin. Proc. File No. 3-19227.

SMC and Hideshima have paid in full. The Fair Fund, comprised of the total 

$17,851,056.00 paid by SMC and Hideshima, has been deposited in an interest-bearing 

account at the United States Department of the Treasury’s Bureau of Fiscal Service. All 

interest earned will accrue for the benefit of the Fair Fund.

In its request for an extension of time, the Division states that it requires additional 

time to complete the fund administrator solicitation and appointment process, develop the 

distribution methodology, and develop the plan of distribution.

 

2 See Corrected Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities 

Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order, Exchange Act Rel. No. 

89657 (Aug. 25, 2020).
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Accordingly, for good cause shown, IT IS HEREBY ORDERED that the Division’s 

request for an extension of time until April 30, 2021 to submit a Proposed Plan of Distribution 

is granted.

For the Commission, by its Secretary, pursuant to delegated authority.

Vanessa A. Countryman

Secretary