While dot-com darlings spent lavishly during the go-go 1990s, Super Micro Computer (NASDAQ:SMCI) remained an anomaly. The company has grown revenues and profits every year since its 1993 founding. This week, the company raised $64 million from its IPO, and the stock increased 9.5% to $8.76 per share. Even so, at its current valuation, the stock may have further upside remaining.

Super Micro develops customized "scale-out" servers to quickly increase a company's computing power. For example, if an online gaming company adds a new title to its development slate, Super Micro can deliver its programmers a server focused on processing cutting-edge graphics.

Customers also want the newest technologies, and Super Micro has a history of being quick to market in this regard. Its timely tech offerings may spring from its close relationships with companies like Intel and Advanced Micro Devices (NASDAQ:AMD).

Super Micro faces intense competition from players like Dell (NASDAQ:DELL), Hewlett-Packard (NASDAQ:HPQ), and IBM (NYSE:IBM). It's also facing a lawsuit from competitor Rackable Systems (NASDAQ:RACK); the case goes to trial in August. Such matters may be routine in the tech market, but they're still expensive, time-consuming, and nearly impossible to predict.

Rackable is right to be concerned about Super Micro. While both companies are growing revenues by more than 50% per year, Super Micro has stronger net income margins. In 2006, Rackable's margin was 3.2%, while Super Micro's was 5.5%. Why? I think Super Micro had to be efficient from its early years, since it never obtained venture capital.

The company's growth trajectory shows no signs of leveling out. Super Micro expects to launch its line of blade servers during the first half of 2007.

IPOs typically sell at relatively high valuations, but that's not the case here. Super Micro trades at roughly 13 times earnings, compared to Rackable's 42 times earnings. It's also a discount to the S&P 600 small-stock index multiple of 22 times earnings. So long as Super Micro can maintain its growth and profitability, its stock should be one to watch for small-cap-focused Fools.

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Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares mentioned in this article. He is currently ranked 1,590 out of 24,619 in CAPS.