Question-and-Answer Session
Operator
(Operator Instructions) And we'll go first to Glenn Hanus with Needham.
Glenn Hanus - Needham
Good afternoon. Could you talk -- your gross margin performance exceeded my model. Could you talk about the sort of relative contribution of the items you mentioned in your script on the upside there?
And the -- kind of how you’re feeling about the sustainability of gross margins at current levels now going forward?
Howard Hideshima
Okay, very good. I mean, basically because our 1U Twin have been growing very well, indeed a bit better than what we thought, and Universal I/O, UIO product also growing strongly.
Together we started to shipping in production. So all of those contributed to our better gross margin. Again, because of new technology, better technology. So it's very important for Super Micro to continue to keep innovative products and we have a good feeling for those.
However, yes, according to the market, sometime for strategic reason, we may not gain new market segment or new customer, so in those cases we may have to be aggressive in price to gain new customer.
So basically we like to control our growth and for sure, control our gross margin.
Glenn Hanus - Needham
And anything on the outlook there, gross margins, do you think you can hold them here above 19?
Charles Liang
It -- we have options, you know? Basically we try to keep a half a number for companies long-term business, and that's good for shareholders long-term future. So from 18 to 19 or something it's all possible.
Glenn Hanus - Needham
I can't quite understand that. It's possible.
Charles Liang
It's possible to keep between 18 or 19 something.
Glenn Hanus - Needham
Okay.
Charles Liang
That's why potable (ph) companies long-term future.
Glenn Hanus - Needham
Okay. That's my question, then. I guess I'll let you move on and circle back. Thank you.
Charles Liang
Thank you.
Operator
(Operator Instructions) And we'll go next to Joshua Solan with Glacier Bay Capital.
Joshua Solan - Glacier Bay Capital
Hey, guys, how's it going? Just had a question on the operating expense line. I do think it increased sequentially a little bit more than maybe I was expecting, and I'm curious if you think can sustain at that level or if we should continue to model growth in there?
Howard Hideshima
Hey, Josh, yes, we -- as I mentioned earlier we had about a $700,000 charge for NRE expenses in our R&D area, and we do -- that was a culmination of probably about three years -- over two years of development work in our Blade server solution business. So again that was a culmination of that project. Obviously we'll have other projects going forward, but that was a major endeavor of the company and we're happy that we went into volume production in that area.
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