Charles Liang, CEO of Super Micro Computer Inc., attending the Computex conference in Taipei, Taiwan, Wednesday, June 5, 2024. The trade fair runs until June 7.
Annabel Chee | Bloomberg | getty images
super microThe server maker, which has delayed releasing its annual financial report and is facing delisting from Nasdaq, reported unaudited first-quarter earnings on Tuesday.
Shares fell 12% in extended trading after the company said its revenue was behind expectations, guidance was weaker than expected and Super Micro said it did not know when it would file annual results for its most recent fiscal year.
Super Micro’s stock price plunged last week after the company’s auditor, Ernst & Young, resigned. The company has been accused by activists of accounting irregularities and violating export controls by shipping sensitive chips to sanctioned countries and companies.
On a call with analysts Tuesday, the company said it would not discuss any questions related to Ernst & Young’s decision to resign. CEO Charles Liang said Super Micro is actively engaged in the process of hiring new auditors.
Supermicro must file its annual report with the SEC by mid-November or face possible delisting from the Nasdaq stock exchange. The company has not reported audit results since May.
“We are working urgently to ensure that our financial reporting is up to date,” Liang said on the call.
Supermicro said it generated net sales of $5.9 billion to $6 billion in the quarter ended Sept. 30. That’s less than analyst expectations of $6.45 billion, but still represents a 181% increase on a year-to-date basis. The company’s business has been booming recently. Nvidia’s Processor for artificial intelligence.
Adjusted net income for the quarter was 75 cents to 76 cents per share, in line with analyst expectations compiled by LSEG.
Supermicro’s December quarter outlook also fell short of expectations. According to LSEG, the company said revenue would be between $5.5 billion and $6.1 billion, lagging the average analyst estimate of $6.86 billion. Adjusted earnings per share will be 56 cents to 65 cents. Analysts were looking for EPS of 83 cents.
Supermicro said Tuesday its board of directors has formed a special committee to look into Ernst & Young’s concerns. The committee found “no evidence of fraud or misconduct” from management during its three-month investigation, the company said.
Supermicro added, “The committee is recommending a series of corrective actions to strengthen the company’s internal governance and oversight capabilities and will provide a full report on work completed this week or next.” Take all steps to maintain your NASDAQ listing.
Supermicro’s stock price soared 246% last year after rising 87% in 2023. The stock price peaked at $118.81 in March, shortly after it was included in the S&P 500.
The company has since lost nearly 80% of its value, losing more than $55 billion in market capitalization.
see: Supermicro, performance decline
