Super Microcomputer Co., Ltd. (SMCI-18.14%)’s stock price plunged more than 24% on Wednesday after the AI hardware company’s announcement. Disappointing first quarter preliminary report The actual schedule for first quarter results could not be confirmed. The San Jose-based company missed the deadline to file its annual report. The company faces possible delisting from the Nasdaq.
The company released unaudited quarterly results after the market closed on Tuesday, leading to a sharp decline. This development follows recent resignations. Ernst & Young’s auditor resigned last week, citing disagreements. Regarding supermicrocomputer governance practices and board independence.
Shares traded around $21 on Wednesday, a 52-week low. Compared to March’s high of $123, the price has fallen more than 82%, wiping out more than $55 billion in value.
Supermicro reported net sales of $5.9 billion to $6.0 billion for the quarter that ended Sept. 30, below analysts’ expectations of $6.45 billion. The company’s outlook for the December quarter was also below expectations, with the company expecting revenue of $5.5 billion to $6.1 billion, below analysts’ consensus estimate of $6.86 billion. Additionally, Supermicro now expects adjusted earnings per share (EPS) to be in the range of 56 cents to 65 cents, compared to analyst estimates of 83 cents.
Supermicro is looking for a new auditor
On Tuesday, the company did not say: Departure of Ernst & Young or ongoing corporate governance concerns. However, CEO Charles Liang confirmed that Super Micro is actively working to hire new auditors. It’s important to note that the company has not reported audited financial results since May.
Furthermore, the company facing possible delisting from Nasdaq. After receiving a notice of non-compliance in September, Supermicro must submit a plan to return to compliance with Nasdaq by November 16 or face delisting for the second time in five years. There is a possibility that
Super Micro has a close relationship with Nvidia
The company makes hardware that supports AI applications and has grown this year due to high demand for AI. Ranked 498th on the Fortune 500. As a major Nvidia partner and reseller (NVDA+4.08% Super Micro integrates GPU and other component technology into servers to support AI workloads.
Super Micro CEO Charles Liang and Nvidia CEO Jensen Huang are both Taiwanese immigrants and have a long-standing relationship. Chief Executive Officer Liang said Tuesday that the company is working closely with Nvidia and that demand is strong.
