(Bloomberg) — Super Micro Computer Inc. gave a sales forecast that fell wanting analysts’ estimates while saying it couldn’t predict when it might file official financial statements for its previous fiscal 12 months. The shares dropped about 14% in prolonged trading.
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The embattled server maker missed an August deadline to file its annual financial report and last week its auditor, Ernst & Young LLP, resigned, citing concerns in regards to the company’s governance and transparency. An investigation of the accounting issues by a special board committee found “no evidence of fraud or misconduct on the a part of management or the board of directors,” Super Micro said Tuesday in a press release.
Revenue shall be $5.5 billion to $6.1 billion within the quarter ending in December, the corporate said. Analysts, on average, projected sales of $6.79 billion, in line with data compiled by Bloomberg. Profit, excluding some items, is predicted to be 56 cents to 65 cents per share, compared with 80 cents anticipated by analysts.
Sales were hurt within the fiscal first quarter by the supply of semiconductors, Chief Executive Officer Charles Liang said. When asked on a conference call whether the corporate’s accounting issues had affected its relationship with Nvidia Corp., which is the highest producer of powerful processors for artificial intelligence, executives said the chipmaker hasn’t made any changes to Super Micro’s supply allocations.
“At this moment — in line with our relationship, in line with our communication — things are very positive,” Liang said of the connection with Nvidia.
Super Micro has had a tumultuous 12 months. Shares were rising initially of 2024, with Wall Street keen about AI-fueled demand for the corporate’s high-powered machines, and the corporate winning inclusion within the S&P 500.
But scrutiny intensified after a former worker alleged earlier this 12 months in federal court that Super Micro had sought to overstate its revenue. Short seller Hindenburg Research referenced those claims in a research report, alleging “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.”
Recently, the failure to file its 10-K financial disclosure and the departure of E&Y has put the San Jose, California-based company at a risk of being delisted by Nasdaq Inc. and booted from the index. The shares have slipped 44% for the reason that auditor’s resignation last week and are down greater than 75% from a March peak.