Charles Liang, CEO of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, June 5, 2024.
Annabelle Chee | Bloomberg | Getty Images
super microThe beleaguered server maker, which has delayed its annual financial results and is on the verge of being delisted from the Nasdaq, reported unaudited first-quarter results on Tuesday.
Shares were trading in after-hours trading after the company reported lower-than-expected sales, weaker-than-expected guidance, and Supermicro said it did not know when it would file annual results for its latest fiscal year. It fell 12%.
Supermicro’s stock price fell sharply last week after the company’s auditor, Ernst & Young, resigned. The company faces accusations from accounting fraud activists that it shipped sensitive chips to sanctioned countries and companies in violation of export controls.
The company said on a conference call with analysts Tuesday that it would not discuss any questions related to Ernst & Young’s decision to resign and did not address corporate governance issues. CEO Charles Liang said Supermicro is actively recruiting new auditors.
Supermicro could be delisted from the Nasdaq stock exchange if it does not file its annual report with the SEC by mid-November. The company has not reported audit results since May.
“We are working urgently to bring our financial reporting up to date again,” Liang said in a phone call.
Supermicro announced net sales of $5.9 billion to $6.0 billion for the quarter that ended Sept. 30. That’s lower than the $6.45 billion expected by analysts, but still an increase of 181% for the year. This company’s business has been growing rapidly recently. Nvidia’s Processor for artificial intelligence.
Analysts asked whether sales would increase if the problems were resolved, or if Supermicro plans to hire more senior executives to improve its financial reporting. Liang instead mentioned the latest Nvidia GPU, called Blackwell, which has just started shipping in recent weeks and said demand is strong.
In response to an analyst’s question about when Blackwell’s earnings would be reflected in Supermicro’s financials, Liang said, “We are asking Nvidia every day,” adding that the two companies would continue to work closely together. Ta.
Adjusted net income for the quarter ranged from 75 cents to 76 cents per share, in line with analyst estimates compiled by LSEG.
Supermicro’s December quarter outlook also fell short of expectations. The company expects sales of $5.5 billion to $6.1 billion, below the average analyst estimate of $6.86 billion, according to LSEG. Adjusted earnings per share will be 56 cents to 65 cents. Analysts had expected EPS of 83 cents.
Supermicro announced Tuesday that its board of directors has commissioned a special committee to investigate Ernst & Young’s concerns. The company said the committee found “no evidence of fraud or illegal activity” by management after a three-month investigation.
“The committee has recommended a series of corrective actions for the company to strengthen its internal governance and oversight functions, and the committee expects to submit a full report on the completed work this week or next,” Supermicro said in a statement. ”, adding that he intends to continue doing so. We will do everything possible to maintain our listing on Nasdaq.
Supermicro stocks soared 246% last year after soaring 87% in 2023. The stock peaked at $118.81 in March, shortly after it was added to the S&P 500.
The company has since lost nearly 80% of its value, wiping out more than $55 billion in market capitalization.
