Super Micro Computer ($SMCI) shared interim financial details for the fiscal first quarter, indicating that a committee addressing concerns raised by accounting firm Ernst & Young regarding governance found no sign of fraud or misconduct. Adjusted per-share earnings are anticipated to fall between $0.75 and $0.76 for the quarter ending September 30, slightly above the consensus forecast of $0.73.
Projected revenue is set between $5.9 billion and $6 billion, which is below Wall Street's expectation of $6.44 billion. These figures are preliminary and may change. After-hours trading reflected investor concerns, with Super Micro's shares plummeting nearly 14%. Over the past three months, the stock has experienced a severe decline of 55%.
In late October, Super Micro announced that Ernst & Young had resigned as its auditor, following the firm’s alerts about governance and internal financial controls. A special committee formed by the board confirmed that the audit committee has functioned independently and found no evidence of wrongdoing by management or the board.
The committee is poised to recommend a series of measures intended to bolster the company's internal governance and oversight, with a full report expected soon. Meanwhile, Super Micro is unable to estimate when it will file its annual Form 10-K report, initially due on August 29th. In September, the company received a compliance notice from Nasdaq for failing to submit its fiscal 2024 annual report, stating its intention to rectify this promptly.
Hindenburg Research, a firm specializing in short-selling, previously accused Super Micro of "accounting manipulation." For the second quarter, Super Micro anticipates adjusted earnings per share of $0.56 to $0.65 on sales between $5.5 billion and $6.1 billion, in contrast to the consensus of $0.81 per share and $6.84 billion in sales..