According to the WiseFinance app, Super Micro Computer (SMCI.US), an artificial intelligence server manufacturer, announced that the sales guidance was below expectations and mentioned the uncertainty of when they will release the official financial statements for the previous fiscal year. As a result, the stock plummeted over 17% after hours.

Super Micro Computer stated that for the first fiscal quarter ending on September 30, the company expects adjusted earnings per share to be between $0.75 and $0.76, with revenue between $5.9 billion and $6 billion, lower than the previous guidance of $6 billion to $7 billion, but still a 181% increase compared to the same period last year. Analysts previously projected earnings per share of $0.74 and revenue of $6.79 billion for the company.

Super Micro Computer added that the company anticipates having $2.1 billion in cash and cash equivalents, with total debt of $2.3 billion.

The company warned that these results are preliminary, unaudited (due to the recent resignation of their auditing firm), and subject to change.

Looking ahead, Super Micro Computer mentioned that they expect second-quarter revenue to fall between $5.5 billion and $6.1 billion, with a midpoint of $5.8 billion, below the market expectation of $6.79 billion. Adjusted earnings per share are forecasted to be between $0.56 and $0.65, with a midpoint of $0.61, lower than the market expectation of $0.80.

In a difficult situation.

Super Micro Computer has had an extremely turbulent year. In early 2024, fueled by Wall Street's enthusiasm for the demand for high-performance machines driven by artificial intelligence, the company's stock price has been rising, and it was included in the S&P 500 index.

But earlier this year, a former employee accused the super micro computer of attempting to inflate its revenue in federal court, leading to increased scrutiny. Well-known short-selling institution Hindenburg Research cited these claims in a research report, referring to them as "obvious accounting red flags, undisclosed related party transaction evidence, sanctions and export control failures, and customer issues".

Recently, due to failure to submit the 10-K financial disclosure and the departure of Ernst & Young, the company faces the risk of being delisted by Nasdaq and removed from the index. Since Ernst & Young resigned last week, the company's stock price has dropped by 44%, more than 75% from its peak in March.

The latest news on Tuesday presents an opportunity for the company to alleviate investor concerns. The company talked about the situation related to the delay of the 10-K report and stated that there is no evidence of fraud or misconduct, but it remains unclear when the report will be submitted.

In a statement, Super Micro Computer said: "The committee is recommending that the company take a series of remedial measures to strengthen its internal governance and supervision functions, and the committee expects to submit a complete report on the work completed this week or next week. The special committee has other work in progress, but it is expected to be completed soon."

Super Micro Computer also mentioned concerns regarding its compliance with Nasdaq listing regulations and stated that it received a notice from the exchange on September 17, indicating that due to the 10-K delay, the company is not in compliance. "According to Nasdaq rules, the company has 60 days from the date of the notice to submit the 10-K form or submit a plan to Nasdaq to regain compliance. If the plan is submitted and accepted, the company can regain compliance within 180 days from the due date of the 10-K form. If Nasdaq does not accept the company's plan, the company will have the opportunity to appeal to Nasdaq's hearings panel. The company intends to take all necessary measures to meet Nasdaq's requirements to continue listing as soon as possible."

Super Micro Computer stated: "According to Nasdaq regulations, the company has 60 days from the date of the notice to submit the 10-K form or submit a plan to Nasdaq to comply with Nasdaq listing rules again. If the plan is submitted and accepted, the company can regain compliance within 180 days from the due date of the 10-K form. If Nasdaq does not accept the company's plan, the company will have the opportunity to appeal to Nasdaq's hearings panel. The company intends to take all necessary measures to meet Nasdaq's requirements to continue listing as soon as possible."

During a call with analysts, Super Micro Computer stated that it would not discuss any issues related to the Ernst & Young resignation decision. CEO Charles Liang mentioned that the company is actively recruiting a new audit firm. "We are working urgently to once again update our financial reports," Liang stated during the call.

"We are working urgently to once again update our financial reports," Liang stated during the call.

Wedbush Securities stock analyst Matt Bryson commented: "Whether it's the just announced quarterly revenue or future quarterly revenue, it seems that they have not met their expectations."

Bryson added that the uncertainty about who super micro computer will hire as the next audit firm and when they can submit the 10-K annual filing remains a negative factor for the stock.

"There are many unknowns here," Bryson said.