After the post-market trading on Wednesday, "AI demon stock" Super Micro Computer announced the preliminary performance for the first quarter of fiscal year 2025.

Due to the revenue and Q2 guidance falling short of Wall Street's expectations, and the difficulty in determining the annual report release time, Super Micro Computer's stock price is facing another huge shock.

After the performance announcement, Super Micro Computer, which originally rose by over 6%, plummeted straight after trading hours, now down nearly 16% to $23.28.

In the first three months of this year, driven by the wave of artificial intelligence, Super Micro Computer's stock price once achieved a "super bullish record", briefly soaring by nearly 300%.

But the gains have all been retracted, with a cumulative decline of over 4% this year.

Performance and guidance fall short of expectations.

According to the financial report, as of the first quarter ended on September 30, Super Micro Computer preliminary estimated revenue is expected to be between $5.9 billion and $6 billion, lower than the expected $6 billion to $7 billion, but still a 181% increase from the same period last year.

Adjusted earnings per share are expected to be between $0.75 and $0.76, compared to the expected $0.74.

Adjusted gross profit margin is 13.3%, lower than the expected 12%, a year-on-year decrease of 3.4 percentage points.

The company is expected to have $2.1 billion in cash and cash equivalents, with total debt of $2.3 billion, including approximately $0.06 billion in bank debt and around $17 billion in convertible notes.

Super Micro Computer also emphasized that these results are preliminary and unaudited (due to the recent resignation of their auditing firm) and may be subject to change.

Looking ahead to the second fiscal quarter, the company expects revenue to be between $5.5 billion and $-6.1 billion, with a median of $5.8 billion, a year-on-year increase of 50.3% to 66.7%, but lower than the expected $6.79 billion.

Earnings per share are expected to be between $0.56 and $0.65, with a median of $0.61, lower than the market expectation of $0.80.

Facing delisting crisis.

This year, benefiting from ai, the stock price of super micro computer has taken a roller coaster ride. After a crazy surge, it quickly plummeted.

Previously accused of fraud and short-selling by Hindenburg Research, more recently, its stock price plummeted after failing to submit the 10-K financial disclosure and the resignation of auditor Ernst & Young.

Since the resignation of Ernst & Young, the company's stock price has dropped by 44%, more than 75% from its peak in March.

Now, the company is facing the risk of delisting.

If super micro computer fails to submit its annual report to the U.S. Securities and Exchange Commission by mid-November, it may be delisted by the Nasdaq Stock Exchange.

Since May, the company has not disclosed its audited performance.

During the earnings call, super micro computer did not discuss any issues related to Ernst & Young's resignation decision, nor did it discuss corporate governance issues.

However, CEO Charles Liang stated that super micro is actively hiring new auditors.

"We are making urgent efforts to keep our financial reports up to date."

Super Micro Computer also provided an update on the independent special committee appointed by the board of directors.

The special committee has concluded its investigation based on the initial concerns raised by Ernst & Young, finding no evidence of fraud or misconduct by management or the board of directors.

The committee recommends remedial actions to strengthen internal governance and oversight functions, with a full report on the completed work expected to be released soon.

Regarding compliance with Nasdaq listing rules, Super Micro also announced efforts to resolve the delay in submitting its 10-K form. The form was originally due to be submitted on August 29, 2024.

Super Micro Computer stated that it has submitted a plan for re-compliance to Nasdaq and intends to take necessary steps to meet the requirements for continued listing as soon as possible.

Regarding the company's business, Liang mentioned that first-quarter revenue decreased due to some customers waiting for Nvidia's new chips. Once Nvidia chips arrive, their servers are ready for production.

"We inquire with Nvidia every day," and the two companies will continue to collaborate closely. Our capacity is ready, but the new chips are not sufficient yet.

Chief Financial Officer David Weigand also stated that the company has a very close relationship with Nvidia.

"Currently, we are working on multiple state-of-the-art projects. We have had discussions with Nvidia, and they confirmed that they have not made any changes to the allocation. We maintain a close relationship with them and do not want this situation to change."