Investing.com — Super Micro Computer lowered its guidance for the fiscal first and second quarters and the server equipment maker said an internal investigation found no evidence of fraud by management or directors following the auditor’s concerns.
Shares of Super Micro Computer Inc (NASDAQ:SMCI) fell more than 17% during aftermarket hours, adding to its recent troubles.
For the first fiscal year, the server equipment maker expects to report adjusted earnings per share of $0.75 to $0.76, compared to previous expectations of $0.67 to $0.83. Revenue was expected to be in the range of $5.9 billion to $6.0 billion, compared to the previous forecast of $6.0 billion to $7.0 billion. That fell short of Wall Street estimates of $6.5 billion.
For the second fiscal year, the company expects net sales of between $5.5 billion and $6.1 billion and non-GAAP net income per diluted share of $0.56 to $0.65. This compares to the consensus of $6.9 billion and $0.83, respectively.
“Following a three-month investigation led by independent counsel, the committee’s investigation to date has revealed that the audit committee acted independently and that there is no evidence of fraud or misconduct on the part of management or the board of directors. board,” the company said. said.
Last week, the company’s accountant, Ernst&Young, resigned, citing concerns about governance, transparency and internal control. In August, the company was hit with a short-seller report from Hindenburg Research, which alleged corporate malfeasance, channel stuffing, related party transactions, selling products to bad players like Russia, and poor workmanship.
Super Micro’s preliminary report is negative, with a “miss on revenue, weak guidance and a lack of formal SEC filings,” according to analysts at Vital Knowledge.
The company also expects non-GAAP gross margin of about 13.3%, which could help reduce margin risk on the stock somewhat.
Investors “can take comfort in the positive gross margin… the increase in cash and the somewhat encouraging update from the board,” it added.
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