Super Micro Computer (SMCI) is set to report quarterly earnings after the market close on Tuesday, following a series of recent challenges. Recently, AI hardware company Ernst & Young’s auditor resigned amid disagreements over Super Micro’s governance practices and board independence.
Additionally, Super Micro is facing a possible delisting from the Nasdaq after receiving a non-compliance letter in September. The company has until November 16 to submit a plan to Nasdaq to regain compliance – or risk being delisted from the stock exchange for the second time in five years.
Super Micro shares rose 1% to $26.25 on Tuesday afternoon, almost 80% below their March peak of $123. The company announced a stock split earlier this year that was popular among investors.
The company will report earnings on Tuesday for the fiscal quarter ending September 2024. Analysts polled by Zacks Investment Research forecast earnings per share (EPS) of $0.75, compared to $0.28 in the year-ago quarter. In the previous quarter, Super Micro missed earnings per share by $0.19, causing a sharp drop in its stock price the next day. Revenue is expected to reach $6.52 billion, an increase of 207.5% compared to the same quarter last year.
A rollercoaster year for SMCI
The San Jose-based IT company, which makes hardware that supports AI applications, thrived this year on high demand for AI, landing at No. 498 on the Fortune 500. As a major partner and reseller of Nvidia’s (NVDA) GPUs and other components, Super Micro is integrating its technology into its servers to support AI workloads. Super Micro CEO Charles Liang and Nvidia CEO Jensen Huang are both Taiwanese immigrants and have a long-standing relationship.
Super Micro Computer hit a rough patch in September when a short seller, Hindenburg Research, published a scathing report accusing the company of accounting red flags and questionable business dealings, including alleged sanctions evasion on exports to Russian and Chinese companies.
Super Micro’s stock price took a significant hit after the allegations. The company refuted the claims, stating that the report contained misleading and inaccurate information and that it would address the allegations in due course.
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