Super Micro (SMCI) Q1 2025 Earnings Update | Wilnesh News

Super MicroThe embattled server maker reported unaudited first-quarter results on Tuesday as it delays its annual financial report and risks delisting from Nasdaq.

The stock fell 12% in after-hours trading after the company reported lower-than-expected revenue, weaker-than-expected guidance and AMD saying it didn’t know when it would file annual results for its latest fiscal year.

AMD’s stock price plummeted last week after the company’s auditor, Ernst & Young, resigned. The company faces accusations from accounting irregularities activists and accusations that it violated export controls by shipping sensitive chips to sanctioned countries and companies.

The company said in a conference call with analysts on Tuesday that it would not discuss any issues related to Ernst & Young’s decision to resign. Chief Executive Officer Tony Leung said Super Micro is actively hiring new auditors.

Super Micro could face delisting from the Nasdaq stock exchange if it fails to file its annual report with the SEC by mid-November. The company has not reported audit findings since May.

“We are working urgently to update our financial reports again,” Liang said by phone.

Super Micro said its net sales were between $5.9 billion and $6 billion in the quarter ended Sept. 30. That was lower than analysts’ expectations of $6.45 billion, but still an increase of 181% year over year. The company’s business has been booming lately as it ships servers filled with NVIDIA Artificial intelligence processor.

Adjusted net profit for the quarter was 75 cents to 76 cents per share, in line with analysts’ expectations compiled by LSEG.

Super Micro’s forecast for the December quarter was also lower than expected. The company said revenue would be between $5.5 billion and $6.1 billion, below analysts’ average estimate of $6.86 billion, according to LSEG. Adjusted earnings per share will be 56 cents to 65 cents. Analysts expected earnings of 83 cents per share.

Advanced Micro Devices said on Tuesday that its board of directors has commissioned a special committee to investigate Ernst & Young’s concerns. The company said that during its three-month investigation, the committee found “no evidence of fraud or misconduct” by management.

“The committee is recommending that the company take a series of remedial actions to strengthen its internal governance and oversight functions, and the committee expects to submit a full report on its completed work this week or next,” Supermicro said, adding that it intends to take all steps Measures to maintain its listing status on Nasdaq.

AMD shares soared 246% last year after rising 87% in 2023.

Since then, the company has lost nearly 80% of its market value, wiping out more than $55 billion in market value.

watch: AMD shares fall on gains