Super Micro says cannot predict timing of annual filing; shares down
(Reuters) – Super Micro Computer (NASDAQ:SMCI), whose auditor unexpectedly stepped down last week, on Tuesday flagged uncertainty about the timing of its annual report but said a probe about accounting practices had not found evidence of fraud by the company.
Shares of the San Jose, California-based server maker fell about 9% in extended trading.
The company said it expects net sales between $5.5 billion to $6.1 billion for the second quarter, compared with analysts’ estimates of $6.86 billion, according to data compiled by LSEG.
The company’s preliminary results come less than a week after Ernst & Young had resigned as its auditor, triggering investor concerns about accounting practices at the firm.
The special committee probe related to issues raised by EY over the company’s governance, transparency and internal control over financial reporting.
Though Super Micro has been gaining traction in the server industry, larger rivals Dell Technologies (NYSE:DELL) and HP (NYSE:HPQ) Enterprise have been able to leverage their vast customer base to boost sales, analysts have said.
Competition has also forced Super Micro to offer attractive prices to its customers, while incurring higher costs for some parts used in liquid-cooled servers, pressuring margins.
