Super Micro Computer (SMCI) Reports Revenue Guidance Shortfall, Announces Ambitious 2026 Goal
Premarket Gains After Nasdaq Delisting Deadline Update
Despite missing Wall Street estimates in its preliminary second quarter fiscal 2025 earnings report, shares of Super Micro Computer (SMCI) surged in premarket trading on Wednesday. The tech company provided a positive update on its plans to avoid delisting from the Nasdaq and outlined an ambitious new revenue target of $40 billion by fiscal year 2026.
Delayed SEC Filings Expected by February 25th
Super Micro announced that it anticipates submitting delayed annual and quarterly filings to the US Securities and Exchange Commission (SEC) by the Nasdaq's February 25th deadline. The company had faced the risk of delisting following accusations of accounting violations by short-seller Hindenburg Research.
New Revenue Goal and Product Development
CEO Charles Liang expressed confidence in the company's potential to reach $40 billion in revenue by fiscal year 2026. He hinted at a "confidential product under development" that would support this claim.
Q2 Revenue Guidance Adjustment
Super Micro revised its revenue guidance for the 2025 fiscal year to a range of $23.5 billion to $25 billion, below its previous estimate of $26 billion to $30 billion. Analysts had expected revenue of $5.95 billion for the quarter ended December 31st, but the company reported preliminary revenue of $5.6 billion to $5.7 billion.
Ongoing Controversies and Legal Matters
Super Micro faces an ongoing investigation by the US Department of Justice into its accounting practices. The company has also received subpoenas from both the Department of Justice and the SEC related to allegations made by Hindenburg Research. SMCI is also facing several securities lawsuits but maintains that they are "without merit."
Key Points:
* Shares of SMCI climbed as much as 12% in premarket trading after the business update.
* The company expects to submit delayed SEC filings by February 25th to avoid Nasdaq delisting.
* Super Micro set an ambitious revenue goal of $40 billion by fiscal year 2026.
* The company has received subpoenas and is facing lawsuits related to accounting allegations.