Super Micro Faces Hurdles Amidst SEC Filing Delays and Revised Guidance
Super Micro Computer (SMCI) encountered market volatility following Tuesday's market close after announcing anticipated delayed SEC filings ahead of Nasdaq's February 25 delisting deadline.
Delayed SEC Filings and Nasdaq Extension
The company, a competitor to Dell (DELL) that utilizes Nvidia's (NVDA) Blackwell AI chips for server production, stated its persistence in working towards submitting its annual and quarterly reports to the U.S. Securities and Exchange Commission. Super Micro aims to complete these filings by February 25th. Nasdaq recently granted the company an extension for submitting these filings.
Missed Earnings Estimates
Super Micro also disclosed preliminary second-quarter earnings surpassing market anticipations. As per Bloomberg consensus estimates, the company foresees revenue between $5.6 billion and $5.7 billion for the quarter ending December 31, below the $5.95 billion analysts anticipated. Additionally, Super Micro reduced its revenue guidance for the 2025 fiscal year to a range of $23.5 billion to $25 billion, below the previous range of $26 billion to $30 billion.
Contentious Developments and DOJ Investigation
Super Micro has faced recent scrutiny following a scathing 2024 report from Hindenburg Research alleging accounting irregularities. The U.S. Department of Justice has reportedly initiated an investigation into the company's accounting practices. Super Micro maintains that an independent review of its business operations found no evidence of misconduct.
Stock Performance
SMCI shares initially declined by 19% after the earnings announcement but later reversed course. The stock closed Tuesday with an increase of over 3%.
Conclusion
Super Micro continues to face challenges due to delayed SEC filings, missed earnings estimates, and ongoing investigations. The company's business update follows a turbulent year marred by controversies, including the Hindenburg report and the resignation of its accountant.