Super Micro Computer (SMCI) Avoids Nasdaq Delisting with Earnings Update
Declining Revenue:
Super Micro Computer (SMCI) reported preliminary second-quarter earnings below Wall Street estimates. Revenue is expected to range from $5.6 billion to $5.7 billion, falling short of the $5.95 billion consensus.
Guidance Cut:
The company lowered its revenue guidance for fiscal year 2025 to $23.5 billion to $25 billion, down from $26 billion to $30 billion previously.
Nasdaq Filing Extension:
Super Micro had been facing delisting by Nasdaq for delayed SEC filings. However, the exchange recently granted an extension until February 25th.
Business Update:
Despite the SEC filing issues, Super Micro has hired a new accountant and an independent review found no misconduct. However, the company confirmed receiving subpoenas from the Department of Justice and SEC related to allegations in a short-seller report.
Stock Performance:
SMCI shares initially sank after the earnings news but rebounded sharply. The stock ended Tuesday with a 3% gain. However, it still faces legal challenges, including securities litigation and derivative suits.