After Super Micro Computer Inc. (SMCI, Financial) released a dismal sales projection and opted not to provide a timeframe for publishing overdue financial statements, shares of SMCI dipped Wednesday. Between $5.5 billion and $6.1 billion, the server maker's forecasted numbers for its December quarter fell short of analysts' projections of $6.79 billion.
The troubles Super Micro faces have gotten more severe this year. Originally rising in response to the hope that AI demand would raise sales, the company's shares propelled SMCI into the S&P 500, But a former employee alleged Super Micro exaggerated income, and Hindenburg Research echoed this complaint based on "accounting red flags."
Complicating things further, Super Micro missed its August reporting date, and last week's auditor, Ernst & Young LLP, withdrew, citing governance issues. According to a corporate statement, a special board committee probe turned out "no evidence of fraud or misconduct" by management or directors.
