Super Micro to Strengthen Governance and Oversight After Auditor Resignation
Super Micro Computer, Inc., based in San Jose, California, is taking steps to strengthen its internal governance and oversight. This move follows Ernst & Young’s resignation as its auditor, citing a lack of trust in management.
Delay in SEC Filings
Super Micro’s Form 10-K for the fiscal year ending June 30 has not yet been filed. The company stated it is working diligently on these matters but cannot predict a filing date at this time. The delay prompted a notice from Nasdaq Capital Market, highlighting Super Micro’s noncompliance with timely filing rules.
Special Committee Investigation
An independent special committee was formed to review the situation. This committee reported it has not found evidence of fraud or misconduct among management or the board. However, it is recommending specific measures to strengthen internal governance. The committee’s final report is expected within the next two weeks.
Revised Earnings and Revenue Forecast
For the fiscal first quarter ending September 30, Super Micro now expects earnings between $0.68 and $0.70 per share. Adjusted earnings are projected to be between $0.75 and $0.76 per share, aligning with previous guidance and slightly above analysts’ expectations.
Revenue is now anticipated to be between $5.9 billion and $6 billion, below the prior forecast of $6 billion to $7 billion. Analysts had estimated $6.44 billion, according to FactSet.
Impact on Shares and Compliance Goals
Shares of Super Micro fell 9.2%, closing at $25.14 in after-hours trading following this news. The company has stated its commitment to meeting Nasdaq’s continued listing requirements as soon as possible.
Super Micro’s upcoming earnings projections for the fiscal second quarter forecast revenue between $5.5 billion and $6.1 billion and adjusted earnings per share between $0.56 and $0.65. Analysts had anticipated higher earnings of $0.81 per share and sales of $6.84 billion.
Super Micro is actively addressing its internal governance challenges while revising earnings expectations, aiming to regain investor trust and ensure regulatory compliance.
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