Super Micro Computer (SMCI) will report quarterly earnings on Tuesday after market close, following a series of recent challenges. Most recently, the AI hardware company’s auditor, Ernst & Young, resigned over disagreements about Super Micro’s governance practices and board independence.
Additionally, Super Micro is facing a potential delisting from the Nasdaq, having received a non-compliance letter in September. The company has until November 16 to submit a plan to Nasdaq to regain compliance — or risk being delisted for the second time in five years.
Super Micro shares rose 1% to $26.25 on Tuesday afternoon, nearly 80% below their March peak of $123. The company announced a stock split earlier this year that was popular among investors.
The company is set to report earnings on Tuesday for the fiscal quarter ending September 2024. Analysts surveyed by Zacks Investment Research forecast earnings per share (EPS) of $0.75, up from $0.28 in the same quarter last year. In the previous quarter, Super Micro missed EPS expectations by $0.19, triggering a sharp drop in its share price the following day. Revenues are projected to reach $6.52 billion, representing a 207.5% increase compared to the same quarter last year.
A rollercoaster year for SMCI
The San Jose-based IT company, which makes hardware that supports AI applications, thrived this year due to the high demand for AI and entered the Fortune 500 at No. 498. As a key partner and reseller of Nvidia’s (NVDA) GPUs and other components, Super Micro integrates its technology into its servers to support AI workloads. Super Micro CEO Charles Liang and Nvidia CEO Jensen Huang are both Taiwanese immigrants and have a long-standing relationship.
Super Micro Computer went through a rough phase in September when a short seller, Hindenburg Research, published a scathing report accusing the company of accounting red flags and questionable business dealings, including alleged sanctions evasion from exports to Russian and Chinese firms.
Super Micro’s stock price took a significant hit following the accusations. The company refuted the claims, stating that the report contained misleading and inaccurate information and that it would address the allegations in due course.
