Super Micro Computer Inc (NASDAQ:SMCI) shares dropped afterhours after it reported first-quarter earnings and guided to lower second-quarter earnings than had been expected.
The server manufacturer's independent special committee also completed its investigation into concerns raised by its former auditor, EY, but found no evidence of fraud or misconduct by management.
However, the audit committee, which acted independently throughout the process, is now recommending remedial steps to strengthen internal governance and oversight. A full report is expected within two weeks.
Super Micro Computer reported preliminary first-quarter earnings for fiscal year 2025, saying revenue would be in a range between $5.9 billion and $6 billion, below its prior guidance of $6 billion to $7 billion.
EPS for the first quarter is expected to be $0.68 to $0.70, in line with guidance of $0.60 to $0.77.
Non-GAAP EPS is anticipated between $0.75 and $0.76, narrowly missing the upper end of the prior $0.67 to $0.83 range. Gross margin is forecasted at 13.3% for both GAAP and non-GAAP.
The group said it expects second-quarter revenue of $5.5 billion to $6.1 billion, below analyst estimates of $6.79 billion.
It also anticipates earnings per share of $0.56 to $0.65, missing the estimated $0.80.
Shares of Super Micro Computer were trading down 19.5% pre-market on Wednesday.