Super Micro Computer shares are losing value because there is no telling when earnings will be released

Super Micro Computer Inc. (SMCI-21.93%) shares plunged more than 24% on Wednesday after the AI ​​hardware company released a disappointing preliminary report for the first quarter and failed to confirm a timeline for actual first quarter results. That includes the San Jose-based company, which missed the deadline to file its annual report is facing a possible delisting on the Nasdaq.

The company reported unaudited quarterly results after the market closed on Tuesday, prompting a sharp sell-off. This development follows his recent resignation from office auditor Ernst & Young, who left last week citing disagreements on Super Micro Computer's governance practices and board independence.

On Wednesday, the stock traded around $21, setting a new 52-week low. Compared to its March peak of $123, the price has plummeted by over 82%, causing a loss of over $55 billion in value.

For the quarter ended Sept. 30, Super Micro reported net sales of between $5.9 billion and $6 billion, falling short of analysts' expectations of $6.45 billion. The company's forecast for the December quarter also fell short of expectations, forecasting revenue between $5.5 billion and $6.1 billion, below analysts' consensus estimate of $6.86 billion. Additionally, Super Micro expects adjusted earnings per share (EPS) of between 56 and 65 cents, while analysts had expected earnings per share of 83 cents.

Super Micro is looking for a new auditor

The company did not provide any information on Tuesday Departure of Ernst & Young or any ongoing corporate governance concerns. However, CEO Charles Liang confirmed that Super Micro is actively working on hiring a new auditor. It's important to note that the company has not released any audited financial results since May.

In addition, the company is there is a risk of a possible delisting from the Nasdaq. After receiving a non-compliance letter in September, Super Micro has until November 16 to submit a plan to Nasdaq to return to compliance or face delisting for the second time in five years.

Super Micro has close ties to Nvidia

The company makes hardware that supports AI applications and has thrived this year due to high demand for AI entered the Fortune 500 at number 498. As an important partner and reseller of Nvidia (NVDA+4.36% 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. CEO Liang said Tuesday that the company is working closely with Nvidia and demand is strong.