Great microphoneThe embattled server maker, which is late in reporting its annual financial results and at risk of being delisted from the Nasdaq, reported unaudited first-quarter results on Tuesday.

The stock fell 12% in extended trading after the company's revenue fell short of estimates, weaker-than-expected guidance and Super Micro said it did not know when it would report full-year results for its most recent fiscal year.

Shares of Super Micro plunged last week after Ernst & Young, the company's auditor, resigned. The company is being accused by an activist of accounting irregularities and of supplying sensitive chips to sanctioned countries and companies in violation of export controls.

On a call with analysts on Tuesday, the company said it would not discuss issues related to Ernst & Young's decision to step down. CEO Charles Liang said Super Micro is actively in the process of hiring a new auditor.

Super Micro may face delisting from the Nasdaq stock exchange if the company doesn't file its annual report with the SEC by mid-November. The company has not reported audited results since May.

“We are working diligently to bring our financial reporting back up to date,” Liang said in the conference call.

For the quarter ended September 30, Super Micro said it had net sales of between $5.9 billion and $6 billion. That's below analyst expectations of $6.45 billion, but is still up 181% on an annual basis. The company's business has been booming lately as it ships servers full of packages Nvidia's Artificial intelligence processors.

Adjusted net income for the quarter was 75 cents to 76 cents per share, in line with analyst expectations compiled by LSEG.

Super Micro's forecast for the December quarter was also below estimates. Revenue will be between $5.5 billion and $6.1 billion, below the average analyst estimate of $6.86 billion, according to LSEG. Adjusted earnings per share will be 56 cents to 65 cents. Analysts expected EPS of 83 cents.

Super Micro said Tuesday that its board had appointed a special committee to address Ernst & Young's concerns. In a three-month investigation, the committee found there was “no evidence of fraud or misconduct” by management, the company said.

“The committee recommends a series of remedial measures for the company to strengthen its internal governance and oversight functions and the committee expects to submit the full report on the completed work this week or next,” Super Micro said, adding that The intention is to take all steps to maintain the Nasdaq listing.

Shares of Super Micro rose 246% last year after rising 87% in 2023. The stock peaked at $118.81 in March, shortly after joining the S&P 500.

Since then, the company has lost nearly 80% of its value and wiped out a market cap of over $55 billion.

REGARD: Super Micro stocks are in earnings decline