AMD CEO Liang Jianhou during the Computex conference in Taipei, Taiwan, Wednesday, June 5, 2024. The trade show will run until June 7.
Annabelle Chi | Bloomberg | Getty Images
Super MicroThe embattled server maker reported unaudited first-quarter results on Tuesday as it delays its annual financial report and faces delisting from Nasdaq.
The stock fell 12% in after-hours trading after the company reported lower-than-expected revenue, weaker-than-expected guidance and AMD saying it didn’t know when it would file annual results for its latest fiscal year.
AMD’s stock price plummeted last week after the company’s auditor, Ernst & Young, resigned. The company faces accusation The allegation, from an accounting irregularities campaigner, said the company violated export controls by shipping sensitive chips to sanctioned countries and companies.
The company said in a conference call with analysts on Tuesday that it would not discuss any issues related to Ernst & Young’s decision to resign. Supermicro is actively hiring new auditors, CEO Tony Leung said.
Super Micro could face delisting from the Nasdaq stock exchange if it fails to file its annual report with the SEC by mid-November. The company has not reported audit findings since May.
“We are working urgently to update our financial reports again,” Liang said by phone.
Super Micro said its net sales were between $5.9 billion and $6 billion in the quarter ended Sept. 30. That was below analysts’ expectations of $6.45 billion, but still up 181% year over year. The company’s business has been booming lately as it ships servers packed with NVIDIA Artificial Intelligence Processor.
Adjusted net profit for the quarter was 75 cents to 76 cents per share, in line with analysts’ expectations compiled by LSEG.
Super Micro’s forecast for the December quarter was also lower than expected. The company said revenue would be between $5.5 billion and $6.1 billion, below analysts’ average estimate of $6.86 billion, according to LSEG. Adjusted earnings per share will be 56 cents to 65 cents. Analysts expected earnings of 83 cents per share.
Advanced Micro Devices said on Tuesday that its board of directors has commissioned a special committee to investigate Ernst & Young’s concerns. The company said that during its three-month investigation, the committee found “no evidence of fraud or misconduct” by management.
“The committee is recommending that the company take a series of remedial actions to strengthen its internal governance and oversight functions, and the committee expects to submit a full report on the work completed this week or next,” Supermicro said, adding that it intends to take all Measures to maintain its listing status on Nasdaq.
AMD shares soared 246% last year after rising 87% in 2023. The stock peaked at $118.81 in March, shortly after being added to the S&P 500 Index.
Since then, the company has lost nearly 80% of its market value, wiping out more than $55 billion in market value.
watch: AMD shares fall on earnings
