(Reuters) -Super Micro Computer, whose auditor unexpectedly stepped down last week, on Tuesday flagged uncertainty about the timing of its annual report but said a probe about accounting practices had not found evidence of fraud by the company.
Shares of the San Jose, California-based server maker fell about 10% in extended trading.
The company said it expects net sales between $5.5 billion to $6.1 billion for the second quarter, compared with analysts’ estimates of $6.86 billion, according to data compiled by LSEG.
It said the company expects profits between 48 cents and 58 cents per share, far below estimates of 75 cents per share.
Super Micro has also become a key supplier to specialty cloud computing providers such as CoreWeave that focus on providing chips from Nvidia (NASDAQ:) for artificial intelligence work.
Its preliminary results come less than a week after Ernst & Young had resigned as its auditor, triggering investor concerns about accounting practices at the firm.
The special committee probe related to issues raised by EY over the company’s governance, transparency and internal control over financial reporting.
Super Micro was not in compliance with Nasdaq’s listing rules after it delayed filing its annual report with the US securities regulator in August, risking being delisted.
Nasdaq regulations provide a grace period until mid-November for the company to submit a remediation plan to regain compliance.
If approved, this could extend the deadline to February next year. However, the recent departure of EY adds a layer of complexity to this compliance restoration process.
Though Super Micro has been gaining traction in the server industry, larger rivals Dell Technologies (NYSE:) and HP (NYSE:) Enterprise have been able to leverage their vast customer base to boost sales, analysts have said.
