Supermicro has reported preliminary financial results for the first quarter of the fiscal year 2025, ending in September. Sales are in the range of 5.9-6.0 billion dollars, decreased from the previously estimated 6.0-7.0 billion dollars. Net profit under GAAP is approximately 0.68-0.70 dollars per share.
The reason Supermicro reported preliminary financial results is due to last week’s auditors from Ernst & Young requesting to resign as auditors, citing transparency issues in operations, leading Supermicro to miss the deadline to submit the financial report for fiscal year 2024 (ending June) on time. This has impacted the latest quarter’s financial statements.
Supermicro has stated that an independent committee has been established to investigate the events. While no evidence of misconduct by management was found, recommendations for governance improvements have been provided.
CEO Charles Liang stated during the earnings call that the company is working diligently and has engaged new auditors to meet the deadline for submitting the annual 10-K report on time.
The company also provided revenue forecasts for the current quarter, with a range of 5.5-6.1 billion dollars and net profit under GAAP around 0.48-0.58 dollars per share. If Supermicro fails to submit the annual report by the rescheduled deadline, there is a possibility that the NASDAQ market may suspend or delist Supermicro’s stock trading.
Source: Supermicro and CNBC
TLDR: Supermicro’s preliminary financial results for the first quarter of fiscal year 2025 show a decrease in sales and net profit due to auditors resigning, prompting governance improvements and potential stock market repercussions.
Leave a Comment