By Akash Sriram and Stephen Nellis
(Reuters) -Super Micro Computer, whose accountant resigned unexpectedly last week, flagged uncertainty on Tuesday over the timing of its annual report but said an investigation into accounting practices had found no evidence of fraud by the company.
Shares of the San Jose, California-based server maker fell about 15.5% to $23.42 in extended trading.
The company also said it expects net sales of $5.5 billion to $6.1 billion for the second quarter, compared with analyst estimates of $6.86 billion, according to data compiled by LSEG.
Super Micro expects earnings of between 48 and 58 cents per share, well below estimates of 75 cents per share.
Super Micro has also become a key supplier to specialty cloud computing providers such as CoreWeave, which focus on supplying Nvidia chips for artificial intelligence work.
On a conference call with investors, Super Micro CEO Charles Liang said the company's forecast reflects its wait for Nvidia's latest chips. Liang said the computer servers Super Micro will build around these chips are ready for production and that it does not expect any reduction in its allocation of Nvidia chips.
Liang, who founded Super Micro in 1993, the same year Nvidia was founded, also said he is open to separating the company's chairman and CEO positions, both of which he holds.
Super Micro's preliminary results come less than a week after Ernst & Young resigned as its auditor, raising investor concerns about accounting practices at the company.
The special committee's investigation related to issues raised by EY about the company's governance, transparency and internal control over its financial reporting.
Super Micro risks being delisted from the Nasdaq if it fails to meet deadlines later this month. EY's recent departure adds an additional layer of complexity to this compliance recovery process.
During the conference call, Super Micro executives declined to answer analyst questions about when the company would file its annual report or appoint a new accountant.
“It feels like yesterday this was a stock market darling, showing how quickly things can change for investors and companies alike,” said Ryan Detrick, chief market strategist at investment advisory firm Carson Group.
(Reporting by Akash Sriram in Bengaluru and Stephen Nellis in San Francisco; Editing by Anil D'Silva, Shailesh Kuber and Rod Nickel)
