Super Micro Computer disclosed weaknesses in its financial reporting controls that it said could hinder timely and accurate results if unresolved, according to the company's SEC filing on June 30th. The company previously missed its August 2024 reporting deadline, prompting auditor Ernst & Young LLP to resign in October over governance concerns. Super Micro has since filed the required statements and outlined remediation steps but offered no assurance that they will resolve all issues. Shares dropped 21% on August 6 after weaker-than-expected fourth-quarter results. Revenue came in at $5.76 billion versus $5.88 billion expected and adjusted EPS at 41 cents versus 44 cents. The company cut its fiscal 2026 revenue outlook to at least $33 billion from $40 billion, with first-quarter earnings projected below estimates. Still, the stock remains up 44% year-to-date, supported by AI infrastructure demand from Microsoft, Meta, and Apple. Shares were down 1.23% in premarket trading on Friday.
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