Super Micro cuts fiscal Q1 guidance; says recent probe shows no evidence of fraud

Investing.com -- Super Micro Computer cut its guidance for the fiscal first quarter and the server equipment maker said an internal probe found no evidence of fraud from management or directors following concerns raised by its auditor. 

Super Micro Computer Inc (NASDAQ:SMCI fell more than 13% in aftermarket hours.

For fiscal Q1, the server equipment maker expects to report adjusted EPS of $0.75 to $0.76, compared with previous guidance range of $0.67 to $0.83. Revenue was expected in a range of $5.9B to $6.0B compared to its previous guidance range of $6.0B to $7.0B. That fell short of Wall Street estimates of $6.5B. 

"Following a three-month investigation led by Independent Counsel, the Committee’s investigation to date has found that the Audit Committee has acted independently and that there is no evidence of fraud or misconduct on the part of management or the Board of Directors," the company said.

The preliminary report from Super Micro is negative, with a "miss on sales, weak guidance, and the absence of formal SEC filings," Vital Knowledge said. 

The company also forecast non-GAAP gross margin of approximately 13.3%, which may help de-risk the margin overhang on the stock somewhat. 

Investors "may find solace in the gross margin upside...the increase in cash, and the somewhat encouraging board update," it added.

 

Source: Investing.com