Super Micro stock plunges after surprise customer delays cost up to $1.4 billion in sales

• Manufacturer of devices and Fortune 500 Tech Super Micro Computer It issued a disappointing update on its financial results in the third quarter. The giant technology company said on Tuesday that it expects a shortage of revenue from anywhere from 400 million dollars to $ 1.4 billion, and that its total profit margins decreased by 220 basis points compared to the previous quarter.

Time is money. In the case of Super Micro Computer, customers need more time to make decisions on technology platforms or server formations for purchase. Super Micro announced on Tuesday that the delay in customer purchases paid some expected sales from the third to the fourth.

The company has reduced previous sales instructions from $ 5 billion to $ 6 billion to an expected range of 4.5 billion dollars to $ 4.6 billion. The stock profits also come much less than the previous directions at 16 to 17 cents per share for the previous router from 36 to 53 cents per share. The company said to the Super Micro profit tasks 220 basis points, or 2.2 percentage points.

“During the third quarter, some decisions of the customer platform were transferred to the fourth quarter,” the company said in a statement. “The GAAP and GAAP margin for Q3 was less than 220 basis points less than Q2 due to the high inventory reserves caused by older generation products and speeding costs to enable time to the market for new products.”

The news comes at a time when investors are waiting for more feasible data about the impact of definitions on artificial intelligence companies and data centers. president Trump explained in an executive order on April 11 that semi -conductors are exempt from the new definitions, but the uncertainty that is looming on the horizon and the inability to predict has disturbed investors in general. Super Micro will hold a profit call with investors to review the results of the third quarter next week.

The technology company was fighting to restore its credibility with the investors after the troubled 2024 in which it was exposed to the company through the report of a short embarrassing seller, and he resigned from its auditor, then it was late in issuing the audited financial deposits and threatened to delete from Nasdak. The SUPER Micro was previously commented after SEC.

Super Micro has since rented BDO as a new reference and announced the results of an independent investigation led by the Board of Directors. The company said that it will replace the current financial manager, Dave Wigand, to the President of Mali “with extensive experience in work as a large financial professional in a large public company.”

The company also announced that it will rent a general advisor, expand its legal scope and evaluate training programs on “revenue recognition policies and practices, including the role of employees accountable in the sales transactions process.”

Meanwhile, Weigand got a 5 % increase for his basic hierarchy in the 2024 fiscal year, which ended on June 30, 2024, according to Super Micro investors in the agent statement. The company said that the recommendation came from the CEO, founder and President Charles Liang, and was partially based on the analysis that it shows that Wignd was receiving a much less than the market for its role. The basic salary of Weigan is now $ 547,000, and its reward has been recorded 191,000 dollars. Liang also recommended Weigand to receive a $ 550,000 performance prize, driven in a mixture of cash and performance shares. The value of the total compensation of the financial manager, the financial manager, was soon for 2024 $ 9.6 million, and included a option grant of $ 5.2 million.

The value of Liang compensation, which includes one dollar salary and a non -reward, amounted to $ 28 million.

The Super Micro Council has witnessed some directors attending dozens of what the company called “excessive meetings”, which are likely to make decisions regarding the departure of the auditor and supervising the independent investigation. According to the agent statement, two of this 20 exit attended excessive meetings; The board of directors pays the directors 2000 dollars for each meeting in addition to a regular board meeting up to 10 additional meetings.

Super Micro immediately did not respond to the comment.

This story was originally shown on Fortune.com

2025-04-30 01:12:00