Why Super Micro Computer Stock Plunged Today

What happened

Shares of Super Micro Computer (NASDAQ: SMCI) have plunged today, down by 9% as of 11:45 a.m. EDT, after the company reported preliminary fiscal fourth-quarter results. Super Micro also confirmed it will be delisted soon.

So what

Revenue in the fiscal fourth quarter should be in the range of $986 million to $996 million, above its guidance of $800 million to $860 million. Gross margin should be 12.8% to 13%, and GAAP earnings per share should be $0.51 to $0.55. On a non-GAAP basis, earnings per share are estimated at $0.75 to $0.79. The company finished the quarter with $94.1 million in cash. Guidance for the fiscal first quarter calls for sales in the range of $810 million to $870 million.

The better-than-expected results were easily overshadowed by the news that Super Micro will not meet the Nasdaq's deadline of Aug. 24, 2018, to regain compliance with listing requirements.

Now what

The company has still not filed its Form 10-K for the fiscal year ended June 30, 2017, or any of its subsequent quarterly 10-Q filings since. Companies must file timely reports to be listed on the exchange. Super Micro says it has made "significant progress toward completing the necessary accounting review processes" but will not be able to complete the filings by this Friday.

"Despite our substantial progress in these matters, we are very disappointed that we did not meet the filing deadline," CEO Charles Liang said in a statement. "We are strongly committed to completing our SEC filings as soon as possible. In addition, we continue to strengthen our internal accounting, audit and compliance functions. Additionally, our business performance remains strong and the Company continues to grow."

Once trading is suspended on the exchange, Super Micro shares will trade over the counter as it continues to work toward completing the filings in order to be relisted "as soon as practicable."

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Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool recommends NDAQ. The Motley Fool has a disclosure policy.