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According to Super Micro, the timing of the annual filing cannot be predicted; Stocks down
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According to Super Micro, the timing of the annual filing cannot be predicted; Stocks down

(Reuters) – Super Micro Computer, whose auditor unexpectedly resigned last week, expressed uncertainty on Tuesday about the timing of the release 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 10% in extended trading.

The company expects second-quarter net sales to be between $5.5 billion and $6.1 billion, compared with analyst estimates of $6.86 billion, according to data compiled by LSEG.

The company expects earnings of between 48 cents and 58 cents per share, well below estimates of 75 cents per share.

Super Micro has also become a key supplier to specialized cloud computing providers such as CoreWeave, which focuses on providing Nvidia's chips for artificial intelligence work.

The preliminary results were released less than a week after Ernst & Young resigned as auditor, sparking concerns among investors about the company's accounting practices.

The special committee's investigation related to questions raised by EY about corporate governance, transparency and internal control over financial reporting.

Super Micro failed to comply with Nasdaq's listing rules after it delayed filing its annual report with the U.S. Securities and Exchange Commission in August, risking delisting.

Nasdaq regulations set a deadline of mid-November for the company to submit a remediation plan to restore compliance.

If approved, the deadline could be extended to February next year. However, EY's recent departure adds complexity to this compliance recovery process.

Although Super Micro has gained traction in the server industry, larger rivals Dell Technologies and HP Enterprise have been able to leverage their huge customer bases to boost sales, analysts say.

(Reporting by Akash Sriram in Bengaluru and Stephen Nellis in San Francisco; Editing by Anil D'Silva and Shailesh Kuber)

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