Super microcomputer (SMCI) will report quarterly results Tuesday after the market close, following a series of recent challenges. More recently, AI hardware the auditor of the Ernst & Young company has resigned due to disagreements over Super Micro’s governance practices and the independence of the board of directors.

Additionally, Super Micro faces a potential delisting from Nasdaqafter receiving a letter of non-compliance in September. The company has until November 16 to submit a plan to Nasdaq to return to compliance – or risk being delisted for the second time in five years.

Super Micro shares rose 1% to $26.25 Tuesday afternoon, nearly 80% below their March high of $123. The company announced a stock split earlier this year, which was popular among investors.

The company is expected to report earnings for the fiscal quarter ending September 2024 on Tuesday. Analysts surveyed by Zacks Investment Research forecast earnings per share (EPS) of $0.75, up from $0.28 in the same quarter of the year. last. In the previous quarter, Super Micro missed EPS expectations by $0.19, triggering a sharp decline in its stock price the following day. Revenue is expected to reach $6.52 billion, representing a 207.5% increase from the same quarter last year.

A year of ups and downs for SMCI

The San Jose-based IT company, which makes hardware supporting AI applications, has thrived this year on strong demand for AI and entered the Fortune 500 at No. 498. As a key partner and reseller of Nvidia products (NVDA) GPU and other components, Super Micro integrates its technology into its servers to support AI workloads. Charles Liang, CEO of Super Micro, and Jensen Huang, CEO of Nvidia, are both Taiwanese immigrants and have a long-standing relationship.

Super Micro Computer went through a difficult phase in September when a short seller, Hindenburg Researchpublished a scathing report accusing the company of accounting red flags and questionable business dealings, including alleged sanctions evasion regarding exports to Russian and Chinese companies.

Super Micro’s stock price took a major hit following these accusations. The company refuted the allegationsstating that the report contained misleading and inaccurate information and that it would respond to the allegations in due course.

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