- Data server and hardware manufacturer Super Micro Computer is attempting to dig itself out of an accounting hole caused by delinquent financial reports owed to its investors and allegations of mismanagement. The company also confirmed it is dealing with related subpoenas from the Department of Justice and the Securities and Exchange Commission. Still, CEO Charles Liang claimed on Tuesday the company was on pace to achieve $40 billion in revenue as a conservative estimate.
Super Micro, the formerly high-flying data server and storage solution company, has been in the hot seat because of some serious accounting issues, but CEO and founder Charles Liang on Tuesday sought to soothe shareholders with what he said was a conservative estimate of $40 billion in revenue next year.
“In the last few years, our growth has been very strong, except for our 10-K interrupt, right?” said Liang. “Our growth slowed down a little bit but we will fix the 10-K filing very soon and cash flow won’t be a problem any more.”
Accordingly, that $40 billion projection for fiscal 2026 is “a relatively conservative estimation,” he added.
Similarly, chief financial officer David Weigand called the delinquent annual financial report “a distraction.” After an independent investigation kicked off last summer, a special committee recommended that Super Micro hire a new CFO “with extensive experience working as a senior finance professional at a large public company" to replace Weigand as soon as possible. Weigand will only remain in his role until the company appoints the new CFO.
Despite Liang’s attempts to downplay the impact of the delinquent reports, there were other concerns at play. The company announced it was facing securities lawsuits due to its overdue financial reports and that it had been slapped with subpoenas from the U.S. Department of Justice and the Securities and Exchange Commission at the end of 2024. Super Micro is cooperating with the requests from authorities and believes the lawsuits are without merit, the company said.
Still, Liang didn’t offer much information about the delinquent quarterly 10-Qs and annual 10-K report to investors, other than to say they are forthcoming this month and that previously released financials will not be restated. During its quarterly call to discuss financial results on Tuesday, vice president of corporate development Michael Thomas Staiger announced at the outset that Liang and Weigand would not address any questions about the overdue reports.
Super Micro was the subject of a devastating critique authored by Hindenburg Research last August after it took a short position in the Fortune 500 tech company’s stock, and it’s seen a wave of problems since then. Hindenburg alleged the company was engaging in questionable accounting practices and had undisclosed third-party transactions. Those claims came after the company was previously delisted by Nasdaq in 2018 for failing to file timely financial reports. Nasdaq relisted the company in 2020 after it reached a settlement with the SEC.
After the Hindenburg report hit in August 2024, Super Micro told investors it wouldn’t make a deadline to file its quarterly financial report nor would it file its annual report. Soon after, audit firm EY resigned with a noisy bang in October. The firm hired accounting firm BDO USA as its new auditor in November but it still owes investors its audited financial reports. On Tuesday, Liang said the company was unlikely to restate its financials and was on track to meet an extended deadline from Nasdaq for its delinquent filings later this month.
A board member brought on by Super Micro to help it sort through its accounting problems, Susie Giordano, undertook a special review and recommended that Weigand leave the company. Giordano also recommended Super Micro hire a chief accounting officer, chief compliance officer, and appoint a general counsel and expand its legal department.
On Tuesday, Liang said it had been hiring “experienced leaders” in corporate communications, operations, finance, legal, and compliance departments to help its growing business.
For the quarter, Super Micro reported $5.7 billion in revenue, reflecting 54% growth year-over-year, and projected $40 billion in revenue for fiscal 2026. However, the company lowered its revenue guidance to $23.5 billion to $25 billion, down from a previous $26 billion to $30 billion.
