Great microphone Shares plunged 22% on Wednesday to their lowest level since May last year after the troubled server maker reported disappointing unaudited financials and offered no concrete plans to maintain its Nasdaq listing.

The stock fell to $21.55 in early afternoon trading and is now 82% below its March peak, a selloff that wiped out about $57 billion in market capitalization.

Super Micro had its worst week on record last week after its auditor Ernst & Young resigned, the second accounting firm to leave in less than two years. The company is being accused by an activist of accounting irregularities and of supplying sensitive chips to sanctioned countries and companies in violation of export controls.

Super Micro hasn’t filed audited financials since May and is at risk of being delisted from Nasdaq if the company doesn’t report results for its most recent fiscal year to the SEC by mid-November. The company said late Tuesday when it released preliminary fiscal first-quarter results that it did not know when it would file annual financial reports.

In a call with analysts, the company said it would not discuss issues related to Ernst & Young’s decision to step down and would not address corporate governance issues. CEO Charles Liang said Super Micro is actively hiring a new auditor.

Mizuho analysts suspended coverage of the stock on Wednesday “due to the lack of complete, detailed and audited financial reports.” Wedbush analysts, who have a hold rating on the stock, said the report leaves “more questions than answers.”

“Management appears to be fully focused on finding an auditor and resolving the status of the late filing,” Wedbush analysts wrote. “However, we do not know how big the hurdles might be to achieve this goal.”

Liang said on the call that the company is “working diligently to get back up to speed with our financial reporting.”

For the quarter ended September 30, Super Micro said it had net sales of between $5.9 billion and $6 billion. That’s below analyst expectations of $6.45 billion, but still up 181% year-over-year. The company’s business has been booming lately as it ships servers full of packages Nvidia’s Artificial intelligence processors.

Shares of Super Micro rose 246% last year after rising 87% in 2023. The stock peaked at $118.81 in March, shortly after joining the S&P 500.

Liang said demand was strong for Nvidia’s latest GPU, called Blackwell, which began shipping in recent weeks.

Asked by an analyst when Blackwell revenue might show up in Super Micro’s financials, Liang said, “We ask Nvidia every day,” adding that the companies continue to work closely together.

“Our capacity is ready, but not enough new chips,” Liang said.

Analysts asked whether the company’s plans to build Blackwell-based servers had changed, which could indicate that other server makers could get additional capacity or allocations of Nvidia GPUs at Super Micro’s expense.

“To clarify one of the earlier comments about Nvidia, we have the closest relationships with Nvidia,” said CFO David Weigand. “Now we have several cutting-edge projects underway and we have spoken to Nvidia and they have confirmed that they have not made any changes to the allocations. We maintain a close relationship with them and don’t expect that to change.”

Super Micro’s forecast for the December quarter was also below estimates. Revenue is expected to be between $5.5 billion and $6.1 billion, below the average analyst estimate of $6.86 billion, according to LSEG. Adjusted earnings per share will be 56 cents to 65 cents. Analysts expected EPS of 83 cents.

Super Micro said its board has appointed a special committee to address Ernst & Young’s concerns. In a three-month investigation, the committee found there was “no evidence of fraud or misconduct” by management, the company said.

“The committee recommends a series of remedial measures for the company to strengthen its internal governance and oversight functions and the committee expects to submit the full report on the completed work this week or next,” Super Micro said, adding that The intention is to take all steps to maintain the listing on the Nasdaq.

REGARD: Super Micro stocks are in earnings decline