Super Micro's stock declines as the server manufacturer fails to meet sales expectations, raising concerns over the uncertainty of its annual filing.

Super Micro Computer, which recently experienced the unexpected resignation of its auditor, announced on Tuesday that there is uncertainty regarding the timing of its annual report. However, the company has reassured stakeholders that an investigation into its accounting practices has not revealed any evidence of fraudulent activity.

Following this news, shares of the San Jose, California-based server manufacturer experienced a significant decline of approximately 15.5%, reaching $23.42 in after-hours trading.

The company projected net sales between $5.5 billion and $6.1 billion for the second quarter, falling short of analysts' expectations of $6.86 billion, as per data from LSEG.

Super Micro anticipates earnings per share in the range of 48 to 58 cents, significantly lower than the forecasted 75 cents per share.

Additionally, Super Micro has established itself as a crucial supplier for niche cloud-computing firms like CoreWeave, which specialize in providing Nvidia chips for artificial intelligence applications.

During a conference call with investors, CEO Charles Liang indicated that the company's outlook is influenced by its anticipation of Nvidia's latest chips. He noted that the computer servers designed to accommodate these chips are ready for production and that he does not foresee any decrease in the allocation of Nvidia chips.

Liang, who founded Super Micro in 1993—the same year Nvidia was established—also mentioned he is open to the possibility of separating the roles of chairman and CEO, which he currently holds.

The preliminary results from Super Micro come shortly after Ernst & Young's resignation as its auditor, raising investor concerns regarding the company's accounting practices.

A special committee is investigating issues highlighted by EY concerning the company's governance, transparency, and internal controls over financial reporting.

Super Micro faces the risk of being delisted from the Nasdaq if it fails to meet upcoming deadlines this month. The recent departure of EY complicates the process of restoring compliance.

During the conference call, Super Micro executives refrained from addressing analysts' inquiries about the timeline for filing the annual report or appointing a new auditor.

"It feels like yesterday this was a stock-market darling, showing how quickly things can change for investors and companies alike," as per Ryan Detrick, the chief market strategist at Carson Group, an investment advisory firm,