Super Micro Computer (SMCI) stock fell late Tuesday after the data center hardware firm cut its sales targets for the September and December quarters. The company currently is embroiled in controversy surrounding its financial reporting.

After the market close, the San Jose, Calif.-based company offered a “business update” on its fiscal first quarter, which ended Sept. 30, as well as the current quarter.

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For fiscal Q1, Super Micro now expects adjusted earnings of 75 to 76 cents a share on sales of $5.9 billion to $6 billion. It previously guided to adjusted earnings of 67 to 83 cents a share on sales of $6 billion to $7 billion.

Analysts polled by FactSet had expected the company to earn 73 cents a share on sales of $6.44 billion in the September quarter. In the year-earlier period, it earned 34 cents a share on sales of $2.12 billion.

For the current quarter ending Dec. 31, Super Micro forecast adjusted earnings of 56 to 65 cents a share on sales of $5.5 billion to $6.1 billion. Wall Street was modeling earnings of 81 cents a share on sales of $6.84 billion in the fiscal second quarter.

Super Micro Stock Falls On Update

In after-hours trading on the stock market today, Super Micro stock fell more than 9% to 25.17. During the regular session Wednesday, it rose 6.4% to 27.70.

Super Micro stock is down 55% in the past three months and 3% year to date as it deals with a morass of accounting issues. It faces possible delisting from the Nasdaq exchange if it doesn’t meet its financial compliance requirements.

Last week, Super Micro disclosed that Ernst & Young had resigned as its accounting firm after citing concerns about the company’s financial reporting. That news was on top of a delay in filing its annual 10-K report and a possible investigation by the U.S. Department of Justice.

Super Micro has been benefiting from cloud computing companies building data centers to support artificial intelligence applications. It competes with Dell Technologies (DELL), Hewlett Packard Enterprise (HPE), Lenovo and others.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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