Super Micro just reported preliminary Q1 results. Here’s why the stock is tanking.

Super Micro Computer (NASDAQ:SMCI) shares fell 17% in late trading on Tuesday after the embattled artificial intelligence server maker reported preliminary fiscal first-quarter results and offered up an update from its independent special committee.

For the period ending September 30, Super Micro said it expects to earn between $0.75 and $0.76 per share on an adjusted basis, with revenue between $5.9B and $6B, below its previous guidance of $6B to $7B. Analysts had expected the company to earn $0.74 per share on $6.79B in revenue.

Super Micro added that it expects to have $2.1B in cash and cash equivalents and total debt of $2.3B.

The company cautioned the results are preliminary and unaudited (due to the recent resignation of its auditor) and they may be subject to change.

Looking ahead, Super Micro said it expects second-quarter revenue to be between $5.5B and $6.1B, with the mid-point of $5.8B below the $6.79B estimate. Adjusted earnings are forecast to be between $0.56 and $0.65 per share, with the midpoint of $0.61 below the $0.80 per share estimate.

Competitors HP Enterprise (HPE) and Dell (DELL) were fractionally higher in late trading.

10-K update

The company also addressed the situation related to its delayed 10-K, and said it has seen no evidence of fraud or misconduct, but that it remains difficult to say when the report will be filed.

“The Committee is recommending a series of remedial measures for the Company to strengthen its internal governance and oversight functions, and the Committee expects to deliver the full report on the completed work this week or next,” Super Micro said in a statement. “The Special Committee has other work that is ongoing but expects it to be completed soon.”

Super Micro also addressed concerns related to compliance with being listed on the Nasdaq and said that it had received a letter from the exchange, dated September 17, that it was not in compliance due to the delayed 10-K.

“Under the Nasdaq rules, the Company has 60 days from the date of the notice either to file the Form 10-K or to submit a plan to Nasdaq to regain compliance with Nasdaq’s listing rules,” Super Micro said. “If a plan is submitted and accepted, the Company could be granted up to 180 days from the Form 10-K’s due date to regain compliance. If Nasdaq does not accept the Company’s plan, then the Company will have the opportunity to appeal that decision to a Nasdaq hearings panel. The Company intends to take all necessary steps to achieve compliance with the Nasdaq continued listing requirements as soon as possible.”

Super Micro will hold a conference call at 5:00 p.m. ET to discuss the results.