Super Micro Computer Inc ( SMCI ) shares are tumbling Wednesday after the company reported preliminary financial results and provided a business update. JPMorgan also downgraded the stock and slashed its price target.

What Happened: Super Micro announced after the market close on Tuesday that it expects to report first-quarter revenue of $5.9 billion to $6 billion, down from previous guidance of $6 billion to $7 billion. The company expects to report first-quarter adjusted earnings of 75 cents to 76 cents per share.

For the second quarter, Super Micro expects to report revenue of $5.5 billion to $6.1 billion. The company anticipates second-quarter adjusted earnings of 56 cents to 65 cents per share.

Super Micro also provided a business update related to the recent resignation of its independent auditor Ernst & Young (EY), who raised concerns about governance, transparency and completeness of communications.

Super Micro said the Special Committee’s investigation found that the company’s Audit Committee acted independently and that there is “no evidence of fraud or misconduct on the part of management or the Board of Directors.”

The Special Committee said it will recommend “a series of remedial measures for the Company to strengthen its internal governance and oversight functions.”

Check This Out: This Super Micro Computer ( SMCI ) Analyst Turns Bearish; Here Are Top 5 Downgrades For Wednesday

On a call with analysts and investors late Tuesday, Super Micro said it wouldn't take any questions related to EY’s resignation. The company also failed to address corporate governance issues, per CNBC.

Super Micro also announced Tuesday that it continues to work diligently on filing its Form 10-K for its fiscal year ended June 30, but "remains unable at this time to predict" when it will be filed. Super Micro hasn't filed financial results with the SEC since May. The Form 10-K was due on Aug. 29.

Super Micro received a notification from the Nasdaq stating that it was not in compliance with timely filing requirements in September. The company said it filed an extension and has 60 days from the date of notice to regain compliance.

Following the business update, JP Morgan analyst Samik Chatterjee downgraded Super Micro from Neutral to Underweight and slashed the price target from $50 to $23.

SMCI Price Action: Super Micro shares were down 23.9% at $21.08 at the time of publication Wednesday, according to Benzinga Pro.