Super Micro Computer Inc. Gains 23% After Filing Delayed Financial Reports
Super Micro Computer Inc. saw a significant surge in its stock, gaining 23% in premarket trading following the submission of outstanding financial reports to comply with Nasdaq Inc. rules. This move alleviated concerns about the server maker potentially being delisted. The company reported its 2024 fiscal year results in a filing with the Securities and Exchange Commission, along with financial statements for the quarters ended September 30 and December 31.
Super Micro had been under pressure to avoid delisting after missing an August 2024 deadline to file its annual financial report for the year ending June 30. The company’s auditor, Ernst & Young LLP, resigned in October, citing concerns about governance and transparency. Additionally, Super Micro is facing a US Department of Justice probe following a report from short seller Hindenburg Research.
Nasdaq extended Super Micro’s deadline to February 25, 2025, to provide the delayed filings and regain compliance with listing rules. In December, Super Micro announced an independent review of its business, which found no evidence of misconduct. However, the company pledged to install a new chief financial officer and other top executives.
In a statement, Super Micro confirmed that it had regained compliance with the filing requirements, and the matter is now closed. The company acknowledged that internal controls over financial reporting were not effective and has initiated remediation measures. Despite this, Super Micro warned that it may fail to remediate material weaknesses in its internal control over financial reporting.
Super Micro also highlighted potential risks, including failing to recapture lost businesses or business opportunities due to ongoing reputational harm. Earlier this month, Chief Executive Officer Charles Liang noted some negative business impacts due to the filing delays.
In lieu of audited financial information, Super Micro had provided “business updates” in recent quarters with preliminary sales and profit results. The company recently gave a much stronger-than-expected sales outlook of $40 billion for the fiscal year ending in June 2026.
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