Shares of Super Micro Computer Inc (NASDAQ:SMCI) rose 9% after business hours on Friday after the company announced it had been granted a reprieve from the Nasdaq Stock Market to file its overdue financial reports. The company received a letter from Nasdaq on December 6, 2024, allowing it to file its annual report on Form 10-K for the fiscal year ended June 30, 2024, as well as its quarterly report on Form 10-Q for the period ended on February 25, 2025. September 30, 2024, together with any other necessary documents. Super Micro’s common stock will continue to trade on the Nasdaq Global Select Market during this extension period.
The extension follows recent news, including the appointment of BDO USA as the new auditor and the filing of a compliance plan with Nasdaq last month. In November, former accounting firm Ernst&Young resigned due to “concerns regarding various matters relating to governance, transparency and completeness of communications with EY, and other matters relating to the company’s internal control over financial reporting…”
In August, SMCI postponed its FY 2024 10-K filing following the dispute with its auditor and a scathing report on the company from short-selling research firm Hindenburg Research, which highlighted corporate crimes, including undisclosed transactions with related parties. .
The company has expressed confidence that it will meet the new deadline of February 25, 2025 for filing the required financial documents, which is crucial to maintaining its listing on the Nasdaq.
Earlier this week, SMCI said an independent committee investigation, which lasted more than three months, found no evidence of fraud or misconduct on the part of Super Micro’s management. The company also launched a search for a new Chief Financial Officer.
Amid the accounting woes, Super Micro continues to report robust demand for its AI servers, especially those equipped with liquid cooling technology, although the company has revised down its financial guidance for the first quarter of fiscal 2025 ending September 30, 2024 . SMCI said net sales are expected to be between $5.9 billion and $6.0 billion, compared to the previous guidance range of $6.0 billion to $7.0 billion. Meanwhile, non-GAAP diluted net income per common share from $0.75 to $0.76, compared to prior guidance of $0.67 to $0.83.
At Friday’s close, SMCI shares are up 55% this year, despite a sharp 64% decline from a 52-week high reached in March.
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Super Micro shares rise after Nasdaq grants extension of filing