Super Micro Computer Inc (NASDAQ:SMCI) shares jumped 9% after-hours Friday after the company announced that it had been granted an extension by the Nasdaq Stock Market to submit its overdue financial reports. The company received a letter from Nasdaq on December 6, 2024, allowing them until February 25, 2025, to file its Annual Report on Form 10-K for the fiscal year that ended on June 30, 2024, as well as its Quarterly Report on Form 10-Q for the period ending September 30, 2024, along with any other necessary filings. Super Micro’s common stock will continue to be traded on the Nasdaq Global Select Market throughout this extension period.
The extension follows recent news, including the appointment of BDO USA as its new auditor and the submission of a compliance plan to Nasdaq last month. In November, former auditing firm Ernst&Young resigned due to “concerns about several matters relating to governance, transparency and completeness of communications to EY, and other matters pertaining to the Company’s internal control over financial reporting…”
In August, SMCI delayed its 10-K filing for fiscal year 2024 after the dispute with its auditor and following a scathing report about the company from short-selling-focused research firm Hindenburg Research, which highlighted corporate maleficence, including undisclosed related-party transactions.
The company has expressed confidence that it will meet the new February 25, 2025, deadline for filing the required financial documents, which is crucial for maintaining its listing on the Nasdaq.
Earlier this week, SMCI said an independent committee’s review, which took over three months, found no evidence of fraud or misconduct on the part of Super Micro’s management. The company also initiated a search for a new Chief Financial Officer.
Amid the accounting issues, Super Micro has still reported robust demand for its AI servers, especially those equipped with liquid cooling technology, although the company trimmed its finance guidance for the first quarter of fiscal year 2025 ended September 30, 2024. SMCI said net sales are expected in the range of $5.9 billion to $6.0 billion compared to its previous guidance range of $6.0 billion to $7.0 billion. Meanwhile, non-GAAP diluted net income per common share of $0.75 to $0.76 compared to its previous guidance range of $0.67 to $0.83.
At Friday’s closing price, SMCI shares are up 55% year-to-date despite the sharp 64% decline from its 52-week high reached in March.
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Super Micro stock jumps after Nasdaq grants filing extension
