Server Maker Super Micro Computer Faces Uncertain Future
Delisting Fears Intensify as Annual Report Deadline Looms
Super Micro Computer’s stock price took a nosedive in extended trading on Tuesday, plummeting over 15% after the company announced it was unable to predict when it would file its delayed annual report for 2024. This news has sparked concerns about the company’s potential delisting from the Nasdaq exchange.
Nasdaq Compliance Issues
The server maker received a warning letter from the Nasdaq on September 17, stating that it was not in compliance with the exchange’s rules, which require timely filing of reports. Super Micro Computer was given 60 days to file or submit a plan, with a deadline of November 16.
Disappointing Preliminary Earnings Report
In addition to the uncertainty surrounding its annual report, Super Micro Computer also reported preliminary revenue figures for the fiscal first quarter that fell short of analysts’ projections. The company expects revenue to be between $5.9 billion and $6 billion, down from its previously guided range of $6 billion to $7 billion. However, earnings per share (EPS) are expected to be between 68 cents and 70 cents, slightly above estimates.
Accounting Concerns and Auditor Resignation
Tuesday’s update comes on the heels of last week’s news that accounting firm EY resigned as Super Micro Computer’s auditor, citing its unwillingness to be associated with the company’s financial statements. This development follows months of speculation about the company’s accounting practices and a reported investigation by the Department of Justice.
Uncertain Times Ahead
As Super Micro Computer navigates these challenges, its future remains uncertain. The company’s inability to predict when it will file its annual report has raised concerns about its ability to comply with Nasdaq’s rules, and its accounting practices are under scrutiny. One thing is clear: investors are watching closely, and the company’s next moves will be crucial in determining its fate.
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