Super Micro Receives Nasdaq Extension, Shares Soar 7%
Breathing Room for Embattled Server Maker
Super Micro Computer, a leading server manufacturer, has been granted a lifeline by Nasdaq, giving the company until February to rectify its listing status on the stock exchange. This news sent the company’s shares soaring 7% in extended trading.
Financial Filing Woes
Super Micro has been facing the possibility of delisting from Nasdaq due to its failure to file audited year-end financials for the latest fiscal year and its delayed quarterly results. The company now has until at least February 25 to submit and have its U.S. Securities and Exchange Commission filings accepted.
Averting Delisting
In a press release, Super Micro stated that its common stock will remain listed on the Nasdaq Global Select Market during the exception period. If the company meets the deadline, its stock will remain listed, provided it complies with Nasdaq’s listing rules. Super Micro expressed confidence in meeting the deadline.
Rise and Fall of Super Micro
Super Micro’s stock experienced a remarkable surge in recent months, driven by its position as a top vendor for Nvidia-based computer clusters for artificial intelligence. The company anticipates sales growth of approximately 67% to around $25 billion in fiscal 2025. However, the stock has lost about 60% of its value since its peak in March.
Auditor Resignation and Accounting Allegations
In October, Ernst & Young resigned as Super Micro’s auditor, and the company appointed BDO to the position last month. Additionally, activist investor Hindenburg Research accused Super Micro of accounting manipulation in August. The company has since completed an internal probe, finding no evidence of misconduct, and plans to replace its Chief Financial Officer.
Delisting Process and History
The Nasdaq delisting process can take around a year, depending on deadlines and appeals. Super Micro has faced delisting before, having been removed from the exchange in 2018.
With this extension, Super Micro has a chance to rectify its financial filing issues and maintain its listing on Nasdaq. The company’s future prospects will depend on its ability to meet the deadline and restore investor confidence.
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