Super Micro Computer Shares Soar 9% on Nasdaq Filing Extension
A Reprieve for Super Micro
Super Micro Computer Inc (NASDAQ:SMCI) shares surged 9% in after-hours trading on Friday, following the announcement that the company has been granted an extension by the Nasdaq Stock Market to submit its overdue financial reports.
Extension Granted
The Nasdaq Stock Market has given Super Micro 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. This extension allows the company to continue trading on the Nasdaq Global Select Market.
Recent Developments
This news comes on the heels of several significant developments for Super Micro. The company recently appointed BDO USA as its new auditor and submitted a compliance plan to Nasdaq last month. Additionally, an independent committee’s review found no evidence of fraud or misconduct on the part of Super Micro’s management.
Auditor Resignation and Short-Seller Report
In November, former auditing firm Ernst & Young resigned, citing concerns about governance, transparency, and internal control over financial reporting. This followed a scathing report from short-selling-focused research firm Hindenburg Research, which highlighted corporate maleficence, including undisclosed related-party transactions.
Confidence in Meeting Deadline
Super Micro has expressed confidence that it will meet the new February 25, 2025, deadline for filing the required financial documents. This is crucial for maintaining its listing on the Nasdaq.
Business Performance
Despite the accounting issues, Super Micro has reported strong demand for its AI servers, particularly those equipped with liquid cooling technology. However, the company has trimmed its financial guidance for the first quarter of fiscal year 2025, ended September 30, 2024. Net sales are expected to range from $5.9 billion to $6.0 billion, with non-GAAP diluted net income per common share of $0.75 to $0.76.
Share Performance
At Friday’s closing price, SMCI shares are up 55% year-to-date, despite a sharp 64% decline from its 52-week high reached in March.
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