Super Micro Computer Inc. experienced a significant surge in its stock price, gaining 23% in premarket trading after successfully submitting its outstanding financial reports to comply with Nasdaq Inc. rules. This move alleviated concerns about the server maker potentially being delisted. The company reported its 2024 fiscal year results in a filing with the Securities and Exchange Commission, along with financial statements for the quarters ended September 30 and December 31. Despite filing all delinquent reports by February 25, 2025, Super Micro acknowledged ongoing risks and challenges related to its previous SEC reporting delays.
The stock price climbed to a high of $58.28 in premarket trading on Wednesday, following a close of $45.54 in New York. Investors had been anxious as the deadline approached, with the stock slipping 24% between February 19 and the previous trading day. Super Micro had been striving to avoid delisting after missing an August 2024 deadline to file its annual financial report for the year ending June 30. The company’s auditor, Ernst & Young LLP, resigned in October, citing concerns about governance and transparency.
Super Micro is also facing a US Department of Justice probe following a report from short seller Hindenburg Research. Nasdaq extended Super Micro’s deadline to February 25, 2025, to provide the delayed filings and comply with listing rules. In December, Super Micro announced an independent review of its business, which found no evidence of misconduct, but the company pledged to install a new chief financial officer and other top executives.
In a statement separate from the filings, Super Micro confirmed that it had regained compliance with the filing requirements, and the matter was now closed. The fiscal-year report concluded that internal controls over financial reporting were not effective, and the company has initiated remediation measures. However, Super Micro warned that it may fail to remediate material weaknesses in its internal control over financial reporting. The company also highlighted potential risks, including failing to recapture lost businesses or opportunities due to ongoing reputational harm.
Earlier this month, Chief Executive Officer Charles Liang acknowledged some negative business impacts due to the filing delays. In lieu of audited financial information, Super Micro had provided “business updates” in recent quarters with preliminary sales and profit results. The company recently gave a much stronger-than-expected sales outlook of $40 billion for the fiscal year ending in June 2026.
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