Super Micro Computer (NASDAQ:SMCI) Delay in Annual Report Filing

Super Micro Computer (NASDAQ:SMCI) disclosed an expected delay in filing its Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

As of 14:18 EST (18:18 GMT), SMCI stock was down 21.9%.

The company plans to submit a Notification of Late Filing on Form 12b-25 on August 30, 2024, indicating that filing the Annual Report on time would require unreasonable effort or expense.

SMCI stated that it needs additional time for management to complete the assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024.

SMCI confirmed that there have been no updates to its fiscal year and quarter results previously announced on August 6, 2024.

Shares of SMCI fell 2.6% yesterday after the release of a critical report from Hindenburg Research, which raised concerns about the company’s accounting practices and corporate governance.

These concerns focus on accounting practices that might be viewed as red flags, particularly regarding how the company recognizes revenue and its re-engagement with executives linked to past accounting scandals.

Super Micro Computer, with a market valuation of $35 billion, has faced previous challenges, including a delisting from Nasdaq in 2018 for failing to file financial statements.

Rosenblat analysts noted that while the delay in filing the 10-K “is not a good look,” the current drop in SMCI stock “seems over the top” when considering the Hindenburg report as outdated or inaccurate.