Super Micro Computer (NASDAQ:SMCI) announced a projected delay in filing its Annual Report on Form 10-K for the fiscal year ending June 30, 2024. As of 14:18 EST (18:18 GMT), the company’s stock had dropped by 21.9%.
The firm intends to file a Notification of Late Filing on Form 12b-25 on August 30, 2024, indicating that completing the Annual Report on time would entail unreasonable effort or expense. The delay is attributed to the need for additional time for management to evaluate the effectiveness of its internal controls surrounding financial reporting as of June 30, 2024.
Super Micro Computer confirmed that there have been no changes to the fiscal year and quarter results previously reported on August 6, 2024. The company’s shares took a hit of 2.6% the day prior, following a critical report from Hindenburg Research that scrutinized its accounting practices and corporate governance.
The report raised concerns about potential irregularities in the company’s accounting methods, particularly regarding revenue recognition and the rehiring of executives previously linked to accounting scandals.
With a market valuation of $35 billion, Super Micro Computer has encountered difficulties in the past, including a delisting from Nasdaq in 2018 due to failure to file financial statements.
Analysts at Rosenblatt noted that while the delay in the 10-K report is concerning, the steep decline in SMCI stock appears exaggerated, considering the Hindenburg report’s implications may be outdated or inaccurate.