Super Micro Computer (NASDAQ:SMCI) has announced a delay in submitting its Annual Report on Form 10-K for the fiscal year ending June 30, 2024. As of 14:18 EST (18:18 GMT), SMCI’s stock has dropped by 21.9%.
The company is set 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.
SMCI explained that it requires additional time for management to fully assess the design and operational effectiveness of its internal controls over financial reporting as of June 30, 2024.
The firm reiterated that there have been no changes to the fiscal year and quarterly results previously disclosed on August 6, 2024.
SMCI’s stock experienced a 2.6% decline yesterday following a critical report from Hindenburg Research, which scrutinized the company’s accounting methods and corporate governance. The report raised concerns about potential red flags in SMCI’s revenue recognition practices and the re-engagement of executives who were previously linked to accounting scandals.
With a market valuation of $35 billion, Super Micro Computer has dealt with setbacks in the past, including a Nasdaq delisting in 2018 due to failure to file financial statements.
Analysts at Rosenblatt commented that while the 10-K delay is not ideal, the sharp decline in SMCI’s stock seems disproportionate, viewing the ongoing concerns raised by Hindenburg as either outdated or inaccurate.