Super Micro Computer (NASDAQ:SMCI) announced an anticipated 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 shares had dropped by 21.9%.
The company plans to file a Notification of Late Filing on Form 12b-25 on August 30, 2024, indicating that completing the Annual Report on time would impose unreasonable efforts or expenses.
SMCI stated that it requires additional time for management to finalize the evaluation of the design and operational efficiency of its internal controls over financial reporting as of June 30, 2024.
The company confirmed that there have been no updates regarding its fiscal year and quarterly results previously announced on August 6, 2024.
Shares of SMCI decreased by 2.6% the previous day following a critical report by Hindenburg Research, which scrutinized the company’s accounting practices and corporate governance.
The report raised concerns about the company’s accounting practices, particularly how it recognizes revenue and its re-engagement with executives previously implicated in accounting scandals.
With a market valuation of $35 billion, Super Micro Computer has faced challenges before, including a delisting from Nasdaq in 2018 due to the failure to file financial statements.
Analysts at Rosenblatt mentioned that while the delay in the 10-K filing “is not a good look,” the current decline in SMCI’s stock price “seems excessive, especially considering the Hindenburg situation as either old news or inaccurate.”