Super Micro Computer (NASDAQ:SMCI) has announced a delay in filing its Annual Report on Form 10-K for the fiscal year ending June 30, 2024. As of 10:12 EST (14:12 GMT), the stock experienced a significant drop of 24.1%.
The company intends to file a Notification of Late Filing on Form 12b-25 by August 30, 2024, citing that completing the Annual Report within the allocated time frame would entail unreasonable effort or cost. SMCI explained that additional time is necessary for management to finalize the assessment of the design and operational effectiveness of its internal controls over financial reporting as of June 30, 2024.
The company assured that there have been no changes to the fiscal year and quarter results that were previously disclosed on August 6, 2024. Following the release of a concerning report from Hindenburg Research focused on the company’s accounting practices and corporate governance, SMCI shares fell by 2.6% yesterday. The report raised alarms regarding accounting methods perceived as risky, particularly in terms of revenue recognition and the re-engagement of executives with past ties to accounting controversies.
Super Micro Computer, which holds a market capitalization of $35 billion, has encountered difficulties before, including a delisting from Nasdaq in 2018 due to failure to file financial statements timely.