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 2:18 PM EST (6:18 PM GMT), the company’s stock had dropped by 21.9%.
The company intends to file a Notification of Late Filing on Form 12b-25 on August 30, 2024, indicating that timely filing of the Annual Report would entail unreasonable effort or expense. Super Micro Computer stated that additional time is required to finalize the evaluation of its internal controls over financial reporting as of June 30, 2024.
There have been no new developments regarding the results for the fiscal year and quarter that were previously disclosed on August 6, 2024.
The stock experienced a decline of 2.6% the previous day following a critical report from Hindenburg Research, which scrutinized the company’s accounting practices and corporate governance. The report raised alarms about potential issues with the company’s revenue recognition methods and the re-engagement of executives tied to previous accounting controversies.
Super Micro Computer, currently valued at $35 billion, has a history of challenges, including a Nasdaq delisting in 2018 due to the failure to file financial statements.
Analysts from Rosenblatt remarked that while the delay in the 10-K filing “is not a good look,” the significant drop in SMCI stock today appears exaggerated, considering the concerns raised by Hindenburg may be viewed as old news or inaccurate.