Super Micro Computer (NASDAQ:SMCI) announced that it will postpone the submission of its Annual Report on Form 10-K for the fiscal year ending June 30, 2024.
As of 14:18 EST (18:18 GMT), shares of SMCI dropped by 21.9%.
The firm intends to file a Notification of Late Filing on Form 12b-25 on August 30, 2024, indicating that timely completion of the Annual Report is proving to be excessively burdensome.
The company stated that it requires additional time for its management team to finalize the evaluation of the effectiveness of its internal controls over financial reporting as of June 30, 2024.
SMCI also confirmed that there have been no changes to the financial results for the fiscal year and the quarter that were previously released on August 6, 2024.
The stock saw a decline of 2.6% the day before, following the issuance of a critical report from Hindenburg Research, which scrutinized the company’s accounting methods and corporate governance.
The report raised concerns regarding potentially problematic accounting practices, particularly in how the company recognizes revenue and its decision to work with executives who had prior involvement in accounting controversies.
Super Micro Computer, which holds a market capitalization of $35 billion, has had past difficulties, including a delisting from Nasdaq in 2018 due to failure to file financial statements.
Analysts from Rosenblatt commented that while the delay in filing the 10-K is unfavorable, the current drop in SMCI’s stock appears exaggerated, particularly in light of the Hindenburg report’s relevance fading.