Super Micro Computer (NASDAQ:SMCI) announced a delay in filing its Annual Report on Form 10-K for the fiscal year ending June 30, 2024. At 2:18 PM EST (6:18 PM GMT), SMCI stock experienced a significant decline of 21.9%.
The company intends to file a Notification of Late Filing on Form 12b-25 by August 30, 2024, indicating that completing the Annual Report within the designated timeline would impose unreasonable effort and cost.
Super Micro stated that it requires additional time for its management to evaluate the effectiveness of its internal controls pertaining to financial reporting as of June 30, 2024.
The company also reaffirmed that there have been no changes to its previously announced fiscal year and quarter results from August 6, 2024.
On the previous day, SMCI shares dropped 2.6% following a critical report from Hindenburg Research, which raised alarms about the company’s accounting practices and corporate governance. The report specifically highlighted potential red flags in how the company recognizes revenue and its re-engagement with executives who were previously involved in accounting controversies.
With a market value of $35 billion, Super Micro Computer has faced previous difficulties, including a Nasdaq delisting in 2018 due to failure to file financial statements.
Analysts at Rosenblatt noted that while the 10-K delay “is not favorable,” the recent fall in SMCI stock “seems excessive” when considering the Hindenburg situation as outdated or inaccurate.