Super Micro Granted Nasdaq Extension Amid Delisting Concerns

2024-12-10 companies

San Jose, Tuesday, 10 December 2024.
Super Micro Computer has until February 25, 2024, to file overdue reports, averting immediate Nasdaq delisting and boosting stock volatility amid accounting scrutiny.

Critical Extension Details

Super Micro Computer (SMCI), a prominent AI server manufacturer and Nvidia partner, received a crucial extension from Nasdaq late Friday to submit its delayed financial reports [1][2]. The company now has until February 25, 2024, to file both its 10-K annual report for the fiscal year ended June 30 and its 10-Q report for the quarter ended September 30 [1]. This extension provides vital breathing room for the company, which had been facing potential delisting from the exchange [1][2].

Recent Market Response and Background

The market has responded dramatically to recent developments in Super Micro’s accounting saga. The stock experienced significant volatility, having plunged 86% from its March 8 peak of $122.90 [1]. However, the company’s shares have shown remarkable resilience, surging 31% on November 19 following the announcement of hiring BDO USA as their new auditor [1][4]. This appointment came after the departure of previous auditor Ernst & Young, who had raised concerns about the company’s financial statements [2].

Independent Investigation Findings

In a significant development in early December 2024, an independent special committee investigation found no evidence of misconduct by Super Micro’s senior management or audit committee [2][4]. This finding directly contradicted the concerns raised by former auditor Ernst & Young and contributed to a nearly 29% stock surge on December 2 [1]. The company is currently implementing changes recommended by the special committee, including the search for a new finance chief [4].

Looking Ahead

As of December 10, 2024, Super Micro’s stock performance has shown remarkable year-to-date gains of 54% [4]. The company’s immediate future hinges on meeting the February 25 deadline, with analysts, particularly from JPMorgan, advising investors to monitor how the newly appointed auditors receive the committee’s findings [4]. The stock currently faces key technical resistance levels at $50, $64, and $97, with significant support near $30 [6]. Meeting the February deadline is crucial for maintaining its Nasdaq listing and potentially positioning the company for a strong recovery in 2025 [5].

Sources

Super Micro Nasdaq extension