San Jose, California – Super Micro Computer (NASDAQ:SMCI) announced today that there will be a delay in filing its Annual Report on Form 10-K for the fiscal year ending on June 30, 2024. This delay has caused a significant drop in SMCI stock, which was down by 21.9% this afternoon.
The company stated that it will be submitting a Notification of Late Filing on Form 12b-25 on August 30, 2024. The delay is attributed to the need for more time for management to assess the design and effectiveness of its internal financial reporting controls as of June 30, 2024. Despite this delay, there have been no changes to the fiscal year and quarterly results that were previously reported on August 6, 2024.
Yesterday, SMCI shares experienced a 2.6% decrease following a report from Hindenburg Research that raised concerns about the company’s accounting practices and corporate governance. The report highlighted potential red flags in the company’s revenue recognition practices and its re-engagement with executives with prior involvement in accounting scandals.
Super Micro Computer, valued at $35 billion, has faced challenges in the past, including being delisted from Nasdaq in 2018 due to the non-submission of financial statements. Analysts at Rosenblatt noted that while the delay in filing the 10-K is concerning, today’s drop in SMCI stock may be exaggerated, especially considering the information in the Hindenburg report being either outdated or inaccurate.
It is crucial for investors and stakeholders to monitor how Super Micro Computer addresses these concerns and how it moves forward following this announcement. The impact of these issues on the company’s reputation and stock performance will likely continue to be of interest to market watchers and industry analysts in the coming days.