Super Micro Computer Compliance Update

Super Micro Computer (NASDAQ:SMCI) announced an extension from Nasdaq to resolve compliance issues and maintain its listing until February 25, 2025.

The company must file outstanding financial reports with the US Securities and Exchange Commission (SEC) by this date. Following the announcement, SMCI shares rose more than 9% in premarket trading.

Background

The delay in submitting audited year-end financials for the last fiscal year and overdue quarterly results had put Super Micro at risk of delisting.

In their press release, SMCI stated, "The Company’s common stock will remain listed on the Nasdaq Global Select Market during the exception period."

If all required reports are submitted by the deadline, the common stock will remain listed as long as the company complies with Nasdaq's listing rules.

Business Outlook

Super Micro expects to meet the new deadline. Despite compliance challenges, the company expects a 67% increase in revenue, projecting approximately $25 billion for fiscal 2025, largely due to its position as a major supplier of Nvidia-based AI computer clusters.

Challenges Faced

The company faced hurdles, including the resignation of Ernst & Young as auditor in October and accusations of accounting manipulation from Hindenburg Research in August. Hindenburg Research disclosed a short position in the stock at that time.

Last week, Super Micro revealed the results of an internal investigation led by a board member, which found no evidence of misconduct. Additionally, it announced plans to replace Chief Financial Officer David Weigand and appointed a new accounting chief.