Super Micro Computer has submitted a plan to Nasdaq, outlining its efforts to regain compliance with the exchange’s continued listing requirements, after missing deadlines for submitting its financial reports.
The San Jose-based server manufacturer, which specializes in data-center products, had failed to file its reports for the fiscal year ending June 30 and the first quarter of fiscal 2025 on time. The company had until Monday to submit a plan detailing how it would remedy the situation.
In its filing, Super Micro stated that it intends to complete and submit its Form 10-K for the fiscal year 2024 and its Form 10-Q for the first quarter of fiscal 2025, within the allowable extension period granted by Nasdaq. The company also announced that it had hired BDO USA, a member of BDO International, as its new independent auditor. This follows the departure of its previous auditor, Ernst & Young, which resigned in October due to concerns over the company’s financial reporting.
Following the submission of the compliance plan, Super Micro’s stock saw a significant rebound. Shares rose 16% during regular trading, closing at $21.54, and surged by an additional 26% in after-hours trading to reach $27.20. Despite this rally, the company’s stock remains down 24% year-to-date, reflecting the ongoing challenges it faces.
Super Micro’s financial difficulties have had a major impact on its market value. Once valued at around $70 billion, the company’s market capitalization has decreased to approximately $12.6 billion, down significantly from its peak earlier this year. The company’s stock had soared in recent years, driven by strong demand for its products in the artificial intelligence sector, but its recent troubles with financial reporting have led to considerable volatility.
In addition to the change in auditors, Super Micro has been working to address its internal governance and oversight functions. Earlier this month, the company lowered its fiscal first-quarter outlook, citing ongoing operational challenges. The lowered guidance also missed Wall Street’s expectations for both revenue and earnings.
Despite these difficulties, Super Micro continues to benefit from its position in the AI market. The company remains a key player in providing hardware solutions for data centers, particularly with its products featuring Nvidia’s next-generation Blackwell AI chips. Super Micro competes with other major players like Dell Technologies and Hewlett Packard Enterprise in this growing sector.
Super Micro’s submission to Nasdaq is a critical step in its efforts to avoid delisting from the exchange. The company is requesting an extension to meet Nasdaq’s reporting requirements and will remain listed while the exchange reviews its plan. If the plan is approved, Super Micro will have additional time to bring its financial statements up to date.
The company’s troubles began earlier this year when it announced it would not be able to file its annual report on time. Shortly thereafter, the Nasdaq issued a notification regarding the company’s non-compliance with its listing rules, giving Super Micro a 60-day window to submit a plan to regain compliance.
The Wall Street Journal, Investor’s Business Daily, and CNBC contributed to this report.
