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Super Micro Computer (SMCI) stock drops 10% on delayed 10-K filling

Published 2024-08-28, 09:14 a/m
© Reuters
SMCI
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Super Micro Computer (NASDAQ:SMCI) disclosed an expected delay in filing its Annual Report on Form 10-K for the fiscal year ended June 30, 2024. SMCI stock fell 10% in premarket Wednesday trading.

The company plans to submit a Notification of Late Filing on Form 12b-25 on August 30, 2024, stating that filing the Annual Report within the prescribed time frame would require unreasonable effort or expense.

SMCI said it needs additional time for its management to complete the assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024.

The company confirmed there have been no updates to its fiscal year and quarter results previously announced on August 6, 2024.

SMCI shares fell 2.6% yesterday after the release of a critical report from Hindenburg Research, which targeted the company's accounting practices and corporate governance.

The report's concerns focus on accounting practices that may be seen as red flags, specifically relating to how the company recognizes revenue and its re-engagement with executives previously involved in accounting scandals.

Super Micro Computer, which has a market valuation of $35 billion, has faced challenges in the past, including a delisting from Nasdaq in 2018 due to the non-filing of financial statements.

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