Super Micro Computer, Inc. (NASDAQ:SMCI) experienced a 15% drop in pre-open trading on Monday after the announcement that the company will be removed from the Nasdaq-100 Index. The changes to the index were made public on Friday, with the update set to take effect before the market opens on December 23, 2024.
The annual reconstitution of the Nasdaq-100 Index®, managed by Nasdaq, will see the addition of Palantir Technologies Inc (NASDAQ:PLTR)., MicroStrategy Incorporated, and Axon Enterprise (NASDAQ:AXON), Inc.. Concurrently, Illumina (NASDAQ:ILMN), Inc., Super Micro Computer, Inc., and Moderna (NASDAQ:MRNA), Inc. will be removed from the Index.
In related news, Bloomberg News reported that Super Micro Computer Inc. is engaging Evercore Inc. to assist with capital raising efforts. The server manufacturer is exploring options for equity and debt financing as it seeks to strengthen its financial position. This move comes as the company faces challenges, including a potential delisting due to its failure to submit its annual financial report on time. Super Micro has been under scrutiny following a steep decline in share value, dropping 69% from its peak in March, issues with its former auditor, Ernst & Young LLP, and a U.S. Department of Justice investigation triggered by allegations from Hindenburg Research.
Super Micro has not yet filed its financial report for the fiscal year ending June 30, nor its quarterly report for the period ending September 30. Last week, the company announced it had received an extension from Nasdaq to file these documents by February 25. The firm has appointed BDO as its new auditor in the wake of Ernst & Young LLP's resignation, which was due to concerns about governance and transparency at Super Micro.
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