Super Micro Computer (SMCI) has announced a delay in filing its Annual Report on Form 10-K for the fiscal year ended June 30, 2024. As a result, SMCI stock dropped by 10% in premarket trading on Wednesday.
The company will be submitting a Notification of Late Filing on Form 12b-25 on August 30, 2024, citing unreasonable effort or expense required to file the report within the prescribed time frame.
SMCI's management needs more time to assess the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024. It has confirmed that there have been no updates to its fiscal year and quarter results previously announced on August 6, 2024.
Yesterday, SMCI shares fell by 2.6% following a critical report from Hindenburg Research, which raised concerns about the company's accounting practices and corporate governance. The report highlighted red flags related to revenue recognition and the re-engagement of executives with a history of accounting scandals.
With a market valuation of $35 billion, Super Micro Computer has faced challenges in the past, such as a delisting from Nasdaq in 2018 due to non-filing of financial statements.
Analysis:
In summary, Super Micro Computer's delay in filing its Annual Report and the negative report from Hindenburg Research have led to a significant drop in SMCI stock. Investors should be cautious and consider the implications of these developments on the company's financial health and future prospects. It is crucial to monitor how SMCI addresses the concerns raised and how it impacts its stock performance in the coming days.