Super Micro Computer (NASDAQ:SMCI) disclosed an expected delay in filing its annual report on Form 10-K for the fiscal year ending June 30, 2024.
At 14:18 ET (18:18 GMT), SMCI stock was down 21.9%.
The Company plans to file a Notice of Late Filing on Form 12b-25 on August 30, 2024, stating that filing the annual report within the specified time frame would require unreasonable effort or expense.
SMCI said it needs additional time for its management to complete an assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024.
The company confirmed that there will be no updates to the fiscal year and quarterly results previously announced on August 6, 2024.
SMCI shares fell 2.6% yesterday after a critical report from Hindenburg Research, which took aim at the company’s accounting practices and corporate governance.
The report’s concerns focus on accounting practices that could be considered red flags, specifically regarding how the company recognizes and re-shares revenue with executives who were previously involved in accounting scandals.
Super Micro Computer, which has a market value of $35 billion, has faced challenges in the past, including being delisted from the Nasdaq in 2018 for failing to file financial statements.
Rosenblat analysts said that while the 10K delay “is not a good look,” today’s drop in SMCI shares “looks over the top when considering the Hindenburg dynamic as old news or inaccurate.”
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