SUPER Micro Computer gained more than 20 per cent in extended trading after it submitted outstanding financial reports to become compliant with Nasdaq rules, easing concerns risks that the server maker would be delisted.
The company reported its 2024 fiscal year results on Tuesday (Feb 25) in a filing with the Securities and Exchange Commission (SEC). Separately, it filed financial statements for the quarters ended Sep 30 and Dec 31.
“While we filed all of the delinquent reports on or before Feb 25, 2025, we expect to continue to face many of the risks and challenges related to previously being delinquent in our SEC reporting obligations,” Super Micro said.
The shares climbed to a high of US$56.45 in late trading after closing at US$45.54 in New York. Investors had grown anxious as the deadline approached – the stock had slipped 24 per cent between Feb 19 and Tuesday’s close.
Super Micro was trying to avoid a delisting after missing an August 2024 deadline to file its annual financial report for the year that ended Jun 30. The company’s auditor, Ernst & Young LLP, resigned in October, citing concerns about governance and transparency. Super Micro is also facing a US Department of Justice probe following a report from short-seller Hindenburg Research.
Nasdaq had extended Super Micro’s deadline to Tuesday to provide the delayed filings and become compliant with listing rules. In December, Super Micro said an independent review of its business found no evidence of misconduct, but the company pledged to install a new chief financial officer and other top executives.
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Super Micro, in a statement separate from the filings, said it “has received correspondence from the Nasdaq staff that the company has regained compliance with the filing requirements, and the matter is now closed”.
In the fiscal year report, Super Micro said it had concluded that internal controls over financial reporting were not effective, and it has “initiated remediation measures”. Still, Super Micro warned that it may “fail to remediate material weaknesses in our internal control over financial reporting”.
Super Micro also highlighted potential risks including failing to “recapture lost businesses or business opportunities due to ongoing reputational harm”. Earlier this month, chief executive officer Charles Liang said that there had been some negative business impacts due to the filing delays.
In lieu of audited financial information, Super Micro had delivered “business updates” in recent quarters with preliminary sales and profit results. Early this month, the company gave a much stronger-than-expected sales outlook of US$40 billion for the fiscal year ending in June 2026. BLOOMBERG
