Embattled server maker Super Micro Computer has recently received an extension from Nasdaq, allowing the company until February to maintain its listing on the stock exchange. This development comes as Super Micro has been facing the risk of being delisted due to delays in filing its audited year-end financials and quarterly results.
According to the company’s announcement, Super Micro’s common stock will continue to be listed on the Nasdaq Global Select Market during this extension period. However, in order to remain listed, the company must file all the required reports by February 25, 2025, and comply with Nasdaq’s listing rules.
Super Micro expressed confidence in meeting the deadline for filing the necessary reports. The company has been under scrutiny in recent months following a significant surge in sales, driven by the demand for Nvidia-based computer clusters for artificial intelligence applications. Super Micro anticipates sales growth of around 67% to reach approximately $25 billion in fiscal 2025.
In the midst of these challenges, Super Micro has dealt with various setbacks, including the resignation of its auditor, Ernst & Young, and allegations of accounting manipulation by activist investor Hindenburg Research. The company conducted an internal investigation overseen by a board member, which found no evidence of misconduct. Additionally, Super Micro announced plans to replace its Chief Financial Officer and appointed a new accounting chief.
While Super Micro’s stock experienced a tremendous rally and was added to the S&P 500 earlier this year, it has since faced a significant decline in value, losing about 60% of its peak. The Nasdaq delisting process, if initiated, can take up to a year and could have profound implications for the company and its shareholders.
Industry experts suggest that Super Micro’s ability to address its financial reporting issues and regain compliance with Nasdaq’s listing requirements will be crucial for its future stability and growth. As the company navigates through this challenging period, stakeholders will be closely monitoring its progress and any potential developments that may impact its standing in the market.
