The stock of Super Micro Computer (SMCI) is up 25% in premarket trading after the server maker reported its long delayed financial results.
The Silicon Valley-based company narrowly submitted its annual report and other financial documents in time to meet a deadline that had been imposed by the U.S. Securities and Exchange Commission (SEC).
Super Micro Computer was at risk of being delisted from the Nasdaq exchange on which its shares trade if it missed the Feb. 25 deadline to submit its financial results to the SEC.
BDO, Super Micro Computer’s new auditor, wrote in the filing that, “In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2024.”
Super Micro Computer filed audited financials with the SEC for its Fiscal 2024 financial year that ended last June, along with the first two quarters of the company’s current Fiscal 2025.
The filing eliminates any possibility that the server maker will be delisted from the Nasdaq exchange, a situation that had weighed on Super Micro’s stock.
Last year, Super Micro Computer delayed filing its annual report, lost its auditor Ernst & Young over governance issues, and was accused of accounting malfeasance by a short seller.
Super Micro Computer said as part of its regulatory filing that it is hiring additional accounting and audit employees and upgrading its information technology (IT) systems to help resolve past financial reporting issues.
According to the company’s audited financial results, Super Micro Computer’s sales more than doubled during Fiscal 2024 to $14.99 billion U.S.
The company makes servers that run microchips and processors, notably for artificial intelligence (A.I.) applications and models, which are in high demand currently.
Super Micro Computer’s stock has declined 48% over the last 12 months to trade at $45.54 U.S. per share.
