Super Micro Computer (SMCI) Shares Drop 25% on Delayed 10-K Filing By Investing.com

Super Micro Computer (NASDAQ:) announced that it expects to delay the filing of its Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

At 10:12 EST (14:12 GMT), SMCI shares were down 24.1%.

The company plans to file a notice of late filing on Form 12b-25 on August 30, 2024, stating that filing the annual report by the prescribed time would require unreasonable effort or expense.

SMCI indicated that it needs additional time for management to complete its assessment of the design and operating effectiveness of internal controls over financial reporting as of June 30, 2024.

The company confirmed that there have been no updates on its fiscal year and quarterly results previously announced on August 6, 2024.

Shares of SMCI fell 2.6% yesterday after the publication of a critical report by Hindenburg Research, which focused on the company’s accounting practices and corporate governance.

The concerns in the report focus on accounting practices that could be seen as red flags, particularly with regard to the way the company records revenue and its renewed engagement with executives previously involved in accounting scandals.

Super Micro Computer, whose market capitalization is $35 billion, has faced challenges in the past, including a 2018 delisting from Nasdaq for failing to file financial statements.