December 3, 2024 at Super Micro Computer Headquarters in San Jose, California.
David Paul Morris | Bloomberg | Getty Images
Server manufacturers in trouble super microcomputer announced on Friday that it had received an extension from Nasdaq to remain listed on the stock exchange until February.
Shares rose 7% in extended trading.
Supermicro faces possible delisting from the Nasdaq because it has not yet filed an audited year-end financial report for its most recent fiscal year and has delayed releasing its quarterly results. Friday’s announcement gives Supermicro at least Feb. 25 to file and receive a filing with the U.S. Securities and Exchange Commission.
“During the exception period, our common stock will continue to be listed on the Nasdaq Global Select Market,” Supermicro said in a press release. “If we file all required reports by February 25, 2025, our common stock will remain listed as long as we continue to comply with Nasdaq’s listing rules.”
Supermicro said it expects to submit its report by the deadline.
Supermicro stocks have been at risk of delisting after a strong rally in recent months. With Super Micro being one of the top vendors, sales have skyrocketed. NvidiaBased computer cluster for artificial intelligence. Supermicro said it expects sales to increase by about 67% to about $25 billion in fiscal 2025.
In October, Ernst & Young resigned as the company’s auditor, and Supermicro appointed BDO as its auditor last month. In August, the company’s reputation suffered after activist investor Hindenburg Research disclosed short positions and accused SuperMicro of accounting manipulation.
Supermicro announced Monday that it had completed an internal investigation overseen by a member of its board of directors and found no evidence of wrongdoing. At the time, the company announced that it was planning to replace Chief Financial Officer David Weigand and had appointed a new treasurer.
Supermicro stocks soared more than 14 times from late 2022 to their all-time high in March of this year, when they were added to the S&P 500. Since then, the stock price has fallen about 60%.
The Nasdaq delisting process could take about a year, depending on deadlines and appeals. Supermicro was delisted from exchanges in 2018.
