Super Micro Computer Inc. SMCI soared 26.3% during the pre-market trading session on Wednesday as it disclosed its delayed financial results on Tuesday, narrowly escaping the Nasdaq’s delisting warning.
What Happened: Super Micro submitted revised and audited financials for fiscal 2024 and the first half of fiscal 2025 to the U.S. Securities and Exchange Commission (SEC). This move alleviates the immediate threat of the company being delisted from Nasdaq, a worry that had previously impacted SMCI stock price.
The company’s auditor, BDO, verified that the financial statements accurately reflect the company’s financial status as of June 30, 2024, and comply with U.S. accounting standards. Super Micro also announced that it has re-established compliance with Nasdaq’s filing requirements.
The submission follows Super Micro’s loss of its previous auditor, Ernst & Young, due to governance issues. The company had until Tuesday to submit audited financials to the SEC. Super Micro also revealed significant weaknesses in its internal controls over financial reporting and is implementing measures to rectify these issues.
The announcement triggered a 22% spike in the company’s stock price during after-hours trading.
"The Company has received correspondence from the Nasdaq staff that the Company has regained compliance with the filing requirements, and the matter is now closed," SMCI said in a release.
Why It Matters: The company’s ability to meet the Nasdaq deadline, despite losing its previous auditor and facing governance issues, indicates its resilience and commitment to rectifying its internal control weaknesses. The company’s robust sales growth, driven by the demand for Nvidia’s GPUs, further underscores its strong market position. However, the potential risks associated with its late financial reports remain a concern for investors.
Despite compliance hurdles, Super Micro’s business has been booming, driven by surging demand for Nvidia’s NVDA GPUs. The company’s sales soared, more than doubling to $14.99 billion in fiscal 2024, as per the updated financials.
CEO and founder Charles Liang called yesterday’s filing an ‘important milestone’ and stated that the company will now dedicate its full attention to its core business. Liang also added that SMCI is poised to accomplish its important mission in DLC, the Data Center Building Block Solution (Supermicro 4.0), while also meeting the revenue goals. During its earnings last week, SMCI announced a revenue goal of $40 billion for fiscal 2026.
On Monday, Goldman Sachs boosted its price target on Super Micro stock to $36 from $32 and kept a ‘neutral’ rating on the shares.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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