Super Micro Computer Inc SMCI experienced a significant 10.33% decline in pre-market trading on Thursday, as per Benzinga Pro. The drop comes after the company announced it could not file its fiscal first-quarter 2025 Form 10-Q for the quarter ending Sep. 30, citing excessive effort and cost.
What Happened: The company is also required to file its 2024 Form 10-K for the fiscal year ending June 30. Concerns from its previous independent accounting firm prompted the Board of Directors to establish a Special Committee to investigate internal controls. Although the committee’s preliminary review is complete, additional time is required to finalize its work.
The news has led to over 60% decline in its share price so far this week.
Jim Cramer commented on X, “SuperMicro is in real hot water with this delay.. [Don’t] know how they get out of this jam…”
Super Micro is in the process of selecting a new independent auditor following the resignation of Ernst & Young. The company needs more time to engage the new auditor and evaluate internal control effectiveness as of June 30, 2024. The quarterly report cannot be finalized until the annual report is completed and filed.
The company faces the risk of being delisted from Nasdaq, which could lead to early repayment of up to $1.72 billion in convertible bonds. Super Micro anticipates first-quarter revenue between $5.9 billion and $6 billion, with adjusted EPS of 75-76 cents.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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