Super Micro Computer Shares Are Down By Over 4% In Pre-Market: What's Going On?

Shares of Super Micro Computer Inc. SMCI fell by 4.20% in pre-market trading on Monday, as per Benzinga Pro. The decline follows reports the company has halted the construction of a new factory in Malaysia.

What Happened: As per a Chinese media report on Monday, the decision to halt the factory construction has led Malaysia's YTL Corp. to shift orders for Nvidia NVDA GB200 NVL72 AI servers to Taiwan's Wiwynn, marking a significant order transfer to a Taiwanese company.

SMCI has yet to respond to Benzinga’s queries regarding the same.

The report comes at a time when Super Micro is facing potential delisting threats. Their auditor, Ernst & Young, resigned amid allegations of accounting irregularities and possible export control violations. If delisted, Super Micro could be required to repay up to $1.725 billion of its bonds early.

See Also: Bitcoin Surges Past $80,000 Milestone For First Time On Optimism Over Trump

Bondholders have the option for early repayment if Super Micro’s shares are delisted from Nasdaq and not re-listed promptly. The company must submit its annual report to the SEC by mid-November to avoid delisting. On a recent earnings call, CFO David Weigand stated they are working on a compliance plan to extend the deadline to February 2025.

Last Tuesday, the company announced that it expects to report first-quarter revenue of $5.9 billion to $6 billion, which is down from previous guidance of $6 billion to $7 billion.

Read Next:

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EquitiesPre-Market OutlookMarketsGeneralbenzinga neuroPooja RajkumariStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!