Super Microcomputer Inc. (SMCI) said in a filing with the Securities and Exchange Commission late Monday that it has submitted a compliance plan to avoid delisting from the Nasdaq.
The company said its compliance plan is on track to file delayed SEC filings and “update periodic reports within the discretionary period allowed by Nasdaq staff.” He said it shows.
Barron’s reported after Friday’s bell, citing people familiar with the matter, that Supermicro would submit a plan to prevent delisting by Monday’s deadline. Supermicro shares soared more than 25% in after-hours trading following the filing late Monday. Shares rose about 16% in regular trading at the beginning of the week.
The stock price has fallen about 65% in the past three months. SMCI stock rose as much as 300% earlier this year, but is down more than 20% in 2024.
The AI server maker and Nvidia (NVDA) customer announced Monday that it has hired a new auditor, BDO, after its former accountant, EY, resigned in late October.
Supermicro is grappling with the fallout from a report released in August by short seller Hindenburg Research. The report reveals potential accounting fraud, export control violations, and shady relationships between management and Supermicro’s partners.
In response to this report, the company postponed its annual 10-K filing with the Securities and Exchange Commission. Supermicro last week also postponed filing its latest quarterly 10th quarter report with the SEC. Adding to the company’s woes, the company is reportedly under investigation by the Department of Justice. A rapid succession of bad news sent stock prices plummeting, particularly with EY’s resignation, which saw Supermicro stocks drop more than 30% in a single day in late October.
Supermicro’s fiscal first-quarter earnings report on Nov. 5 missed Wall Street’s expectations, and the company’s stock price plummeted, with shares dropping 18% the day after the earnings release.
Elsewhere on Monday, the company announced product updates, including next-generation AI servers using Nvidia Blackwell chips, during its Supercomputing conference in Atlanta.
“Supermicro has the expertise, speed of delivery, and capabilities to deploy the world’s largest liquid-cooled AI data center project, including the recently deployed 100,000 GPUs contributed by Supermicro and NVIDIA,” said CEO Charles Liang. he said in a statement Monday.
“We now have solutions using the NVIDIA Blackwell platform.”
Nvidia is scheduled to report fiscal third-quarter earnings on Wednesday.
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