(Bloomberg) — Super Micro Computer Inc. said Nasdaq Inc. has granted the company additional time to become compliant with listing rules, easing the near-term risk that the embattled server maker would be delisted.
Most Read from Bloomberg
Super Micro said it received a letter Friday from Nasdaq allowing the company until Feb. 25 to file its financial report for the fiscal year ended June 30, as well as its quarterly report for results in the period ended Sept. 30, “and all other required filings.”
It has been a tumultuous year for Super Micro. The maker of high-powered servers missed an August deadline to file the annual financial report and its auditor, Ernst & Young LLP, resigned in October, citing concerns about the company’s governance and transparency. Super Micro is also facing a US Department of Justice probe following a damaging report from short seller Hindenburg Research.
The shares jumped as much as 13% in extended trading on the announcement Friday after closing at $43.93 in New York. The stock reached a high of $118.80 in March on investor enthusiasm that Super Micro would benefit from the sale of its servers to power artificial intelligence workloads. But the shares fell to a low of $18.01 amid the accounting issues, the resignation of Ernst & Young and the risk of delisting.
The extension “can give the company the necessary time to file its 10-K and 10-Q reports before the deadline,” wrote Woo Jin Ho, an analyst at Bloomberg Intelligence.
In November, Super Micro appointed BDO USA as its independent auditor and submitted a plan to come into compliance with Nasdaq rules. Earlier this week, Super Micro said an independent review of its business found no evidence of misconduct but recommended the appointments of new top financial and legal leadership.
Super Micro said in a statement Friday that it plans to file the financial documents by the Feb. 25 deadline.
(Updates with share price reaction in fourth paragraph.)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
Source link
