Super Micro Computer Expects to Avoid Nasdaq Delisting with Late Filings
Key Points:
* SMCI shares surge 5% premarket after announcing plans to submit delayed SEC filings by Feb. 25 deadline.
* SMCI's earnings miss estimates, with revenue guidance lowered for fiscal 2025.
* Company faces ongoing investigations and legal challenges, but denies misconduct allegations.
* Independent review finds no evidence of misconduct.
Details:
Super Micro Computer (SMCI) expects to submit its delayed annual and quarterly reports to the SEC by February 25, avoiding delisting from the Nasdaq. SMCI shares had plunged 19% after Tuesday's earnings announcement, which also revealed a revenue miss.
SMCI, a competitor to Dell (DELL) that uses Nvidia's (NVDA) Blackwell AI chips, said it is "working diligently" on the filings. The company had delayed submission following allegations of accounting violations by short-selling firm Hindenburg Research.
SMCI's preliminary second quarter earnings missed Wall Street estimates, with revenue expected between $5.6 billion and $5.7 billion versus the $5.95 billion forecast. The company lowered its revenue guidance for 2025 to $23.5-25 billion, down from $26-30 billion.
SMCI has faced controversies since the Hindenburg report, including a Justice Department probe into its accounting practices and the resignation of its accountant. The Nasdaq granted an extension to submit filings, with SMCI hiring a new accountant and conducting an independent review that found no misconduct.
Despite a recent upswing, SMCI shares reversed direction on Tuesday, falling 9% by day's end. The company confirmed subpoenas from the Justice Department and SEC following the Hindenburg allegations and said it is cooperating with requests.
SMCI also faces legal challenges, including securities litigation complaints and derivative suits, which it believes are without merit.