Super Micro Computer Faces Nasdaq Delisting Deadline, Reports Earnings Miss
Key Points:
* Super Micro Computer (SMCI) expects to file delayed SEC filings by February 25
* Company misses Wall Street revenue estimates for Q2
* SMCI shares initially dropped but later rebounded
* Nasdaq granted extension to submit filings due to accounting controversies
* DOJ and SEC investigating Super Micro's accounting practices
Company Update:
Super Micro Computer announced it is working towards submitting delayed annual and quarterly reports to the SEC by the Nasdaq's February 25 deadline to avoid delisting. The company had postponed submissions following allegations of accounting violations by Hindenburg Research.
Super Micro also reported preliminary second-quarter earnings below analysts' estimates. Revenue guidance for fiscal 2025 was revised down to $23.5-25 billion, from $26-30 billion.
Market Reaction:
SMCI shares initially plunged after the earnings release but quickly recovered. The stock was up over 3% by Tuesday's close.
Ongoing Controversies:
Super Micro faces an ongoing investigation by the US Department of Justice into its accounting practices. The company's former accountant resigned, and the Nasdaq initially threatened delisting.
Subpoenas and Litigation:
The company confirmed subpoenas from the DOJ and SEC related to the Hindenburg report allegations. Super Micro is also facing several securities lawsuits, which it claims are without merit.
Investor Outlook:
Super Micro's business remains under scrutiny amid ongoing controversies and regulatory investigations. Investors should monitor the company's progress in filing SEC reports and the outcome of the investigations.