Super Micro confirms it will postpone annual financial filings

(Bloomberg) – Super Micro Computer Inc. said it will not file its annual financial report while a special committee of the board reviews its internal controls, reaffirming a statement earlier this week that sent shares into their worst decline in nearly six years.

Most read from Bloomberg

The maker of computer servers said it would require “unreasonable effort or expense” to timely file its annual 10-K financial disclosures for the quarter and fiscal year ending June 30.

Super Micro first announced on August 28 that it would delay financial filings and confirmed its decision in a filing with the regulator on Friday. The San Jose, California-based company said a special committee is working hard to assess the effectiveness of its internal controls over financial reporting.

Earlier this week, short seller Hindenburg Research released a critical report claiming there were “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.”

Super Micro reiterated its assertion that it does not expect its annual financial filing to include any material changes to the results announced on August 6.

After Friday’s filing, shares gained about 2% in extended trading. Previously, the stock suffered its worst week since October 2018, falling 29% to $437.70 at the close in New York.

The company sells high-performance servers for data centers and has experienced an explosion in demand for its products amid the artificial intelligence boom, making its stock a benchmark for enthusiasm in the technology. Super Micro’s shares more than tripled last year.

–With help from Brody Ford.

Most read from Bloomberg Businessweek

©2024 BloombergLP