Super Micro Computer (SMCI) has filed a Form NT 10-Q with the Nasdaq exchange, requesting an extension to file its annual report for the fiscal year ending June 30, 2024. The company is seeking to avoid a potential delisting after missing the November 16th deadline.
Following the resignation of its auditor, Ernst & Young (EY), in October, SMCI cited the need to engage a new auditor and complete a comprehensive audit as reasons for the delay. The company outlined the following justifications for its request:
- Time to select and engage a new audit firm.
- Time for management to assess internal controls over financial reporting.
- Time for the new auditor to conduct the audit of FY2024 and Q1 2025 financial statements.
The Nasdaq exchange will now determine whether to grant SMCI's request for additional time or proceed with a formal delisting.
SMCI's troubles began in August with allegations of malpractice by Hindenburg Research, including channel stuffing, partial shipments, and questionable relationships with suppliers. These allegations prompted a delayed annual report, EY's resignation, and a preliminary investigation by the Department of Justice (DOJ).
Furthermore, SMCI's CEO, Charles Liang, recently admitted difficulties securing sufficient supplies of NVIDIA chips, a key component for their products. This suggests a potential strain on the relationship between SMCI and NVIDIA, its third-largest customer.
This is not investment advice. The author has no position in any of the stocks mentioned.
