(Bloomberg) — Super Micro Computer Inc. gained more than 20% in extended trading after it submitted outstanding financial reports to become compliant with Nasdaq Inc. rules, easing concerns risks that the server maker would be delisted.
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The company reported its 2024 fiscal year results Tuesday in a filing with the Securities and Exchange Commission. Separately, it filed financial statements for the quarters ended Sept. 30 and Dec. 31.
“While we filed all of the delinquent reports on or before Feb. 25, 2025, we expect to continue to face many of the risks and challenges related to previously being delinquent in our SEC reporting obligations,” Super Micro said.
The shares climbed to a high of $56.45 in late trading after closing at $45.54 in New York. Investors had grown anxious as the deadline approached — the stock had slipped 24% between Feb. 19 and Tuesday’s close.
Super Micro was trying to avoid a delisting after missing an August 2024 deadline to file its annual financial report for the year that ended June 30. The company’s auditor, Ernst & Young LLP, resigned in October, citing concerns about governance and transparency. Super Micro is also facing a US Department of Justice probe following a report from short seller Hindenburg Research.
Nasdaq had extended Super Micro’s deadline to Tuesday to provide the delayed filings and become compliant with listing rules. In December, Super Micro said an independent review of its business found no evidence of misconduct, but the company pledged to install a new chief financial officer and other top executives.
Super Micro, in a statement separate from the filings, said it “has received correspondence from the Nasdaq staff that the company has regained compliance with the filing requirements, and the matter is now closed.”
In the fiscal-year report, Super Micro said it had concluded that internal controls over financial reporting weren’t effective, and it has “initiated remediation measures.” Still, Super Micro warned that it may “fail to remediate material weaknesses in our internal control over financial reporting.”
Super Micro also highlighted potential risks including failing to “recapture lost businesses or business opportunities due to ongoing reputational harm.” Earlier this month, Chief Executive Officer Charles Liang said that there had been some negative business impacts due to the filing delays.
