Supermicro announced that it would not be able to file its fiscal year results with the Securities and Exchange Commission (SEC) on time, causing shares of the server hardware maker to plummet 19% by the close of trading. Hindenburg Research accused her of financial manipulation.
Image source: supermicro.com
«SMCI (Super Micro Computer, Inc.) will not be able to file its annual report within the prescribed period without unreasonable effort or expense. SMCI management requires additional time to complete an assessment of the plans and operating effectiveness of its internal controls over financial reporting as of June 30, 2024,” the company said in a press release.
Supermicro makes hardware that companies use as servers for websites, data storage and other applications, including artificial intelligence algorithms. Its clients include major players in the AI field, including Nvidia, AMD and Intel. The manufacturer’s shares are up more than 47% year to date, but on Tuesday investors were spooked by Hindenburg Research’s shorting of Supermicro as the financial research firm said it had found “new evidence of accounting manipulation.” There is no clarity yet on the connection between the delay in Supermicro’s annual report and Hindenburg’s announcement.
Some of Hindenburg’s claims are “difficult to verify” and its report is “largely devoid of detail about the company’s alleged misconduct,” JPMorgan said. Supermicro still has some catching up to do on investor relations, strong governance and transparency, especially given how quickly the company has grown in the AI boom, analysts said. “Diving into the details of the report, we believe there is little evidence of accounting irregularities beyond the SEC’s re-examination of the 2020 allegations and a small amount of new information about existing and known business relationships with related companies owned by the siblings of the SMCI founder,” it quotes CNBC research note.