Supermicro avoids Nasdaq delisting with last-minute financial filing

Supermicro said it filed on Feb. 25 with the U.S. Securities and Exchange Commission (SEC) restated and audited financial statements for its fiscal year 2024 ending June 30, 2024, and the first two quarters of fiscal year 2025, meeting a Nasdaq deadline. Failure to meet the exchange’s requirement to provide audited financial statements by Feb. 25 would have resulted in the company being delisted.

Following the filing, Supermicro shares jumped 22% in extended trading, CNBC reported. “In our opinion, the consolidated financial statements present fairly, in all material respects, the Company’s financial position as of June 30, 2024,” BDO, Supermicro’s new auditor, said in a statement, emphasizing that the results “are in accordance with generally accepted accounting principles” in the United States. Supermicro noted that it had met its SEC filing obligations. There were no restatements of previously filed financial data, and Nasdaq confirmed that the company “has regained compliance with the reporting requirements and the matter is now closed.”

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Charles Liang, the company’s founder, president, and CEO, called the filing an important milestone because Supermicro can now focus on executing its “proven, winning growth strategy through technology, product and solution innovation, time-to-market advantage, global presence, and green computing.” At the same time, the company acknowledged that material weaknesses in its internal controls over financial reporting were identified, so it will expand its accounting and audit staff and modernize its IT systems.

Supermicro also said that a special committee formed by the board to review the financial statements found that auditors Ernst & Young’s refusal to review the statements had no factual basis. In December, the company said the committee found “no evidence of wrongdoing.” At the same time, Supermicro began searching for a replacement for David Weigand as CFO. The search has so far been unsuccessful.

According to the company’s updated and audited financial statements, its sales more than doubled in fiscal 2024 to $14.99 billion. The company said it still faces challenges related to the delays in filing financial reports, including litigation, reputational damage and potentially lower credit ratings. After falling last year, Supermicro shares have begun to regain their previous price. Before Tuesday’s surge, they were up 52% ​​year-to-date.