Super Micro Computer reported its delayed financial results on Tuesday, just ahead of the Nasdaq’s listing deadline, and shares jumped 22% in extended trading. The company filed updated and audited financials with the US Securities and Exchange Commission for fiscal 2024 and the first two quarters of fiscal 2025.
The filing addressed concerns over governance issues that led to Ernst & Young’s auditor quitting last year. Super Micro stated it has regained compliance with Nasdaq filing requirements and no longer faces delisting from the exchange.
However, the company acknowledged material weaknesses in internal controls over financial reporting, including IT issues and inadequate documentation. To address these issues, Super Micro plans to hire additional accounting and audit staff and upgrade its IT systems.
Despite governance concerns, Super Micro’s business has grown rapidly due to soaring demand for Nvidia’s graphics processing units (GPUs), used in artificial intelligence development. The company’s sales more than doubled in fiscal 2024 to $14.99 billion.
While the stock has rebounded this year from a tough 2023, it still faces risks related to late financial reports, including litigation and reputational harm.
Source: https://www.cnbc.com/2025/02/25/super-micro-files-financials-ahead-of-nasdaq-deadline-stock-pops-.html