Super Micro Computer shares rallied 19% after the AI server company filed its delayed financial results by the Nasdaq’s deadline.
The company’s auditor BDO wrote in the filing that the consolidated financial statements for the fiscal year ending June 30, 2024, “present fairly, in all material respects, the financial position of the Company” and are “in conformity with accounting principles generally accepted” in the U.S.
The company also filed audited financial results for the first two quarters of the fiscal 2025 year and said in a release that it has “regained compliance” with the Nasdaq’s filing requirements.
For the fiscal year, Super Micro said its sales more than doubled to $14.99 billion from $7.12 billion in 2023. Net income came in at roughly $1.15 billion, up from nearly $640 million in 2023.
In an attached note from management, Super Micro said it had identified material weaknesses in internal controls over financial reporting. That includes information technology issues, a lack of documentation over manual journal entries and insufficient controls to address segregation of staff duties. Super Micro said it plans to hire additional accounting and audit employees, and to upgrade IT systems.
Super Micro said in the filing that it still faces risks, including potential litigation, lower credit ratings and reputational harm associated with its late financial reports.
Demand for Super Micro’s servers packed with Nvidia graphics processing chips has accelerated amid the AI boom that’s swept the technology community since the launch of ChatGPT. However, trouble began last year as Hindenburg Research revealed a short position, the company delayed releasing its annual report, and its auditor quit due to governance concerns.
Fears of a potential delisting from the Nasdaq added further pressure to Super Micro’s stock in recent months, with shares down 48% on a year-over-year basis. Volatility continued into Tuesday’s release, with shares closing down nearly 12%.
In December, the company removed its chief financial officer and said a review found “no evidence of misconduct.” Earlier this month, CEO Charles Liang said he was “confident” that the company would meet the Feb. 25 deadline to file its results with the U.S. Securities and Exchange Commission.
— CNBC’s Kif Leswing contributed reporting.