Super Micro Computer Inc. (NASDAQ: SMCI), a company that specializes in artificial intelligence, said Wednesday it needed more time to file the annual report.
The Nasdaq listed firm said today that it needs more time to “complete an assessment of the design of its internal controls and their operating effectiveness over financial reporting”.
The announcement came only a few days after Hindenburg accused SMCI, among other things, of accounting manipulation.
The SMCI share price is now down by more than 65% compared to its mid-March high for the year.
SMCI has faced accounting issues in the past
SMCI plans to file Form 12b-25 for a non-timely NT Annual Report with the US Securities & Exchange Commission on August 30 thTHE STREET
Super Micro Computer, as a large accelerated filer, must file its annual reports within 60 days of the end of its financial period. The NT 10-K will earn it a 15 day extension from the US regulator.
Supermicro is not immune to accounting-related problems. In 2020, the computer products company settled an investigation into financial accounting for $17.5 millions.
SMCI’s stock has been under pressure since it failed to meet profit expectations for its fourth quarter on August 6 th.
The announcement of the 10-for-1 split has not yet been able to provide a floor for its share price.
Hindenburg discloses its short position in Supermicro shares
Hindenburg Research announced a large short position in SMCI last week, following a three month investigation that uncovered “glaring red flags” and “evidence of undisclosed transactions with related parties, sanctions and failures to export control, as well as customer issues.”
The activist short seller learned from a former employee that Supermicro has rehired nearly all of the senior executives it fired as part of the settlement it reached with the SEC back in August 2020.
Even after the SEC settlement, salespeople were still under pressure to meet quotas. They would clog up the channel by using partial shipments and shipping defective products at quarter-end.
In its report published this week, the investment research firm called Super Micro Computer “a serial recidivist”. Wall Street continues rating SMCI shares “overweight” despite recent developments. Analysts expect a rise to $773, which is a 90% increase.
This post SMCI Stock Drops Another 25% as Super Micro Computer Delays 10-K Filing may be updated as new developments unfold.
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