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In an ominous development for Super Micro Computer (NASDAQ: SMCI) bulls, the company has been officially informed of its non-compliance with Nasdaq listing rules.
SUPER MICRO COMPUTER: RECEIVED LETTER FROM NASDAQ THAT CO IS NOT IN COMPLIANCE WITH NASDAQ LISTING RULE 5250(C)(1)
— First Squawk (@FirstSquawk) November 20, 2024
To wit, as per the reports that are just trickling in, Super Micro Computer has received an official letter from the Nasdaq exchange, wherein the company was found "not in compliance with Nasdaq listing rule 5250(C)(1)."
In the accompanying filing with the SEC, Super Micro Computer has disclosed:
"On November 19, 2024, the Company received a notification letter (the “Letter”) from the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1), as a result of the Company’s delay in filing its Quarterly Report on Form 10-Q for the period ended September 30, 2024 (the “Q1 2025 Form 10-Q”) and its continued delay in filing its Annual Report on Form 10-K for the period ending June 30, 2024 (the “2024 Form 10-K”)."
SMCI goes on to note:
"The Letter has no immediate effect on the listing or trading of the Company’s common stock on the NASDAQ Global Select Market."
As we noted earlier this week, Super Micro Computer recently appointed BDO USA as the new auditor. Moreover, the company also submitted a compliance plan to the Nasdaq stock exchange on Monday "to support its request for an extension of time to regain compliance with the Nasdaq continued listing requirements."
As we've repeated ad nauseam, Super Micro Computer's latest string of bad luck began in August when Hindenburg Research published a damning report, detailing a litany of malpractices at the firm.
In response to this explosive report, Super Micro Computer delayed the filing of its annual report for FY 2024, presumably in a bid to undertake a comprehensive internal review. Do note that under the prevailing statutory requirements, SMCI's annual report had to be filed by the 30th of August.
Coming back, Super Micro Computer has yet to receive a response from Nasdaq to its compliance plan that was submitted earlier this week. We've received the following response from SMCI:
"Nasdaq received our compliance plan as you reported but have not taken any action; it’s under review."
Note: An earlier version of the article erroneously implied that Super Micro Computer's compliance plan had been rejected by Nasdaq. This error has now been corrected.
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