In what is a manifest victory for Super Micro Computer (NASDAQ: SMCI) bulls, the embattled retailer of high-performance servers and liquid-cooled AI racks has managed to successfully evade a possible delisting for now, paving the way for the company's intrinsic strength to gradually start exercising some much-needed influence on the battered stock.
To wit, Super Micro Computer has now made public the following development via a new filing with the SEC:
"On December 6, 2024, Super Micro Computer, Inc. (the “Company”) received a letter (the “Letter”) from the Nasdaq Stock Market (“Nasdaq”) informing the Company that Nasdaq has granted the Company’s request for an exception to Nasdaq’s Listing Rule 5250(c)(1) through February 25, 2025."
The company went on to note:
"The exception gives the Company until February 25, 2025 to file its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, its Quarterly Report on Form 10-Q for the period ended September 30, 2024 and any other required filings."
In the interim, Super Micro Computer shares will "remain listed on the Nasdaq Global Select Market."
As a refresher, Hindenburg Research had leveled damning allegations against Super Micro Computer back in August, detailing a litany of malpractices at the firm that ranged from distribution channel stuffing and partial shipments to the re-hiring of top executives that were found responsible for accounting violations, resulting in a $17.5 million settlement with the SEC. Hindenburg Research also alleged that a material proportion of SMCI's sales came from non-arm's-length suppliers such as Ablecom and Compuware.
Those allegations had then prompted the firm to delay the filing of its annual report for FY 2024 and the quarterly financial statements for Q1 2025. The Nasdaq exchange then concluded that this inordinate delay was inconsistent with its listing requirements. Meanwhile, SMCI had submitted a plan that would see the company regain compliance with Nasdaq's listing requirements in due course. That plan has now been accepted by the Nasdaq exchange.
Meanwhile, as we reported recently, Super Micro Computer's board had constituted a special committee to investigate the allegations leveled by Hindenburg Research. That committee recently formalized its recommendations, which included a call to induct a new CFO and replace the company's Chief Accounting Officer. Note that SMCI's special committee did largely exonerate its executives from any wrongdoing.
In line with those recommendations, Super Micro Computer announced in early December that it will replace its current CFO, David Weigand, and has already appointed Kenneth Cheung as the company’s Chief Accounting Office.
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