Update:
Super Micro Computer has pulled through at the last minute by filing the requisite Form 10-K. Our readers can access the document here.
Super Micro Computer (NASDAQ: SMCI), a major retailer of servers and liquid-cooled AI racks, recently amended its loan covenants in a manner that seemed specifically designed to limit the fallout from a possible delisting.
Bear in mind that the Nasdaq exchange has given SMCI until the 25th of February to file its annual report for 2024 on the requisite Form 10-K. Should the company fail to file, it will face a likely delisting.
Nonetheless, as stated earlier, Super Micro Computer recently amended its loan covenants in a manner that looked like diligent preparation for a possible stock delisting.
SMCI's 2 convertible notes become immediately due for repayment in the case of a delisting. However, the company recently amended its loan covenants to posit that the notes won't become due for a repayment in the event of a stock delisting provided that Super Micro Computer is able to secure a buyout offer worth at least 90 percent of the company's market capitalization and payable in the form of shares of another company listed on the stock exchange.
Also, to discourage the holders of its convertible notes to call for a repayment in the case of a delisting, Super Micro Computer is now offering a "special dividend" if it fails to meet the Nasdaq exchange's 25th of February deadline.
As a refresher, Super Micro Computer has not filed its requisite financial statements with the SEC since August 2024, when a damning report from Hindenburg Research had alleged widespread financial malfeasance, prompting SMCI to halt all financial filing activity with the SEC in a bid to conduct an extensive internal control audit. SMCI suffered another major blow in October when Ernst & Young, the firm's designated auditor, unceremoniously resigned, citing concerns around corporate governance and the independence of the board.
Earlier in February, Super Micro Computer disclosed the preliminary earnings for its fiscal Q2'25, earning $5.65 billion in revenue for the pertinent quarter against expectations of $5.89 billion (LSEG consensus estimate), based on the midpoint of the stated range.
SMCI also reported a non-GAAP EPS of $0.59 vs. a consensus estimate of $0.54 per share, again based on the midpoint of the provided range.
Nonetheless, Super Micro Computer hiked its FY 2026 revenue guidance significantly, now expecting to earn $40 billion in full-year revenue vs. Wall Street's consensus estimate of just $29 billion.
According to Goldman Sachs, SMCI has a lot of spare production capacity to drive growth:
"The company believes it has sufficient production capacity across its global footprint to support its revenue outlook once components (i.e., GPUs) become available, with the current ability to produce 1,500 DLC racks per month & ample production headroom (Taiwan facility at ~60% utilization, US at ~55% utilization, Malaysia still ramping at ~1%)."
Coming back, it is not over until it is over. Super Micro Computer did announce previously that it would meet Nasdaq's filing deadline.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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