Supermicro has met its February 25 SEC filing deadline, reducing the chance the company will be delisted from the Nasdaq in the near future.
The company filed an updated and audited financial report for FY24 and the first two fiscal quarters of 2025, having previously continuously delayed the filings. As a result of the meeting the deadline, its shares saw a 22 percent increase in value.
The server maker had previously been temporarily delisted in 2018 for failing to file financial statements, and in 2020 was fined by the SEC for “widespread accounting violations."
Earlier this month, Supermicro reported expected net sales for Q2 2025 to be in the range of $5.6-5.7 billion, a 54 percent year-over-year growth primarily driven by the demand for AI servers. While the newly filed 10-K form did not provide revised 2025 financials, FY24 revenue was reported as being 0.3 percent higher than previously reported, while net income was now down 4.6 percent.
In the filing, BDO – the auditor brought in by Supermicro to replace EY last year – wrote: “In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the company at June 30, 2024.”
“The company is now current with its SEC financial reporting obligations. There were no restatements of previously filed financial statements,” Suerpmicro said in a press release.
Supermicro announced it would be delaying its annual report in August 2024, having been forced to set up a special committee in July following concerns over its accounting practices, serious allegations from a short seller, and an ongoing investigation from the US Department of Justice.
While the committee reported in December 2024 that it found “no evidence of fraud or misconduct” on the part of management or the board, it did recommend Supermicro replace its CFO, a process which the company said it has started, with current CFO David Weigand retaining the role until a new candidate is found.
In the February 25 filing, Supermicro listed five “deficiencies” and “material weaknesses” it had identified in its internal control over financial reporting. These included issues with IT systems supporting the company’s financial reporting process; a failure to address the segregation of staff duties; and a lack of documentation over manual journal entries.
“The above material weaknesses could have increased the risk of unauthorized access to certain information technology systems that support our financial reporting processes, manipulation of data that we use to produce our financial statements, and/or lack of complete and accurate information, which could lead to financial misstatements and affect our ability to report our information on a timely basis,” the filing read.
The company added that while it has not yet “remediated any of those material weaknesses,” it was committed to doing so, and had hired additional accounting and audit staff, was conducting more training sessions for employees involved in the financial reporting process, and upgrading its IT systems.
