Super Micro Computer, Inc. to Delay Form 10-K Filing for Fiscal Year 2024

Rhea-AI Summary

Super Micro Computer (NASDAQ: SMCI) has announced a delay in filing its Annual Report on Form 10-K for the fiscal year ended June 30, 2024. The company expects to file a Notification of Late Filing on Form 12b-25 on August 30, 2024. SMCI cites the need for additional time for management to complete its assessment of internal controls over financial reporting as of June 30, 2024. The company has not made any updates to its previously announced results for the fiscal year and quarter ended June 30, 2024, which were released on August 6, 2024. This delay suggests potential challenges in SMCI's financial reporting processes.

Positive

• None.

Negative

• Delay in filing Annual Report on Form 10-K
• Additional time needed for internal controls assessment
• Potential issues with financial reporting processes

Insights

Financial Analyst

The delay in filing SMCI's Form 10-K is a significant red flag for investors. This situation often indicates potential issues with financial reporting or internal controls, which could lead to restatements or regulatory scrutiny. While SMCI hasn't updated its previously announced results, the need for additional time to assess internal controls suggests possible material weaknesses.

Investors should be cautious as this delay may impact SMCI's compliance with NASDAQ listing requirements. If the company fails to file within the grace period, it risks delisting. Moreover, such delays can erode investor confidence and potentially affect the company's ability to raise capital or engage in strategic transactions. The market often reacts negatively to such news, so we might see increased volatility in SMCI's stock price in the short term.

Legal Expert

This delay raises potential legal and regulatory concerns. By not filing the 10-K on time, SMCI may face scrutiny from the SEC, which could lead to investigations or enforcement actions. Shareholders might also consider legal action if they believe the delay has caused financial harm.

The company's statement about needing more time to assess internal controls suggests possible Sarbanes-Oxley Act compliance issues. This could result in significant legal and financial consequences if material weaknesses are identified. Investors should watch for any subsequent disclosures about the nature of these control issues and any remediation plans. The lack of updates to previously announced results is somewhat reassuring, but the situation remains precarious from a legal standpoint.

Corporate Governance Expert

This filing delay signals potential weaknesses in SMCI's corporate governance structure. Effective internal controls are important for accurate financial reporting and fraud prevention. The need for extended assessment suggests that the company's board and audit committee may not have been providing adequate oversight.

Investors should scrutinize SMCI's upcoming disclosures for any changes in key personnel, especially in finance and accounting roles. It's also worth monitoring for any auditor changes or disagreements. The company's ability to quickly resolve these issues and implement robust controls will be critical. This situation may lead to increased pressure from institutional investors for governance reforms, potentially including board refreshment or enhanced risk management processes.

SAN JOSE, Calif.--(BUSINESS WIRE)-- Super Micro Computer, Inc. (NASDAQ: SMCI) (“SMCI” or the “Company”), a Total IT Solution Provider for AI, Cloud, Storage and 5G/Edge, today announced that it expects that it will not timely file its Annual Report on Form 10-K for the fiscal year ended June 30, 2024 (the “Annual Report”) and expects to file a Notification of Late Filing on Form 12b-25 with respect to the Annual Report on August 30, 2024. SMCI is unable to file its Annual Report within the prescribed time period without unreasonable effort or expense. Additional time is needed for SMCI’s management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024. SMCI has not made updates to its results for the fiscal year and quarter ended June 30, 2024 that were announced in SMCI’s press release dated August 6, 2024.

About Super Micro Computer, Inc.

Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first to market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions Provider with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enable our development and production, enabling next generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

Cautionary Statement Regarding Forward-Looking Statements

Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may relate to, among other things, the expected late filing of the Annual Report and the expected filing of a Notification of Late Filing on Form 12b-25 and the timing thereof. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause SMCI’s actual results to differ materially from those anticipated. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in SMCI’s filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings, particularly in SMCI’s Annual Report on Form 10-K for its fiscal year ended June 30, 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240828945654/en/

Investor Relations Contact:

Nicole Noutsios

email : ir@supermicro.com

Source: Super Micro Computer, Inc.

FAQ

Why is Super Micro Computer (SMCI) delaying its Form 10-K filing for fiscal year 2024?

SMCI is delaying its Form 10-K filing for fiscal year 2024 because management needs additional time to complete its assessment of the design and operating effectiveness of internal controls over financial reporting as of June 30, 2024.

When does SMCI expect to file the Notification of Late Filing on Form 12b-25?

SMCI expects to file the Notification of Late Filing on Form 12b-25 on August 30, 2024.

Has SMCI updated its financial results for the fiscal year and quarter ended June 30, 2024?

No, SMCI has not made any updates to its results for the fiscal year and quarter ended June 30, 2024, which were originally announced in a press release dated August 6, 2024.

What potential impact could the delay in filing Form 10-K have on SMCI's stock (NASDAQ: SMCI)?

The delay in filing Form 10-K could potentially impact investor confidence and SMCI's stock price, as it may raise concerns about the company's financial reporting processes and internal controls.