Supermicro Computers CEO Charles Liang attends the AMD Advancing AI event on December 6, 2023 in San Jose, California.
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Stock Super Microcomputer The company's shares fell more than 23% on Wednesday. Announced The company will not file its annual report for that fiscal year with the Securities and Exchange Commission by the deadline.
““SMCI is unable to file its annual report within the required time frame without undue effort or expense,” the company said in a statement. “Additional time is needed for SMCI's management to complete its evaluation of the design and operating effectiveness of its internal control over financial reporting as of June 30, 2024.”
Supermicro makes computers that companies use as servers for websites, data storage, artificial intelligence algorithms and other applications. Its customers include some of the biggest names in the AI industry, including Nvidia, AMD and Intel.
The company's shares have risen more than 47% so far this year, but investors were spooked on Tuesday when Hindenburg Research revealed short positions in the company. Hindenburg said it had found “new evidence of accounting manipulation.” ReportCNBC was not able to independently verify Hindenburg's claims, and it is unclear whether the delay in Supermicro's annual report is related to Hindenburg's findings.
JPMorgan analysts believe some of Hindenburg's claims are “difficult to verify” and that the report “contains few details about the company's alleged wrongdoing.”
Still, analysts said Supermicro, which has grown rapidly due to demand for its AI servers, still has room for improvement when it comes to communicating with investors and establishing clear governance and transparency.
““Drilling into the details of the report, we believe there is limited evidence of accounting fraud beyond a reexamination of the SEC's 2020 charges, as well as limited new information regarding existing, known business relationships with affiliates owned by the brothers of SMCI's founders,” the analysts wrote in a Tuesday note.
— CNBC's Michael Bloom contributed to this report.
