Super Micro stock slides despite CEO’s attempt to dispel fears of Nasdaq delisting

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Super Micro stock slides despite CEO’s attempt to dispel fears of Nasdaq delisting

Super Micro Computer (SMCI) stock fell as much as 11% Wednesday, extending the prior day’s decline despite an apparent attempt from its CEO to dispel fears of the stock’s potential delisting by the Nasdaq.

Shares closed the trading day down 5.5%.

At the Reuters Next conference Tuesday, CEO Charles Liang

This is the hidden content, please

• Sign In
• or
• Sign Up

and that the company will meet its new deadline by the Nasdaq to submit delayed filings to the US Securities and Exchange Commission.

“Super Micro is dedicated to transparency and compliance with its regulators,” Liang reportedly said during the Tuesday fireside chat.

Shares had started the week under pressure after JPMorgan analyst Samik Chatterjee on Monday maintained an Underweight rating on the stock. Despite that rating, the analyst did highlight some potentially encouraging trends of the business.

Chatterjee wrote that, in his recent meeting with Super Micro executives, the company “dispelled concerns about shutting down operations in Malaysia.” He said the company’s expansion of operations there should “contribute positively to gross margins.” Chatterjee added that Super Micro said its customer base remains strong, with no signs of customers moving orders to other vendors, despite market speculation.

CEO of Supermicro Charles Liang speaks during the Reuters NEXT conference in New York City, U.S., December 10, 2024. REUTERS/Mike Segar · REUTERS / Reuters

Super Micro has been grappling with the fallout from an August

This is the hidden content, please

• Sign In
• or
• Sign Up

by short seller firm Hindenburg Research, which accused the company of accounting malpractices, violations of export controls, and questionable relationships between top executives and Super Micro partners.

Following the Hindenburg report, Super Micro delayed filing its annual 10-K and most recent quarterly 10-Q reports to the Securities and Exchange Commission, putting the company at risk of being delisted from the Nasdaq.

Super Micro is reportedly being

This is the hidden content, please

• Sign In
• or
• Sign Up

in connection with the alleged accounting violations. The server maker’s accountant Ernst & Young resigned in late October, saying it was unwilling to be associated with the financial statements prepared by company management. And Super Micro’s fiscal first quarter earnings report on Nov. 5

This is the hidden content, please

• Sign In
• or
• Sign Up

.

Things began to look up for the server maker in late November after it submitted a compliance plan to the Nasdaq, fueling a massive rally. Even with the past two days’ declines, SMCI is up 65% from last month.

The company last week said an independent review of its business found no evidence of fraud or misconduct, sending shares up nearly 30% in a single day. The Nasdaq last Friday

This is the hidden content, please

• Sign In
• or
• Sign Up

, giving the company until Feb. 25 to submit its delayed reports to the SEC to avoid delisting.

Story Continues

This is the hidden content, please

• Sign In
• or
• Sign Up

#Super #Micro #stock #slides #CEOs #attempt #dispel #fears #Nasdaq #delisting

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up