Breaking News: Super Micro Slides on 10-K Delay Following Hindenburg Report
Date: March 12, 2023
Category: Technology, Finance
In a shocking turn of events, Super Micro Computer Inc. (Nasdaq: SMCI) has announced that it is delaying the filing of its 10-K annual report, citing the ongoing controversy surrounding the recent Hindenburg Research report. This news has sent shockwaves through the tech world, with investors scrambling to understand the implications on the company’s future.
Background
On March 2, 2023, Hindenburg Research, a short-selling firm known for its in-depth research on embattled companies, published a damning report accusing Super Micro Computer Inc. of hiding details about its Chinese supply chain and fabrication facilities. The report alleged that Super Micro had failed to adequately disclose the potential risks associated with its partnerships with Chinese companies, sparking concerns about potential security breaches and intellectual property theft.
Today’s Announcement
In a statement released early this morning, Super Micro announced that it is delaying the filing of its 10-K annual report, which is due by March 15, 2023. The company cited the ongoing controversy surrounding the Hindenburg report as the primary reason for the delay.
"We are deeply disturbed by the false and misleading allegations made by Hindenburg Research and are fully cooperating with regulatory authorities to provide accurate information," said Jack P. Perkowski, Chief Executive Officer of Super Micro Computer Inc. "We are committed to ensuring transparency and providing our stakeholders with clear and accurate information about our business operations and supply chain."
Market Reactions
The news has sent shockwaves through the tech world, with shares of Super Micro Computer Inc. plummeting over 20% in pre-market trading. The company’s stock is now down over 30% for the year, as investors grow increasingly nervous about the potential risks associated with the ongoing controversy.
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Related Articles
- Super Micro Denies Allegations of Chinese Supply Chain Risks (February 28, 2023)
- Hindenburg Research Criticizes Super Micro Over Chinese Ties (February 25, 2023)
- Will Super Micro’s Delayed 10-K Report Spell Trouble for Investors? (March 10, 2023)
Stay tuned for further updates on this developing story as more information becomes available.
Disclaimer: The information provided in this article is for general information purposes only and is not intended to be investment advice or advice of any kind.
Super Micro Computer Inc. announced a delay in filing its annual financial disclosures for FY 2024, causing the stock to experience its largest intraday decline in nearly six years. The server maker, based in San Jose, California, stated that it needs additional time to evaluate the design and operating effectiveness of its internal controls over financial reporting, according to a filing released Wednesday morning.
This delay follows a critical report by Hindenburg Research, a short-seller, which accused Super Micro of having “glaring accounting red flags,” undisclosed related party transactions, and other compliance issues. The company noted that it hasn't updated its results for the previously reported fiscal year and quarter, adding to investor concerns.
Shares of Super Micro plummeted as much as 26%, marking the biggest single-day drop since October 9, 2018. The company's stock had been performing well, driven by surging demand for its high-powered servers amid the artificial intelligence boom, with shares more than tripling last year and rising 92.6% this year through Tuesday’s close.
Super Micro previously settled an investigation with the U.S. Securities and Exchange Commission in 2020, correcting financial statements for fiscal years 2014-2017 and paying a penalty. With this recent filing delay, Bloomberg Intelligence analyst Woo Jin Ho suggested that there may still be unresolved governance issues within the company.
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This delay in filing definitely raises some red flags, especially following the Hindenburg report. A 26% drop is huge, and it’s clear investors are spooked by the potential governance issues. It’ll be interesting to see how Super Micro addresses these concerns moving forward, but it’s not a good look for a company that’s been riding the AI boom. How do you think this will impact their long-term prospects?