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The Super Micro Computer Inc. headquarters in San Jose, California, US, on Tuesday, Dec. 3, 2024.
David Paul Morris | Bloomberg | Getty Images
Embattled server maker Super Micro Computer said on Friday that it received an extension from Nasdaq, giving the company until February to maintain its listing on the stock exchange.
The stock rose 7% in extended trading.
Super Micro has been facing the potential of being delisted from the Nasdaq because it’s yet to file audited year-end financials for the latest fiscal year and is also late with its quarterly results. With Friday’s announcement, Super Micro has until at least Feb. 25 to get its SEC filings submitted and accepted.
“The Company’s common stock will remain listed on the Nasdaq Global Select Market during the exception period,” Super Micro said in a press release. “If the Company files all the required reports by February 25, 2025, the common stock will remain listed, so long as the Company remains in compliance with Nasdaq’s listing rules.”
Super Micro said it expects to be able to file the reports by the deadline.
The risk of delisting has hung over Super Micro’s stock in recent months following a huge rally. Sales have surged because Super Micro is one of the top vendors for Nvidia-based computer clusters for AI. Super Micro says it expects sales growth of roughly 67% to about $25 billion in fiscal 2025.
In October, Ernst & Young resigned as the company’s auditor, and Super Micros named BDO to the position last month. The company’s reputation also took a hit in August after activist investor Hindenburg Research revealed a short position, and accused Super Micro of accounting manipulation.
On Monday, Super Micro said it had completed an internal probe overseen by a board member that had found no evidence of misconduct. The company also said at the time that it planned to replace CFO David Weigand, and that it had appointed a new accounting chief.
Super Micro shares soared more than 14-fold from the end of 2022 to their peak in March of this year, when it was added to the S&P 500. The stock has since lost about 60% of its value.
The Nasdaq delisting process can take about a year depending on deadlines and appeals. Super Micro was previously delisted from the exchange in 2018.
