By Mackenzie Tatananni, Elsa Ohlen, Tae Kim, and Adam Levine

Super Micro Computer filed its delayed 10-K late Tuesday. Shares of the AI server maker were up 23% in after-hours trading.

In the 10K, accounting firm BDO said it had audited Super Micro's consolidated financial statements for the year ending June 30, 2024 and found they "present fairly, in all material respects, the financial position of the Company" for that period.

BDO said it had an "adverse opinion" of the company's internal financial control.

"In our opinion, the Company did not maintain, in all material respects, effective internal control over financial reporting as of June 30, 2024," BDO said.

Super Micro didn't immediately respond to a request for comment about BDO's "adverse opinion."

SuperMicro's newly filed operating statement for fiscal 2024 underwent some changes from its preliminary report issued in August. Revenue for the fiscal year ended June 30 was 0.3% higher than in the preliminary reporting, while net income was revised down by 4.6%. The Nasdaq had set Tuesday as the deadline for the company to file its financials for the full fiscal year that ended on June 30 and the three months that ended on September 30. Super Micro faced a delisting from the Nasdaq if it didn't comply.

The company had delayed filing its financial results in August after short seller Hindenburg Research issued a report that alleged multiple issues including so-called "accounting red flags."

Super Micro denied any wrongdoing in a securities filing, asserting that the Hindenburg report contained "false or inaccurate statements about our company including misleading presentations of information."

Nasdaq granted the company an extension to file its results after its former auditor Ernst & Young resigned in October, citing "an unwillingness to be associated with the financial statements prepared by management." Super Micro appointed BDO as its new auditor the following month.

In an update to investors on Feb. 11, Super Micro said it is working "diligently" toward filing the results and believed it would meet today's deadline.

This isn't the first time Super Micro has fallen out of compliance with the Nasdaq. The stock was delisted from the exchange in August 2018 for delaying the filing of financial reports. It was then listed again in January 2020.

Shares of Super Micro tumbled 11.8% to $45.54 on Tuesday ahead of the deadline.

However, shares are still up more than 50% since the start of this year, an indication that the former AI darling still has some investors' confidence.

Prior to Super Micro's filing late Tuesday, Chris Manderson, chair of the corporate department at the law firm Ervin Cohen & Jessup, had said that a delisting isn't a "death sentence for the company." However, it could have weighed on Super Micro's market capitalization and fundraising prospects.

"The major institutional investors generally will not hold anything that's not listed on Nasdaq and New York Stock Exchange," Manderson said. "They're often not allowed to, due to their investment guidelines. And they will dump the stock because they can't hold it."

The timeline for a relisting isn't quick, either.

"Regaining approval can take several months or longer, cost hundreds of thousands of dollars, and is up against serious scrutiny from Nasdaq and regulators," Manderson said.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com and Elsa Ohlen at elsa.ohlen@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 25, 2025 17:46 ET (22:46 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.