Super Micro Computer stock jumps after Nasdaq extension on listing rules

Investing.com -- Super Micro Computer (NASDAQ:SMCI ) announced on Friday that it has received an extension from Nasdaq, giving the company until February to resolve its compliance issues and maintain its listing.

The company now has until February 25, 2025, to file its outstanding financial reports with the US Securities and Exchange Commission (SEC).

SMCI shares jumped more than 9% in premarket trading Monday.

Super Micro’s delay in submitting audited year-end financials for the last fiscal year, along with overdue quarterly results, had put it at risk of being delisted.

“The Company’s common stock will remain listed on the Nasdaq Global Select Market during the exception period,” SMCI stated 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.”

The AI server maker said it expects to meet the new deadline.

The threat of delisting has coincided with a significant rally in SMCI stock, driven by its role as a leading supplier of Nvidia-based computer clusters for AI. The company expects to see a 67% increase in revenue, reaching approximately $25 billion in fiscal 2025.

Super Micro’s challenges have included the resignation of Ernst & Young as its auditor in October, with BDO stepping into the role last month. Moreover, its reputation suffered after Hindenburg Research accused the company of accounting manipulation in August. The activist investor disclosed a short position in the stock at the time.

Last week, Super Micro announced the results of an internal investigation overseen by a board member, which found no evidence of wrongdoing. The company also disclosed plans to replace Chief Financial Officer David Weigand and confirmed the appointment of a new accounting chief.

Source: Investing.com