Super Micro has successfully filed its delayed financial results, avoiding the risk of being delisted from the Nasdaq. The server maker disclosed the identification of material weaknesses in its internal controls over financial reporting, which include IT issues, lack of documentation over manual journal entries, and insufficient controls to address segregation of staff duties. In response, Super Micro is bolstering its team by hiring additional accounting and audit employees while upgrading its IT infrastructure. The company's decisive actions resulted in a significant 19% surge in its stock during extended trading post-filing.
The recent financial filings cover Super Micro's fiscal 2024, ending in June, as well as the first two quarters of fiscal 2025. These filings not only met the Nasdaq listing deadline but also demonstrated a remarkable growth in sales, which more than doubled to $14.99 billion in fiscal 2024. Super Micro builds systems centered around Nvidia's GPUs and counts Elon Musk's xAI among its notable clientele.
Despite the positive outcomes, the company continues to face potential risks stemming from its late financial reports. These risks include possible litigation, reputational harm, and the threat of lower credit ratings. The company lost its former auditor, Ernst & Young, last year due to governance issues and has since engaged BDO as its new auditor. BDO expressed confidence in Super Micro's financial position.
"In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2024," – BDO
Super Micro's stock has shown resilience this year after recovering from a challenging nine months in 2023. Before Tuesday's surge, the stock had already increased by 52% in 2025. The recent developments further solidify Super Micro's standing on the Nasdaq and enhance investor confidence.