Monday premarket trading Monday saw sharp bumps in Super Micro Computer (SMCI, Financial) stock, following the company's announcement that Nasdaq had granted an extension to satisfy listing requirements. The Nasdaq letter gave the server manufacturer until February 25 to submit its delayed annual report for the fiscal year ending in June, therefore sidestepping a possible delisting.
The company's accounting policies have come under close examination, which resulted in the delay in the report and violations of Nasdaq guidelines. Super Micro Computer said that should the report be sent in by the
extended date, it will avoid delisting.
The corporation revealed last week results from an outside probe that cleared audit committee and top management of wrongdoing. The inquiry also questioned the claims made by Ernst & Young, the company's former auditor, who quit claiming reluctance to be connected to the financial statements.
Over the past year, Supermicro's stock has been quite erratic; it reached its lowest point last month from May 2023. But shares have recovered strongly, rising more than 50% this year, with an 80% increase over the past month and an 11% increase over the past five days.
