(Reuters) -Super Micro Computer said on Wednesday it would delay the filing of its September quarter financial report as the AI server maker looks for a new auditor amid a delisting threat after it failed to submit its annual report.
The company’s shares fell about 4% in premarket trading. The stock has fallen 55% since Ernst & Young resigned as auditor in October after previously raising concerns about the company’s governance, transparency and internal control over its financial reporting.
Earlier this month, the company said a special committee set up to investigate the issues raised by EY in late July had found no evidence of fraud.
Super Micro said Wednesday that it needs additional time to select and hire a new auditor, and that management must complete its review of internal controls over financial reporting by June 30, 2024.
The Nasdaq notified the company on September 17 of non-compliance with listing rules and it had 60 days to file its annual report or submit a plan to return to compliance.
A partner of leading chip makers like Nvidia and AMD, Super Micro’s shares rose more than threefold in 2023, making it one of the biggest beneficiaries of a rally in AI-linked stocks.
However, the shares have come under pressure this year due to concerns over accounting practices, with Hindenburg Research announcing a short position in August on the grounds of ‘accounting manipulation’.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Varun HK and Sriraj Kalluvila)
