Tremendous Micro will get Nasdaq extension and might file monetary studies by February

The Super Micro Computer headquarters in San Jose, California, on December 3, 2024.

David Paul Morris | Bloomberg | Getty Images

Embattled server manufacturer Super microcomputer announced Friday that it had received an extension from Nasdaq giving the company until February to maintain its listing on the exchange.

The stock rose 7% in extended trading.

Super Micro faced the threat of delisting from the Nasdaq as the company has yet to file audited year-end financials for the last fiscal year and is also behind on its quarterly results. Following Friday's announcement, Super Micro has until at least February 25 to submit and accept its filings with the U.S. Securities and Exchange Commission.

“The Company’s common shares will remain listed on the Nasdaq Global Select Market during the exemption period,” Super Micro said in a press release. “If the company files all required reports by February 25, 2025, the common shares will remain listed as long as the company complies with Nasdaq’s listing rules.”

Super Micro said it expects to file the reports on time.

Super Micro's stock has been at risk of delisting in recent months after a huge rally. Sales have increased significantly because Super Micro is one of the top providers Nvidia-based computer clusters for artificial intelligence. Super Micro expects fiscal 2025 revenue to grow about 67% to about $25 billion.

In October, Ernst & Young resigned as the company's auditor and Super Micro appointed BDO to the position last month. The company's reputation also took a hit in August after activist investor Hindenburg Research disclosed a short position and accused Super Micro of balance sheet manipulation.

On Monday, Super Micro said it had completed an internal investigation overseen by a board member that found no evidence of wrongdoing. The company also said at the time that it planned to replace Chief Financial Officer David Weigand and that it had appointed a new head of accounting.

Super Micro's shares rose more than 14-fold from the end of 2022 to their peak in March this year, when they were added to the S&P 500. Since then, the stock has lost about 60% of its value.

The Nasdaq delisting process can take about a year, depending on deadlines and appeals. Super Micro was delisted back in 2018.

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