Super Micro Computer (NASDAQ:SMCI) is a San Jose, California-based company that is engaged in the development and manufacture of high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and around the world. Shares of Super Micro Computer were down 17% in early morning trading on Wednesday, August 28, 2024. The stock was down 35% month-over-month at the time of this writing.
Shares of Super Micro were hit hard after the company announced that it would be forced to delay the filing of its annual report for the fiscal year ended June 30, 2024. “Additional time is needed for SMCI’s management to complete its assessment of the design and operating effectiveness of its internal controls over financial report,” said SMCI representatives.
This comes after Hindenburg Research disclosed a short position in Super Micro, alleging “accounting manipulation” at the company. Super Micro Computer has been a significant beneficiary of the artificial intelligence (AI) boom.
Earlier this month, Super Micro released its fourth quarter (Q4) and full year fiscal 2024 earnings. In Q4 2024, the company reported net sales of $5.31 billion compared to $2.18 billion in the prior year. It posted net income of $353 million or $5.51 per diluted common share – down from $402 million or $6.56 diluted EPS in the previous quarter.
Despite the recent setback, Super Micro is still on track to deliver strong earnings going forward.